Sustainability Report 2015

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3 Summary Sustainability Employee at the Mucuri Unit in Bahia 6 Introduction 8 Message from the CEO 10 Identity 20 Manufacturing capital 24 Intellectual capital 28 Financial capital 30 Human capital 34 Social capital 38 Natural capital 46 Awards and recognition 48 GRI Additional Information 67 GRI Content Index 77 Corporate information 78 Credits 30 Employees 33 Suppliers 10 Profile 14 Business model 16 Management and governance 19 Risk management 34 Social and economic diagnosis 35 Impact management 36 Ecofuturo Institute

4 Employee at the Mucuri Unit in Bahia Sustainability Introduction This report is inspired by the IIRC methodology, adopts the GRI framework and is aligned with the Deer at the farm in Itararé, São Paulo Employee in Itararé, São Paulo 6 For the second straight year, we drew inspiration from the methodology of the International Integrated Reporting Council (IIRC) to present to our stakeholders the actions, accomplishments, difficulties, advances and challenges of the year. The information in this document refers to 2015 and is presented in conformity with the core in accordance option of the G4 Guidelines of the Reporting Initiative (GRI). We also report our performance in the commitments undertaken via the of the United Nations (UN). This report does not contain any reformulated data or information from prior years expressed in the last report, which was published in August 2015 to provide an account of the activities in Furthermore, since there are no significant changes in relation to the reports for prior years, including with regard to boundaries, the report was not subjected to external assurance. GRI G4-22 G4-23 G4-28 G4-29 G4-30 G4-32 G4-33 The content was defined in accordance with the materiality process that was carried out in 2013 with the support of BSD Consulting and revisited in The work consisted of a consultation of external stakeholders (suppliers, Brazilian and international pulp and paper clients and representatives from non-governmental organizations) and internal stakeholders (leaders from the Strategy & New Business, Sustainability & Corporate Affairs, Forestry Operations, Industrial Operations and Human Resources departments and from our subsidiary FuturaGene). GRI G4-18 G4-24 G4-25 G4-26 The stakeholders were presented the aspects compiled in accordance with the materiality principle established in GRI G4 based on industry agendas, which were validated by our Sustainability department and on an analysis of media reports. Next, the aspects were reassessed and adjusted to adapt them to the actual situation in the market and to the situation experienced by us. These aspects are: Sustainability governance; Dialogue with stakeholders; Water consumption in production and planting; Biodiversity protection / Soil use and preservation, forest management and practices; Air emissions; Effluents; Technology and innovative products; Impacts from transportation; Occupational health and safety and working conditions; Local job and income creation; and Responsible products. GRI G4-19 G4-27 (See in GRI Additional Information Introduction the material aspects and their respective indicators) The following channels are available for comments, questions or suggestions related to this report: GRI G4-31 Suzano Responde suzanoresponde@suzano.com.br Corporate Communication comunic.corp@suzano.com.br Materiality matrix Influences stakeholders assessments and decisions Very high Medium High Low Conscientious use of paper Chemical products in the production process National Solid Waste Policy (PNRS) and reverse logistics Seasonality of operations Low Ethical business conduct Indirect economic impacts Recycling in the production process Forestry fostering Protecting the means of subsistence of local communities and land-use rights Social and environmental management of suppliers Efficient use of energy and alternative energies Waste management Labor practices Diversity and equal opportunities Human rights: child and forced labor Rights of local and traditional communities Impacts from operations Environmental education Prevention and monitoring of illegal practices in the industry Impact of mechanization Water consumption in production and planting Energy and air emissions Sustainability governance Soil use and preservation Protecting biodiversity Effluents Technology and innovative products Impacts from transportation Occupational health and safety and working conditions Responsible product Relationship with third parties Medium High Very high Importance of organization s economic, environmental and social impacts Dialogue with stakeholders Local job creation and income generation 7

5 Message from the CEO GRI G4-1 G4-2 In 2015, we accelerated our comprehensive transformation process by transforming not only our internal relationships, but also our relations with stakeholders and society. Consistent with this view, a company s role should go far beyond merely delivering results and profits to also encompass the key drivers that support its continuous transformation. It has also been acknowledged for some time now that sustainability is not synonymous with welfarism. These statements require us all to think big. As a company, it is our responsibility to ensure that the values that are extensively discussed internally, such as entrepreneurship, personal development, global vision and pragmatism, actually get adopted in our day-today activities. We are also charged with supporting stakeholders in the business chain to engage them in this process. As such, we must adequately serve the needs of our employees, all our shareholders (both controlling and minority), customers, suppliers and communities, whilst mitigating our impact on the environment. These challenges demand the continuous capture of efficiency gains in all processes and a great deal of empathy with each of our stakeholders, which requires understanding their expectations and needs, connecting with them and positive thinking. One example of this, in 2015, involved our employees, to which we have dedicated much effort to offer them the best workplace infrastructure. We renovated dressing rooms and cafeterias, created common areas and made every environment more pleasant and comfortable. Our purpose is to transform people into agents of change to discover how we can enhance processes, automate activities with low value added (transactional) and ensure everyone invests their potential and energy into this process. We drew on the notion that human beings are driven by a sense of pride and satisfaction, continuous learning, personal development and a healthy aspiration to professional and financial advancement. If we give them a chance to feel like this on a daily basis, they will most likely demonstrate a high and spontaneous level of delivery and commitment. Our relationship with local communities is also transforming. We replaced the strategy of simply meeting local demands with a new participatory model that features the gradual creation of community councils in which we are not even a majority. In these bodies, community leaders, representatives from various organizations, universities and government agencies, residents and traditional groups gather to openly discuss how to transform that microsociety and effectively make it 8 Walter Schalka, CEO sustainable through income-generation activities that improve people s lives. This vision is aligned with sustainability, a topic that is high on the agenda of each of our departments. We are constantly evaluating new ways to perform processes and procedures, while prioritizing low-impact initiatives, environmental benefits and mitigating actions. In 2015, for example, we announced the construction of a Wastewater Treatment Plant at the Mucuri Unit in the state of Bahia, which will require investment of around R$100 million. This new way of acting is in keeping with our strategic pillars. In Structural Competitiveness, we work to continually support improvements in operations and our ambition of becoming a reference in each of our operational fronts. In Adjacent Businesses, we are opening avenues to the future, seizing opportunities to start out timidly, but in businesses that offer scalability and will allow us to continue diversifying and creating value. The third pillar, Redesigning the Industry, requires us to rethink our industry, which, despite having evolved in 2014 and 2015, still involves excessive volatility, since it depends on factors such as foreign exchange rates and international pulp prices. The results of all these recent changes encourage us to keep moving forward. Therefore, we must maintain our humility, but while continuing to adopt a positioning for the medium and long term supported by courageous attitudes that continue to create value for us as a company and for society as a whole. Economic turbulence is concerning. But, because of that very same reason, we must be more robust in our processes, values and people in order to keep things in perspective. One of our biggest allies in this process is our extremely dedicated team. Combined with our values and belief (Strong and Considerate) and the positive workplace that we are building, this internal strength gives us the energy and renews our optimism and conviction that the next few years will be even more promising. Walter Schalka Chief Executive Officer In the community councils, we discuss how we can transform microsociety and effectively ensure its sustainability through actions to improve people s lives Employees at the Suzano Unit in São Paulo 2- Sustainable Beekeeping Project in Itatinga, São Paulo 9

6 Identity Belief r.br Profile Through innovative actions, we are undergoing an intense rejuvenation process We are Suzano Pulp and Paper, a corporation engaged in forestry activities that is controlled by Suzano Holding, which, with a history stretching back 92 years, is fully engaged in a comprehensive rejuvenation process. A process driven by sustainable growth. And the formula for taking us to this new era is innovation! GRI G4-3 G4-7 Our organizational culture fosters innovation through the concept of Joined & Mixed, which means that we are stronger by working together and drawing on our diversity. The pillars of this cultural transformation to engage our nearly 8,000 employees are meritocracy, leadership development and autonomy, in other words, working proactively. To physically implement this new way of working, we renovated our head office in São Paulo City, where professionals no longer have set workspaces and officers are not walled off in rooms. We also renovated the administrative departments of the Suzano and Limeira units in São Paulo, the Mucuri Unit in Bahia and the Imperatriz Unit in Maranhão, where partitions and walls were torn down. We gave greater autonomy to each employee and encouraged them to work as a team to propose solutions to the problems and challenges they face in their day-to-day activities. GRI G4-5 In our operations, we broke paradigms on all fronts: commercial, logistics, operations, environment and community relations. The idea is to do things differently and to do more with less. With our forest base as the starting point, we are working to boost productivity in our pulp and paper operations and to invest in adjacent businesses. As part of this effort, in 2015, we launched production of Eucafluff, a hardwood fluff pulp to serve the diaper and sanitary napkin market; we are poised to enter 10 Free-float, number of shares ( 000) Stock performance (2015) +69% 10.2 Dec /14 Dec / Liquidity Dec /14 Dec /15 Employee at the São Paulo Forest Unit in Itararé the tissue segment (paper for sanitary purposes); and we allocated R$70 million to the construction of a lignin extraction unit on an industrial scale. GRI G4-4 G4-8 Our transformation is ongoing, but already has produced cost reductions, productivity gains and satisfactory results. In 2015, we posted net revenue of R$10,224.3 million, an increase of 41% on the previous year, of which R$6,603.4 million came from the pulp business and R$3,620.9 million from the paper business. Shareholders equity ended the period at R$9,192.1 million, with total assets of R$28,259.9 million. On the São Paulo Stock Exchange (BM&FBovespa), our common stock (SUZB3), class A preferred stock (SUZB5) and class B preferred stock (SUZB6) gained 37.5% in the year, while the benchmark Bovespa Index shed 13%. We also registered significant expansion in our shareholder base (from 8,100 in 2014 to 10,200) and stock liquidity, with average daily financial trading volume increasing from R$12.8 million to R$16.1 million. GRI G4-9 (See GRI Additional Information Identity for a list of subsidiaries) Ibovespa down -13% Number of trades per day ( 000) Class A preferred shares (SUZB5) Average daily financial trading volume (R$ MM) Strong and Gentle Values Integrity and safety Social and environmental responsibility Excellence vision Leadership Entrepreneurship Quality relationships Passion Assets Eucalyptus plantation Industrial unit FuturaGene Port Office Regional Distribution Center Local Distribution Center Mucuri To produce paper and pulp, we have two mills in Suzano, São Paulo; one mill in Limeira, São Paulo; one mill in Mucuri, Bahia; and one mill in Imperatriz, Maranhão. In 2015, we sold our Embu Unit in São Paulo to Ibema, one of Brazil s largest paperboard manufacturers, of which we are now a partner. GRI G4-8 G4-13 In addition to the headquarters in São Paulo City, we also have a registered office in Salvador, Bahia, four Regional Distribution Centers (RDCs) and 16 Local Distribution Centers (LDCs). We are the controlling United States Argentina Itapetininga Limeira Switzerland Brazil United Kingdom Israel Imperatriz São Paulo Itaqui Suzano China Portocel Santos 11

7 Farm in Itararé, São Paulo shareholder of FuturaGene, which is engaged in forest biotechnology activities and has corporate and Research & Development (R&D) facilities in São Paulo and Itapetininga, São Paulo in Brazil; Shanghai and Lanzhou in China and Rehovoth in Israel. We sell pulp in 31 countries and paper in 60 countries. GRI G4-6 G4-8 Our forest base covers approximately 1.2 million hectares. Of this total, 518,000 hectares consist of planted forests in the following states: São Paulo, Bahia, Espírito Santo, Minas Gerais, Piauí, Tocantins, Pará and Maranhão. Approximately 480,000 hectares consist of preservation areas. The remainder is distributed among areas for future planting and infrastructure. 1.2 million hectares forest base 1.1. Products GRI G4-4 Pulp Suzano Pulp Bahia Suzano Pulp Flash Suzano Pulp Limeira Suzano Pulp Maranhão Eucafluff Paper We sell four product lines, namely coated, non-coated, paperboard and cut size, which are marketed under the following brands: Coated Couché Suzano Design Couché Suzano Fit Non-coated Offset Alta Alvura Offset Paperfect Pólen Reciclato (Mucuri Unit) (Suzano Unit) (Limeira Unit) (Imperatriz Unit) (Suzano Unit) Paperboard Supremo Duo Design Supremo Alta Alvura TP White TP White Pharma TP Premium Super 6 Plus Printing and writing Suzano Report Reciclato Suzano Report Premium Suzano Report Colorido Suzano Report Seninha Copimax One Strategy In 2015, we established three strategic pillars to support our sustainable growth: 1. Structural Competitiveness, which means operating with lower production costs. To achieve this, we are implementing Project 5.1 (named as a reference to our target of reaching pulp production capacity of 5.1 million tons by 2018), which includes making industrial investments in the Imperatriz and Mucuri units, expanding the forestry base, shortening the average supply distance and reducing our pulp cash. 2. Adjacent Businesses, in which we are already working on four new fronts: producing hardwood fluff pulp, entering the tissue and lignin extraction, and biotechnology research and development through FuturaGene. 3. Reshaping the Industry, through which we analyze our operations and those of other players in the market to identify proactive ways to consolidate or verticalize, given the large volume of pulp we have to create a vertically oriented business and reduce the risk of volatility in commodity prices. with 518,000 Suzano Report Premium There is also an opportunity for expanding internationally that could include inorganic growth, joint ventures or other market opportunities, which we are closely monitoring. hectares consisting of planted forests in the states of São Paulo, Bahia, Espírito Santo, Minas Gerais, Piauí, Tocantins, Pará and Maranhão 12 13

