Sustainability Report 2016

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Contents ABOUT SUZANO 4 BELIEF AND VALUES 4 MESSAGE FROM THE CEO 6 CREATING SHARED VALUE 8 HOW WE OPERATE 10 STRATEGY AND MANAGEMENT 10 BUSINESS MODEL 12 CORPORATE GOVERNANCE 14 RISK MANAGEMENT 15 RECOGNITION 18 TRANSPARENCY 19 MATERIALITY 20 MANUFACTURING CAPITAL 23 OPERATIONS 24 LOGISTICS 25 INTELLECTUAL CAPITAL 26 FINANCIAL CAPITAL 28 CAPITAL MARKETS 30 OUTLOOK 30 HUMAN CAPITAL 31 EMPLOYEES 32 SUPPLIERS 34 SOCIAL CAPITAL 35 COMMUNITIES 36 ECOFUTURO INSTITUTE 38 NATURAL CAPITAL 39 WATER 40 ENERGY 41 EMISSIONS 42 BIODIVERSITY 43 CORPORATE INFORMATION 45 TEAM 46 3

GRI G4-3 | G4-4 | Suzano Pulp Bahia Pulp Suzano Pulp Flash G4-5 | G4-6 | G4-7 3,743 tons About Suzano | G4-8 Suzano Pulp Limeira produced* We are a publicly-held forestry Suzano Pulp Maranhão corporation controlled by Suzano Eucafuff Sold in Holding, and one of the world’s largest integrated manufacturers of paper and eucalyptus pulp. Coated Products Couché Suzano® Design Couché Suzano® Fit countries

Uncoated Suzano (SP) Offset Alta Alvura® Offset Paperfect ® Paper 1,182 tons Pólen® Rio Verde (SP) produced* Reciclato® 5 Sold in 4 Industrial Limeira (SP) Paperboard Regional Units in Supremo Duo Design® Distribution Brazil Mucuri (BA) Supremo Alta Alvura® Centers TP White Plus® Imperatriz (MA) TP White Pharma Plus® TP Premium® Super 6 Plus® countries Local Headquarters in Offce in São Distribution Printing and writing Salvador (BA) Paulo (SP) Centers Suzano Report® Reciclato 16 1 1 Suzano Report® Premium Suzano Report® Colorido International Suzano Report® Seninha Copimax® *Production since International FuturaGene One® offces Brazil 2016 United States Israel Our Belief United Kingdom China GRI G4-56 Switzerland Argentina Strong and considerate Israel Our Values GRI G4-56 China Integrity and safety Social and environmental responsibility million Excellence hectares Forest Global vision base 1,2 Leadership (491,000 hectares set aside Entrepreneurship for preservation) 4 Quality relationships Passion

5 GRI G4-1 Message from the CEO

Years like 2016, which are challenging from a macroeconomic standpoint, are an excellent opportunity for companies to further refne their values and priorities. At Suzano Pulp & Paper, unceasing efforts to improve our company advanced alongside the belief that production processes can always be improved. As a result, we continue to evolve in our mission to minimize and neutralize any negative impacts and to maximize the positive impacts stemming from our interactions with the environment and society. On this journey, which is built atop three strategic pillars and founded on Cultural Transformation, we made signifcant progress over the past year. After setting new records, advancing on new business fronts, and strengthening social and environmental initiatives, today we are more aware of our role as a company. In Structural Competitiveness, we achieved results for nearly all key indicators, which surpass the industry average. Eucafuff is already a reality, and tissue and lignin will join it by the end of Cultural transformation leads us tonew ways to 2017. The Adjacent Businesses now represent help build the future avenues for growth and diversifcation, and will reduce our exposure to fuctuations in currencies and pulp prices, both of which posed challenges in 2016. Despite all these accomplishments, the most We also signifcantly improved our fnancial important development at Suzano today is the results, which will bolster our preparations for the cultural transformation we are undergoing. transformational movement of Redesigning the We are aware that in addition to evolving 6 Industry. through new attitudes, greater autonomy, and entrepreneurship, we must also enhance our capacity to listen, capture, and foundations we are laying for our future, and incorporate the messages we receive from clients, suppliers and community: the improvements to our mills and forests. And in other words, from society as a whole. And we know that this is a never- we know that we can (and will) do much more, ending journey. because we have the humility to recognize the We consequently must further advance this cultural transformation, which need for constant evolution and an eternal sense can already be perceived in our plants, offces and forests, both internally of always wanting more, which are the engines and externally. One example is the Mucuri River Headwaters Project, which of this transformation. we began to develop in 2016 in partnership with The Nature Conservancy I also thank our clients, suppliers, communities, (TNC). The objective of this initiative to recover the headwaters of the and shareholders for their partnerships and Mucuri River is to guarantee the perpetuity of this river, and to encourage for sharing Suzano’s conviction that the new initiatives to protect this important water resource by engaging various transformation will continue. And as long as players in a common goal. This is what we want— to foster a win-win-win we have a signifcant portion of society that is mindset. satisfed with what we are doing, we know we We also raised capital in the local and international markets through are on the right path. an unprecedented vehicle for a Brazilian company: green Agribusiness We will continue to move forward, guided by Receivables Certifcates (CRAs) and dollar-denominated Green Bonds in Latin our strong and gentle spirit. Strong to encourage America. All of this only becomes possible when you share the same values and mobilize transformations that go beyond as everyone around you, with the green dimension of the bonds refecting our limits, generating value not just for our our attitudes. company and the market, but also for society On the social front, we concentrated on opportunities that offer shared and the environment. And gentle because of our gains. We have involved local communities in all dimensions and decisions belief that these transformations must beneft in order to improve their capabilities, with these efforts supported by the everyone. community councils, forums in which participants can discuss the best ways to drive local development. The same logic applies to our client relationships, which are now stronger thanks to Suzano Mais, a program that demanded Warm regards, enormous fexibility from our industrial operations and required us to forge even closer relations with our clients, who are receiving increasingly better services and products through this movement launched in 2016. And so I dedicate the results and progress we have achieved to our more than 8,000 employees, who believe and invest in the transformations to which we aspire for our company. We are very enthusiastic about our Walter Schalka ongoing cultural evolution, the continuous pursuit of better results, the 7 Support for road maintenance

Wastewater treatment Controlling and Creating shared value reducing air emissions When you choose Suzano, Reducing you support this chain of goodness! Protecting water consumption resources and quality of chemicals

Optimizing Lowering fuel water Energy self-sufciency and a more-renewable Carbon consumption by consumption profle stocking and optimizing travel sequestration and the feet Conserving Social and biodiversity and environmental protecting education ecosystems Biotech research and Partnership model development to that prioritizes Support optimize land use local suppliers for Education Stimulating the local economy and paying taxes

Reclaiming culture Contracting and developing local labor Restoring Creating jobs degraded areas and generating income Pioneer in green bonds market

Greater supply of credit and fnancing options Forestry partnerships Larger distribution and supporting Fighting forest fres centers and greater production Fostering proximity to clients access to reading Promoting participatory land development Sustainable and renewable products 8 9 How we operate Strategy and management Structural Competitiveness: We implemented modifcations to our plants and to Our sustainable growth the areas of support and logistics (learn more in is based on three Manufacturing Capital), but the most signifcant strategic pillars, in which transformation was in how we serve the market. we made signifcant Our previous model, based on distributors, progress in 2016: resulted in losses of synergy and made it diffcult Our focus on to optimize the relationship between market competitiveness makes share and proftability. Through the Suzano new investments, new Mais program, we eliminated intermediaries jobs and higher incomes and forged closer relations with the end of the possible chain, which caused our base of active Goals/targets clients to soar from 18,000 in 2013 to 35,000 in 2016. To achieve a This service model of closer relations cash cost of with clients and a strong focus on service quality also helped our R$ operating cash generation in the Paper 475 segment to reach R$ 960.4 million, a per ton in 29.4% increase over 2015. 2021-22, based In the Pulp segment, we partially on 2016 fgures mitigated effects from outside factors, thanks to our rigorous cost and expense discipline. In the fourth quarter, our pulp production costs were R$ 570 per ton, the most competitive in the industry. Another highlight was that our costs increased less than infation. The average unit cost of the goods we sold was R$ 1,390.6/ton, an increase of only 1.7% over the previous year, while infation grew 6.3% over the same period. Adjacent Businesses: Convenience and quality Redesigning the Industry: The need to were the keywords as we began production of Eucafuff, reduce our exposure to currency and pulp price our fuff pulp made from hardwood fbers (eucalyptus). fuctuations has led us to continually enhance For clients, the only difference between running our fnancial and risk management practices. softwood fbers and the blend containing 50% Eucafuff We are extremely diligent, especially with regard is simply adding the reel to their production process. to foreign exchange risk: 100% of our net debt Tests conducted by our clients and international is pegged to the U.S. dollar in order to reduce laboratories showed that diapers and sanitary napkins cash fow volatility, and we also maintain a solid made from the 50% Eucafuff blend presented higher portfolio of derivatives to manage this exposure. liquid absorption and retention. Incorporating hardwood We also are constantly seeking opportunities pulp into tissue products also makes them softer and to lengthen our debt maturity profle through thinner; these performance gains translate into more lower-cost and longer- comfort and dryness for end consumers. term operations. Over Goals/targets We are drawing nearer to our entry into the tissue the past few years, we market, with production slated to begin in the second have increased the share Our operating cash half of 2017. Two machines with a combined annual of funds raised in the generation, which is the production capacity of 120,000 tons have already been capital markets. strongest in the industry in acquired, one a 60,000-ton line to be installed at the Two pioneering Brazil, and our fnancial metrics Mucuri Unit and another with the same capacity at the initiatives from 2016 lead us to believe the company Imperatriz Unit. A portion of this volume will be used to deserve mention: will recover its manufacture fnished products internally. the issuance of Meanwhile, the Lignin project, which is operating at a dollar-denominated investment pre-industrial scale at the Limeira green bonds in the credit rating Unit, is advancing in line with Goals/targets international market, grade the investment timetable. In and the launch of green 2016, this new business focused To offer Agribusiness Receivables on better understanding the our products Certifcates (CRAs) in the commercial aspects of the in the Brazilian market (learn more in target market. Financial Capital). Tissue Because of our fnancial discipline, we ended segment in order the year with a leverage ratio (net debt/adjusted to meet demand EBITDA) of 2.6, and net debt of R$ 10.3 billion, from the North down from the 2015 value. and Northeast regions 11 How we operate Business model

