About Bracell

GRI 2-1 Organizational details

Bracell is a Brazilian-based company, operating in Bahia state since 2003 and São Paulo state since 2018. We operate mills in industrial districts in Camaçari, Bahia, and Lençóis Paulista, São Paulo, each locally headquartered. We also have pulpwood operations in these two states as well as in Mato Grosso do Sul and Sergipe states, where we began expanding our operations in late 2021 and late 2022 respectively.

We are member of the Royal Golden Eagle (RGE) group of companies. Headquartered in Singapore, RGE is a global, privately owned, diversified enterprise employing over 60,000 people around the world.

In 2003, RGE began operations in Brazil via the acquisition of BSC (Bahia Specialty Cellulose) and Copener Florestal, in the northeastern state of Bahia. In August 2018, the group further expanded its Brazilian operations with the acquisition of Lwarcel Celulose, in São Paulo, where Bracell SP Celulose Ltda. was founded.

GRI 2-2 Entities included in the organization’s sustainability reporting

This information in Bracell’s 2022 Sustainability Report includes all our operations in the states of São Paulo, Bahia, Mato Grosso do Sul (Bracell SP Celulose Ltda. e Bracell Bahia Specialty Celullose S.A.) and Sergipe.

For confidentiality reasons, the company does not disclose financial information to the market. The company is not an organization consisting of multiple entities (see the company’s legal form in GRI disclosure 2-1).

GRI 2-3 Reporting period, frequency and contact point

Bracell’s Sustainability Report is an annual publication. The latest edition presents the results for operations carried out between January 1, 2022 and December 31, 2022. The report was published to the market and our stakeholders in May 2023.

Queries, comments and requests for information in respect of this report should be sent to faleconosco@bracell.com (operations in Bahia and Sergipe) and faleconoscosp@bracell.com (operations in São Paulo and Mato Grosso do Sul).

GRI 2-4 Restatements of information

Information available in the GRI content index, in the Sustainability Report 2022, available on page 127.

GRI 2-5 External assurance

Bracell’s Sustainability Report has been developed in accordance with Global Reporting Initiative (GRI) Standards 2021. A part of Bracell’s Disclosures Hub, the publication is externally assured by a third party. The assurance process checks for compliance with GRI 2021 (see the assurance report and assured scope on page 141 of our Sustainability Report).

GRI 2-6 Activities, value chain and other business relationships

Mills

1 in the Lençóis Paulista industrial district (São Paulo)

1 in the Camaçari industrial district (Bahia)

 

Production capacity in 2022

3 million metric tons of Kraft pulp per year or

2 million metric tons of dissolving pulp per year

 

Eucalyptus plantations areas situated in

36 municipalities in the state of Bahia (along the Northern coast and in the Agreste region)

113 municipalities in the state of São Paulo (Midwest)

9 municipalities in the state of Mato Grosso do Sul

3 municipalities in the state of Sergipe

Note: Bracell runs a forest partnership program, which offers specialized technical assistance to forest producers and partners. The program covers municipalities in the states of Bahia and São Paulo.

Bahia: Alagoinhas, Amélia Rodrigues, Araças, Conde; Catu, Conceição de Feira, Cardeal da Silva; Camaçari; Candeias; Dias d´Ávila; Entre Rios; Esplanada; Itanagra; Jandaíra; Mata de São João; Pojuca; São Sebastião do Passé; São Francisco do Conde; Santo Amaro; São Gonçalo dos Campos; Teodoro Sampaio; Terra Nova.

São Paulo: Lençóis Paulista; Birigui; Bofete; Botucatu; Cambará; Campina do Monte Alegre; Catanduva; Conchas; Coronel Macedo; Dracena; Fartura; Itapetinga; Itapeva; Itaporanga; Itatinga; Itaí; Jacarezinho; Jaú; Junqueirópolis; Laranjal Paulista; Limeira; Macatuba; Manduri; Marabá Paulista; Martinópolis; Marília; Novo Horizonte; Ourinhos; Palmital; Paranapanema; Paruã; Piraju; Pirajuí; Piramboia; Pirapozinho; Pompeia; Porangaba; Presidente Prudente; Presidente Venceslau; Quatá; Ribeiro Claro; Rio Claro; Salto Grande; Sorocaba; São Carlos; Taquarituba; Tatuí; Tietê; Tupã.

The areas covered by the program are available on the website  https://cultiveeucalipto.com.br/

 

Nurseries (80 million seedlings per year)

2 in Bahia (1 in Entre Rios and 1 in Inhambupe)

2 in São Paulo (Lençóis Paulista)

 

Laboratories:

5 forestry R&D labs – 4 in Bahia and 1 in São Paulo

2 industrial R&D labs – 1 in Bahia and 1 in São Paulo

 

Logistics

1 truck and rail terminal in Pederneiras (SP)

3 terminals at the Port of Santos (SP): 2 managed by Bracell and 1 operated by a third-party company

1 terminal at the Port of Salvador (BA)

 

Bracell is responsible for the largest cargo movement in this port

 

Specialty pulp Distribution Centers

United States

Asia

Europe

 

Offices

1 in São Paulo (SP)

1 in Lençóis Paulista (SP)

1 in Camaçari (BA)

1 in Alagoinhas (BA)

1 in Campo Grande (MS)

1 in Água Clara (MS)

 

Comercial hubs

Asia

EMEA (Europe, Middle East and Africa)

United States

 

Main markets served in 2022

2022 at a Glance

Forestry operations

• Maintenance of forestry certifications – Cerflor/PEFC in São Paulo and Bahia operations and ISO 14001:2015 in Bahia operations.
• Construction of the 8,800 m² workshop – as part of our logistics operation we inaugurated an workshop equipped with the latest automotive maintenance technology.
• R&D – biological pest control through the creation and release of 63 million natural enemies.
• Monitoring center – We implemented control towers with monitoring cameras that reach a radius between 15km and 20km, covering 90% of eucalyptus plantations and conservation areas. The data is collected by the Monitoring center 24 hours a day, seven days a week, so that we can quickly implement action plans when necessary, for example, in cases of fire.