8 Business model See our business model below, which shows the resources, activities, results and value created for each type of each capital. Resources Manufacturing capital Intellectual capital Financial capital Human capital Social capital Natural capital Logistics Industrial units Forestry units Regional Distribution Centers and Distribution & Logistics Centers Corporate governance Business information systems Management systems Cultural diversity Diverse knowledge and skills Net revenue Bank financing/ Capital markets Asset divestments Organizational structure Direct and indirect employees and suppliers Code of Conduct Organizational beliefs and values Stakeholders Regional knowledge and local engagement Social responsibility policy Organizational beliefs and values Soil Water Native and planted eucalyptus forests Natural inputs Biodiversity Biomes Environmental policy Activities Conversion of inputs into products Industrial, forestry and logistics efficiency (integrated) Maintenance of industrial and forestry equipment Minimization of environmental impacts Operational excellence Integration of technologies and systems Encouraging internal entrepreneurship Investment in research and innovation, including biotechnology Knowledge management Product sales Liability management Working capital management Financial risk management Resource management Budget efficiency Investment analysis Information control and availability Performance management Talent development and management Training and qualification Management of safety, health and quality of life Meritocracy Active dialogue with stakeholders Fostering social development Land management Engagement in public policy Social operating licenses Mapping social impacts Fostering initiatives and the development of projects via partnerships Sustainable forest management Reduced soil preparation Biological control Social and environmental risk mitigation and optimization of opportunities Environmental licenses Granting of water withdrawal rights Results Pulp and paper production Energy generation and exports Lower greenhouse gas emissions Expanding a culture of innovation New business opportunities Support for decision-making Competitive advantages Operating cash generation Leverage ratio (net debt/ EBITDA) Net reduction in financial expenses Short and medium term liquidity Minimum return on invested capital High performance team Optimization at work People and leadership development Productivity and integrity Achievement of targets Integration across areas Local social, cultural and economic development Stronger relationships Empowering local leaders Improving labor relations Proximity with stakeholders Restoration of degraded areas Soil conservation Low use of pesticides and herbicides Landscape management Monitoring of water resources Monitoring of fauna and flora Restoration of native areas Creation and maintenance of ecological corridors Low-carbon agriculture Value generated Sustained supply of products and services High value added to final products Pioneering spirit and rupture of paradigms Strengthening the company and industry Credibility and reputation Integrated vision of the business Customer satisfaction Development of society Financial solidity of the company and its value chain Returns for investors Perpetuity of the business Return on capital employed Contribution to social and economic development (national and international) Engagement and commitment Balance between professional and personal life Inspiring workplace Regional development Cultural transformation Sustainable regional development Encouraging local protagonists Strengthening local partnerships Culture of sustainability Credibility and reputation Biodiversity conservation Mitigating climate change Sustainable use of natural resources Culture of sustainability 14 15

9 Ownership structure (12/31/2015) Shareholder Common Preferred class A Preferred class B Number % Number % Number % Number % Suzano Holding S.A. 354,349, % 3,245, % 17, % 357,612, % David Feffer 2, % 48,815, % - 0.0% 48,818, % Daniel Feffer 2, % 44,151, % - 0.0% 44,153, % Jorge Feffer 2, % 42,497, % - 0.0% 42,499, % Ruben Feffer 2, % 42,930, % - 0.0% 42,933, % Other controlling shareholders and related persons 10,003, % 74,086, % 3, % 84,094, % Managers - 0.0% 3,742, % - 0.0% 3,742, % Subtotal 364,362, % 259,469, % 21, % 623,853, % Treasury 6,786, % 10,644, % 1,909, % 19,340, % BNDESPAR - 0.0% 75,909, % - 0.0% 75,909, % Other shareholders - 0.0% 388,624, % 9, % 388,634, % Total 371,148, % 734,649, % 1,940, % 1,107,738, % Total Forums. We are signatories to national and international pacts and hold a broad scope of certifications, which include, besides the Forest Stewardship Council (FSC - C010014), the standards ISO 9001 (quality), ISO (environment), OHSAS (Occupational Health and Safety), as well as the Programme for the Endorsement of Forest Certification / Brazilian Forest Certification Program (PEFC/ Cerflor). In 2015, the Imperatriz Unit received two European seals that the Mucuri Unit already held: Ecolabel and Nordic Swan. These certifications warrant that we adopt sustainable practices in our production processes and follow the ecological criteria established by the European Commission, especially with regard to gas emissions, energy consumption and the use of certified raw materials. (See in GRI Additional Information Identity a list of the charters, principles and other initiatives to which we are a signatory, as well as the national and international associations of interest to our industry) Capital structure Free Float 42% Treasury 2% 52% Controlling group 56% Management and governance Our corporate governance was strengthened in 2015 with the approval of a dedicated policy (Corporate Governance Policy) and of three other policies that also incorporate best market practices: Integrated Risk Management Policy, Internal Controls Policy and Anticorruption Policy. All were approved by the Board of Directors. We also invested heavily to improve our systems by automating processes so that people can dedicate more time to activities that value innovation, which indirectly benefits our governance. Our actions are based on ethical principles and transparency in relations with stakeholders. On the São Paulo Stock Exchange (BM&FBovespa), our stock trades in the Level 1 Corporate Governance listing segment and is a component of the Carbon Efficient Index (ICO2),attesting to the efficient management of our greenhouse gas emissions. Commitments We participate on organizations that represent our industry and uphold our principles, such as the International Board of Directors of the Forest Stewardship Council (FSC ), The Forests Dialogue (TFD) and state Forestry Ethics and transparency Our employees behavior is guided by the Code of Conduct, which establishes the principles and values in which we believe and the guidelines for respecting them. Any ethical misconduct or attitude in violation of the Code of Conduct should be communicated to a manager or submitted to the Conduct Management Committee and/or Ombudsman, which guarantee the anonymity of the whistleblower, process the reports and submit them to the Conduct Committee for resolution. In 2015, 23 grievances related to labor practices were submitted to the channel, of which 22 took place in the year and one in 2014, and all were resolved in the period. GRI G4-56 G4-57 G4-58 G4-LA16 The channel Suzano Responde handles suggestions, comments, questions or complaints, which are responded to immediately or forwarded to the pertinent departments. Note that this channel is also available to external stakeholders. In 2015, Suzano Responde received 13,007 tickets. Meanwhile, the Stakeholder System (Sispart), a channel for active dialogue with the local community, received 37 grievances related to impacts on society, of which 36 were resolved in the period. GRI G4-SO11 Employee at the Mucuri Unit in Bahia Employee at the Limeira Unit in São Paulo 16 17

10 Governance structure GRI G4-34 Board of Directors 18 Responsible for providing guidelines for administrative, supervisory and regulatory decisions. Formed by eight directors, two of whom are independent. Directors are elected by a Shareholders Meeting. Current term of office lasts until the Annual Shareholders Meeting in Supported by the Management, Audit and Sustainability & Strategy committees. Members David Feffer Claudio Thomaz Lobo Sonder Daniel Feffer Antonio De Souza Corrêa Meyer Rodrigo Kede de Freitas Lima Jorge Feffer Marco Antonio Bologna Nildemar Secches Chairman Vice Chairman Vice Chairman Director Director Director Director Director Executive Board Responsible for executing the guidelines established by the Board of Directors. Formed by five executives, with one chief executive officer and four area officers. All are elected by the Board of Directors to one-year terms. Current term of office lasts until the Annual Shareholders Meeting of Members Walter Schalka Alexandre Chueri Neto Carlos Aníbal de Almeida Jr. Carlos Alberto Griner Marcelo Feriozzi Bacci Chief Executive Officer Executive Officer Forestry Business Unit Executive Officer Pulp and Paper Business Unit Executive Officer Human Resources Chief Financial and Investor Relations Officer (See in GRI Additional Information - Identity the proportion of senior executives hired from the local community) Audit Board Standing body. Formed by three to five members and their respective alternates. Current term of office lasts until the Annual Shareholders Meeting of Members Members Alessandro Golombiewski Teixeira Luiz Augusto Marques Paes Rubens Barletta Alternate Members Amauri Sebastiao Niehues Roberto Figueiredo Mello Luiz Gonzaga Ramos Schubert Employee at the Head Office in São Paulo Risk management GRI G4-14 In 2015, we strengthened our risk management by adopting integrated management of internal controls and corporate risks, as part of the maturation of our corporate governance. Risks that previously were managed on a decentralized basis are now managed by the Corporate Risk Department, which received executive-level status and specialized professionals. The department s purpose is to identify, classify, formalize and manage corporate risks, always from a strategic standpoint and seeking continuous improvements. The idea that guided this effort went beyond mitigation to include thinking about how to execute tasks more efficiently. Our methodology includes shifting our focus to more critical risks, such as adapting to climate change (e.g., flow of the Mucuri River), our exposure to market variables and capturing Risks and opportunities from climate change GRI G4-EC2 Climate event Periods of drought Higher temperatures Risk/Opportunity Higher irrigation costs Appearance and/or expansion of pests in eucalyptus forests Death of seedlings due to low rainfall Wildfires Drop in eucalyptus production Increased use of chemical pesticides and herbicides and other agents to control new pests and diseases/ impact on costs Increased use of chemical pesticides and herbicides and other agents to control new pests and diseases/ impact on certification Financial implications R$600, every fifteen days R$2,000, per year R$2,000, per year R$2,000, per year ** ** ** Adaptation options Use of rainwater storage and collection systems Increased use of chemical and biological pesticides and herbicides with integrated pest management Development of GMOs* resistant to water stress Increase monitoring and support network Smaller planting areas and increase use of mosaic planting techniques Development of pest resistant GMOs* Work with certification to ensure viable production output operating efficiency gains. Our investments in this area target the long term, especially in technology, to ensure the continuity of our business (see examples in the following table). By maintaining a holistic view of our operations, we can better protect the company from scenarios in which compliance takes on even greater importance. Initial investment with adaptation R$3,000, R$700, R$120,000 cost of procurement team R$500, Maintenance costs R$500,000 per year No significant maintenance costs R$10, additional amounts for logistics Cost to maintain product in the market ** ** ** ** ** ** * Genetically Modified Organism: Biological entity whose genetic material has been altered using genetic engineering techniques. This technology is used to create plants for the cultivation of raw materials and food. These crops give plantations a higher level of protection by introducing genetic codes that are resistant to disease or increase tolerance to herbicides. ** Measurement not possible / Variable costs 19

11 Manufacturing capital Net revenue of R$10.2 billion, growing 41% from 2014 Operating performance In 2015, we sold 3,291,288 tons of pulp, 12.4% of which to the domestic market and 87.6% to the export market. The breakdown of pulp revenue by region is as follows: 40% from Asia, 32% from Europe, 15% from North America and 13% from South/Central America. This sales volume generated net revenue of R$6.6 billion (72% higher than in 2014). Meanwhile, paper shipments amounted to 1.2 million tons, with 67% sold in Brazil and 33% abroad. The breakdown of paper revenue by region is as follows: 82% from South/Central America, 10% from North America, 4% from Europe and 4% from other regions. The business segment posted net revenue of R$3.6 billion (6% higher than in 2014). In the year, our net revenue amounted to R$10.2 billion, advancing 41% from 2014, supported by the higher pulp price in Brazilian real, given the currency s depreciation against the U.S. dollar, and by sales volume growth. 20 Sales volume (tons) GRI G4-9 Pulp 3,291,288 Domestic market 456,044 Export market 2,835,244 Paper 1,230,103 Domestic market 827,087 Export market 403,016 Certain operating changes implemented in the year revealed the creativity we have employed to advance our strategic pillars. In Reshaping the Industry, one example is our partnership with Ibema, in which we made use of an asset to expand synergies and positioned ourselves as a more complete player in the paperboard segment. = We also successfully overcame challenges in granting credit. One of these was adapting our client assessment model, which before concentrated on only a few large buyers. We now operate Industrial Units, Total capacity tons of paperboard using regional cells with specialized teams, with the various disperse credit activities transferred to an electronic system using the structure of Serasa, a credit reporting company, effectively automating the credit approval process. Enhancements in the sales department include standardizing the management, routines and metrics of the Transformation Project, which includes sequential meetings among hierarchical levels with unified agendas and data sources. Embu (SP) Turvo (PR) In the Paper Business Unit, we conducted various actions under the Suzano+ Program, such as installing a paper-cutting process at our Regional Distribution Centers, creating eight regional offices, increasing the number of visits and decentralizing operations. We also have been working directly with end consumers so that we can more accurately understand their needs. In the pulp segment, which concentrates few clients and high volumes, thereby eliminating the option of expanding our coverage and penetration, the strategy was to optimize profitability by identifying more promising markets and directing higher product volumes to them. In addition to increasing this flexibility, we sought to strengthen our relationship with clients by offering custom solutions. That was the case of a European buyer with whom we collaborated, in 2015, to develop mechanisms for improving their logistics by unifying operations and networks, which captured gains for both companies. This closer relationship was facilitated by the nature of the transactions, which typically involve medium and long term contracts. Employee at the Limeira Unit in São Paulo Commercial strategy Paper clients proximity Paper structure 429 professionals, including the Sales Center Pulp clients 291 professionals, excluding the Sales Center adding value 31,509 clients making direct purchases 21