Manufacturing Capital Intellectual Capital Financial Capital Human Capital Social Capital Natural Capital

Logistics Corporate Management system Organizational Code of conduct Stakeholders Social responsibility Soil Biodiversity Net revenues Bank fnancing/ structure policy governance Organizational beliefs Regional knowledge Water Biomes Industrial units Cultural diversity Capital markets CDirect and indirect and values and local Organizational beliefs Business Asset Forestry units employees and engagement and values Native and planted Environmental policy information Diverse knowledge divestments eucalyptus forests

Resources suppliers Regional and local distribution centers systems and skills Natural inputs

Operational excellence Investing in Active dialogue with Social licenses to Product sales Budget effciency Performance Training and Sustainable forest Social and Converting inputs research and stakeholders operate Maintaining industrial Liability management management qualifcation management environmental risk into products IIntegrating innovation, including Fostering social Mapping of social and forestry Working capital Investment analysis Talent development and Managing safety, mitigation and technologies and biotechnology development impacts Minimal soil equipment managemen management health and quality optimization of Capturing industrial, systems Information control and Land management Fostering initiatives preparation Activities opportunities forestry and logistics Knowledge Financial risk management availability Volunteer work of life Engagement in public and developing Mitigating impacts Granting of water effciency (integrated) Encouraging internal management Resource management Meritocracy policy projects via Biological controls Issuing green bonds withdrawal rights entrepreneurs partnerships Environmental licenses

Restoration of degraded Monitoring of fauna High-performance Productivity and Local social, cultural Better labor relations Pulp and paper Lower greenhouse Expanding the Support for decision- Operating cash Short and medium areas and fora team integrity and economic production gas emissions innovation culture making generation term liquidity Proximity with Soil conservation Restoration of native Optimized workplace development Leverage ratio (net Minimum return on Achievement of stakeholders Low use of pesticides and areas Results New business Competitive Energy generation debt/EBITDA) invested capital Development targets Stronger relationships Community councils herbicides Creation and maintenance and exports opportunities advantages Net reduction in of people and Integration across Empowerment of Landscape management of ecological corridors fnancial expenses leadership local leaders Monitoring of water Low-carbon agriculture Ethical integrity areas resources

Pioneering spirit Integrated vision Financial solidity of the Return on capital Engagement and Regional development Sustainable regional Stronger local and breaking of of business company and its value employed commitment development partnerships Biodiversity Sustainable use of Sustainable supply of products paradigms management chain conservation natural resources and services Contribution to Balance between Cultural Support for local Sustainability culture Stronger company and Customer satisfaction Returns for investors socio-economic professional and transformation protagonists Credibility and Mitigation of climate Sustainability culture industry High value-added Perpetuity of the development (national personal life reputation change Credibility and Development of and international) Pride in belonging Value created Value business Inspiring workplace reputation societyda sociedade 12 13 How we operate

Corporate governance GRI G4-34 from 8 a.m. to 10 p.m., received 309 reports in 2016, 85% of which were processed and The year 2016 was marked by advances resolved during the year. Of these, 41% were made by our Corporate Risk area, which further considered unsubstantiated. strengthened our best practices for corporate Furthermore, we have corporate policies governance and the pillars of internal controls, that provide guidelines for ethical and risk management and compliance, helping to transparent conduct by our directors, offcers, support the Cultural Transformation we are employees and stakeholders; these include the undergoing. Corporate Governance Policy, Integrated Risk We are well prepared to manage risks Management Policy, Internal Controls Policy, Internal controls impart involving the business environment, which and Anticorruption Policy. GRI G4-56 | G4-57 | greater solidity to include risks related to fnance, compliance, G4-58 our management and image, health, safety, and the environment; the to our relations with Management and Audit committees conduct Rate of substantiated reports employees and society periodic reporting and monitoring. (Ombudsman) All employees are required to declare their commitment to 63% 62% uphold our Code of 59% Conduct (available at www.suzano.com.br/ en/communication/ publicacoes/#relatorio- sustentabilidade). We also have an External Ombudsman 2014 2015 2016 Channel to receive reports of any breaches With our stock listed on the Level 1 corporate of our Code of Conduct, governance segment of the São Paulo Stock which are investigated Exchange (BM&FBovespa), we comply with and submitted to the standards that extend beyond the requirements Conduct Committee. of Brazilian corporate legislation. Besides the The Ombudsman Bovespa Index and the Brazil 50 Index (IBrX50), 14 Channel, which is our stock is listed on the Carbon Effcient Index operated daily by an (ICO2), which recognizes our management of independent company greenhouse gas emissions. Through our participation in industry organizations dedicated to sustainable Board of Directors development, as well as through the pacts, commitments, charters, and principles to which Function: Guide decisions related to administration, supervision, we are a signatory, we strive to build and share and standards. Support in these activities is provided by value with all our stakeholders. the Management, Audit, and Sustainability & Strategy See GRI Additional Information/Corporate committees. Governance for a list of the organizations in Composition: Nine directors, fve of whom are independent, all which we participate, and the commitments we elected at the Shareholders Meeting. have undertaken. The internal structure we have adopted Executive Board to uphold our Belief and Values and to execute our strategy comprises a Board of Function: Execute the guidelines established by the Board of Directors, Executive Board and Audit Board, Directors. as well as advisory committees (Management, Composition: Six executives, including the Chief Executive Offcer Sustainability & Strategy and Audit). and fve executive offcers for the Forestry Business Unit, In 2016, we strengthened this scope by Pulp & Paper Business Unit, Human Resources, Financial & creating the Executive Department of Innovation Investor Relations, and Innovation & New Business. & New Business, which conferred even more importance to this topic within the environment A list of the Directors and Executive Offcers and their profles can be of our ongoing transformation. found at http://ir.suzano.com.br/corporate-governance/board-of-directors- The new department, which encompasses and-comittees. projects related to Research & Development (R&D) and Innovation (such as Eucafuff, Tissue, and Lignin), as well as Strategic Planning & New Business, strengthens and consolidates the Risk management GRI G4-14 strategic pillar of Adjacent Businesses. Please access our website for more In 2016, we consolidated and strengthened the risk management information on our ownership structure (http:// activities undertaken by the Corporate Risks area as our corporate ir.suzano.com.br/corporate-governance/capital- governance matured. structure) and senior management (http:// Our methodology prioritizes the most critical risks in the context of ir.suzano.com.br/corporate-governance/board- our strategic pillars in an ongoing and proactive effort to identify, assess, of-directors-and-comittees). address, monitor, and report corporate risks, with the ultimate goal of proposing continuous improvements and increasing effciency. To effectively manage market risks, the company identifes, assesses and implements strategies and contracts fnancial instruments that 15 How we operate

protect against these risks; this is particularly of the rivers that supply our plants, causing impacts to our forestry and relevant considering the delicate period we industrial units. expect to result from the startup of two new To help prevent such events, we conduct a Greenhouse Gas Emissions pulp plants in Indonesia and Brazil, which Inventory that allows us to quantify and reduce these emissions, and we should signifcantly increase supply and also participate in forums and movements addressing this topic. consequently pressure international prices as In Bahia, we also analyze historical weather conditions in our well as our business. operating regions to better understand the specifc characteristics of Despite our results in the Paper segment, that environment and the relationship between the soil, plants, and we still rely heavily on exchange rate behavior the weather, which helps support our risk management. Findings like due to the high volume of pulp we export. these can lead to the development of clones which are better adapted To manage impacts on our results in adverse to drought and pests, for instance. We also continue to invest in scenarios, we have processes to monitor wastewater treatment processes. exposure and policies for conducting risk management. These policies establish the limits and instruments to be used in order to: (i) protect cash fows from currency mismatches, (ii) mitigate exposure to interest rates, The Ecofuturo Institute and (iii) reduce the effects from commodity price the São Paulo State Environmental fuctuations, and (iv) change debt indexers. Department (SMA) formed a Our operations also are exposed to partnership to promote the operational risks that could result in the partial development, dissemination and or temporary stoppage of our operations and assessment of models for forests production losses. These stoppages could be managed for ecological and economic caused by factors associated with equipment purposes. The aim is to provide failures, accidents, fres, strikes, wear over incentives and support for rural land time, or exposure to inclement weather and owners to restore their legal reserves, natural disasters. Among other consequences, which are the areas on their properties such events could result in severe damage to that must be permanently covered our assets, reductions in production volume, or by forests and may be commercially increases in production costs, and as a result explored through sustainable forest would have an adverse effect on our fnancial stewardship. situation. In addition to the risks mentioned above, adverse weather and climate events could directly impact our forest base and logistics 16 operations or signifcantly reduce the fows 17 Recognition 2016

150 Best Companies to Work For: For the second straight year, Graphprint Award: We were recognized in the 15th edition Suzano appeared in the ranking compiled by the magazine of this award in the following categories: Coated Você S/A. Our Happiness at Work Index (IFT) rose three Printing & Writing Papers, Recycled Papers, and percentage points over the prior year, to 74.7%. Paperboard.

