Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — ESG Presentation (June 2022)
38 slides from Suzano's sustainability presentation, Jun 23, 2022
Slide 1: June 23rd 2022
JUNE 23 rd 2022
Slide 2: Towards a Regenerative Company for a Regenerative Society
Towards A Regenerative company for a regenerative society Walter Schalka
Slide 3: Corporate governance
Corporate governance
Slide 4: Corporate Governance latest steps on the journey
Executive Compensation Corporate Governance latest steps on the journey Policies Board of Directors C omposition ( 2022 - 2024) Diversity target of 30% with minimum 20% for BoD composition GENDER DIVERSITY (3 OUT OF 9) APPOINTMENT OF RISK EXPERT Board of Directors Nomination INDEPENDENT MEMBERS (5 O
Slide 5: Accountability
accountability
Slide 6: Stakeholders in the value chain
SUPPLIERS CUSTOMERS CUSTOMERS OF CUSTOMERS END USERS PRINT SHOPS BRAND OWNERS RETAILERS NGOs, Media, Think Tanks, Certifiers, Academy etc. Shareholders, banks, investors and analysts Local communities
Slide 7: Commitments to renewing life
Commitments to renewing life 15.8 19.1 22.5 2019 2020 2021 Industrial water (m 3 /ton) 29.8 29.4 28.6 26.3 2018 2019 2020 2021 Financial Instrument SPT check point SPT 1 SLB 2028 Average 2025 e 2026 26.1 SLB 2032 Average 2025 e 2026 26.1 Financial Instrument SPT check point SPT 1 SLB 2031 Average 20
Slide 8: Priority themes and materiality matrix
Priority themes 1. Climate Change 2. Biodiversity 3. Territorial Development 4. Water 5. Human Rights 6. Diversity and Inclusion 7. Supply Chain Management 8. Innovability materiality matrix External perspective: relevance to external audiences Internal : perspective: significance of impacts and str
Slide 9: Climate change
climate change
Slide 10: Stakeholders in the value chain
SUPPLIERS CUSTOMERS CUSTOMERS OF CUSTOMERS END USERS PRINT SHOPS BRAND OWNERS RETAILERS NGOs, Media, Think Tanks, Certifiers, Academy etc. Shareholders, banks, investors and analysts Local communities
Slide 11: Weather monitoring stations and robust databases
83 Own Automatic Weather Stations (AWA) 6 Flux Towers (C and H 2 0 monitoring) 96 Government AWAs (neighboring Suzano’s areas) ROBUST DATABASES We have a long history (+30 years) of weather monitoring Accumulated knowledge about climate tre nds and their impact on business
Slide 12: Accumulated knowledge about climate trends: technical partners
Accumulated knowledge about climate trends and their impact on business Technical PARTNERS Monitoring the phenomena to develop new tools Suzano’s environmental clusters (example of são paulo )
Slide 13: Accumulated knowledge about climate trends: global warming
Accumulated knowledge about climate trends and their impact on business Font: The World Economic Forum has used data from the Climate Impact Lab, Climate Central, the Washington Post, and NASA satellites to create a visualization* of this worst - case scenario that helps illustrate some projected im
Slide 14: Global warming effects on forest productivity
Accumulated knowledge about climate trend s and their impact on business Global Warming Effects on Forest productivity Running our models, we can understand impacts and which Suzano areas h ave the highest probability of being affected MIROC6 Model 2021 - 2040 Optimistic Scenario Pessimistic Scenari
Slide 15: Readiness to face current and future challenges
Readiness to face current and future challenges The largest private eucalyptus genetic base in the world High - intensity evaluation to assertively characterize clones resilient to climate adversity and tolerant to the main pests and diseases FORESTRY RESILIENCE Genetic materials Climate models High
Slide 16: Decarbonization Historic Journey
Decarbonization Historic Journey 16 0.220 0.210 0.200 0.190 0.180 0.170 0.160 .. . . Target Emissions curve tCO 2 eq (Scope 1 + Scope 2) /ton of production
Slide 17: Decarbonization Journey
Decarbonization Journey 17 FOUNDERS: Measure progress in companies' decarbonization strategy International accounting system and final valuation of the company 15 companies from the pulp and paper industry were part of the pilot PILOT RESULTS¹ Performance score Suzano Pulp and Paper Industry Target
Slide 18: Decarbonization Future Journey
Decarbonization Future Journey 18 1000000 1500000 2000000 2500000 3000000 Business as usual ( BaU ) trend with growth Expected curve with already approved projects Additional opportunities with projects under study 1 2 3 Graph for illustration purposes. Estimated data may change. Absolute Emissions
Slide 19: Climate change in the value chain program