12 Ecoefficiency In the industrial segment, we focused on reducing the consumption of chemicals and increasing our surplus power generation, which at the Imperatriz and Mucuri units reached 718,000 MWh, or 60% more than in Meanwhile, replacing purchased energy with self-generation avoided 261, tons in CO 2 emissions. At Mucuri, with the project to strengthen the power system, we distributed surplus power through production lines 1 and 2, which have installed capacity of 40 MWh. Average power distribution gradually increased until reaching 30 MWh/month in August. The project involved rearranging the system by improving the thermodynamic efficiency of turbines, which resulted in higher surplus power generation with the same amount of steam in the boilers. In compliance with the Operating Efficiency Program, we also registered significant reductions in the period in water and electricity consumption and in the generation of air emissions and solid waste at the Mucuri, Imperatriz and Limeira units. (See GRI Additional Information - Manufacturing Capital for the results of consumption indicators) Eco-efficiency permeates all of our industrial initiatives. In the pillar Structural Competitiveness, we have been improving the efficiency of our assets by capturing productivity gains, in line with the concept of doing more with less. One example was the start-up of the cooking plant at the Suzano Unit. The new digester, which required investment of R$155 million, will increase annual bleached pulp production capacity by 33,000 tons, bringing the unit s annual capacity to 550,000 tons. The equipment also reduces steam consumption and consequently natural gas consumption in the plant s input balance. One of the most advanced in terms of wood cooking, the new digester will increase yields and reduce wood consumption per ton produced, while also reducing the use of chemicals in the subsequent bleaching process. Other benefits include reducing electricity consumption and the generation of air emissions. Given the positive results of our initiatives, in 2016, we will continue to focus on enhancing our routine management, which is already very robust, since our corporate governance model includes an Operating Efficiency team, which is responsible for supporting operations through practices and tools such as Six Sigma and fault analysis. In parallel, we will continue to focus on structural projects to boost our 22 Wood trucks at the São Paulo Forest Unit in Itararé 40 R$ million Acquisition of 180 lighter, more innovative semi-trailers zeroed We eliminated the number of tractortrailers circulating in Imperatriz competitiveness (productivity gains) and systemically reduce our fixed and variable costs. At the Mucuri and Imperatriz units, projects of this nature already exist. In Maranhão, for instance, the mill was designed to produce 1.5 million tons per year and has already reached its limit, which is leading us to expand its capacity by 10% (to 1.65 million tons per year). Part of this project will materialize in 2016 during the general downtime in June, with another part in August or September of Meanwhile, at the Limeira Unit, a biomass boiler is undergoing renovation and will restart operations in 2016, which will help reduce fossil fuel consumption by optimizing the use of its energy potential. Logistics The year was very promising for our Logistics, with progress made in diversifying our business models. In inbound logistics, i.e., deliveries of inputs and chemicals to our plants, we reviewed all contracts with suppliers to consider the possibilities for: a) insourcing (operating the truck fleet in-house); b) working with incorporation (we acquire part of the equipment and incorporate the model); and c) transforming the commercial agreement from FOB (Free On Board) into CIF (Cost, Insurance and Freight), i.e. the supplier bears the cost of freight to the mill. These solutions, which were adjusted in accordance with each case, generated savings of R$1,308,000 in the year. In forestry logistics, which account for one third of the department s budget and have a significant impact on our pulp cash cost, we adopted two initiatives: the incorporation model, in which we hire the carrier and their tractor and invest in the semi-trailer, lending it under a loan-for-use agreement; and the R$40 million investment in 4 th By acquiring a train set at Imperatriz, we removed around 50trucks from the road every day acquiring 180 lighter, more innovative semi-trailers with unique designs and higher cargo capacity, which reduces fuel consumption and wear. In 2015, the new semi-trailers were already in use at the Mucuri Unit and being incorporated at the Imperatriz Unit. Meanwhile, in the state of São Paulo, the semi-trailers should be implemented by end In outbound logistics, i.e. from the mill to the client, we also adopted two major initiatives. For international shipments, we reviewed the logistics network in the United States and are adopting a new model for pulp and paper. In the global pulp market, we established a target of shipping products under a full vessel charter, in which the vessel s entire hold is used instead of sharing it with pulp from other manufacturers. We conducted 25 such operations in 2015 (vs. 14 in the previous year), which led to significant cost reductions, since, depending on the route, the savings on rates can reach 15%. In the domestic market, we expanded the network and focused more on logistics in the deconsolidation segment, with a higher Loading of freight cars at the Imperatriz Unit in Maranhão 25 operations with a full vessel 11 charter* *Shipping more than in the previous year products by filling the vessel s entire hold, instead of sharing it with pulp from other manufacturers Sustainability We reviewed all contracts with suppliers to consider the possibilities for: Insourcing (operating the truck fleet in-house) Working with incorporation (we acquire part of the equipment and incorporate the model) Transforming the commercial agreement from FOB** into CIF*** (the supplier bears the cost of freight to the mill) **(Free On Board) ***(Cost, Insurance and Freight) penetration of products at all destinations. For this, we have 20 distribution centers, with three moved to more ideal locations and one that was launched and already expanded in the year. In parallel to these changes, we also eliminated the number of pulp semitrailers circulating at the Imperatriz Unit by acquiring a fourth train set to transport our products to the Port of Itaqui in São Luís, Maranhão. This allowed us to remove around 50 tractor-trailers from the road every day, resulting in gains for the country s infrastructure and for the environment. In 2016, we will continue all of our logistics initiatives to support our goal of reaching the optimal structure cost. We invested heavily in logistics in 2015 (capital expenditure of R$60 million) and, in 2016, we will prioritize the structuring of information systems. There are still challenges ahead, such as dealing with the social impacts generated by wood transportation. However, we already have made significant progress on this front by shortening by half the average supply radius at the Mucuri Unit and working proactively to reach better understandings with local communities. Another important priority will be finding a final solution for pulp distribution from the Imperatriz Unit, since the temporary agreement for our use of the Port of Itaqui expires in

13 Intellectual capital Highlights include Eucafluff and our entry into the tissue and lignin extraction markets 24 Innovation In November, at the Suzano Unit, we launched production of our hardwood fluff pulp under the trademark Eucafluff, which is the first fluff pulp operation in Brazil and the only hardwood fluff pulp operation in the world. The startup marks our entry into the sanitary market, which requires intense absorption for applications such as disposable diapers and sanitary napkins. Tests show that our pulp demonstrates the potential to replace 70% of the softwood pulp used in sanitary napkins and 30% in diapers. This blend of hardwood (0.8mm) and softwood (2.4mm) fibers results in higher-performing products for our clients. The new fiber is capable of keeping diapers dry for longer and with a panel (area in contact with the liquid) that is thinner, more flexible and softer. The innovation also captures significant electricity savings in the fiber s processing and defibration, as well as logistics gains. Buying from a local manufacturer allows clients in the domestic market to reduce their inventories, which typically are around 90 days for softwood pulp imports from the United States. We also have a comprehensive and well-prepared technical team in Brazil, which makes our after-sale service another important differential. Eucafluff production began with the retrofitting of a printing and writing machine to transform it into a flex system, which required investment of R$30 million. The operation, which Environmental gains The global fluff pulp market is mostly served (90%) by the United States, and, to a lesser extent, by countries like Argentina. Studies show that local supply of fluff pulp to clients in Brazil reduces carbon emissions. We also are conducting studies to assess water consumption in the fluff pulp supply chain of our clients to calculate the reductions resulting from the fiber s substitution. Fluff market volume 5.6 million tons (in 2014) 10% 40% 25% 25% Growth 4% per year Destination of global production: Baby diapers Adult diapers Sanitary napkins Other 290,000 Brazil consumption tons (in 2014) 100,000 Brazil/Suzano production capacity tons/year is aligned with the strategic pillar Adjacent Businesses, already holds FSC - C certification. Aligned with the same pillar, our entry into the tissue segment was motivated by our need to monetize ICMS tax credits, since we are exempt from paying this tax on products exported from the Imperatriz and Mucuri units, but pay the tax on inputs acquired from suppliers in other states, which results in an accumulated credit. Among the solutions considered for expanding the domestic market, especially in the two producing 1 1- Employees at the Suzano Unit in São Paulo 2- Eucafluff at the Suzano Unit in São Paulo states where we receive ICMS credits at the full rate, we opted to install another cut size machine at the Mucuri Unit to increase local penetration of the paper Suzano Report and to invest in the tissue segment. Pulp represents 70% of the cash cost in the manufacture of jumbo rolls for tissue paper production (first stage of the value chain). With this in mind, we confirmed that most of the industrial tissue market is located in the South of Brazil, which means that the jumbo rolls must be transported to the North and Northeast to be converted into final products. This led us to propose partnerships with tissue producers to sell them our jumbo rolls, which generates significant savings in logistics and provides a highly competitive product, since we hold more than 96% of production cash cost. The quality aspect is another advantage. In the domestic market, there are currently three types of tissue paper: low-quality one-ply (100% scrap), highquality one-ply and two-ply (100% pulp). Since consumers tend to migrate to higher-quality products (in the case of tissue paper, projections indicate that, within ten years, two-ply will be the flagship product), we are entering 2 25

14 Employee at the Mucuri Unit in Bahia a promising market in which our focus is on the supermarket channel in the North and Northeast regions. We expect to close partnerships for selling our production by mid Although being an industrial partner is our priority, we also are prepared to take products to supermarket shelves through private-label brands. We have approved investments for the installation of conversion lines and are positioning ourselves to supply both jumbo rolls and finished products to our partners, in which case they are responsible for sales. Our competitiveness in finished product is even better given the higher price, which helps us to monetize even more ICMS credits. In other words, our gain does not come from operating cash flow, under EBITDA, but rather from free cash flow. From the operational standpoint, we have detailed the project s engineering services, which have already been contracted, and have received quotes for building the interconnections between the pulp and production lines. The equipment Tissue market (in 2014) Production volume 1.2 Sales channels (Brazil) supermarket Domestic 900 K tons/year 80% tissue paper also has already been acquired. We will begin construction at the Imperatriz Unit in July 2016 and at the Mucuri Unit three months later. The startup of these machines is slated for the third quarter of 2017 at Imperatriz and for the fourth quarter of 2017 at Mucuri. Another innovation in 2015 was the announcement of a R$70 million investment in the construction of a new lignin extraction plant on a pre-industrial scale at the Limeira Unit. With annual production capacity of 20,000 tons, the new plant places us firmly on the industry s technological frontier, while strengthening our strategy in Adjacent Businesses. Lignin forms up to 25% of eucalyptus wood, confers stiffness to trees, is the second most abundant polymer in nature, and is a byproduct of the pulp production process and currently used by the industry for power generation. It also substitutes certain petroleum products in high value added applications, which offers attractive returns (three times more than power sales). The purpose is to supply a sustainable alternative for the production of various chemicals that currently are made from petroleum. Through this project, we will begin to operate in the segment of kraft lignin, a product used in applications involving phenol, biofuel, activated carbon, cement additives, BTX, high-purity lignin, carbon additives, phenol resins and carbon fibers. Of the investment announced, 70% will be financed using innovation credit lines, which have extremely competitive costs. The operation s startup is slated for Our annual installed capacity, considering potential new lines at other industrial units, could reach 185,000 tons. Research and development In parallel to pursuing innovative businesses, we maintained our investments in biological controls (pest and disease control systems using natural enemies). In 2015, in partnership with the Agricultural and Livestock Defense Agency of Bahia (ADAB), an agency linked to the Bahia State Department of Agriculture (SEAGRI), we successfully managed to control the eucalyptus caterpillar (Thyrinteina arnobia) using its natural enemy Bacillus thuringiensis. This pest has been a source of concern for eucalyptus producers in the state s extreme southern region due to the significant leaf loss and sharp reduction in productivity it causes, which can even kill a forest. million tons hotels Professional bars restaurants 300 K tons/year, mostly paper towels Consumption (person/year) 25 kg United States Brazil 5 kg 12 kg to 13 kg Europe Employee at the Nursery in Alambari, São Paulo 26 27