Best Companies for Launching a Career: We were included in Communication: Suzano was recognized for the second this ranking based on a survey conducted by Você S/A in straight year as one of the Companies that Best partnership with Fundação Instituto de Administração (FIA) Communicate with Journalists, in the award sponsored and Cia de Talentos. by the magazine Negócios da Comunicação and the Center for Communication Studies (Cecom). MarCo: For the third straight year Suzano garnered this award as Brazil’s most prestigious pulp and paper company, according Pini: We won the Fernando Pini Award for Printing to the magazine Época Negócios. Excellence in the categories Coated & Uncoated Paperboard for Printing and Coated Paper for Printing. CEO of the Year: For the second year in a row our Chief Executive Offcer, Walter Schalka, was elected CEO of the Year in Latin America by RISI, the leading provider of information to the global forestry industry.

ABTCP 2016: We won the award sponsored by the Brazilian Pulp In the IPL – Portraits of Reading Award, and Paper Technical Association (ABTCP) for the categories the Ecofuturo Institute was recognized for the Market Pulp Manufacturer and Innovation (R&D and Ecofuturo Community Library project, which Technology). since 1999 has built 107 community libraries in 12 Brazilian states. Sixty of these libraries were New Finance Talent Award: In addition to winning the new talent sponsored by Suzano Pulp and Paper, which award, we also won the Golden Tombstone in the Debt was honored for its support and investment Market category, for the frst issuance of dollar-denominated as a sponsor of the Institute and the direct green bonds in Latin America. sponsor of the libraries. This initiative was selected from the Production Chain category IPL Award – Portraits of Reading: This achievement, which we by a panel comprised of specialists in the feld shared with the Ecofuturo Institute, consists of recognition of education. This is the frst edition of the from the Pró-Livro Institute for our joint involvement in the award, which recognizes organizations that Ecofuturo Community Library Project. adopt practices to encourage reading.

18 T ransparent Reporting In this annual publication, we present our The document, which was not submitted to external verifcation, activities in 2016 to all our stakeholders and contains certain restatements of data from 2015 (which are indicated) the general public, along with our interactions but does not contain any changes in boundaries and scope in relation with different groups in all dimensions of to the previous report for fscal year 2015, which was published in July sustainability. The document was inspired 2016. GRI G4-22 | G4-23 | G4-29 | G4-33 by the methodology of the International The parameters for the contents of the report were based on a process Integrated Reporting Committee (IIRC) and conducted by a specialized consulting frm to identify the topics, using adopts the framework of the Global Reporting a methodology that included Identifcation (analysis of secondary Initiative (GRI), version G4, “in accordance sources to compile key topics), Prioritization (consultation of stakeholder with” Core option. It also reports on our perceptions), Analysis, and Validation of the results. Internal interviews actions in line with the Global Compact, a (with senior management) and external interviews (representatives United Nations (UN) initiative to which we are from NGOs, clients, experts, and investors) were conducted, as well as a signatory. GRI G4-28 | G4-30 | G4-32 online consultations with 284 employees. The fndings indicated nine material topics, which are shown in the following table along with their corresponding GRI aspects. GRI G4-18 | GRI G4-19 | G4-24 | G4-25 | Community engagement in G4-26 | G4-27 decision-making processes strengthens regional development

19 Materiality With regard to the boundaries of the impacts associated of the organization, we considered the perceptions of the with relevant topics within the organization, we believe occurrence of impacts among the publics consulted. The that all operations are contemplated by the materiality results follow. GRI G4-28 | G4-30 | G4-32 process. Meanwhile, to establish the boundaries outside

The aspect is material Corresponding The aspect is material outside Material Topics within the organization GRI aspects GRI G4-20 the organization GRI G4-21 Indirect economic impacts

Relationship with Environmental grievance mechanisms communities Yes Yes (experts, investors, NGOs, and local Local communities (all operations) UNC clients) development Grievance mechanisms for impacts on society Market presence Water Water Yes Yes (UNC clients, employees) management Effuents and waste (all operations) Economic Yes and fnancial Economic performance Yes (UNC clients, employees) (all operations) performance Indirect economic impacts Local communities Yes Land use rights Yes (employees) Environmental grievance mechanisms (all operations) Unfair competition

Yes Yes (investors, NGOs, Biodiversity Biodiversity (all operations) employees)

20 The aspect is material Corresponding The aspect is material outside Material Topics within the organization GRI aspects GRI G4-20 the organization GRI G4-21 Supplier environmental assessments Supplier assessment for labor practices Freedom of association and collective bargaining Child labor Yes Certifcations Forced or compulsory labor Yes (UNC clients, employees) (all operations) Assessment Supplier human rights assessment Human rights grievance mechanisms Supplier assessment for impacts on society Brand There are no GRI aspects directly Yes Yes (investors, experts, UNP management and related to the material topic identifed (all operations) clients) communication Compliance Compliance with Yes environmental Supplier environmental assessment Yes (UNC clients, employees) (all operations) regulations Environmental grievance mechanisms Employment Labor relations Occupational health and safety Training and education Valuing the Yes Diversity and equal opportunity Yes (employees) workforce (all operations) Equal remuneration for women and men Supplier assessment for labor practices

Labor practices grievance mechanisms

UNC – Pulp Business Unit UNP – Paper Business Unit 21 Materiality

Materiality Matrix Relationship with communities and local development

Water management

Economic and fnancial performance

Land use rights

Biodiversity

Certifcations

Brand management and communication

Compliance with environmental Relevance to external stakeholders regulations

Valuing the workforce

Relevance to internal stakeholders

All the topics deemed material, along with their respective aspects and indicators, are included in this report (organized into blocks corresponding to Intellectual, Manufacturing, Financial, Human, Social, and Natural capital) and on the website www.suzano.com.br/en/communication/ publicacoes/#relatorio-sustentabilidade. The following channels are available for you to submit your questions or comments regarding Corporate Communication 22 this publication: GRI G4-31 [email protected] Strategies Forestry logistics → eliminate intermediation in transportation International logistics → full vessel model Outbound logistics → proximity to clients

R$

million tons of pulp sold in the period, 50 3 53 setting a new operational , record million

Annual gain from contracting self-employed drivers to transport wood from feld to plant

Operating Cash Manufacturing Capital Generation R$ 2013 1,1 billion 2014 1,5 billion 2015 3,5 billion 2016 2,7 billion 23 Manufacturing Capital

Operations GRI G4-9 Our operations aim to improve service quality and shorten the distance The main products in our portfolio present between our products and clients different dynamics. The Paper segment focuses on the domestic market and provides more stable cash flow, while the Pulp segment primarily serves export markets and is more susceptible to exogenous factors like fluctuations in commodity prices and currencies. In this context, we sold 1.20 million tons of paper in 2016; 834 thousand tons of this total were sold on the domestic market and 362 thousand tons were exported. Although domestic demand has contracted, our commercial strategy and gains captured through the Suzano Mais program have allowed us to expand our market share. At the same time, our sales of pulp reached 3.53 million tons, a new record. (See the amounts in BRL in the Financial Capital section). In addition to maintaining our commercial strategies for both businesses (deconsolidating our focus for paper clients, and adding value for pulp), we acquired forests that will allow us to reduce our average supply radius, and with it our pulp production cost, while decreasing our GHG emissions. GRI G4-13 In addition to this transaction, which involved 75,000 hectares of land in the states of Maranhão and Tocantins, we acquired 100% of the shares issued by Mucuri Energética S.A., which owns a small hydropower plant in the 24 state of Minas Gerais. We also invested in the acquisition of 7.5 million cubic meters of since 2016, is carried out entirely by rail. In eucalyptus forests planted by Eco Brasil in the state of Tocantins this our port operations, average daily loading year. This investment will help us support the expected expansion in increased from 9,000 to 18,000 tons by production at the Imperatriz Unit. the end of 2016; this means less time spent waiting to moor and load ships, as well Logistics as lower costs. All of these outcomes are the product of process reviews, the use of With annual expenses of R$ 1.9 billion, or nearly 20% of our net equipment, and modifcations to teams, which revenue in 2016, the Logistics area made progress on actions to cut costs includes our logistics provider insourcing port and increase effciency. workers who previously were contracted under In forestry operations, we intensifed our efforts to eliminate a self-employed model. intermediaries in transporting wood from the forests to the plants, and With the support of legal provisions, we ended the period with 65% of all freight services at the Mucuri and opened a bidding process and hired and Imperatriz units provided by self-employed drivers. Annual savings from trained workers, who now work using clear this model range from R$ 45 million to R$ 50 million, which is signifcant methodologies and processes; this also has considering that forestry logistics account for 34% of total logistics costs. helped reduce accidents. Lightweight trailers, which are more stable and can We made similar strides with our outbound carry 10% more wood, already make up 35% of logistics (from plant to client) in the our feet. Our plan is to equip 100% of the domestic market by renovating, feet with these trailers, which also will We plan moving and/or expanding six bring signifcant environmental gains. to equip Distribution Centers in Londrina In our international logistics, we are (PR), Porto Alegre (RS), increasingly adopting a full vessel Campinas (SP), Fortaleza model (in which vessels only carry (CE), Recife (PE) and Belém pulp from a single company). We (PA). These changes, ended the year with 33 ships % which are in line with the operating under this model, which Suzano Mais program, alongside efforts to fnd lower fees 100of our feet with lightweight seek to place us closer to and redesign international routes trailers that are more stable our clients and supported led to savings of more than R$ 20 and can carry growth of 30% in sales to million. In 2017, we plan to adopt the middle market. this model for 80% of shipments. In Maranhão, we also improved 10 % transportation operations from the more wood plant to the Port of Itaqui, which, 25 Lower costs for tillage 0,8 % Annual yield gain from R$ million traditional genetic enhancement Recurring Intellectual Capital Intellectual reduction in CAPEX in 2016

