Biodiversity and Landscapes

Material Topics

Biodiversity: (GRI disclosure: 304-1, 304-2, 304-3, 304-4)

Strategies, policies and programs to preserve forests (acting in the preservation and/or recovery of forest areas and species of fauna and/or flora) and preventing deforestation.

GRI 3-3 Biodiversity

Bracell is a forestry company that understands the relationship between the forest and the creation of economic, social and environmental value for the communities and ecosystems in its geographies. The company manages its processes and their respective social and environmental issues and impacts, , focusing on preventing pollution, conflicts and workplace accidents (see more in the Bracell Management Plan Summary, available at https://www.bracell.com/en/sustainability/socio-environmental-responsibility/.

Management of potential issues and impacts of operations

We aim to augment the positive effects of our operations and activities while mitigating or minimizing negative impacts.  To this end, the company:

• Maintains an updated survey of social and environmental matters and impacts, involving all our operations, in order to identify, prevent and address any issues;
• Determines and assesses social and environmental impacts before commencing operations;
• Assesses sold products in terms related to safety, health and environmental risks;
• Performs impact monitoring frequently to guage the process’ progress and assess the need for strategic actions.

Below are some positive environmental aspects identified arising from Bracell’s activities, and their respective potential positive impacts.

See below some mapped negative environmental aspects and their respective potential negative impacts. The identification of aspects and impacts is extremely relevant, in order to mitigate social and environmental risks, before the beginning of our operations.

Note: in 2022, there were no significant socio-environmental impacts resulting from Bracell’s operations and activities.

Operational practices

Bracell has operational practices that contribute to biodiversity preservation. The company’s eucalyptus wood is 100% from sustainable plantation forests and is certified. The forestry operation is certified against Cerflor/PEFC, which also includes mapping environmental issues and risks. In Bahia, forestry operations are also ISO 14001 certified.

Bracell uses good forestry management practices including minimum tillage, mosaics with eucalyptus and native forests, maintaining post-harvest residue (bark, branches, and leaves), and integrated pest and disease management (IPDM). Other criteria we apply in our forestry operations include a commitment not to operate in protected areas or to locate eucalyptus plantations in areas that have previously been used for other crops, meaning they have already been affected by human activity. Bracell has a strict no deforestation and no burn policy spanning the entire value chain. Biodiversity is additionally a key pillar in our Sustainability Strategy.

It is worth noting that the company’s forestry operations are certified, and it verifies controlled sources of area, operations and people. This means that they are monitored by internal and external audits, and anyone who works for Bracell is subject to contractual rules that require legal compliance, including with relevant environmental laws.

Bracell also undergoes customer due diligence audits on the use of controlled pulpwood. In this process, the company’s forestry, industrial and commercial departments receive and assist independent auditors who assess our practices and procedures to ensure compliance with controlled wood (CW) standards.

As part of Bracell’s pulpwood procurement process, suppliers undergo due diligence to ensure our pulpwood is responsibly sourced. Suppliers complete a due diligence form on compliance with local, national, and international laws, supported by documentation and other evidence. The form also evaluates their practices with regard to: environmental conservation and protection; endangered and protected species.

Through our integrated pest management program, Bracell seeks to maintain environmental balance by using natural pest control methods including genetic resistance and the use of natural predators. Chemical pest control is used as a last resort when other methods, either individually or in combination, prove ineffective. The use of fertilizers is also minimized by retaining harvesting residue at the former plantation site to increase organic matter in the soil.

How Eucalyptus is grown

1. A detailed environmental assessment is conducted on land that will host our eucalyptus plantations. All parties should comply with Brazil’s Forest Code. Social and economic assessments are also carried out in neighboring communities to identify potential social risks and opportunities before eucalyptus planting begins.
2. The Company selects clones that are adapted to local conditions to produce high-quality seedlings for eucalyptus plantations, the sole raw material used in mills.
3.  Eucalyptus seedlings grow under ideal development conditions. The soil in eucalyptus areas maintains its original fertility levels and high productivity rates.
4. Seedlings are planted and trees managed with special care to maintain environmental quality and the control of weeds, pests and diseases.
5. Trees mature within an average of seven years, when they are ready for harvest.
6. The pulp logs are sent from the farms to the mill, where it is used as raw material for pulp-making.
7. Forestry techniques coupled with native forest conservation provide a sustainable supply of pulpwood for Bracel’’s plants.