15 Pulp handling in Portocel, Espírito Santo 28 Financial capital Scenario The year 2015 was turbulent both globally and locally. The weak recovery in the United States and discussions on China s situation proved crucial to the path of the world economy. From the technical standpoint, the period was marked by negative interest rates and capital injections from central banks in many countries, as well as sharper variations in exchange rates. In Brazil, the situation was no different, but with these factors aggravated by the country s political situation. Among these aspects, one of them features effects that are the subject of endless debate: China s economic slowdown. However, the country s weaker economic growth did not affect our performance as it did other industries. The pulp and paper industry is highly correlated to the performance of consumption, which has robust support, while industries exposed to investment cycles have faced bigger challenges. And, in this regard, two factors must be considered: the ongoing migration in China from rural to urban areas and the change in behavior of the country s population, which is being westernized. One example is the per-capita use of sanitary paper, which stands at 20 kg in the United States, compared to around 5 kg in China. With this shift in Chinese consumption, the trend is of We made significant advances on two goals: financial solidity and deleveraging convergence, which is good for Brazil, a country that is very well positioned in terms of pulp production costs and automatically benefits from this positive driver. Confirming this analysis, in 2015 (as well as 2014 and we believe in 2016) we registered solid demand from the Chinese market. Financial performance Our privileged position as an exporter of goods with strong global demand allowed us to move forward in two of our goals: financial solidity and deleveraging. In a difficult year for companies in terms of liquidity, our cash generation allowed us to prepay relevant debt liabilities and to raise new capital at lower costs. We closely monitored opportunities and acted proactively and creatively without losing sight from a structural standpoint. One of the measures taken was to change our approach for extending credit to meet these two challenges: broader coverage by our sales team, supported by the Suzano+ Project; and approving credit based on Brazil s new situation, which required creating new tools and products with the capacity to support our clients. For example, for the first time ever, we took out credit insurance on our sales that covers up to 65% of any loss. We also created a new channel for granting credit for a receivables-backed fund and developed personalized solutions for clients to ensure the viability of sales by securing additional guarantees. All these initiatives were developed jointly with the Sales department, as proposed by the project Joined & Mixed. Another important measure in the period was the launch of the Shared Services Center, in which we concentrated our administrative Breakdown of revenue (R$ 000) Net revenue Export market 2,979,430 4,214,259 7,093,098 Pulp 2,054,082 3,241,907 5,781,113 Paper 925, ,352 1,311,985 Net revenue Domestic market 2,709,195 3,050,340 3,131,263 Pulp 523, , ,294 Paper 2,185,989 2,440,944 2,308,970 Total net revenue 5,688,625 7,264,599 10,224,361 Pulp 2,577,288 3,851,303 6,603,406 Paper 3,111,337 3,413,296 3,620,955 (R$ 000) Net revenue 5,688,625 7,264,599 10,224,361 Cost of goods sold (4,190,315) (5,355,664) (6,184,246) Gross income 1,498,310 1,908,935 4,040,115 Selling expenses (250,996) (300,796) (409,986) General and administrative expenses (377,049) (392,761) (455,629) Other operating income 105,302 14,191 (104,516) EBIT 975,567 1,229,569 3,069,984 Depreciation, depletion and amortization 889,386 1,216,132 1,419,477 Adjusted EBITDA 1,781,339 2,452,010 4,593,677 Adjusted EBITDA margin (%) Net financial result (1,255,541) (1,593,512) (4,428,505) Earnings before Income Taxes (279,974) (363,943) (1,358,521) Income and Social Contribution Taxes 59, , ,167 Net income (220,459) (261,506) (925,354) (R$ 000) Gross debt 12,876,985 13,760,585 14,710,888 Cash 3,689,640 3,686,115 2,448,096 Net Debt 9,187,345 10,074,470 12,262,792 Net Debt/Adjusted EBITDA 5.2x 4.1x 2.7x Financial leverage measured by net debt/adjusted EBITDA (R$) reached 2.7x We took out credit insurance for our sales that covers any losses up to the limit of 65 activities with a view to standardizing and automating them and consequently free up more time for our professionals to focus on managing core activities. The idea is for the capture of efficiency gains to be directly related to improvements in our competitiveness. Guided by the same principle, we continued to implement the Simplify Project, with the creation of a working group with representatives from various departments to analyze processes and activities and study ways to simplify them. Various opportunities were created and many processes were simplified, which also impacts costs. Results Supported by our flexibility and careful monitoring of new opportunities in the market, we delivered good financial results in Adjusted EBITDA was R$4.59 billion, advancing 87% on the prior year, and net revenue amounted to R$10.22 billion, an increase of 41% from As a result of this performance, our direct economic value generated and distributed amounted to R$5.2 billion. (See in GRI Additional Information - Financial Capital a table with data from our Statement of Value Added) % 29

16 Human capital We foster comprehensive cultural transformation through our project Joined & Mixed 30 Employees The year 2015 was the most intense in our gradual process of cultural transformation, which involved expanding autonomy and decision-making down to all levels of the company, sharing experiences across teams and developing inspiring leaders. These changes began with our facilities: we improved transportation systems; renovated cafeterias, dressing rooms and restrooms; enhanced menus; created new common areas; and made workplaces more pleasant. Then we began implementing the program Joined & Mixed, which serves as a link between the physical and psychological aspects of the transformation we seek. We gradually expanded the practice of home office (offering employees the same conditions to work from home, including telephones and computers) and redesigned the layout of workplaces to facilitate interaction among people and increase satisfaction. In parallel, we worked to reinforce these new concepts (collective decision-making, greater autonomy, etc.) through training programs, support materials, communication campaigns and broad disclosure. This year, we did not conduct any internal survey to measure the effects from all these changes on our organizational climate. However, we were included once again, after 11 years, in the ranking of the 150 Best Companies to Work For in Brazil sponsored by the magazine Você S/A. The achievement left us even more determined to figure in the Employees at the Limeira Unit in São Paulo ranking again in 2016, as well as in the study recognizing the best companies for young professionals to start their careers. The reason is that we spend considerable energy on our development programs: Internships, Young Engineers (for trainees), Young Sales Executives (for trainees in the Sales Department) and Formare Apprentices. The programs are highly selective, prioritize young workers with a high propensity for transformation and entrepreneurship and adopt the same concepts of learning from practical experience and developing behavioral aspects. With 1,373 new hires and 981 terminations, we ended 2015 with 7,606 employees, of whom 85% are men and 15% are women. The employee turnover rate was 1.49%, or 0.07 percentage point lower than in (See GRI Additional Information - Human Capital for the composition and profile of our workforce, new hire and turnover rates, benefits offered to full-time employees and supervised workers and topics related to health and safety covered by trade union agreements) Training and development We maintained the initiatives that exemplify the inspiring leaders we seek: those who are capable not just of speaking, but also of listening. One such initiative is the quarterly program Suzano & You, a forum in which the CEO presents our business strategies, targets and objectives to all employees and then opens for questions and frank dialogue. In smaller groups, we organize Open Dialogues that adopt the same format as the Safety Dialogues, where people meet with managers to discuss their work routines and propose improvements. These are some of the tools we use to create a more open and collaborative organization that encourages professional development under a performance management model guided by our evaluation process. The process, which involves all employees regardless of hierarchy, became more rigorous in 2015, with the adoption of new criteria. In the case of leaders, for instance, we started to consider not just their performance, but also their development capacity. For the next cycle, which is scheduled to begin in the second half of 2016, the concept will be modified to make it even more constructive, with a focus on maximizing strengths. On the other hand, in keeping with the concept of meritocracy, we are gradually strengthening the concept of variable compensation linked to collective results. This change, which began to be implemented at the highest level of our organization, has already been implemented down to the specialist level. Also with regard to compensation, none of our employees receives the minimum wage and we do not adopt the minimum wage as an index for wage adjustments. In 2015, the ratio of the lowest salary paid by the Company to the minimum wage in Brazil was 10.41%. GRI G4-EC5 In the area of training, we continued to focus on transformation, while reinforcing entrepreneurship. In addition to knowledge acquired in the classroom, we encouraged learning through practical experience by forming multidisciplinary groups and challenging them to identify and propose solutions to day-to-day problems, which is a method known in the market as action learning. In the area of sales, the adoption of a new, lessconcentrated management model led to the development of a new format for our training actions. In addition to a company-wide sales encounter, we also tested models for sharing and recycling knowledge. One of our plans is to expand the resources made available by adopting the Genesis tool for broadcasting video classes online. Meanwhile, the Formare Apprentice program commemorated the graduation of its first classes after an important reformulation carried out, in 2014, to strengthen its vocational nature. No longer connected with the Students of the Formare Apprentice Program at the Imperatriz Unit in Maranhão 31

17 Employees in a common area at the Suzano Unit in São Paulo 10 years in operation Formare Apprentice Program 2015 Unit Graduates New hires % Suzano 18 14* 78 Mucuri 22 5** 23 Limeira 12 2*** 17 Imperatriz 19 8**** 42 Total * Ten full-time employees and four apprentices under the Guarda Mirim program ** Two full-time employees, one temporary employee and two interns *** One supervised worker and one intern **** Seven full-time employees and one supervised worker New Hires from Formare Apprentice Program* Suzano employees EPS Guarda Mirim/Senai/Senar Interns Total * Active employees in December 2015 Formare Apprentice Program in numbers 27 classes graduated 496 young professionals graduated Ministry of Education, it is now associated with the Ministry of Labor, effectively transforming it into the Formare Apprentice Program, which transcends the characteristics of a social project to serve as an important gateway to the job market and to opportunities at our units. At our units in Suzano, Mucuri, Limeira and Imperatriz, the initiative trained 71 young workers during the year, 29 of whom were hired by the Company. Considering this figure and the previous ones, in 2015, our workforce included 112 young professional graduates from the program (89 employees, 15 supervised workers, four interns and four apprentices under the Guarda Mirim program). In addition to generating income for the youth and keeping them in school, which is a prerequisite for the 30 youth from underprivileged local communities who are enrolled every year, Formare strengthens skills and encourages the recycling of knowledge among the 315 volunteer workers who administer classes in the program in Paper Machinery, Maintenance, Logistics, Fibers Line, Electrical, Process Engineering, Workplace Safety, Pulp, Wood Yard, Recovery, Utilities, etc. Over the ten years since its creation, the program has engaged 1,100 volunteers. They are part of our Volunteer Program, which mobilizes not only employees, but also supervised workers, partners and family members, with a total of 1,746 active volunteers at the end of the period. Health and safety In addition to the pertinent provisions of collective bargaining agreements (which cover 100% of employees), such as mandatory use of personal protective equipment (PPE), we have a series of initiatives to ensure the health and safety of our employees. One is the program Safety on Site, which, in 2015, supported by our internal cultural transformation, was reinforced by encouraging leaders to address the topic with their teams and to organize regular safety patrols. The greater autonomy given to employees also strengthened their commitment to safety. As a result, we registered successive declines in our injury 360 people included in the job market 355 continued studying Suppliers frequency rate, which has fallen and decoupled from the industry average. Unfortunately, we suffered one fatality in the year, which affected our severity rate. GRI G4-11 Our professionals start their shift by participating in Daily Safety Dialogues (DDS), which on a daily basis cover 85% of those directly involved in operations and on a weekly basis 15% of the administrative team. Then, each employee conducts a preliminary assessment of the risks posed by the activities by completing the Preliminary Risk Assessment (APR) and/or the Risk Determination Matrix (MDR), after which they request a Work Access Permit (PAT). These tools cover 100% of our operational teams, except for the legally required safety training, which is administered to 100% of both our operational and administrative teams. After being selected by the workplace safety team and supervisors, activities are analyzed on a monthly basis by safety technicians and supervisors to verify if control measures should be enhanced or if an employee is working in accordance with the established procedures. This practice covers around 5% of the team each month and involves 60% of all activities. GRI G4-PR1 (See in the GRI Additional Information - Human Capital data on the injury frequency rate, types of injuries, number of lost days and fatalities) We consider our suppliers partners of strategic importance to the sustainability of our business. We value ethical conduct, safety, transparency and dialogue in all interactions with them and adopt meticulous criteria for their selection. Our current base includes over 16,000 suppliers that encompass all segments of the chain (forestry and industrial) and include small businesses and rural producers to large corporations. GRI G4-12 Suppliers by region* 2015 GRI G4-12 Region Number Percentage Midwest Northeast 2, North Southeast 11, South 1,282 8 Total 16, *International suppliers are not reported because they are not part of the Registration Governance Process In 2015, we developed the Supplier Registration Governance project, through which we introduced a robust process for developing and strategically evaluating these stakeholders and adopted an online record-management platform. This automated tool incorporates greater agility and reliability in the process of certifying and registering companies, and features regular monitoring of situations at various government agencies, such as the Office of the Federal Controller General (CGU), and regular updating of tax and legal records. We strive to encourage our suppliers development and prioritize the hiring of local partners to contribute to regional development. In 2015, 55% of all spending with commercial partners corresponded to purchases from suppliers located in the same regions as our industrial facilities. Note that this percentage includes purchases by the corporate structure at the Suzano Unit from companies located in states in the Southeast. GRI G4-EC9 Although there are no specific procedures and actions for addressing matters related to negative impacts on society generated by our supplier chain, we require our business partners to adopt engagement policies in the areas of occupational health and safety, compliance with labor laws, social and environmental practices and respect for human rights. GRI G4-SO9 These policies are incorporated into the legal agreements signed with suppliers and are monitored by internal and external audits and by processes dedicated to monitoring third-party and risk management. The measures ensure that our supplier base is aligned with our corporate principles and values. If incidents of violations of the law or of mandatory criteria are identified, the supplier s registration is refused or suspended. GRI G4-SO10 Employee at the Mucuri Unit in Bahia Purchases by region 2015 Unit Regional (%) Non-regional (%) Imperatriz Limeira Mucuri Suzano Total Local (regional) purchases are items acquired from business operations located in the same regions as our mills. We maintain a corporate supply structure at Suzano Unit in which all purchases made in companies from states in the Southeast are considered local (regional) purchases