Focus on Technology productivity: is the foundation of our work on three fronts: In fertilizing In weed control Biotechnology In tillage Traditional genetic enhancement 26 In harvesting Integrated pest management Knowing that the culture of innovation must be strengthened internally so it is thuringiensis to combat the eucalyptus brown looper not limited to the Innovation & New Business Executive Department, every year caterpillar (Thyrinteina arnobia), which attacks we work to ensure that this attitude expands its infuence. This goal is reinforced planted forests and reduces forest yields in various by our Adjacent Businesses pillar, which has led to the production launch of the regions of Brazil, especially in Bahia. world’s frst hardwood fuff pulp, a product that is already certifed by the Forest In 2016, we began mechanizing post-planting Stewardship Council® (FSC® - C010014), and to our entry into the Tissue and irrigation with automated equipment, which captures Lignin segments. productivity gains in feld operations and reduces We also continued our research to fnd other products we can transform into water consumption. new businesses and meet the needs of the market, in keeping with the global At all our units, we have made strides in our tendency to use more renewable sources and adopt a circular economy. For mechanization processes by adopting new example, lignin fts into this concept since it substitutes oil-based products in technologies that permit automated fertilizing, weed the composition of many products, such as phenolic resins and thermoplastic control, and harvest. These new technologies employ compounds. modern tractors equipped with GPS and guidance Another equally important decision was to build two Tissue plants at the Mucuri equipment to ensure perfectly parallel lines during and Imperatriz units; from these plants, we will supply markets in the North and tillage and subsequent forestry operations. Northeast of Brazil. We developed higher-quality products for this region of the country that features the strongest growth in demand. Research allows the development Our subsidiary, FuturaGene, continues the development of sustainably of new products and more effcient engineered trees (SETs) for sustainable intensifcation of forestry, a feld in which use of natural resources we are a global reference. After obtaining approval for commercial deployment of a yield-enhanced eucalyptus variety from the Government of Brazil in 2015, we are conducting expanded feld trials with crosses of this variety in order to select the best performing clones for the different regions where Suzano operates. We have also made progress in our yield protection platform, with a focus on weed, insect and disease control. In China, we have developed a pioneer project on desert species that couples economic off-take with environmental and social benefts on degraded lands. Innovation in forestry technologies is an important ally in biotechnology, genetic transformation, and other lines of work such as traditional genetic enhancement, which has led to an 0.8% per year increase in yield. The gains from this practice extend to the environment: by identifying and developing new eucalyptus clones that are more drought resistant and require less water to grow, we create advantages for the management of surrounding forests and water resources. Biological pest control is another technology we have adopted on a large scale. An example of its effectiveness can be seen in spraying the bacteria Bacillus 27 28

Financial Capital 500 performance intheBrazilianpaperindustry amounted to In R$ 2016 denominated green bonds in Latin America, a transaction in thefrstissueofdollar- The amount we raised The amountweraised Golden Tombstone that earned us the usthe that earned US$ , ouroperatingcashgeneration award million R$ 2,7 Certifcates (CRAs) Receivables Agribusiness which involved bonds inBrazil, issue ofgreen from thefrst Funds raised billion billion, Leverage (Net Debt/AdjustedEBITDA)

the 2016 2015 2014 2013 best

discipline Financial

2,6 2,7 4,1 5,2 Longer debt Increased liquidity Investment maturity profle discipline

times

times times times

In 2016, external factors proved highly challenging. Net revenue breakdown 2014 2015 2016 Pulp prices and exchange rates, which are key factors (R$ ‘000) in our business, exhibited very different behavior: pulp Net revenue – Export market 4,214,259 7,093,098 6,558,014 prices fell throughout most the year, while currency Pulp 3,241,907 5,781,113 5,435,401 fuctuations impacted exporting companies like us. The lower pulp price alone had an impact on our Paper 972,352 1,311,985 1,122,613 annual results exceeding R$ 1 billion. Even so, we Net revenue – Domestic market 3,050,340 3,131,263 3,324,299 ended the year with an operating cash fow of R$2.7 Pulp 609,396 822,294 706,488 billion, the best performance in the Brazilian pulp and Paper 2,440,944 2,308,970 2,617,811 paper industry. Even though we were affected by exogenous Total net revenue 7,264,599 10,224,361 9,882,313 factors, we performed well in the areas we are able Pulp 3,851,303 6,603,406 6,141,889 to manage, offsetting part of the losses from prices Paper 3,413,296 3,620,955 3,740,424 through signifcant gains in productivity. In the Paper Cost of goods sold (5,355,664) (6,184,246) (6,571,622) segment, we obtained important gains in prices and advanced in our strategy to be closer to our end Gross income 1,908,935 4,040,115 3,310,691 consumers; this strategy made our margins more Selling expenses (300,796) (409,986) (408,810) sustainable, reduced our credit risks, and helped keep General and administrative (392,761) (455,629) (427,100) delinquency rates in line with the previous year. expenses With our business portfolio balanced between Other operating income 14,191 (104,516) (1,150,561) paper and pulp, we compensated fuctuations in EBIT 1,229,569 3,069,984 1,317,093 one market with counter measures in the other, Depreciation. depletion and consequently achieving sustainable results and 1,216,132 1,419,477 1,403,518 amortization superior cash generation. Another factor that contributed to our good Adjusted EBITDA 2,452,010 4,593,677 3,905,875 performance in 2016 is our disciplined use of capital, Adjusted EBITDA margin (%) 33.8 44.9 39.5 a characteristic that led us to postpone the planned Net fnancial result (1,593,512) (4,428,505) 1,101,100 investment to expand the Mucuri Unit. At Imperatriz Earnings before Income Tax (363,943) (1,358,521) 2,418,193 the expansion was already underway and remained Income and Social Contribution on track, and will expand our production capacity by 102,437 433,167 (726,195) taxes 10% by the end of 2017. Our drive to position ourselves with regard to Net income (261,506) (925,354) 1,691,998 a global trend (namely the green economy) and Gross debt 13,760,585 14,917,342* 14,012,779 reinforce our reputation for using practices that Cash 3,686,115 2,448,096 3,695,312 contribute to sustainable development led us to emit Net debt 10,074,470 12,469,246* 10,317,467 US$ 500 million in dollar-denominated green bonds, Net Debt/Adjusted a groundbreaking event in Latin America. This was 4.1 2.7 2.6 EBITDA ratio (x) followed by the frst issuance of green bonds in Brazil, raising R$1 billion through Agribusiness Receivables Certifcates (CRAs). Our goal is to invest the proceeds *Amounts reclassifed from those published in the previous report 29 Financial Capital in projects that create shared value, especially on the Outlook environmental front, which will be monitored by a specialized independent auditor. For 2017, once again we envisage distinct dynamics in our two main Against this backdrop, the opportunity arises to businesses. The area of Paper, where we hold the highest market share in Brazil, participate in constructing the green bonds market should beneft from a potential recovery in the country’s economy. For Pulp, the in Brazil and help steer local fnancial markets challenge is more generalized, given the new capacities slated to come online towards best practices which are already adopted and uncertainties with regard to pulp prices. internationally. However, the pulp market grows every year, since its end product, paper, is a consumer good with demand is linked to worldwide economic growth. This Capital markets logic is valid even if the function of the product changes, since a decline in the consumption of printing and writing paper can be offset by higher consumption Despite maintaining a balanced portfolio, the fact of packaging and sanitary paper. With this in mind, the startup of new pulp that pulp accounts for 65% of our business caused production capacities (slated to begin in 2018) should initially have an adverse us to suffer stronger impacts from currency and effect, but the market should gradually absorb this additional supply. product-price fuctuations in the stock market as well. In this context, our competitive advantages are our strong focus on the long Our stock is traded on the BM&FBovespa as SUZB3 term and on fnancial discipline. So much so that, during a turbulent period (common shares), SUZB5 (class “A” preferred shares), like 2016, we implemented various measures to ensure the sustainability of our and SUZB6 (class “B” preferred shares). The most business: we adopted greater selectivity in our investment plan, maintained a liquid securities are the class “A” preferred shares larger liquidity cushion, and lengthened our debt maturity profle. (SUZB5), the prices of which have fallen by 22% since Although we reallocated certain investments during the year to take the end of the previous year. At the same time, the advantage of good opportunities like acquiring land to expand our forest base, benchmark Brazil Index (Ibovespa) increased by 39%. total investments remained in line with our plan for the period. For 2017, we Our effort to understand and meet the needs intend to invest approximately R$ 1.8 billion, R$ 1.1 billion in maintaining of our investors was refected in the recognition our operations and the remainder in Adjacent Businesses and in projects such garnered by our Investor Relations Manager, Michelle as expanding production capacity at the Imperatriz plant and retroftting the Corda, who was named Best IR Professional in the Mucuri wastewater treatment plant. (See GRI Additional Information/Financial Pulp & Paper Industry in the 2016 Latin America Capital for a summary of Distribution of Value Added (DVA) for fscal years 2015 Executive Team. and 2016).