Forestry R&D

The classic genetic enhancement research department is tasked with producing a well-defined strategy for the short, medium, and long term, which ensures the continuous generation, evaluation, selection and recommendation of superior genetic materials for the production of seedlings and commercial-scale planting. This strategy relies on robust genetic diversity and includes crossbreeding between superior trees, evaluating their offspring in different types of field and nursery trials, and recommending high-quality genetic materials for propagation capacity, forest productivity (adaptation to local climate and soil conditions, and ability to withstand pests and diseases) and wood quality required by the industry.

Bracell also conducts research to increase the efficiency of cloning, aiming to produce a greater number of seedlings with lower costs and high quality. Technical recommendations are shared with the teams responsible for the nurseries to increase efficiency.

Research in forest management is responsible for the development and recommendation of more efficient forestry practices in the areas of:

• Soil (mapping, conservation and preparation for planting);
• Forest nutrition (fertilization and monitoring of the nutritional status of forests);
• Forest protection (monitoring and control of pests, diseases, and weeds, with minimal environmental impact);
• Forest ecophysiology (monitoring and climate zoning, landscape planning, carbon sequestration, water use efficiency, etc.).

Bracell plans the landscape taking into consideration water availability, studying and evaluating the impacts of eucalyptus forests on the sub-drainage basins in its geographies.

The Forest Extension team develops technical manuals, provides training, routine technical support for forest operations and analyzes inventory data for corrective actions, with a special emphasis on ensuring the quality of young forests.

Bracell also periodically monitors the fauna and flora on farms hosting Atlantic Forest, Cerrado and Caatinga formations to assess biodiversity value based on species composition and richness, among other parameters, in study areas. Over time, additional properties will be monitored.

Monitoring work will be done using tools such as the Rural Environmental Register (CAR) and satellite imagery. Bracell has committed to protect these areas, rehabilitate any disturbed land, eradicate exotics species (non-native species, which do not naturally occur in these areas), and protect and enhance biodiversity in the regions where we operate.

Commitment to promoting biodiversity

In 2022, Bracell signed up to TNFD Brazil’s Action for Nature Platform, an initiative launched by CEBDS in the same year. CEBDS is an organization representing WBCSD in Brazil, led by over 100 large companies. The CEBDS initiative is aligned with WBCSD’s platform of the same name, created to encourage companies to play a leadership role in protecting and managing ecosystems vital to their operations.

The TNFD Brazil – Action for Nature Platform aims to drive accountability and real change in the perception and management of natural resources in the regions on which these companies depend and impact by setting science-based targets and sharing guidance for positive, consistent and credible action to support nature. The platform is composed of two action fronts with a pilot each: Positive Impact and Natural Climate Solutions.

As a member of the Brazilian Business Council for Sustainable Development (CEBDS) since 2021, Bracell regularly reports on its initiatives to achieve the goals outlined in the Brazilian Business Commitment to Biodiversity, undertaking to:

1. Have Biodiversity as a pillar of the Sustainability Strategy;
2. Manage risks and prevent biodiversity impacts;
3. Promote biodiversity in the supply chain;
4. Carry out R&D projects in biodiversity conservation;
5. Monitor fauna and flora;
6. Disseminate biodiversity data;
7. Disseminate biodiversity knowledge;
8. Have a biodiversity conservation and recovery plan;
9. Conduct biodiversity promotion initiatives in partnership with stakeholders.

Bracell’s commitments, processes and targets are published on this link

https://cebds.org/ibnbio/empresa/bracell. ¹

1. In 2021, the company also joined the Business Movement for the Amazon, announced at the Climate Change Conference (COP26), focused on the need to conserve the largest tropical forest on the planet: the Amazon. The document is available on this link https://cebds.org/wp-content/uploads/2021/11/CEBDS.

 

One-for-One Commitment

In the first quarter of 2022, we launched our One-for-One Commitment, in which we pledged to conserve one hectare of native forests for every hectare of eucalyptus plantations. These protected areas will prioritize native Atlantic Forest, Cerrado and Caatinga vegetation in the three states where we operate: São Paulo, Mato Grosso do Sul and Bahia. This target should be achieved by the end of 2025. In the first year of the commitment, we had a total of 82% of conserved areas. That is 0.82 ha of conserved area for each planted hectare.This result was verified externally by third party.

Throughout 2022, we met multiple times with public sector authorities to present our Commitment and its benefits for biodiversity conservation for the states covered and the country.

The commitment expands Bracell’s conservation area, contributing to the preservation and promotion of biodiversity and ecosystem services. If the Company’s eucalyptus plantations grow after 2025, the conserved areas will also be expanded proportionally, thereby sustaining our One-for-One Commitment.

See below the partnerships established by Bracell for the conservation and preservation of biodiversity.