18 Social capital Social and economic diagnosis Our proposition is to facilitate land development processes The cultural transformation we are carrying out internally has had a positive impact on our relations with the communities living near our industrial facilities. Our proposition now is to participate in decisions related to local development and, in this context, act as facilitators and mobilizers of processes. Guided by this goal, in 2015, we dedicated efforts to meticulously analyzing our projects in the states of Bahia and Maranhão from the standpoint of efficiency, effectiveness and self-sufficiency, with the findings used to formulate action plans. We made progress on developing social and environmental indicators to measure exactly the scope of our responsibility, the scale of the legacy we want to leave and whether the measures we adopt are sufficient to meet the goals. In parallel, we got involved in creating community councils, on which we participate jointly with local residents, government agents and other stakeholders, so that, together, we can identify each party s role in actions to improve the community and region. The goal is to ensure the perpetuity and sustainability of these projects, which means they must be robust enough to function independently. 1-Community Library in Maranhão 3-Fish Farming Project in Bahia 1 2-Community Farming Project in Bahia One example is the council formed by babassu palm nut workers in the state of Maranhão, which has created various joint actions to generate income and to which we contributed by transferring technology and knowledge on opportunities to raise funds. Also during the year, we worked to strengthen our corporate governance model in the sustainability dimension, based on the idea that we should engage a greater number of people and areas in discussions and actions preferably on a joint and recurring basis. In this way, we seek to encourage the volunteer work that already exists in our social and environmental projects and to strengthen our partnership with the Ecofuturo Institute. We already have significantly enhanced our governance. We have a corporate department dedicated to Sustainability, which is responsible for licensing, mapping and 3 2 Sustainable Beekeeping Project in Bahia Impact management mitigating social and environmental impacts, recommending action plans and monitoring the execution of these activities. The department is independent and not directly linked to the operational areas precisely to prevent business interests from interfering in its decision making. Drawing on this structure, our challenge is to design the best management model for social investment to minimize as much as possible any hidden risks and obtain a social license to operate. (See GRI Additional Information - Social Capital for a list of operations with programs to engage local communities and of operations with significant impacts on local communities) The social and environmental impacts caused by our activities probably never will be completely eliminated, but they can be mitigated or offset by the benefits we provide to regions. One of our initiatives, the Sustainable Beekeeping Project, which soon will be transferred fully to the community, benefits 93 families from nine communities neighboring our planted forests in the cities of Caravelas, Alcobaça and Mucuri in southern Bahia state. Adopted in 2011 as a way to complement the income of people who make a living from illegal wood extraction for charcoal production, the initiative receives technical support through our partnership with the cooperative Ecomel Natureza Pura. In the 2015 harvest, with the trees flowering from December to April, the cooperative produced 30 tons of honey and 4 tons of pollen, which leave the forest with their sale guaranteed. From this activity, each household on average obtains additional income of R$600 per month. In another initiative to promote income generation, we organize a Fish Farming Project in the communities of Córrego do Macuco in Conceição da Barra, Espírito Santo and of Oliveira Costa and Rio Mucuri in Mucuri, Bahia, which benefits 40 households. We provide them with critical inputs, such as fishlings, feed and materials to build the tanks, and give them technical support. They learn all of the phases involved in raising tilapia and produce approximately four tons per month, which earns each household additional income of around R$550. In Espírito Santo, the state where the project is in a more advanced stage, the Córrego do Macuco Community Association inaugurated its headquarters, which is used to process the fish harvested and receive clients, who already seek out the community to buy fresh fish as well as the produce cultivated on the community farms. In the state of Maranhão, our focus on family farming is manifested through the Pig Farming Project developed in the communities of Coceira and Baixão da Coceira in the city of Santa Quitéria. This pilot project is already generating income and promoting food safety for the few families involved, and also generating cooking gas, which considerably reduces the use of wood from native tree species. The properties initially received four animals each, whose waste is transformed into methane gas for the production of biogas and fertilizers. The gas is used to power stovetops in homes, while the fertilizers are used to enhance soil quality for cultivating fruits, vegetables and annual crops. The maintenance of these and other initiatives, which are concentrated in the areas of healthcare, education, economic development, environment, social and culture, required investment of nearly R$3 million in 2015, which was used as shown in the following table

19 Ecofuturo Institute Investments in social areas 36 Item Number of people benefited Internal public External public Number of municipalities benefited Investment in 2015 (R$ 000)) Health 0 2, , Education is Health (MA) 0 2, , Education and training 66 27, , Educate and Train (MA) , Indigenous Thing I (MA) 0 26, , Indigenous Student House (MA) , Ecological Trails (SP) , Community Libraries (MA) Educational Center Project (PI) , Mobile Library Project (PI) , Economic development ,429, Community Agriculture (MA) , Sustainable Extractivism (MA) , Community Agriculture (BA) , Community Agriculture (PI) , Solidary Beekeeping (BA) , Fish Farming (BA) , Solidary Beekeeping (SP) Environment 0 1, , Produce and Conserve (MA) 0 1, , Social and cultural 0 37, , Community Dialogue (MA) 0 2, , Community Councils (MA) , Indigenous Women (MA) Indigenous Protagonism (MA) 0 35, , Golfinho (BA) , Total investment ,577, Since 2009, we have sponsored the Ecofuturo Institute, a Public- Interest Civil Society Organization (Oscip) that works together with society, the government and the private sector to raise awareness on social and environmental issues by sharing knowledge and practices for mitigating and measuring impacts. In keeping with this proposition, we sponsor projects that work to encourage reading and writing, as well as environmental conservation. Ler é Preciso community libraries Supports the creation of libraries, the democratization of access to books and the formulation of public policy to promote reading. In partnership with government, sponsors and the community, Ecofuturo works to install libraries in public schools that are also open to the community. There are currently 107 units in 12 states, with each serving on average 500 people every month. To date, over 4,000 people have graduated from the Library Assistant and Reading Promoter programs offered in connection with the project. Neblinas Park This is a 6,000-hectare forest reservation that is owned by the company, managed by the Ecofuturo Institute and recognized by the Man and the Biosphere Program of UNESCO as an Advanced Post of the Atlantic Forest Biosphere Reserve. Its activities include scientific research, biodiversity conservation, forest stewardship, social and environmental education, community participation and tours for the public. The local community s involvement plays a key role in the goals of Neblinas Park. One of the action fronts consists of managing forest species, while sharing the benefits of conservation with society. The Juçara Palm Tree Stewardship Program, for example, The Community Libraries Project 107 has created 12 public libraries in states Community Library in Maranhão which engages 30 local farmers, organized the sowing of more than 6 million seeds of the species, which is considered vital to the balance of the Atlantic Forest, as well as 18 Stewardship Workshops. Carried out since 2010 at public schools in Mogi das Cruzes, São Paulo, the social and environmental education program has already served 3,600 students and some 100 educators. Since 2015, more than 34,000 visitors have been registered and three training programs for park monitors and park rangers have been administered. To expand knowledge and guide stewardship strategies, 47 scientific studies were conducted that led to the identification of three new wildlife species. Meanwhile, the strategy for managing and restoring the Atlantic Forest involves conserving approximately 400 natural springs and most of the Itatinga River Basin. Sustainability Ecofuturo Reserves his program s goal is to diagnose forest reserves with high conservation value and formulate actions to ensure their proper management. The program also develops projects for conservation units whose efforts range from the initial stages of a reserve s creation to its effective operation. The public served consists of private-sector companies that want to add value to their corporate actions, landowners seeking technical support to diagnose the potential of their land, and government agencies in need of technical support to manage protected areas. (To learn more about the Ecofuturo Institute and its projects, go to 37

20 Natural capital We invest in technologies that boost productivity and protect forests In 2015, our forest operations focused on reducing costs. We expanded our forest base, but prioritized planting on areas located closer to our units in Limeira (5,000 hectares), Imperatriz (15,000 hectares) and Mucuri (10,000 hectares) in order to save on freight expenses, which is a key cost component. Another measure adopted, which also helps to reduce emissions, included the swapping of wood supply sources with Duratex and International Paper. The practice, which was concentrated at the Limeira and Suzano units, involves exchanging the forest areas located near the mills of the other company. In 2015, the total volume of wood exchanged came to 300,000 m³ and resulted in substantial gains, with a 15% reduction in the average cost of swapped wood. As part of our new way of cultivating and managing forests, we also invest in technologies to boost forest yields. One example is the use of more powerful tractors equipped with GPS and automatic pilot, which more efficiently align replanting areas (previously planted and harvested). The equipment ensures parallel lines and consequently delivers a gain of 4% to 6% in the area available for planting. The fact that the lines are standardized also leads the trees to develop more uniformly, since they receive equal amounts of sunlight, water and fertilizers. The new tractors were tested and approved in 2015, and will be adopted on all our replanting areas. The initiative is aligned with the Silviculture Structural Competitiveness Program (CESI), which is based on the concept of precision silviculture. During the harvest phase, which in 2015 was entirely insourced, we standardized equipment and adopted a single supplier. 38 This allows us to gain scale in equipment purchases and leverage their productivity, since operators gain more experience, effectively shortening the learning curve. To our traditional technologies, such as mosaic agriculture, ecological corridors and minimum tillage, we have added new solutions to increase yields and in turn avoid expanding planting areas, which frees up areas for other uses, such as preservation areas or the planting of other crops. One such example is yield-enhanced genetically modified eucalyptus developed by FuturaGene, with the potential to produce approximately 20% more wood when compared to conventional varieties. This yield increase will enable the reduction of planted areas, lowered carbon emissions and reduced use of chemical inputs. In 2015, the Brazilian National Biosafety Technical Commission (CTNBio) approved the commercial use of FuturaGene s genetically modified eucalyptus. All these technologies are also transferred to the other links of our production through projects such as forest development, which provides small wood producers in the states of Bahia, Maranhão and São Paulo with an opportunity to participate in the pulp chain. Their income is increased to the extent that we commit to purchase part or all of their production. Employee in the Maranhão Forest Unit 50 endangered species have been identified on our farms in the state of São Paulo Also in 2015, we invested in implementing a camera-monitoring system in our forests to ensure security and immediate response in the event of fire or trespassing in preservation areas. The system has been completely installed in Bahia, with nine automated watchtowers. Meanwhile, in Maranhão the project has reached 40% completion, with 15 watchtowers equipped with highresolution cameras, thermal sensors and smoke detectors. Our challenges for the coming years include advancing this process to include the automation and technological development of our forest operations, expanding automation to include irrigation with the aim of reducing water consumption and ensuring an adequate supply of this resource for our planted forests. Our environmental commitment also includes other fronts. Since 2009, we have been a signatory to the Atlantic Forest Restoration Pact, which is Brazil s largest movement for restoring degraded forests with native species. In 2015, we partnered with the NGO WWF Brasil, whose goals include conciliating human activity with biodiversity conservation and promoting the rational use of natural resources. We also signed the AgroEnvironmental Protocol, which is a set of rules for forest stewardship that companies agree to uphold. With regard to our commitment undertaken in 2014 to restore 3,500 hectares of Atlantic Forest and Cerrado biomes in the state of São Paulo, we have already made progress on diagnosing the The survey is part of the flora and fauna monitoring project Employee at the Nursery in Alambari, São Paulo Sustainability 39