 

Mill operations

• We set a specialty-grade dissolving pulp production record – 480,777 metric tons in 2022 in our operation in Bahia.
• Generation of clean electricity for the National Grid – In São Paulo we received approval for commercial energy operation, feeding between 150MW and 180MW into the National Grid, enough to meet the annual requirements of roughly three million people.
• Maintenance of ISO 9001 and ISO 14001 certifications – for our operations in Bahia and Sao Paulo, which now has 100% of its operations certified in accordance with the two standards (lines 1 and 2).
• Safety – Line 1 in Lençóis Paulista reached a landmark of two years without lost-time injuries, considering own and third party employees.
• Bracell’s Port Terminal in Santos – Stage I of the STS14A terminal was delivered, including the administrative office and stage I of the works which is building the warehouse at Bracell’s Port Terminal in Santos (SP).
• Tissue Project launch:The new factory will have four machines for the production of Tissue paper, used in the manufacture of toilet paper and paper towels, with a production capacity of 240 thousand tons per year. Operations are expected to start in 2024. The factory will be one of the most modern and sustainable in the world, 100% automated and the only one in Brazil to operate completely free of fossil fuels. This investment created 461 construction jobs. Approximately, 2,000 jobs will be created during the plant´s construction and approximately 550 direct jobs when it is operational.

 

Sustainability

• Carbon stock – We closed the year with 43,389,968 tCO₂e of carbon stock in forestry areas (eucalyptus plantations and native vegetation areas set aside for conservation). These areas have an important role in removing CO2 from the atmosphere.
• Action for biodiversity – We assumed the One-For-One Commitment in 2022, closing the year with a total of 82% of conserved areas. That is 0.82 ha of conserved area for each planted hectare.
• Carbon monitoring in planted forests – Bracell, represented by the R&D Department, is part of the Eucflux-IPEF Cooperative Program, which monitors carbon flux and water in eucalyptus plantations. The flow tower with the equipment that monitors these components is situated in an eucalyptus plantation area, part of Bracell operations, in the municipality of Itatinga (SP). The Program is led by IPEF (Institute of Forestry Research and Studies) and CIRAD (French Agricultural Research Centre for International Development), and was started in 2007. It has several affiliated companies from the pulp sector, including Bracell, and representative institutions from academia, such as the Federal University of Lavras, UNESP (Paulista State University) and the University of São Paulo (Esalq).
• Socio-environmental goals – We have started to develop long-term socio-environmental goals, part of the Company’s commitment to the planet, to society and to each individual for a better and more sustainable future.
• Social investment – We invested more than R$ 4.4 million in social programs that benefited approximately 121,000 people.
• Bracell Learning Institute – We inaugurated our knowledge hub for technical and leadership training, which will reinforce our values. The institute will also have professional qualification actions for the local community.

 

Research and Development (R&D)

We operate on three major fronts, to ensure the sustainable supply of wood in the medium and long term and, consequently, the continuity of the business:

 

Forestry Research and Development

• Classic genetic enhancement – Continuous development of new eucalyptus clones, superior in productivity, resistance to pests and diseases, and wood quality. We also conduct research with alternative species and studies to increase the efficiency of cloning (quality, quantity and cost of seedlings).
• Forestry management – Continuous improvement of climate zoning processes, conservation, soil preparation and fertilization, and sustainable control of pests, diseases and weeds.
• Forestry extension – Technical assistance and technology transfer for forestry operations.

 

Industrial Research and Development

The Industrial R&D practice is committed to adding positive value to our products, based on the benefits and differentials of the pulp we manufacture (read more about our products and their applications on page 29 of the Sustainability Report).

For this reason, we hold frequent technical meetings, for exchanging samples and testing methods. This process has allowed us to develop a variety of personalized product classes in cooperation with our customers.

In 2022, we conducted studies to produce Lyocell, a cellulose fiber renowned for its sustainability and used in fabric manufacturing.

Throughout the year, Bracell and RGE Group’s R&D teams maintained frequent contact to intensify the analysis for dissolving pulp production processes, with a focus on improving the quality and efficiency of the manufacturing process.

Another highlight of the year is the consolidation of Bracell as one of the largest producers of Kraft pulp in the world. The stability of the properties of our pulp has positioned us as a reference in quality and good performance in paper machines of different types, such as printing and writing papers, papers for sanitary purposes, packaging and special papers.

We conducted industrial research and studies with the aim of:

• Expanding the productivity and quality of our products so they meet the needs of our customers;
• Identifying the best use of laboratory and industrial technologies available on the market;
• Evaluating the quality of the wood of plantations that will supply the factory and potential impacts on the quality of the products;
• Optimizing pulp production and identifying new product opportunities;
• Supporting forestry R&D in the evaluation of wood quality associated with the development of new clones and forestry practices;
• To improve production processes, providing gains in competitiveness
• Through solutions focused on quality, productivity, and cost.