GRI 304-1 Operational sites owned, leased or managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas

Bracell has pulpwood operations in 36 municipalities in the state of Bahia (North Coast and Agreste Region), in 113 municipalities in midwestern São Paulo state, 9 municipalities in the state fo Mato Grosso do Sul and in 3 municipalities in the state of Sergipe. Forest operations such as silviculture, wood harvesting and wood transportation are carried out in these regions, as well as forest production activities (nursery cultivation of seedlings).

Two of the protected areas we manage contain Areas of High Conservation Value (HCV) — on the Nova América farm, in Cabrália Paulista, and the Rio Verde farm in Bauru, both in the state of São Paulo. We are currently working on updating the methodology for identifying potential high conservation value areas, based on updated criteria and premises that comply with new standards.

All eucalyptus plantations are managed in accordance with applicable legal requirements and guidelines on environmental preservation.

Bracell has forest management units in the states of São Paulo and Mato Grosso do Sul adjacent to protected areas (Conservation Units). The High Conservation Value Area (HCVA) of the Rio Verde farm (AVC 2 – Ecosystems and mosaics at the landscape level) is inserted in the Environmental Protection Area (APA) of the Batalha River, while the Nova América farm (AVC 1 – Species diversity) stands out for the concentration of biological diversity including endemic species, and rare, threatened or endangered species, that are significant at global, regional or national levels.

In São Paulo state, the HCV area of Fazenda Nova América (HCV 1) is a biological diversity hotspot, including globally, regionally or nationally significant species: endemic, rare, threatened or endangered, such as Brazilian sassafras (Ocotea odorifera) for flora and the hoary fox (Lycalopex vetulus) for fauna. Attribute monitoring occurs seasonally and has already identified more than 50 endemic species of the Atlantic Forest, the biome where the HCV is located, such as the king vulture (Sarcoramphus papa) and the blacksmith tree frog (Boana faber).

Fazenda Rio Verde (HCV 2 – Ecosystems and mosaics at landscape level) boasts the largest fragment of Cerrado within a radius of 2 km and its value lies in the intact forest landscapes and large landscape-level ecosystems and ecosystem mosaics that are significant at global, regional or national levels, and that contain viable populations of the great majority of the naturally occurring species in natural patterns of distribution and abundance.

For periodic monitoring of fauna and flora, the overlap of study areas with public policy maps for biodiversity conservation in Brazil is considered, such as Priority Areas for Conservation, Important Bird Areas, Guidelines for Conservation and Restoration of Biodiversity in São Paulo state, as well as proximity or overlap with Conservation Units and Buffer Zones.

Partnership projects between Bracell and Conservation Units in São Paulo state, through the Forest Foundation, are being designed to support and protect important remnants of native vegetation, adjacent or not to the company’s management units in the state.

Species identified during biodiversity monitoring are classified based on official protection lists, local laws and regulations, and scientific literature on degrees of threat, rareness, endemicity, economic importance, species migration, and other parameters. The degree of threat is determined at the international level (IUCN – International Union for Conservation of Nature), national legislation (ICMBio – Red Book of Endangered Brazilian Fauna 2018 and MMA Ordinance 148/2022) and state level (State Decree 63.853/2018 and SMA Resolution 57/2016).

Biodiversity monitoring areas are selected based on public policy maps for biodiversity conservation in Brazil, such as Priority Areas for Conservation, Important Bird Areas, Guidelines for Conservation and Restoration of Biodiversity in São Paulo state, as well as proximity or overlap with Conservation Units and Buffer Zones.

Under its history of biodiversity monitoring, Bracell has already identified 17 threatened species of fauna and 14 of flora, out of the more than 700 species cataloged over the years in the São Paulo state.

In Bahia, Bracell has management units covering part of the North Coast Environmental Protection Area (APA).  These are areas of high environmental value.  This classification was defined by Bracell through Biodiversity surveys and following the high conservation value (HCV) criteria.

The North Coast Environmental Protection Area (APA) boasts a rich variety of natural ecosystems and landscapes, including pockets of Atlantic Forest, restingas, dunes, beaches, coral reefs, wetlands (swamps and lagoons) and mangroves in six estuaries.

Fauna monitoring is carried out annually and had cataloged 575 species by 2022, including the Rio rocket frog (Allobates olfersioides), white-winged cotinga (Xipholena atropurpurea) and little spotted cat (Leopardus emiliae).  We monitor the flora every two years, the last time in 2021, when we identified a total of 485 species. The black sucupira (Bowdichia virgilioides), jussara palm (Euterpe edulis) and violet melon cactus (Melocactus violaceus). In Bahia, there are five vulnerable fauna species and five species classified as near-threatened according to the IUCN list.