21 areas, which includes a detailed assessment of all polygons (1,800 out of 3,600, each measuring around 1 hectare) to determine the best way to restore each one, considering the lowest cost and best technologies. Our goal is to expand the scope of the solution and to disseminate it among small producers and forums such as the Atlantic Forest Restoration Pact. Moreover, in 2015, the flora and fauna monitoring project identified over 50 endangered species on our farms in the state of São Paulo. The work was based on a sampling of the 146,000 hectares (equivalent to 150,000 football fields), which included planted eucalyptus forests and preservation areas (Cerrado and Atlantic Forest biomes), and identified, among other species, the cock-tailed tyrant (Alectrurus tricolor), a rare bird whose population in the state is estimated at 80. The study, which was conducted in partnership with the organization Casa da Floresta, identified 32 species of mammals, 337 birds and 155 plants. Many of them are considered endemic (i.e., exclusive to the Atlantic Forest and Cerrado biomes) and some are endangered, such as the maned wolf, ocelot, oncilla, puma, jaguarundi, giant anteater, howler monkeys, tapirs, buffytufted marmoset, barethroated bellbird and solitary tinamou. The monitoring project also identified two sites for recognition as High Conservation Value Areas (HCVA): the Siriema II and Capanhão farms. The former, located in Itirapina, São Paulo, covers 349 hectares of Cerrado biome, where 145 species of birds have been identified, including the cock-tailed tyrant, in addition to nine species of medium and large-sized mammals, such as the maned wolf (Chrysocyon brachyurus). We also identified exotic species, such as the European hare (Lepus europaeus) and wild boar (Sus scrofa), whose population growth has accelerated in the state of São Paulo, and we have been discussing with civil society and authorities how to control and handle these exotic populations. Meanwhile, the Capanhão Farm in the Alto Tietê region covers 871 hectares of native vegetation that is contiguous with Serra do Mar 40 Investment in environmental protection in 2015 R$19.2 million Use of areas (2015) GRI G4-EN11 State Park, which features dense tropical rainforest, i.e. of high value to connecting and maintaining the park s biodiversity. A total of 103 plant species were identified in the region, five of which are considered endangered. Among the wildlife, we identified 151 bird species and 144 mammalian species, 13 of which are considered endangered: bare-throated bellbird (Procnias nudicollis), red-ruffed fruitcrow (Pyroderus scutatus), buffy-fronted seedeater (Sporophila frontalis), solitary tinamou (Tinamus solitarius), black hawk-eagle (Spyzaetus tyrannus), mantled hawk (Pseudastur polionotus), black-and-white hawk-eagle (Spyzaetus melanoleucus), ochre-rumped antbird (Drymophila ochropyga), tapir (Tapirus terrestres), ocelot (Leopardus pardalis), oncilla (Lopardus sp.), jaguarundi (Puma yagouaroundi) and puma (Puma concolor). Of the total forest area of 1,196,928 hectares, 42,587,000 hectares are used for infrastructure. Of this total, an average of 40% (477,490 ha) is maintained as preservation areas (APPs, Legal Reserves and HCVAs), of which 10% corresponds to High Conservation Value Forests (HCVF), i.e. protected by law and recognized for their important biodiversity characteristics. We currently own 31 identified and validated HCVFs, with three in São Paulo, 11 in Bahia and 17 in Maranhão. Many of our preservation areas are located adjacent to conservation units, and some are located within environmental protection areas. GRI G4-EN13 In 2015, our spending on and investments in environmental protection amounted to R$19.2 million. Area Owned Leased Subtotal Development Total % Planting 325, , ,612 86, , Available for replanting 6,360 3,294 9,654 23,113 32,768 3 Available for planting 93,446 26, ,483 2, , Preservation 315, , , , Infrastructure 34,257 8,330 42, ,587 4 Subtotal 775, ,159 1,086, ,093 1,196, Environmental protection expenditures and investments GRI G4-EN31 Type Amount (in R$) Monitoring of fauna and flora (MA, SP, BA, ES and MG) 21,7033 Hydrological monitoring 1,030,145 Preventing and fighting forest fires (including Living Forest) 299,304 Environmental Restoration (SP and BA) 5,480,000 Disposal of forest waste 111,055 Monitoring and environmental projects at industrial units Water reduction and reuse Change in lighting 12,090,989 Reduction in solid waste generation Disposal of solid waste Total 19,228,526 From the environmental standpoint, although we are dispelling the myths related to water, biodiversity and the negative environmental impact of eucalyptus cultivation, undoubtedly the use of land on a broad scale such as that required by our business does indeed generate impacts. Therefore, we must strive to reduce the amount of land we use, bring forests closer to mills to curb the greenhouse gas emissions from wood transportation, reduce water consumption for planting and mitigate the effects from our operations on surroundings areas. COP 21 in Paris expressed a clear vision of the future: the pace of reduction in carbon emissions is insufficient to achieve the established targets. Therefore, if we continue to generate emissions, we must think of ways to mitigate them, and the main solution is via carbon sequestration. By this logic, recognizing the contribution that planted forests make to carbon sequestration should gain greater relevance over time. In 2015, our eucalyptus forests were responsible for removing 18 million tons of carbon dioxide from the air, which raises the discussion of using carbon sequestration by forest systems as an alternative for offsetting emissions. All our activities are considered in our matrix of environmental aspects and impacts. For the most relevant operations in this respect, we establish mitigation actions, which, in 2015, were sufficient to avoid any notice of environmental violation or environmental incident. To minimize the environmental impacts generated by the transportation of products and other goods and materials, we planned and managed road construction and maintenance to meet our transportation and access needs, while avoiding negative effects, in particular erosion, water quality and biodiversity, in accordance with the Road Works Execution and Maintenance Procedure. The erosive power of rainwater is mitigated by reducing the speed of its flow. Water can move over the surface of roads both laterally and longitudinally. To control this, we draft management plans for units that recommend using techniques to reduce the conveyance of sediment by also reducing the potential energy of rainfall. GRI G4-EN30 We also maintain projects such as Lightweight Trucks, which uses high-strength steel to make semi-trailers lighter without affecting their load capacity. This allows us to reduce the weight of a triple semi-trailer from 19,500kg to 12,500kg. Launched in March São Paulo Forest Unit in Itararé Sustainability 2015, the project makes a vital contribution to the feasibility of forestry logistics by increasing productivity and lowering costs. We own a fleet of 750 triple logging semi-trailers, which consume 7,000,000 liters of diesel per month. A total of 205 units have been replaced by light semi-trailers, which reduces monthly diesel consumption by 190,000 liters and consequently reduces annual emissions by 5,700 tco 2 e (See "GRI Additional Information - Natural Capital" for tables with information on renewable, non-renewable and recyclable inputs; weight and type of waste; list of conservation units adjacent to our areas; size and location of all protected and restored areas and habitats; grievances related to environmental impacts; species on the IUCN Red List and on the Brazilian conservation lists with habitats located in areas affected by our operations; and total weight of waste by type and disposal method) Dispelling myths The sustainable management of eucalyptus cultivation and technological developments has given the forest industry higher levels of productivity and modern production practices. In São Paulo, for instance, we have been planting forests on the same area for over 80 years. This was made possible by adopting proper techniques (e.g., mosaic agriculture, minimum tillage, precision silviculture and biological pest control) that not only maximize production, but offer environmental benefits. After all, technological development is not just about reducing costs, but also about ensuring, in the long run, the preservation of the land and the sustainability and perpetuity of the business. 41

22 Water resources We respect all permanent preservation areas situated along the banks of the rivers that supply our mills as well as the bodies of water in our eucalyptus forests. At the forest units, we conduct hydrological monitoring to assess the physical and chemical impacts of our activities on water resources, and seek technologies to increase the efficiency of operations and in turn reduce water consumption. In 2015, our industrial activities returned to the environment, after being properly treated, 77% of the water consumed by our operations. Effluents GRI G4-EN22 42 Unit UNI Imperatriz Number (m³) Water bodies significantly affected GRI G4-EN9 G4-EN26 Source Average annual flow m³/s Average annual volume (m³) Withdrawal as a percentage of average annual volume (%) Discharge as a percentage of average annual volume (%) Protection area Tocantins River 8, ,288,000, N/A Mucuri River ,482,192, N/A Piracicaba River ,213,209, N/A Tietê River ,706, EPA Lowlands of Tietê River Tietê River COD in final effluent (t COD) BOD5 in final effluent (t BOD5) Absorbable organic halogens (AOx) in final effluent (t) Treatment method 25,208, , Activated sludge UNI Mucuri 40,894, , , UNI Limeira 19,001, , UNI Suzano 20,321, , UNI Rio Verde UNF SP (Nursery) Primary treatment followed by lake aeration and MBBR reactors Primary treatment, activated sludge, secondary treatment, polishing, discharge Primary treatment, secondary treatment through lake aeration, polishing and discharge Destination Tocantins River Mucuri River Piracicaba River Tietê River Reused by another organization? 686, Lake aeration Tietê River No N/A Ribeirão da Estiva No No No No No Body of water in Itararé, São Paulo Standards and methodologies Direct measurement Direct measurement Direct measurement Direct measurement Direct measurement Direct measurement Water consumption and recycling GRI G4-EN8 G4-EN10 Unit Type of source Source Consumption (m³) Reuse ( m³) UNI Imperatriz Surface water Tocantins River 32,779, ,798, UNI Mucuri Surface water Mucuri River 53,511, UNI Limeira Surface water Piracicaba River 25,317, ,235, UNI Suzano Surface water Tietê River 24,913, UNI Rio Verde Surface water Tietê River 761, UNF MA Surface water Various 18, Ground water Various 33, UNF PI Surface water Various Ground water Various UNF BA Surface water Various 526, Ground water Various 13, ,00 UNF SP Surface water Various 322, Ground water Various 10, Energy The positive results of our actions and investments in energy efficiency at production facilities and in reducing fuel consumption could be clearly seen at various units in Compared to 2014, in addition to the 34% reduction in natural gas consumption achieved by installing a new digester, the Suzano mill also reduced the amount of Change in fuel consumption by industrial process compared to 2014 Biodiesel -28% Rich natural gas -21% Timber for direct burning 13% Black liquor 8% Fuel oil -24% electricity purchased by 69% and the amount of fuel oil consumed by nearly 3 million liters. The other industrial units also registered important gains. Since its startup, the Imperatriz mill has been optimizing its processes and, in 2015, it reduced its fuel oil consumption by 18 million liters and its electricity purchases from the grid by 24%. The Mucuri mill decreased its natural gas consumption by 11% and the amount of electricity purchased by 73%. The unit also reduced by 20% the burning of fuel oil during the chemical recovery process. With the capture of all these gains, we calculate a reduction in the amount of electricity purchased by a substantial 41% compared to (See "GRI Additional Information - Natural Capital" for tables with information on our energy consumption) Energy consumption within the organization GRI G4-EN3 Source of energy 41% Reduction in electricity consumption compared to Consumption (GJ) 2015 Consumption (GJ) Non-renewable fuels 15,612, ,995, Renewable fuels 80,604, ,668, Electricity acquired for consumption 3,115, ,839, Electricity sold 1,440, ,609, Total 100,772, ,112, Reduction in energy consumption GRI G4-EN6 G4-EN7 Unit Reduction in consumption(mwh) Variation (%) UNI Suzano 264, UNI Imperatriz 8, UNI Mucuri 15, Reduction in fuel consumption UNI Suzano: Reductions of 49 million m³ in the consumption of natural gas by the boilers CBC1 and CBC2 and the paper machines and of 2.89 million liters in the consumption of fuel oil by the boiler CBC3 and GTV. UNI Imperatriz: Reductions of million liters in the consumption of fuel oil and of 44,000 liters in the consumption of biodiesel. UNI Mucuri: Reductions of 7.79 million m³ in the consumption of natural gas for power generation and for the re-caustification and calcination processes in lime kilns and of 1.72 million liters in the consumption of fuel oil for the re-caustification and chemical-recovery processes. 43