“Suzano anticipated a global trend and became the frst company to issue green bonds in the Brazilian market. This bold move yielded good results, with demand for these bonds exceeding supply threefold, proving once again that betting on the low-carbon economy is good business. It was not by chance that the Brazilian Business Council for Sustainable Development (CEBDS) and the Brazilian Federation of Banks (Febraban) launched a guide to promote these so-called green bonds in Brazil in 2016. And Suzano, without a doubt, will serve as an inspiration for all companies in Brazil.” 30 Marina Grossi, Chair of CEBDS Formare Formare Apprentice ,000 Start: Number of 2005 applications submitted for our Benefciaries: Young Engineers trainee program 30 classes 568 young people Percentage + placed in jobs: Growth in demand for the Internship Program 75% Human Capital Absorbed by Suzano: 2014 10,335 2015 14,208 20% 2016 20,110

Suzano in School Health and safety Over the course Safety on Site of seven years, Daily Safety Dialogues (DDS) the program has Preliminary Risk Assessments (APR) already helped Risk Determination Matrix (MDR) 4,000 students Work Access Permit (PAT) In harvesting 31 Human Capital

Employees to a development management system, which prioritizes the growth and advancement of our employees. In order to boost employee satisfaction, in Another advance during the period began with a marketing campaign 2016 through the scope of our United and entitled “What’s your role?” that took on a more comprehensive Integrated project we invested in a cultural dimension through the Vocations project to promote personal refection transformation centered on developing our on each person’s role in society. people, particularly leaders, and strengthening To strengthen our role as agents of change and to boost the quality the decision-making hierarchy. The idea is to and effectiveness of our relations with local communities, we continued become increasingly lighter and more agile, in to organize events through the Volunteer Program. Various actions turn strengthening our capacity to attract and were conducted during the year, including the Christmas Drive, which retain talent. mobilized over 1,300 volunteers and collected 1,000 toys, 70 food staple With this same goal in mind, we made closer baskets, and 855 kits for the elderly; these donations were distributed connections with young aspiring professionals to 30 institutions and more than 1,800 people from communities by visiting and maintaining close contact surrounding our units. with junior companies, career centers and Another initiative that mobilizes volunteers is Suzano at School, which universities, which resulted in a record number since 2009 has worked in partnership with Junior of applications (17,000) for our Young Engineers Achievement. This effort aims to awaken training program, an increase of 110% over the entrepreneurial spirit in public school the previous year. Of this total, 22 candidates students, share knowledge and experiences were hired to work at our facilities. Interest in to support their academic development, our Internship Program also registered a 50% and expand their understanding of the increase, with 20,000 applicants during the year job market and the business world. and 140 hires. We ended the year with 7,762 employees; given the nature of our business, 6,726 were men and 1,036 were women. Outsourced “Working in the Formare Project as workers totaled 12,207, with 11,580 men and a volunteer teacher is an opportunity 627 women. GRI G4-10 to help transform our society and share The way we train this team involves breaking some of the knowledge and experiences we down silos of talent, which means empowering accumulate with students. But additionally, we are the ones that people and promoting a sense of ownership get the most out of the experience, which gives us a great sense of and collective spirit. We also enhanced our satisfaction and well-being that I just can’t describe.” compensation model to make it more aggressive in the variable component and more focused Eduardo Gomes Ferreira, Volunteer Educator at Formare – Suzano Unit on merit. To support this enhancement, our 32 performance management system transitioned Developing young talent and encouraging volunteer work are part of our role

Over seven years of partnership, we have among our key values and are refected in initiatives like Safety on Site engaged 29 schools, mobilized 607 volunteers, and Daily Safety Dialogues, as well as by tools like the Preliminary Risk and impacted 4,000 students. Assessment and/or Risk Determination Matrix, which allow professionals Along similar lines, our Formare Apprentice to make a preliminarily assessment of the risks posed by activities, and program, which has worked in partnership only then activate the Work Access Permit. These and other initiatives have with the Iochpe Foundation since 2005, has helped us steadily reduce our injury rate and even outperform the overall already graduated 30 classes and 568 young industry for safety indicators. professionals. Of these, 75% are already Despite these efforts, in 2016 we had one occurrence involving two employed, many in our own operations. The employees, as well as a medium-sized fre at one of our warehouses (both Suzano Unit, for instance, has already absorbed events took place at the Suzano Unit). Fortunately, none of our employees 102 of these young people. These technical were seriously injured and no shipments to clients were affected. In fact, programs show how much we value the the team’s resilience and cooperation prevented the events from affecting education and development of new talent, as our day-to-day operations. This same teamwork was observed when social well as our belief that every person can make movements attempted to force their way into the Mucuri Unit. a valuable contribution to society through (See GRI Additional Information/Human Capital for tables showing the education and volunteer work (the classes are profle of our team of employees by unit, gender, function, and region, as well taught by our employees). as indicators for employee turnover, health and safety, benefts granted, and The health and safety of our employees are returns after maternity/paternity leave). 33 Human Capital Suppliers GRI G4-EC8 In 2016, as part of our Supplier Registration Governance project we Given our belief that suppliers are key partners checked and certifed our database, updating information for over 15,000 in the sustainability of our business, we seek active suppliers of all sizes and from all segments of the chain (forestry and supplier relationships based on mutual trust industrial). We also mapped our potential suppliers by pre-registering any and respect, dialogue, and transparency. We interested companies, which resulted in a database that can automatically be also work to create a collaborative workplace in consulted by the Procurement team. These suppliers can now be invited to which we can develop solutions that drive our participate in the supplier certifcation process and in future bids. At the end competitiveness and our economic, environmental of 2016, we had over 2,000 preliminary registrations in our database. and social results. Our commitment to creating environmental, economic and social value leads us to encourage the use of local suppliers. Of the total amount spent with our commercial partners in 2016, 54% represented purchases from companies located in the same regions as our units. Within partnerships, we adopt rigorous policies with our suppliers involving social and environmental practices, respect for human rights, compliance with labor laws, and occupational health and safety. These commitments are incorporated in the supplier registration and contract drafting processes, monitored through third-party and risk management procedures, and subjected to internal and external audits. All of these measures are meant to guarantee that our registered suppliers uphold our principles and values. (See GRI Additional Information/Human Capital for tables showing the number and percentage of suppliers by region and percentage of purchases by region.)

Partnerships with local suppliers strengthen our operations and beneft local communities Average satisfaction Community scores for programs councils in Bahia

Community Agriculture: 9.35 In Bahia, 10 Espírito Santo and Minas established and Cooperative Beekeeping: 9.24 Gerais Sustainable Fish Farming: 1 being 8.88 implemented 4 Ecofuturo Institute Social Capital In Maranhão established and Since 2010, the and Pará organization’s Social and Environmental 1 being implemented Education program over has mobilized 100 educators

In Maranhão.... and ... we inaugurated two babassu 3,900 from 36 palm nut processing units and students contributed to the renovation schools in the and construction of two other communities units, one in the Mata Grande bordering Extractive Reserve Neblinas Park 35 Social Capital

Communities GRI G4-EC8 Vocations mapped We are undergoing a transition that includes assessing new strategies for our relationships The pilot project conducted in Bahia state considered two with local communities and working harder aspects: the mapping of vocations (of employees and their family to identify and strengthen local initiatives. As members) and the positive impacts on society (through social and a result, we have begun working in a model environmental initiatives and the Community Councils). Both aspects based on Community Councils through a land considered the volunteers working in the communities through the development process that is fundamentally Volunteer Program. This work, which is conducted in partnership participatory. The idea is to operate more with Atados, an institution that connects people and organizations harmoniously and gradually set aside measures to help mobilize volunteer efforts, involved three phases: based on reaction, oversight, and proprietary intelligence. Diagnosis of vocations, from August to October 2016; Several of our projects are already moving Training of volunteers, in October and November 2016; and towards this model. In 2016, the movement of Engagement platform, in 2017. women babassu nut workers in Maranhão was strengthened to ensure the sustainability of Supported by various communication and marketing materials, their business. This initiative was joined by the the initiative encouraged refection on individual skills that have the A Gente Transforma Institute, led by designer capacity to transform the roles people play in society. Marcelo Rosenbaum, who will draw on his experience to help create value for the product and position it in new markets. (Learn more about the project at the end of this section) This new partnership is in line with our idea of involving communities in Another noteworthy effort this year was all aspects of the decision-making process and training them to seek out Coisa de Índio, a cultural appreciation project the different possibilities available for resources. Ten community councils in partnership with the Coordination for the already have been established in the states of Bahia, Espírito Santo and Indigenous Peoples of Brazil (Apib) that works Minas Gerais, while four have been established in Maranhão and Pará. For to promote the cultural heritage of indigenous the training activities, our goal is to work as part of a network to engage communities by educating young multipliers in internal volunteers and institutions that hold specifc technical knowledge. the feld of communication. Creative languages Inspired by the “What’s Your Role?” campaign, we developed a pilot (such as fne arts, photography, music, literature, project in the Mucuri region called Vocation Mapping; its goal is to identify and cinema) were used to conduct and produce the talents, skills, and competencies of employees, service providers, and editorial projects, workshops, documentaries, family members and create a network of connections and opportunities for animations, illustrations, and exhibits that 36 volunteer work in order to transform society. foster respect, expand ancestral knowledge,