Forestry operations began in Mato Grosso do Sul state in 2022.  The Company is still mapping the value of biodiversity in the region.

 

Bracell launches One-for-One Commitment

In the first quarter of 2022, we launched our One-for-One Commitment, in which we pledged to conserve one hectare of native forests for every hectare of eucalyptus plantations. These protected areas will prioritize native Atlantic Forest, Cerrado and Caatinga vegetation in the three states where we operate: São Paulo, Mato Grosso do Sul and Bahia. This target should be achieved by the end of 2025. In the first year of the commitment, we had a total of 82% of conserved areas. That is 0.82 ha of conserved area for each planted hectare. This result was verified externally by third party.

Throughout 2022, we met multiple times with public sector authorities to present our Commitment and its benefits for biodiversity conservation for the states covered and the country.

The commitment expands Bracell’s conservation area, contributing to the preservation and promotion of biodiversity and ecosystem services. If the Company’s eucalyptus plantations grow after 2025, the conserved areas will also be expanded proportionally, thereby sustaining our One-for- One Commitment.

GRI 304-2 Significant impacts of activities, products, and services on biodiversity

Operational and pulpwood haulage logistics are primary forestry activities with the potential to cause potential impact on biodiversity, especially roadkill. This potential impact is included in the company’s matrix of issues and impacts, but its significance has been rated as low. Regarding the eucalyptus plantation areas, the company only cultivates eucalyptus on previously disturbed land, i.e., areas previously used to cultivate other crops or land use activities.

According to the Environmental Impact Assessment (AIA) matrix, the management activities considered impactful are the planting of forests, harvesting and transportation. The matrix presents mitigating actions for these impacts. Before, during and after the implementation of these operational activities, operational dialogue with the surrounding communities is also carried out to monitor potential impacts and identify new potential impacts not previously mapped. Upon identifying any type of impact, Bracell acts to repair or mitigate the damage caused in conjunction with the parties involved.

The company’s risk matrix establishes that Permanent Preservation Areas (APPs) and Legal Reserves (RLs) cannot be used for any forest operation activities. An integral part of the company’s process is to look for nests, chicks and eggs in the areas before starting the activities; pesticides should only be used in native forest areas when strictly necessary and in accordance with the manufacturer’s instructions; all animals roadkill must be registered in the form or by email; pursuing animals is prohibited; hunting and trapping are prohibited on our forestry properties.

In its forestry operation, the company analyzes the water quality in representative management units, in order to monitor possible changes in its physical and chemical properties, to ascertain whether these have occurred as a result of forestry operations, in order to prevent, minimize and mitigate negative impacts on watercourses (read more in GRI 3-3 (303), in Responsible Production). Forestry management also involves the use of diesel-fueled vehicles and machinery, which can cause air pollution.  This is systematically monitored in accordance with applicable regulations.

In São Paulo, Bracell conducts periodic monitoring. Fauna monitoring takes place every three years and flora monitoring every five years. The objective is to see how biodiversity interacts with the existing environments in the company’s forest operations. This monitoring analyzes the composition and richness of species, providing a sizable database on endemic, threatened, bioindicator, and rare taxa, as well as priority habitats for conservation. Thus far the monitoring has identified an increase in species in the company’s areas, and it was not therefore possible to evidence this item as a risk according to Bracell’s issues and impacts matrix in the state.  The company does not introduce invasive species, pests and pathogens, does not carry out habitat conversion, and does not make changes to ecological processes outside the natural range of variation (such as salinity or changes in groundwater levels).  The company monitors species dynamics through environmental monitoring and risks based on the environmental issues and impacts matrix, thus guaranteeing the mitigation of environmental impact risks. There were consequently no occurrences of environmental impacts as of 2022.

In Bahia, Bracell carries out the Exotic Species Eradication Program (for species which do not naturally belong to the biome), eliminating pine and eucalyptus specimens in natural areas (of native forest) under the company’s domain.  Manual and semi-mechanized control techniques were used until 2020.

Species identified during biodiversity monitoring are classified based on official protection lists, local laws and regulations, and scientific literature on degrees of threat, rarity, endemicity, economic importance, species migration, and other parameters. The degree of threat is determined at the international level (IUCN – International Union for Conservation of Nature), national legislation (ICMBio – Red Book of Endangered Brazilian Fauna 2018 and MMA Ordinance 443/2014) and state level (State Decree 63.853/2018 and SMA Resolution 57/2016).