23 Employee at the Imperatriz Unit in Maranhão Direct Greenhouse Gas emissions (Scope 1) GRI G4-EN15 44 Unit Gross direct emissions (tco 2 e) Biogenic emissions (tco 2 e) UNI Imperatriz 497, ,933, UNI Mucuri 444, ,370, UNI Suzano 298, ,172, UNI Limeira 195, ,253, UNI Rio Verde 25, UNF MA 66, , UNF BA 60, , UNF SP 8, , UNF PI SPP Total 1,596, ,744, Indirect Greenhouse Gas emissions from purchased energy (Scope 2) GRI G4-EN16 Unit Gross direct emissions (tco 2 e) UNI Suzano 14, UNI Imperatriz 1, UNI Mucuri UNI Limeira 41, UNI Rio Verde 4, UNF SP UNF BA 0.07 UNF MA UNF PI SPP Headquarters International Units Total 63, If we include process emissions in the 2014 report, total emissions in 2015 would have decreased by 4% compared to the prior year. This positive result reflects our efforts to improve energy efficiency, reduce consumption and adopt cleaner energy alternatives. The installation of the new digester at the Suzano Unit, which enabled a reduction of 34% in natural gas Emissions Since 2008, we quantify our greenhouse gas emissions based on the methodology of the GHG Protocol developed by the World Resources Institute/World Business Council for Sustainable Development (WRI/ WBCSD). In 2015, the process evolved in relation to prior periods with the inclusion of the process emissions category. Other indirect Greenhouse Gas emissions (Scope 3) GRI G4-EN17 Unit Gross direct emissions (tco 2 e) Biogenic emissions (tco 2 e) UNI Imperatriz 45, , UNI Mucuri 127, , UNI Limeira 32, , UNI Suzano 34, , UNI Rio Verde 1, UNF SP 30, , UNF BA 56, , UNF MA 9, UNF PI SPP 12, Port to Port outbound operation 181, Headquarters 1, International Units 51, Total 586, , Note: Scope 3 emission categories including: Transport & Distribution (upstream), (upstream), goods acquired and services contracted, transportation of employees, indirect waste, business travel, stationary combustion, and indirect fugitive emissions. consumption, represents a decrease of 115,000 tco 2 e in our balance of emissions. Meanwhile, the Mucuri Unit recorded a decrease of 11% in the consumption of natural gas, for a reduction of 18,000 tco 2 e. The 41% decrease in the amount of electricity purchased at all units compared to 2014 accounts for the reduction of another 53,000 tco 2 e under Scope 2. Moreover, power self-generation at the Mucuri and Imperatriz units, along with the sale of surplus power to the grid, avoided air emissions of 570,000 tco 2 e, since, by not purchasing power from the grid, we replaced our energy requirements with cleaner energy sources. Controlled emissions By type (in tons) GRI G4-EN21 Unit Total emissions SOX Mucuri NOX 2 1,941 1,988 2,535 Particulate Matter 1, TRS SOX Suzano NOX 1, ,197 Particulate Matter TRS SOX 584 2,257 1,445 Limeira NOX 1, ,289 Particulate Matter TRS Rio Verde NOX Embu NOX N/Av SOX N/Av Imperatriz* NOX N/Av 942 2,252 Particulate Matter N/Av TRS N/Av *Commercial startup in Sulfur Oxides 2 Nitrogen Oxides 3 Reduced sulfur compounds N/Av Not available Greenhouse Gas emissions intensity GRI G4-EN18 Unit Intensity (tco 2 e) (Scope 1)/t marketable pulp UNI Imperatriz UNI Mucuri UNI Suzano UNI Limeira Corporate Note 1: The denominator adopted for marketable pulp production in 2015, which includes market pulp, pulp for paper and pulp transferred between units (the latter considered in the calculation of specific intensity per unit). The types of emissions included in the intensity rate are Scope 1 emissions. Note 2: The indicators for 2014 shown in this chart now include emissions from the calcination reaction in lime kilns at mills, under the category of process emissions. Reduction of Greenhouse Gas (GHG) emissions G4-EN19 The self-generation of 2,829, MWh by the Imperatriz and Mucuri units jointly avoided air emissions of 571, tons of CO 2 in 2015, since the units did not purchase electricity from the grid, but rather replaced it with a cleaner energy source. Emissions generated by stationary combustion declined 20.83%, reflecting the lower consumption of natural gas by the Suzano and Mucuri Units and of fuel oil by the Imperatriz Unit. The emissions generated by purchased electricity declined by 41%, mainly at the Suzano Unit, which was accompanied by a decrease in the average SIN factor that impacts all units in operation in Brazil. Emissions of ozone-depleting substances GRI G4-EN20 Imports (kg) HCFC-22 4, , HCFC-141b HCFC-124a Total 4, , Methodology: GHG Protocol 45

24 Awards and recognitions 1 1- Employee at the Nursery in Itabatã, Bahia 2- Golfinho Association in Bahia 3- Employee at the Imperatriz Unit in Maranhão Brazil s Most Prestigious Companies We were recognized for the second straight year as the Most Prestigious Company in the Pulp & Paper industry in the awards sponsored by the magazine Época Negócios. Valor Executive Walter Schalka, our CEO, was elected Valor Executive in the Pulp & Paper industry at the 15th annual awards sponsored by the newspaper Valor Econômico. Each year the award recognizes the best executives from 23 industries. Você RH Professional of the Year Carlos Alberto Griner, our Chief Human Resources Officer, was elected HR Professional of the Year by the magazine Você RH. The award highlights 21 HR professionals form various industries. Griner had already been elected four times Best Professional in the Pulp & Paper Industry. CEO of the Year in Latin America RISI Walter Schalka won Best CEO in the Pulp & Paper Industry for Latin America. The award sponsored by RISI, a leading consulting firm in the global forestry industry, is based on a survey conducted by a group of investment analysts and portfolio managers who accompany the pulp and paper industry. Brazilian Pulp and Paper Technical Association (ABTCP) Graphprint Award In the 14th edition of the award, Suzano was recognized in the following categories: Coated Printing and Writing Papers; Uncoated Printing and Writing Papers; Recycled Papers; Paperboard; and Distribution. Fernando Pini Award for Printing Excellence We were the winners in the category "Best Supplier of Coated or Uncoated Paperboard for Printing." Best Brands Award We were the winners in the category "White and Colored Papers for Printing/Copying" with our brand Suzano Report at the 15th edition of the Best Brands Award sponsored by Agnelo Editora. Werner Klatt Award We were elected Best Printing Paper Manufacturer and Distributor at the 12th edition of the awards sponsored by the Printing Manufacturers Trade Union of the State of Rio de Janeiro. Padre José de Anchieta Award We were elected Best Printing Paper Manufacturer and Distributor at the 7th edition of the awards sponsored by the Printing Manufacturers Trade Union of the State of Espírito Santo. Valor 1,000 We figured in the ranking of the 1,000 Biggest Companies of 2015 compiled by the newspaper Valor Econômico Best and Biggest We figured in the ranking of the Best and Biggest Companies of 2015 compiled by the magazine Exame 150 Best Companies to Work For Our subsidiary, FuturaGene, was the winner in the category for Innovation in Research, Development and Technology at the Industry Highlights Award in 2015 sponsored by the Brazilian Pulp and Paper Technical Association (ABTCP). We featured in the Você S/A Guide 150 Best Companies to Work For The yearbook published by the magazine Você S/A is currently considered the largest survey of organizational climate in Brazil. 47

25 GRI Additional Information Social Project in Maranhão 2- Employee at the Rio Verde Unit in São Paulo Introduction Material aspects and indicators Aspects GRI G4-19 Indicators reported Boundary GRI G4-20 G4-21 Sustainability governance Strategy and analysis GRI G4-1 GRI G4-2 Not applicable General governance GRI G4-34 Not applicable Ethics and integrity GRI G4-56 a G4-58 Not applicable General content GRI G4-15 Not applicable General GRI G4-EN31 Internal influence Dialogue with stakeholders Local communities GRI G4-SO1 G4-SO2 External influence Grievance mechanisms GRI G4-LA16 G4-HR12 G4-SO11 G4-EN34 External and internal influence General content GRI G4-24 a G4-27 Not applicable Water consumed in production and planting Water GRI G4-EN8 G4-EN9 G4-EN10 Internal and external influence Protection of biodiversity/soil use and preservation, forestry management and practices Biodiversity GRI G4-EN11 G4-EN13 G4-EN14 Internal and external influence Energy and air emissions Emissions GRI G4-EN15 G4-EN16 G4-EN17 G4-EN18 G4-EN19 G4-EN20 G4-EN21 Internal and external influence Energy GRI G4-EN3 G4-EN6 G4-EN7 Internal and external influence Effluents Effluents and waste GRI G4-EN22 G4-EN23 G4-EN24 G4-EN25 G4-EN26 External influence Technology and innovative products Aspect related to all aspects already considered, such as Water, Biodiversity, - Internal and external influence Effluents and Waste, Soil Use and Preservation Impacts from transportation Evaluation of suppliers GRI G4-SO9 G4-SO10 External influence Transportation GRI G4-EN30 Internal and external influence Occupational health and safety and Working conditions Occupational health and safety GRI G4-LA5 G4-LA6 G4-LA7 G4-LA8 Internal and external influence Local job and income generation Economic performance GRI G4-EC1 G4-EC2 G4-EC3 Internal and external influence Market presence GRI G4-EC5 G4-EC6 External influence Procurement practices GRI G4-EC9 External influence Labor relations GRI G4-LA4 External influence Employment GRI G4-LA1 G4-LA2 G4-LA3 Internal influence Responsible products Materials GRI G4-EN1 G4-EN2 Internal and external influence Consumer health and safety GRI G4-PR1 G4-PR2 Internal and external influence Product and service labeling GRI G4-PR3 G4-PR4 G4-PR5 Internal and external influence 48 49

26 Identity List of subsidiaries (2015) GRI G4-17 Organizations and associations GRI G4-15 G Company Name Country State City Activities Interest Amulya Empreendimentos Imobiliários Ltda. Asapir Produção Florestal e Comércio Ltda. Brazil SP Suzano Property management 100% Brazil SP Limeira Trading, purchase and sale of wood and wood waste and forestry activities Comercial e Agrícola Paineiras Ltda. Brazil SP Suzano Forestry production support activities 100% Ondurman Empreendimentos Imobiliários Ltda. Brazil SP Suzano Leasing of own properties 100% Paineiras Logística e Transporte Ltda. Brazil SP Suzano Management of logistics services 100% Stenfar S.A. Ind. Com. Imp. y Exp. Argentina - Buenos Aires Trading in paper and plastic materials 90% Bahia Sul Holding GMBH. Austria - Viena Holding company 100% Suzano Pulp and Paper America, Inc United States - Fort Lauderdale Trading in pulp, paper and derivatives 100% Suzano Trading Ltd. Cayman Islands - George Town Trading in pulp, paper and derivatives 100% Sun Paper and Board Limited England - London Trading in paper and derivatives 100% FuturaGene Ltd. United Kingdom - - Biotechnology research and development 100% Suzano Pulp and Paper Europe S.A. Switzerland - Nyon Trading in pulp, paper and derivatives 100% Senior executives hired from the local community (in 2015 ) GRI G4-EC6 Category South Southeast Midwest Northeast North As LL % As LL % As LL % As LL % As LL % Suzano Pulp and Paper Chief Executive Officer Officer Director Senior Executives Executive Manager Manager Managers Total FuturaGene Officer Director Senior Executives Executive Manager Manager Managers Total As Assets / LL Local Labor NOTE: Local labor considers the employee s place of birth in relation to their place of work when hired. 50% Position Name Website Description Active signatory Signatory Member Member Member Member Sponsor Member Member Partner Member Partner Partner Member Member Business Pact for Integrity and Against Corruption Brazilian Pact to Eradicate Slave Labor (InPACTO) Ethos Institute for Business and Social Responsibility Brazilian Tree Industry (IBA) Brazilian Pulp and Paper Technical Association (ABTCP) Florestar São Paulo Forest Stewardship Council (FSC) World Business Council for Sustainable Development (WBCSD) World Wide Fund for Nature (WWF) / New Generation Plantation The Forests Dialogue (TFD) The Nature Conservancy (TNC) Pact to Restore the Atlantic Forest Forestry Research and Study Institute (IPEF) Business Commitment to Recycling (Cempre) www. pactoglobal.org.br www. empresalimpa.org.br www. inpacto.org.br www. ethos.org.br www. iba.org www. abtcp.org.br www. floresta.org.br www. fsc.org.br www. wbcsd.org www. wwf.org.br tfd.yale.edu www. pactomataatlantica.org.br www. Ipef.br www. cempre.org.br Partner Instituto Itapoty A United Nations (UN) initiative to mobilize the international business community to adopt ten principles related to human rights, labor relations, the environment and combatting corruption. Based on the Letter of Principles of Social Responsibility and on the UN Convention against Corruption. Presents a series of guidelines and commitments to be adopted by signatories to foster a more principled and ethical market. Seeks to prevent and eradicate slave labor in Brazil in the production chains of Brazilian and international companies. A Public-Interest Civil Society Organization (OSCIP) whose mission is to mobilize, raise awareness and help companies manage their business in a socially responsible fashion and serve as a partner in the creation of a fair and sustainable society. Association responsible for representing organizations in the planted tree production chain, from field to manufacturer, for its main stakeholders. Committed to the technical development of professionals in the forestry production chain and to improving the competitiveness of companies in the industry. Organization maintained by a group of companies operating in the forestry industry in the state of São Paulo. The largest and most recognized forestry certification system, of which the Company is a member. One our employees, Mr. Estevão Braga, was elected a member of the Board of Directors of FSC International, representing the Economic Chamber South. Focuses on issues related to the environment and responsible corporate practices. We are member of the WBCSD Forest Solutions Group (FSG), which is dedicated to sustainable forestry solutions. The Brazilian branch of the WWF, the world s largest environmental non-governmental organization, is dedicated to nature conservation by balancing human activity with biodiversity conservation. New Generation Plantation (NGP) is a platform for sharing knowledge, experiences and discussions related to best plantation practices. An initiative to provide global leaders in the international forestry industry with a platform for multistakeholder dialogue, with a focus on developing collaborative solutions for sustainable forest management and conservation. We are a member of TFD and participate in other initiatives of the forum: Forest Certification and Food, Fuel, Fiber and Forests (4Fs). Operates in Brazil by working with government, companies and local partners to promote environmental conservation on a large scale. We are partners of the campaign Plant one billion trees. Works to recover the Atlantic Forest biome by combining biodiversity conservation, job and income creation, payment of environmental services and legal compliance of agricultural activities. In 2015, we were elected a member of the pact s Board of Directors. Generates knowledge and science in the field of managing and protecting natural resources. Dedicated to promoting recycling based on the concept of integrated waste management. The organization is sponsored by private companies from various industries. Non-governmental organization that educates students and teachers from public schools in the region of Itatinga, São Paulo on environmental issues to promote environmental preservation, with a focus on disseminating the importance of biomass. 51