340,000 and encourage the people In partnership with the Ayrton Senna Institute, the notion of indigenous benefted SuperAção Jovem and Managers Network projects peoples in leading through social from the Educate and Develop program (Educar e roles. This phase of the initiatives in Formar) work to improve educational results by sharing project was formalized 2016 experiences in management, implementing full-day schools, by the inauguration of the and encouraging reading. The Full Time School and Reading frst Audiovisual Production Rooms projects benefted 265,700 students and trained 2,200 Center in the Guajajara Indigenous professionals in 398 municipalities, with 1,277 partner schools in São Territory, in Maranhão state. The center Paulo. A total of 49,000 students and 11 municipalities were impacted by the held three workshops for indigenous youth Managers Network project in São Paulo. The target of the National Education interested in professional training in audiovisual Plan (PNE) for 2021 to improve the Basic Education Development Index (IDEB) communications, with subjects such as sequential has already been reached in fve cities. language (comics and animation), movies, In the same context, the Community Agriculture project in the states of internet, text production, photography, screen Bahia and Maranhão involved 18 communities in the region (which are printing, and radio. In 2017, Coisa de Índio will already linked to three different Community Councils), indirectly benefting work with the Arariboia tribe of the Guajajara approximately 1,700 people. In all, 476 tons of 32 different items were People, also in Maranhão. produced. Impressive results were also seen in 2016 Our support for the Cooperative Beekeeping program in Bahia and São from our ongoing projects to increase income Paulo resulted in the production of roughly 137 tons of honey by 154 generation. The approach adopted in these beekeepers. We also had 37 families of fshermen from two communities projects seeks to strengthen local production participate in the Fish Farming Project, which generated an income of R$ arrangements, guarantee food safety, and improve 4,500 for each participant. Over the course of 2016, a total of 340,000 quality of life for families in our community by people were benefted by the various ongoing social initiatives. offering technical support programs. One of these is Sustainable Extractivism, which supports production of non-wood forest products by optimizing the production “We met several times until we decided as a group to create chains for native fruits, and offering technical the Community Development Council. And that’s just training and infrastructure improvements. In the beginning. Through the council, we want to 2016, the program had 140 benefciaries from organize even more projects to expand and 18 communities. Our R$ 600,000 investment improve our lives.” supported extraction of bacuri, babassu palm, and açai (pulp, seedlings, and seeds), as well as Zuleide Ferreira de Sousa, babassu palm nut worker in mesocarp (the reddish pulp from palm fruits), oil, the community of Coquelândia (MA) charcoal, and babassu nuts. 37 Social Capital

Ecofuturo Institute Entrepreneurship Suzano is the founder and sponsor of the Ecofuturo In order to reveal the cultures of the peoples who form Institute, an organization that works together with civil our national identity, the A Gente Transforma Institute (led society, the government, and the private sector to develop by the designer Marcelo Rosenbaum) joined forces with us projects dedicated to preserving the environment and in the income generation project involving babassu palm promoting reading. By sharing knowledge and practices to nut workers in Maranhão. In 2016, these women, who manage and measure impacts, the institute helps raise social are already part of a structured Community Development and environmental awareness and promote sustainable Council, inaugurated two babassu palm nut processing development. In 2016, in addition to injecting R$ 3.5 million units, an example of how transferring technologies and into the institute, we worked with partners to advance and knowledge can leverage opportunities to raise funds. ensure signifcant results in the following initiatives: After assessing the potential for organization in the state of Maranhão, the A Gente Transforma Institute Neblinas Park: social and environmental education, visits acquired in-depth knowledge of the production and tours, research, community relations, and environmental process, from breaking the nuts through extraction and restoration and preservation at this 6,000-hectare reserve that production of sub-products like soaps, mesocarp meal, we own and maintain, which is located in the municipalities and oil. The project then proposed repositioning the of Mogi das Cruzes and Bertioga in the state of São Paulo. The cultivation of this fruit as a potential economic activity for site has been in operation for over ten years, and serves as current and future generations. the headquarters for activities that reinforce its vocation for The idea is to create two lines of branded products, biodiversity conservation, fostering sustainable development, namely food and cosmetics, and to develop a and sharing knowledge on the Atlantic Forest. communication strategy to support the entry into new markets. To do so, the leaders of the nut worker Ecofuturo Reserves: a technical support program for people communities met with representatives from Suzano and who own natural areas and conservation units or who are the institute, as well as with managers and technicians, to interested in acquiring land for environmental protection and formulate the plans together. sustainable stewardship. To engage the entire community, in early 2017 we organized the Estrada do Arroz Babassu Palm Nut Ecofuturo Community Library: a project to establish libraries, Creative Festival, which featured workshops and cultural especially in public schools, working in partnership with the activities. There was even an immersion activity for government, private sector and local communities. The libraries, initial production of this line, which included the testing which are open to the community, help democratize access to and adjustments required for products and packaging, books and promote reading. developing the pricing model, and formulating a distribution plan for the products. Learn more about the Ecofuturo Institute and its projects at 38 www.ecofuturo.org.br Relatório de Sustentabilidade 2016 Areas set aside for preservation

We expanded our base of natural areas by 200,000 hectares to reach the proportion of 1.1 hectares of conservation areas for each 1.0 hectare of planted eucalyptus areas (own and leased), which effectivel confrmed our leadership in the protection of natural areas.

Biodiversity In our protected areas we identifed the red-handed howler monkey, a primate which has never been seen in the Pará region, as well as the caxias pygmy tyrant, a bird that is still being scientifcally described.

Climate change

Natural Capital Our planted forests stock nearly

55 million tCO2e

Production x Consumption 2.00 Mucuri Imperatriz Energy 1.50 1.00 Over 700,000 MWh of surplus electricity was sold to the power grid, 0.50 MWh (Million) enough to supply a city of 270,000 0.00 2014 2015 2016 2014 2015 2016 people for a year.

Water We have reduced gross consumption by 31% at our forest units 39 Natural Capital

Soil and water resources represent the future sponsored by the Forestry Research and Study Institute (IPEF), which is part of forests, and in turn the perpetuity of our of the University of São Paulo (USP). Analysis of data from the spillways business. In this light, we adopted a series of soil installed in our microbasins will allow us to better understand the impact monitoring, preservation, and recovery activities eucalyptus cultivation has on water quantity and quality, and will also aimed at improving water quality and availability. permit related activities to be conducted during forest management We also have invested in energy effciency activities. by adopting practical measures to reduce Additional activities are underway in climate zoning, based on a study consumption and prioritizing actions that move of plant spacing and the development of eucalyptus species that require us towards a cleaner energy profle, which has a less water. This in turn will allow us to tailor our operations to regional direct impact on our management of greenhouse characteristics; the Imperatriz Unit, for instance, is supplied by forests gas emissions. spanning six different precipitation zones, ranging from the most humid In 2016, we allocated approximately R$ 175 region, in Pará state, to the driest, in Maranhão state. million to environmental protection: a nine-fold We also rigorously monitor our water consumption and adopt measures increase over the previous year (mainly due to improve effciency. At the Mucuri Unit, water consumption per ton to the new wastewater treatment plant). The produced fell by 5% from 2013 to 2016, while at the Suzano Unit, investments yielded effciency and productivity absolute consumption declined by 10% in the same period. gains, but most importantly, we honored our Another major project already being implemented is the expansion and commitment to sustainable development, retroftting of the wastewater treatment plant at the Mucuri Unit, which is supported by a portfolio of socially and slated for conclusion in 2017. The total investment of environmentally responsible practices and a belief approximately R$ 100 million will further improve that our role includes sharing knowledge. the quality of the water discharged back into ((See GRI Additional Information/Natural Capital the Mucuri River. We project a reduction of for spending on and investment in environmental around 60% in organic load. protection in 2016.) Water “The partnership between Suzano, the Chico Mendes In water resource management, our Institute for Biodiversity Conservation (ICMBio), and the efforts range from treating the water Rio Preto National Forest (FLONA do Rio Preto) has been we consume to conducting research to extremely important for our city. During our tour of FLONA improve our knowledge of rainfall cycles do Rio Preto, teachers and students learned about the importance of and optimize our land use in different protecting, restoring, and preserving the Atlantic Forest ecosystem.” regions. The initiatives carried out this Daniele Maia, year include implementation of the Member of the Environmental Defense Municipal Council (COMDEMA) and fourth-grade teacher Cooperative Program for Monitoring 40 and Modeling Watersheds (Promab) Description Unit 2015 2016 Emissions UNF-BA 539,931.83 537,074.95 All our emissions remained below the legal Gross water UNF-MA 53,612.30 23,466.00 limits; this was also the case in 2015, indicating consumption (m³) UNF-SP 333,524.36 69,580.36 that our margin for reduction narrows every Total: 927,068.49 630,121.31 year. Gross direct emissions of greenhouse gases (GHG) under scope 1 amounted to

