BEYOND
our walls

What could have been more challenging in 2020 than working in a totally uncertain scenario, under a constant threat to life? At the beginning of the year, none of us could measure the impact of COVID-19 on public health, economy, and society. And it was in the midst of this inhospitable setting that Suzano simultaneously had to deal with several issues, without knowing for sure what the outcome would be. The first and most urgent matter was taking care of the people in our organization. How to provide them with physical and emotional support to keep them healthy? In just a few days, we put nearly 4,000 employees in home office and closely monitored approximately 11,000 people who work every day in our operations, even before the government’s restrictive norms.

Once again, our Cultural Drivers were put in place and tested. We organized a set of initiatives to help society mitigate the problem, since we know that Suzano’s role is not bound to the company’s walls. We imported masks and ventilators from China, we directly contributed to the local production of 6,500 ventilators in four months in partnership with other companies, we put together emergency actions in collaboration with neighboring communities and regional governments, we worked in the construction of field hospitals, we supported suppliers to help them maintain the financial health of their businesses, and we created a specific plan for our paper customers who, within our business environment, were the most affected by the pandemic due to the closing of schools and stationery stores, along with other factors. We did all of this without affecting the services provided to our customers, ensuring the supply of our essential products.

The pandemic revealed the essential nature of our products, such as personal hygiene items, health, medical, and food packaging, masks, and other products that are necessary to fight the crisis. On the other hand, it caused a sudden change on each of our operating fronts. We have dealt with a significant drop in global demand for printing and writing paper, which required a prompt response in redefining inventories and production. However, the growing global demand for tissue has led our customers to operate close to maximum capacity, directly driving demand for pulp. Despite the difficulties in 2020, forestry, industrial, and logistics operations had an exceptional year, benefiting from the synergies resulting from the merger, a process that contributed to cost reduction for the organization. As a result, even in a challenging market environment in which pulp prices were below expectations, the company obtained significant cash generation.

With the impact on the lives of more than 2 billion consumers worldwide, we now have a responsibility that transcends the role of managing businesses and creating jobs. Our role is to help society find solutions to its structural problems. We are working hard on topics of global interest and we announced ambitious long-term goals that need to be attained by 2030.

DIVERSITY AND INCLUSION IS A PROMINENT TOPIC IN 2020. WE ADVANCED IN THE IMPLEMENTATION OF A SERIES OF INITIATIVES AND ESTABLISHED SHORT- AND LONG-TERM GOALS FOR THE COMPANY. WE STILL HAVE A LONG WAY TO GO TO GET WHERE WE WANT TO BE, AND WE ARE COMMITTED TO EVOLVING THESE TOPICS WITHIN SUZANO.

Through our strategic actions, we want (among other goals) to mitigate the problem of income distribution, making it possible for 200,000 people to rise above the poverty line in the areas where we operate; replace plastic and oil-based products with the supply of 10 million tons of products obtained from renewable sources; and become even more climate positive, removing 40 million tons of CO2 from the atmosphere.

We were pioneers in the issuance of a Sustainability-Linked Bond (SLB) in the Americas, raising US$1.25 billion in the market. This assurance is unprecedented in the world for the forest industry, linking financial resources to the company’s environmental performance. In our case, we linked this issuance to the goal of reducing greenhouse gas emissions (GHGs) intensity by 15% by 2030 in order to directly contribute to the fight against climate change. This reinforces that we are taking on challenging risks to assert our culture and our social and environmental role, becoming a reference in the market. Another important step linked to this aspect was the inclusion of sustainability goals for 100% of the Executive Directors in 2021.

Diversity and inclusion is other material topic that have gained prominence in the past year. We moved forward with the debate and implementation of a series of initiatives through affinity groups, and we also established short– and long-term goals for the company. We are aware of the work required to get where we really want to be, and we are committed to evolving in this topic at Suzano. Last, but far from least, we closed the year sharing our newly created Corporate Purpose with all our employees. After almost two years of listening to professionals and several other stakeholders, we have come to the conclusion that our reason for existing lies in trees. And through trees, their preservation, our planted forests, and our work, we have a responsibility to lead the movement to regenerate and oxygenate our planet.

Our purpose is Renewing Life inspired by Trees. This purpose drives us, takes us forward, moves us, and places us as part of the solution to the challenges facing society. In 2021, we will continue this journey of renewal. I invite you to come with us and renew your vision, your ideas, and your perspective! May it be a year of learning and great achievements.

Walter Schalka
CEO of Suzano