27 Financial capital Distribution of Value Added (DVA) in R$ thousand GRI G4-EC1 Revenues Consolidated 12/31/ /31/2014 Sales of goods, products and services 11,195,335 8,223,537 Other revenue 48, ,945 Revenue from the construction of own assets 355, ,985 Provision for impairment losses on accounts receivable (21,425) (10,012) Inputs acquired from third parties 11,578,161 9,146,455 Cost of products, goods and services sold (4,235,266) (3,723,179) Materials, energy, third-party services and other (1,945,882) (2,021,892) (6,181,148) (5,745,071) Gross value added 5,397,013 3,401,384 Depreciation, amortization and depletion (1,419,477) (1,216,132) Net value added produced 3,977,536 2,185,252 Value added received through transfer Equity pickup - - Financial income 1,258, ,354 Value added to distribute 5,236,193 2,862,606 Personnel 957, ,317 Direct compensation 780, ,973 Benefits 137, ,694 FGTS 39,677 37,650 Taxes, fees and contributions (561,423) (127,318) Federal (393,628) (82,137) State (172,534) (48,179) Municipal 4,739 2,998 Human capital Supervised workers by category (function) and unit GRI G4-10 Administrative Leadership Engineer Operational Operational (Nursery) Operational (Restaurant) Operational (Security) Partner UNF SP , UNF PI UNF MA , UNF BA , Suzano , Rio Verde Mucuri , Limeira Imperatriz Embu UNF Forestry Business Unit Supervised workers by gender GRI G4-10 1, ,242 1,595 1,269 UNF SP UNF PI UNF MA UNF BA SUZANO Value distributed to providers of capital 5,765,111 2,399,113 Interest 5,687,162 2,307,012 Rent 77,949 92,101 Value distributed to shareholders (925,354) (261,506) Loss in the year (925,354) (261,506) Distribution of value added 5,236,193 2,862, , RIO VERDE MUCURI LIMEIRA IMPERATRIZ EMBU Southeast concentrates 27% of female specialists 53

28 Employee profile GRI G Suzano Employee profile GRI G FuturaGene Senior executives Managers Other management positions Specialists Administrative Operational Total active employees Interns Total employees + other Managers Other management positions Specialists Administrative Operational Total active employees Interns Total employees + other South Southeast Midwest Northeast North Nº % Nº % Nº ,533 3, ,671 % Nº % Nº % Nº % Nº ,407 3, ,199 % Nº % Nº % Nº % Southeast Nº % Nº % HEADCOUNT Employee profile abroad GRI G4-10 International offices H E H E Stenfar Argentina Suzano América (United States) Sunpaper (United Kingdom) Suzano Europa (Switzerland) Suzano Ásia (China) FuturaGene Israel FuturaGene China FuturaGene Europe Total H - Headcount total / E - Expatriates HEADCOUNT HC ,039 1,016 5,243 7, , Employees at the Imperatriz Unit in Maranhão 1- Employee at the Suzano Unit in São Paulo 2- Employee at the São Paulo Forest Unit in Itararé 55

29 Employee turnover by age (Total employees ) GRI G4-LA1 Age Category SPP FTG Under 30 years old 31 to 50 years old Over 50 years old New hires Resignations 81 0 Other terminations Average headcount 2, Traditional turnover 3.16% 1.69% Resignations Turnover 0.31% 0.00% Terminations Turnover 0.77% 0.78% New hires Resignations 84 1 Other terminations Average headcount 4, Traditional turnover 1.63% 0.88% Resignations Turnover 0.15% 0.44% Terminations Turnover 0.78% 0.44% New hires 29 0 Resignations 0 0 Other terminations 89 1 Average headcount Traditional turnover 0.93% 2.08% Resignations Turnover 0.00% 0.00% Terminations Turnover 1.13% 4.17% SPP - Suzano Pulp and Paper / FTG - FuturaGene Employee turnover by gender (Total employees ) GRI G4-LA1 Gender Category SPP FTG New hires 1,087 1 Resignations Other terminations Average headcount 6, Traditional turnover 1.86% 0.91% Resignations Turnover 0.16% 0.00% Terminations Turnover 0.79% 1.09% New hires Resignations 59 1 Other terminations Average headcount Traditional turnover 3.36% 1.75% Resignations Turnover 0.51% 0.27% Terminations Turnover 1.36% 0.54% Type and rates of occupational injuries, lost days, absenteeism and fatalities GRI G4-LA6 Type of injuries Lost days Fatalities Unit Multiple injuries - 1 Suzano Fracture (right leg) Suzano Hip Suzano Burn injury caused by liquor 5 0 Imperatriz Burn injury caused by ashes 10 0 Imperatriz Injury on palm of hand Rio Verde Injury caused by firearm 14 0 Rio Verde Bruise 8 0 Local Distribution Center CDL Ribeirão Preto Fracture Anchieta Cut-contusion wound of approximately 3 cm on the side of the left calf, with injury of peroneal nerve Limeira Traumatic amputation of distal phalange of the second finger of the right hand 15 0 Limeira Left knee sprain 15 0 Mucuri Joint dislocation of index finger of the left hand and distal fracture in radius of the left arm 54 0 Mucuri Employees at the Rio Verde Unit in São Paulo Health and safety aspects covered in formal agreements with trade unions GRI G4-LA8 Type Description 2015 Regular inspections Common Sense Inspections, SSOMA Yes Personal Protective Equipment PPE (SAP Management) Yes Joint safety and health committees formed by senior executives and employees Participation of employee representatives in health and safety inspections, audits and accident investigations Occupational Health and Safety System Committees /(Areas, CIPA, CIPATR, GT SSO) Procedure for analyzing incidents (participation in accordance with PPG) Training and education SAP training courses Yes Grievance mechanisms Code of Conduct Yes Conformity with International Labor Organization (ILO) Application of OHSAS 18000, application of NR Yes Problem resolution mechanisms or structures GID system Yes Commitment to comply with desired performance standards or level of practice to be applied Targets for frequency rate, GID, IAC, recognition program, Green Light Right to refuse unsafe work Provided for in the work access permission Yes Yes Yes Yes Percentage 100% 56 57

30 Benefits granted to employees and supervised workers GRI G4-LA2 G4-EC3 58 Employees Mandatory Supervised workers Amount invested Lost-time injury frequency rate GRI G4-LA6 Unit Suzano Rio Verde Mucuri Embu 0.00 N/A Limeira UNF SP Imperatriz UNF BA/MG UNF MA UNF PI 0 0 SPP SP Office 0 0 Total Contributed by the employee Life insurance NO N/A 739, ,404 1,393,015 Regressive table based on time of service Health plan NO N/A 36,000,000 34,961,411 31,865,234 N/A Coverage for impairment /disability NO N/A N/Av N/Av N/D Amounts paid via life insurance Maternity and paternity leave YES N/A N/Av N/Av N/D N/A Pension fund NO N/A 1,476,588 3,456,359 5,038,788 Percentage of employee s salary for URS Stock option plan NO N/A 8,535,655 7,824,534 15,815,313 One third of the amount granted Return to work and retention rates after maternity/paternity leave, by gender GRI G4-LA3 In 2015, lost-time injury 29% frequency rate decreased compared to 2014 N/A - Not applicable / N/Av - Not available Paternity Maternity Number of employees entitled to maternity/paternity leave 6,844 1,039 Number of employees who received maternity/paternity leave Total number of employees who returned to work after maternity/paternity leave Total number of employees who returned to work after maternity/paternity leave and stayed 12 months after returning to work Return to work and retention rates after maternity/paternity leave 0% 0% Retention of employees who received maternity/paternity leave 100% 88% Social capital Operations with programs for engagement with local communities (100%) GRI G4-SO1 Industrial operation Operation Scope Engagement program Forest operation (forestry, harvesting and supply) UNIs SP, BA e MA UNIs SP, BA e MA UNFs SP, BA e MA UNFs SP, BA e MA UNFs SP, BA e MA UNFs BA e MA UNF SP, BA e MA UNF SP e BA UNF BA e MA UNF SP UNF BA UNF BA UNF MA UNF MA UNF MA UNF MA UNF MA UNF MA UNF MA UNF MA Survey, assessment and monitoring of social and environmental impacts Formal grievance processes: Suzano Responde and Sispart Survey, assessment and monitoring of social and environmental impacts Reporting of social and environmental impacts through the Forest Management Plan Formal grievance processes: Suzano in the Field, Suzano Responde channel and Sispart Community councils Health and Safety Dialogues for employees Solidary Beekeeping Project (income generation) Community Farming Project (income generation and food safety) Ecological Trails Project (environmental education) Fish Farming (food safety) Golfinho Project (income generation, education, and social and culture activities) Sustainable Extractive Activities (income generation and social and cultural activities) Education is Health (health) Educar e Formar (education, partnership with Ayrton Senna Institute) Community Libraries (education) Produce and Conserve (environment) Community Dialogue Indigenous Women (social and cultural activities) Indigenous Protagonism (social and cultural activities) Operations with significant impacts on local communities GRI G4-SO2 Operation Scope Impact Forestry, harvesting, supply and industrial Harvesting Supply UNIs and UNFs UNFs SP, BA and MA UNFs SP, BA and MA Suzano, Limeira, Mucuri and Imperatriz UNIs UNFs SP, BA and MA Machinery and truck noise Change to the landscape due to replanting and harvesting of eucalyptus trees Dust from wood transport Odor caused by pulp production Degradation of public road system due to truck traffic carrying wood and machinery 59

31 Natural capital Renewable and non-renewable inputs GRI G4-EN1 Input Type of source Unit of measurement Quantity Sulfuric acid Non-renewable t 52, Optical brightener Non-renewable t 7, Starch Renewable t 47, Post-consumer shavings Renewable t 3, Pre-consumer shavings Renewable t 45, Quicklime Non-renewable t 8,443, Calcium carbonate Non-renewable t 214, Kaolin Non-renewable t 32, Pulp Renewable t 33, Chlorate Non-renewable t 41, Sodium chloride Non-renewable t 17, Chlorine dioxide Non-renewable t 29, Fertilizers Non-renewable t 165, Wood Renewable m³ 14,594, Methanol Non-renewable t 3, Seedlings Renewable units 119,608, Calcium oxide Non-renewable t 19, Pulp Renewable t 65, Hydrogen peroxide Non-renewable t 14, Magnesium silicate (talc) Non-renewable t 1,853, Sodium hydroxide Non-renewable t 115, Magnesium sulfate Non-renewable t 5, Sodium sulfate Non-renewable t 3,134, Recycling of inputs GRI G4-EN2 Industrial unit Input Quantity Unit of measurement UNI Rio Verde Post-consumer shavings 3, t UNI Limeira Pre-consumer shavings 45, t UNI Mucuri Chipped biomass 98, t UNI Imperatriz Bark/biomass 79, t UNI Limeira Bark/biomass 10, t UNI Mucuri Bark/biomass 30, t UNI Mucuri Bark/biomass 6, t UNI Mucuri Bark/biomass 98, t UNI Suzano Bark/biomass 2, t UNI Suzano Bark/biomass 13, t UNI Limeira CO 2 78, t UNI Suzano Pulp fiber 88, t UNI Imperatriz Lime slurry 657, t UNI Limeira Lime slurry 484, t Employee at the Imperatriz Unit in Maranhão Number of grievances about environmental impacts filed, addressed, processed and resolved through formal grievance mechanisms GRI G4-EN34 Impacts Number Damage to personal property 9 Road maintenance 4 Machinery noise 2 Other forestry impacts 6 Total 21 Processed 100% Resolved 100% Solid Waste GRI G4-EN25 Transported, imported, exported and treated waste GRI G4-EN25 Type of disposal Non-hazardous 688, ,444, ,264, Hazardous ,347.29* 36, Total 689, ,476, ,300, *Increase was due to the startup of the Imperatriz Unit and the forest waste that previously was not recorded Body of water in Salesópolis, São Paulo Type of disposal Storage 124, ,646.50* 19, Landfill 119, ,468.01** 262, Composting 195, , , Co-processing , Incineration , Recycling 125, ,886, , Reuse 123, , , Refining Recovery , , Total 689, ,476, ,300, *Storage prior to proper disposal of non-hazardous waste **The increase is due to the startup of the Imperatriz Unit 60 61