923,805.72 tCO2e, which was stable in We also made signifcant progress in reducing our consumption of certain relation to the previous year because pulp inputs. One reason for this gain is regular investment in equipment; an production also remained stable. Consequently, example is the digester, which began operating in Suzano in 2015 and reduced consumption of chemicals, steam, and electricity while it also lowered air emissions. The use of (See GRI Additional Information/Natural Capital for tables showing the renewable bodies of water signifcantly affected by our operations, water consumption and fuels in our recycling volumes, and effuent volumes). operations Energy was times higher With the improvements to our electrical systems, in 2016 we saw a than the substantial increase in the amount of power transmitted from our units to the use of non- grid. At Imperatriz, the plant’s system was built with robust interconnections, renewable and surplus electricity has been exported to the grid since the unit came fuels G4-EN3 online. During the year, however, this volume was 12% lower than in 2015 as production increased, the result of greater stability in the process. The volume Fuel type of electricity exported to the grid by the Mucuri Unit was even higher, around 15% 50%, refecting investments made in the systems connecting the networks inside and outside the plant. The performance of both plants has made us energy self-suffcient, since their surplus power combined exceeds the volume acquired from the market to supply the Suzano, Limeira, and Rio Verde units. 85% Another important differential is the fact that our energy is produced from lignin, a wood subproduct; this means that the pulp produced at Imperatriz is 100% certifed by the Ecolabel and Nordic Swan seals, which consider renewable energy an essential factor. Renewable (GJ) (See GRI Additional Information/Natural Capital for our internal energy Non-renewable (GJ) consumption and the reduction in this consumption during this year). 41 Natural Capital

the intensity of total emissions was virtually which stationary equipment accounts for the greatest share of power unchanged. consumption from the grid. Lastly, scope 3 emissions amounted to

Scope 2 emissions amounted to 47,938.64 422,732.818 tCO2e. GRI G4-EN19

tCO2e, down signifcantly (by nearly 24%) To calculate emissions, we used the methodologies and assumptions in the same comparison period. This of the Brazilian GHG Protocol program (WRI/WBCSD), ISO 14,064 and

reduction, however, is mostly associated NCASI (2005), and considered the gases CO2, CH4, N2O, the refrigerant with the reduction in paper production, in gases HFC- 134a, R-401b, R-404a, R-407c, R-410a and other refrigerant gases not regulated by the Kyoto Protocol, HCFC-22, HCFC-124, and HCFC-141b. Our efforts to continually optimize our inventory identifed that the

CO2 emissions from our industrial processes come from burning biomass (in other words, they are biogenic), but previously were accounted as derived from the burning of fossil fuels (and were classifed as fossil emissions). This is because the re-caustifcation process which occurs in

the furnaces (recovery of lime, CaO) uses calcium carbonate (CaCO3) coming from the pulp production system. As a result, the carbon

contained in this CaCO3 comes from wood (during the woodchip cooking

process) and its CO2 emissions are therefore biogenic, as indicated by the National Council for Air and Stream Improvement (NCASI). For the purposes of comparison with 2016 emissions, the emissions in 2015 also were recalculated to consider this fnal conclusion, as instructed by the GHG Protocol. In terms of carbon stocks, in 2016 our planted forest areas sequestered

approximately 54.83 million tCO2e. Total forest carbon stocks consider the amount of carbon in the biomass above the soil (trunk, branches and leaves) and in the biomass below the soil (thick and thin roots). (See GRI Additional Information/Natural Capital for tables showing greenhouse gas emissions under scopes 1, 2 and 3, intensity and reduction of emissions, controlled emissions, and emissions of ozone-depleting substances). Biodiversity

Eucalyptus forests stock carbon, recover We maintain approximately 490,000 hectares of natural areas, areas degraded by other activities, and including the 6,000 hectares of Neblinas Park, which preserves 42 help protect the soil and water important aspects of the Atlantic Forest’s biodiversity, as well as more Sustainable stewardship helps maintain ecosystems and the quality of natural resources

than 400 headwaters that form the Itatinga River. The park is a private In 2016, the Ecofuturo Institute reserve owned by Suzano, managed by the Ecofuturo Institute, and conducted an inventory of all the recognized as an Advanced Post of the Green Belt Biosphere Reserve of studies conducted at Neblinas Park São Paulo City by Unesco’s Man and the Biosphere program. since 2002, which compiled important In addition to conducting research related to the topic, we work information about the area’s intensely to restore degraded areas in an effort to reverse liabilities biodiversity. This inventory included 58 inherited from when the property was leased. We also maintain our studies that identifed 1,253 species High Conservation Value Areas (HCVAs), which are recognized for their of fauna and fora in the region, important social and environmental attributes, Legal Reserves (RLs), and which represents a 24% increase in Permanent Preservation Areas (APPs). the wealth of biodiversity seen by the In 2016, these efforts were concentrated in the state of São Paulo, team working at the site. Of these where we made progress on our commitment to recover 3,600 hectares species, 23 are endangered at some of Atlantic Forest and Cerrado. We concluded the diagnosis of the level, but because of management areas based on a study of the fragments required, determining which and protection efforts they are and how many fragments should be recovered, and how this should considered protected in the area. take place. At the same time, we delved deeply into the development of restoration techniques to guarantee efficiency and reduce costs. 43 Natural Capital Restoration of degraded areas In this context, we also made progress on Investment in recognizing and understanding the HCVAs 2016 that exist on these properties. At the end R$ 3,765,158 of the year, diagnosis of the areas to be recovered in São Paulo (which was conducted Restoration in partnership with Casa da Floresta) was started in extended to our areas in Bahia. 2016 We undertake this technically and 161 ha economically feasible restoration in conjunction with universities, NGOs, and the Total area Board of the Atlantic Forest Restoration Pact restored (which includes a representative from Suzano). since 2009 Our goal is to find viable solutions that can be 990 ha shared among small producers and partners who receive support. Another highlight this year was the formalization of our partnership with The Nature Conservancy (TNC) to promote a culture of restoration and coordinate a movement to support the health of the We maintain approximately 490,000 hectares Mucuri River. of areas set aside for preservation This initiative known as the Mucuri River Headwaters Project was launched in late 2016 and will involve planting and restoration of riparian buffers in the headwaters of this In 2016, the Community Management Workshop of Neblinas important regional water resource. By August Park disseminated knowledge and encouraged the exchange of 2017, it will have completed a diagnosis of experiences between land owners in the Taiaçupeba region of Mogi the situation in the restoration chain. das Cruzes, São Paulo, with the goal of leaving an important legacy See GRI Additional Information/Natural Capital for the community. Using a new format, the meetings feature for a table showing the use of our areas and the professionals who hold workshops, give lectures, and teach courses impacts on diversity. on topics related to the stewardship of rural properties. This year, two editions of the workshop were held in partnership with TNC. This initiative has been carried out since 2008, and already has attracted more than 500 participants. 44 Corporate Information SUZANO PULP&PAPER MARKET MAKER STOCK TRANSFERAGENT CUSTODIAN BANK STOCK –UNITEDSTATES STOCK –BRAZIL INVESTOR RELATIONS CORPORATE COMMUNICATION www.suzano.com.br Phone: (5511)3503-9000 01452-919 –SãoPaulo-SPBrazil Av. Brigadeiro FariaLima,1.355–6º,7ºe8°foors Av. Brigadeiro FariaLima, 3.477-14°foorSãoPaulo -SP ACTUAL eValoresBTG PactualCorretora deTítulo MobiliáriosS.A. 101 Barclay Street –NewYork (NY)–10286USA The BankofNewYork 03084-010 -SãoPauloSP Prédio B–Térreo –Tatuapé Rua Ururaí,111 Banco Itaú Each ADRcorresponds totwo preferred shares (SUZB5). ADR1 program, withstock tradedontheOTCmarket. Stock symbolsofthepreferred shares: SUZB5andSUSZ6 Stock symbolofthecommonshares: SUZB3 BM&FBovespa –SãoPauloStockExchange-SP www.suzano.com.br/ri E-mail: [email protected] Phone.: (5511)3503-9061 E-mail: [email protected] Phone.: (5511)3503-9142 Corretora De Título EValores Corretora De Título Mobiliários S.A

45 COORDINATION & WORKING GROUP Alexandre Di Ciero, Marcela Porto, Talita Sato, Estevão Braga, Maria Augusta Bottino G. Santos, André Magnabosco, Valéria Parisotto and Layane Serrano

COPY & EDITING Team KMZ Conteúdo

MATERIALITY MATRIX Avesso Sustentabilidade

GRAPHIC DESIGN Manolo Pacheco and Sergio Honorio

ILLUSTRATION Kiwi Edições e Artes Ltda.

PHOTOGRAPHY Suzano Pulp and Paper Image Bank

ACKNOWLEDGEMENTS We thank all the employees and partners who contributed to the development of this report..

Learn more about our performance, commitments, and management in the answers to the GRI G4 indicators. Materials available at: 46 www.suzano.com.br/en/communication/publicacoes/#relatorio- sustentabilidade 47

GRI Annex Identity List of subsidiaries GRI G4-17

Suzano BNDESPAR Holding S.A

32.2% - ON 6.9% - PNA Suzano Papel e Celulose S.A. (Brazil)

100% 100% 100.00% 100% 100% 100% 90.00% 99.99%

Suzano Pulp Suzano Suzano Pulp STENFAR Comercial e Sun Paper and S.A.I.C. and Paper Suzano Austria Trading Ltd. and Paper Agrícola Board Limited Importadora Europe S.A. (Austria) (Cayman America. Inc Paineiras Ltda. (England) y Exportadora (Switzerland) Islands) (USA) (Argentina) (Brazil) 100% 10.00% 38.00% Asapir Ibema Ondurman Companhia Produção FuturaGene Ltd. 99.99% Empreendimentos Floretal e Brasileira de (England) Imobiliários Ltda. Comércio Ltda. Papel (Brazil) (Brazil) (Brazil) 00.01% 100% 100% 100% 100% 99.99%

FuturaGene FuturaGene Amulya FuturaGene FuturaGene Biotechnology FuturaGene Inc. Brasil 99.99% Empreendimentos Hong Kong Ltd. Delaware Inc. (Shanghai) (USA) Tecnologia Ltda. Imobiliários Ltda. (Hong Kong) (USA) Company (Brazil) Limited (Brazil) 100% 100% 00.01% 00.01% FuturaGene Paineiras FuturaGene AgriDev 99.99% Logística e Israel Ltd. (Xinjiang) Transportes (Israel) Company Ltd. (China) Ltda. (Brazil) 00.01% 2 2 Relationship with subsidiaries GRI G4-17