Climate change in the value chain program 19 1 - Es tablishin g a reference Engage suppliers and i dentify maturity and risks in our supply chain 2 - Monitoring and stimulating target setting Enhance performance and incentivize target setting to reduce greenhouse gas emissions 3 - Reporting impact M
Slide 20: Climate change in the value chain program: supplier CDP scores
Climate change In the value chain program 20 45 % 5 6 13 1 9 22 15 7 21 1 A A - B Without score D B - D - C Without answer Declined 1 st Cycle (2021) Nº of suppliers per CDP score 53% SUZANO’s support of development of action plans Assurance of CO 2 emissions (Scopes 1 and 2) Emissions reduction tar
Slide 21: First project: Cerrado Carbon Project
First project: areas of expansion for our commercial forests ⚫ CARBON REMOVAL WITH ADDITIONALITY ⚫ SOCIAL DEVELOPMENT ⚫ BIODIVERSITY CONSERVATION Additionality & Impact ⚫ MONITORING AND MEASUREMENT 12 – 18 months Suzano Potential Project Pipeline Listing Validation Registration Monitoring Verificati
Slide 22: Biodiversity
biodiversity
Slide 23: Stakeholders in the value chain
SUPPLIERS CUSTOMERS CUSTOMERS OF CUSTOMERS END USERS PRINT SHOPS BRAND OWNERS RETAILERS NGOs, Media, Think Tanks, Certifiers, Academy etc. Shareholders, banks, investors and analysts Local communities
Slide 24: Forest restoration, Bahia
Source : T656 ( actual Suzano code : B2BT), Bahia
Slide 25: Forest restoration, Bahia years later
Source : T656 ( actual Suzano code : B2BT), Bahia 10 years later
Slide 26: Forest restoration, Bahia
Source : T656 ( actual suzano code : B2BT), Bahia
Slide 27: Ecological corridors in three regions
target CERRADO (MS) AMAZON (MA) ATLANTIC RAINFOREST (BA/ES) Implementation of ecological corridors in three regions where Suzano operates
Slide 28: Connected fragments study area
target Study area limit Urban centers State boarder Highways Intervention area Connected fragments Vegetation fragments Connected Fragments Year 8
Slide 29: Ecological corridors targets
◼ 500,000 hectares of fragments to be connected ◼ 9,000+ fragments ◼ ~53,000 hectares of ecological corridors ◼ 1,000+ km of ecological corridors ◼ ~30% of the corridors area in partnership with rural producers target
Slide 30: Biodiversity Action Fronts
Action Fronts IMPROVEMENT OPERATIONALIZATION Implement biodiversity corridors at the landscape scale Implement biodiverse production models Establish business models that generate shared value with local communities Reduce anthropogenic pressures on biodiversity Create a network of conservation unit
Slide 31: Social development
SOCIAL DEVELOPMENT
Slide 32: Stakeholders in the value chain
SUPPLIERS CUSTOMERS CUSTOMERS OF CUSTOMERS END USERS PRINT SHOPS BRAND OWNERS RETAILERS NGOs, Media, Think Tanks, Certifiers, Academy etc. Shareholders, banks, investors and analysts Local communities
Slide 33: Social challenges in Brazil (post pandemic)
Font: 1. IBGE 2021; 2. Rede PENSSAN 2022; 3. UNICEF; 5+M Students out of school or without access to activities during the pandemic³ Live below the poverty line in Brazil¹ Social challenges in brazil (post pandemic) 59% o f Brazilian population is living in some degree of food insecurity ² FOOD INSE
Slide 34: Social challenges in Brazil (post pandemic)
The uneven impact of the crisis on different sectors , workers and companies The impact on different regions and populations The country’s structures and its capacity to respond to crisis Fonte: Fundação Arymax 2021. Social challenges in brazil (post pandemic)
Slide 35: Suzano's Context: Presence in Brazil
Suzano’s Context Presence in Brazil 200+ municipalities (counties) TRADITIONAL COMMUNITIES : 126 12.5 MILLION PEOPLE These municipalities have a total population of 3.3 MILLION PEOPLE Of these, there are 1,200+ COMMUNITIES Around our operations: Indigenous people, q uilombolas , among others 2030 GO
Slide 36: Social strategy focused on alleviating poverty
Social strategy focused on alleviating poverty strategies Scalable solutions promotion Partnerships Multi - stakeholder resource attraction Protagonism in Suzano’s areas Business contribution Expected results Lift 200k peOPLE out of poverty in the regions we operate Final Impact Market connection A
Slide 37: 2021 Results
2021 Results 21,000+ people Benefited by income generation programs R$ 93M of revenue generated by participants in income generation programs In 2021 35,000+ TONS of products and food produced by beneficiaries In 2021 58% increase in average income 2022 We continue building innovative and sustainabl
Slide 38: Thank you
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