Biodiversity monitoring areas are selected based on public policy maps for biodiversity conservation in Brazil, such as Priority Areas for Conservation, Important Bird Areas, Guidelines for Conservation and Restoration of Biodiversity in São Paulo state, as well as proximity or overlap with Conservation Units and Buffer Zones.

SIGNIFICANT POSITIVE AND NEGATIVE, DIRECT OR INDIRECT IMPACTS

GRI 304-3 Habitats protected or restored

Since 2015, Bracell has been carrying out its Disturbed Land Rehabilitation Program in Bahia, whose methodology was approved by the state environmental agency (INEMA).  Native vegetation areas have been restored using planting techniques, soil quality improvements, and erosion control processes.

In Bahia, Bracell carries out the Area Regularization Program, which is conducted in three stages:

• Diagnosis – the area scheduled for the respective year receives a technical visit to observe soil conditions, native vegetation existing in the direct and indirect influence area, selection of restoration techniques and organization of the action schedule.
• Execution – in the recovery areas, techniques can be applied for slope earthworks, palisade or use of containment bags, soil disaggregation, organic matter deposition, transport of branches, installation of perches, fertilization, nutrient addition, ant control, and planting of native seedlings (direct 4 x 4, nucleation, or enrichment).
• Maintenance and Monitoring – for three years, the areas undergo monitoring and actions to enhance the development of the installed vegetation, including crowning, ant control, and enrichment.

In the São Paulo operations, the success of restoration measures has been monitored through reports provided to the respective environmental agencies and all activities are carried out by people trained and specialized in this topic.

By 2022, considering the scope of the One-for-One Commitment, we closed the year with a total of 82% of conserved areas. That is 0.82 ha of conserved area for each planted hectare.

For 2022, partnerships with the Forest Foundation and the São Paulo State Department of Infrastructure and the Environment are being developed to conserve more than 64,000 hectares in Conservation Units located in the municipalities of Bauru, Gália, Alvinlândia, Águas de Santa Bárbara, Anhembi, Capão Bonito, São Miguel Arcanjo and Sete Barras. Four Ecological Stations (EE dos Caetetus, EE Barreiro Rico, EE Sebastião Aleixo, EE Águas de Santa Barbara), one Wildlife Refuge Conservation Unit (RVS Aimorés – tract II – Jardim Botânico) and two State Parks (PE Carlos Botelho and PE Nascentes do Paranapanema) will benefit.

In 2022, there was no restoration activity in the state of Mato Grosso do Sul.

The main risk in the Conservation Units is forest fires.  As a mitigation measure, firebreaks are built, equipment for fire prevention and control is donated, signs are installed, and workshops for firefighters, neighbors and local communities are held.

The company will also build bridges for primates to cross roads safely and to prevent them becoming cut off from other areas.  Studies and recommendations for controlling invasive species that impact local biodiversity will also be conducted, as well as remote monitoring of fauna using recorders and trap cameras, helping identify species and monitor environmental quality indicators within the conservation units. For 2023, another three partnerships in conservation units will be carried out for the conservation of about 3,000 hectares in the municipalities of Avaré, Paranapanema and Angatuba.

Bracell planned its Forest Fire Prevention and Combat practice with environmental preservation, human and planetary well-being and the business sustainability and competitiveness in mind. In its São Paulo operations alone, the company has 115 qualified professionals (Bracell employees) who are ready to be called into action, if needed. The company has also erected control towers with high-resolution cameras that cover 90% of our planted forests and conservation areas, amongst other actions.  As a result, the number of forest fires on our São Paulo forestry operations diminished in comparison to  2021. Learn more about Bracell’s forest fire prevention and combating in this link.

In 2022, in Bahia operations, we recorded the lowest rate of fires since 2011, a result of the ability of the forest fire prevention and fighting team to act quickly in the face of the identification of fire signs and the direct involvement of local communities, mainly through the registration of occurrences by the number 0800 284 4747. In addition, the Company signed a Technical Cooperation Agreement with the state of Bahia, through the Secretariat of the Environment (SEMA) and with the intervention of the Institute of Environment and Water Resources (INEMA), to plan and execute actions to prevent and reduce forest fires.

GRI 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by the organization’s operations

Species identified during biodiversity monitoring are classified based on official protection lists, local laws and regulations, and scientific literature on degrees of threat, rarity, endemicity, economic importance, species migration, and other parameters. The degree of threat is determined based on the Union for Conservation of Nature Red List of Threatened Species, as well as national and state conservation lists. Bracell began forestry operations in Mato Grosso do Sul state in 2022, so the company has not yet carried out an environmental monitoring plan in the region.

Note: As of 2022, the number of species identified as Least Concern has not been analyzed.