Company Name Country State City Activities Interest Amulya Empreendimentos Brazil SP Suzano Property management 100% Imobiliários Ltda. Comercial e Agrícola Paineiras Forestry production support Brazil SP Suzano 100% Ltda. activities Ondurman Empreendimentos Brazil SP Suzano Leasing of own properties 100% Imobiliários Ltda. Paineiras Logística Brazil SP Suzano Logistics services management 100% e Transporte Ltda. Trading, purchase, and sale Asapir Produção Florestal e Brazil SP Limeira of Wood and wood waste 50% Comércio Ltda. andforestry activities Ibema Companhia Brasileira de Brazil PR Curitiba Paper production 38% Papel Buenos Trading in paper and plastic Stenfar S.A. Ind. Com. Imp. y Exp. Argentina - 90% Aires materials Suzano Austria GmbH Austria - Vienna Holding company 100% Suzano Pulp and Paper Fort Trading in pulp, paper and USA - 100% America, Inc Lauderdale derivatives Cayman George Trading in pulp, paper and Suzano Trading Ltd. - 100% Islands Town derivatives Trading in paper and Sun Paper and Board Limited England - London 100% derivatives United Biotechnology research and FuturaGene Ltd. - - 100% Kingdom development Trading in pulp, paper and Suzano Pulp and Paper Europe S.A. Switzerland - Nyon 100% derivatives

3 3 Corporate Governance Voluntary commitments GRI G4-15 Partner Organizations GRI G4-16 Business Charter for the Conservation and Brazilian Pulp and Paper Technical Association (ABTCP) Sustainable Use of Biodiversity: signatory of the Business Charter for the Conservation and Sustainable Center for Sustainability Studies (GVces) Use of Biodiversity,in order to bring the importance of conserving biological diversity to the global public Business Commitment to Recycling (Cempre) debate. Brazilian Business Council for Sustainable Development (CEBDS)

Brazil Coalition on Climate, Forests and Agriculture: Conservation International (CI) An initiative to contribute to the advancement of agendas for the protection, conservation, and Brazilian Tree Industry (IBÁ) sustainable use of forests, sustainable agriculture, and mitigation of and adaptation to climate change. Ethos Institute

Strategic Sustainability Committee (AMCHAM): seeks Itapoty Institute to incorporate sustainability into business models; we are members. Mabuia Institute

Business Pact for Integrity and Against Corruption: Peabiru Institute coordinated by the United Nations Development The Forest Dialog Program (UNDP). Forest Science and Research Institute (Ipef) Global Compact: A United Nations (UN) initiative to adopt ten principles related to human rights, labor Ecofuturo Institute relations, the environment, and combating corruption. Forest Stewardship Council® (FSC® – C010014) Brazilian Pact to Eradicate Slave Labor: an initiative by the Ethos Institute and the International Labor Forest Forum Organization (ILO). Friends of the Earth Pact to Restore the Atlantic Forest: initiative by public and private institutions that works to preserve National Forest Dialog fragments of Atlantic Forest and recover 15 million Florestar São Paulo hectares by 2050; we are a member of the advisory council. The Nature Conservancy (TNC)

Platform for an Inclusive, Green and Responsible Viveiro Mata Branca/Caatinga Ecological Institute Economy: an activity conducted by the Ethos Institute, developed by companies and organizations with World Business Council for Sustainable Development (WBCSD) guidelines for a new economy. World Wildlife Fund (WWF)

4 4 Senior executives hired from the local community GRI G4-EC6

2016 Category South Southeast Midwest Northeast North Asset LL % Asset LL % Asset LL % Asset LL % Asset LL % Chief Executive 0 0 0.0 1 1 100.0 0 0 0.0 0 0 0.0 0 0 0.0 Officer Officer 0 0 0.0 5 3 60.0 0 0 0.0 0 0 0.0 0 0 0.0 Director 0 0 0.0 8 5 62.5 0 0 0.0 0 0 0.0 0 0 0.0 Senior Executives 0 0 0.0 14 9 64.3 0 0 0.0 0 0 0.0 0 0 0.0 Executive 0 0 0.0 33 29 87.9 0 0 0.0 13 1 7.7 0 0 0.0 Manager Manager 1 0 0.0 106 96 90.6 0 0 0.0 56 9 16.1 0 0 0.0 Managers 1 0 0.0 139 125 89.9 0 0 0.0 69 10 14.5 0 0 0.0 Total 1 0 0.0 153 134 87.6 0 0 0.0 69 10 14.5 0 0 0.0 LL - Local labor. “Local labor” considers the employee’s place of birth in relation to their place of work when hired.

Financial Capital Distribution of Value Added (DVA) GRI G4-EC1

Controller Consolidated 12/31/2016 12/31/2015 12/31/2016 12/31/2015 Revenues Sales of goods, products and services 10,212,164 11,047,326 10,969,878 11,195,335 Other revenue/expenditures (net) (770,082) 41,031 (999,430) 48,887 Revenue from construction of own assets 518,295 355,364 518,295 355,364 Provision for impairment losses on accounts receivable (net) (8,101) (21,308) (9,505) (21,425) 9,952,276 11,422,413 10,479,238 11,578,161 5 5 Controller Consolidated 12/31/2016 12/31/2015 12/31/2016 12/31/2015 Inputs acquired from third parties Costs of products, goods and services sold (4,098,613) (4,235,266) (4,098,613) (4,235,266) Materials, energy, third-party services and other (1,989,559) (1,723,880) (2,375,104) (1,945,882) (6,088,172) (5,959,146) (6,473,717) (6,181,148) Gross value added 3,864,104 5,463,267 4,005,521 5,397,013 Depreciation, amortization and depletion (1,387,109) (1,402,163) (1,403,518) (1,419,477) Net value added produced 2,476,995 4,061,104 2,602,003 3,977,536 Value added received through transfer Equity pickup 167,436 (306,204) (7,127) - Financial income 551,110 1,117,127 823,430 1,258,567 718,546 810,923 816,303 1,258,657 Value added to distribute 3,195,541 4,872,027 3,418,306 5,236,193 Personnel 955,351 935,935 984,707 957,859 Direct compensation 766,468 761,297 792,683 780,557 Benefits 150,466 134,961 153,607 137,625 FGTS 38,417 39,677 38,417 39,677 Taxes, fees and contributions 944,290 (550,387) 944,886 (561,423) Federal 1,040,288 (382,720) 1,068,751 (393,628) State (101,191) (172,534) (128,918) (172,534) Municipal 5,193 4,867 5,053 4,739 Value distributed to providers of capital (396,098) 5,411,833 (203,285) 5,765,111 Interest (466,478) 5,339,100 (277,670) 5,687,162 Rent 70,380 72,733 74,385 77,949 Value distributed to shareholders 1,691,998 (925,354) 1,691,998 (925,354) Dividends 370,828 - 370,828 - Loss in the year 1,321,170 (925,354) 1,321,170 (925,354) Distribution of value added 3,195,541 4,872,027 3,418,306 5,236,193

6 6 Impact of investments in infrastructure and services GRI G4-EC7

Socioeconomic impact Hiring local EPS promotes ongoing income generation and movement of the local economy in cities where we operate. Multiple forest uses promote income generation for beekeepers and associations. Rural exodus caused by the extensive eucalyptus cultivation. Low employability caused by eucalyptus plantations. Rural exodus resulting from numerous factors (not only eucalyptus cultivation). Myth of drought caused by eucalyptus cultivation. Planting eucalyptus in mosaics and ecological corridors promote conservation of native forests, biodiversity, and protection of water resources, permitting sustainable extraction in local communities. Social projects to promote health, environmental education for children and young people, partnerships for improving academic performance, construction and renovation of community libraries, preservation of traditional indigenous cultures, establishment of community councils to strengthen the relationship between us and the communities.

Human Capital

Employees: by region and gender GRI G4-10

Women Men Total Midwest 15 20 35 Northeast 305 2,982 3,287 North 23 153 176 Southeast 605 3,303 3,908 South 33 45 78 Total 981 6,503 7,484* *This number does not include employees on leave, apprentices, trainees, or students in the Formare program.

Employees: by contract type and gender GRI G4-10

Women Men Total Active/Permanent 981 6,503 7,484 Temporary 11 14 25 7 7 Employees: by contract type and gender GRI G4-10

Women Men Total Part-time 106 2,966 3,072 Full-time 875 3,537 4,412

Employees: by contract type and gender GRI G4-10

 Women Men Total Administrative 345 737 1,082 Advisors 0 1 1 Consultants 58 279 337 Coordinators 39 118 157 Directors 0 8 8 Officers 0 5 5 Specialists 278 383 661 Executive Managers 2 44 46 Functional Managers 24 139 163 Operational 231 4,604 4,835 Supervisors 4 185 189 Total 981 6,503 7,484

Employees: abroad GRI G4-10 Suppliers by region GRI G4-12

International Offices Headcount Expatriates Region No. Recorded Percent (%) Stenfar Argentina 114 0 Midwest 388 3 Suzano América (United States) 18 1 Northeast 2,780 18 Sun Paper (England) 2 0 North 419 3 Suzano Europa (Switzerland) 13 2 Southeast 9,969 65 Suzano Ásia (China) 11 0 South 1,682 11 Total 15,238 100 8 8 Turnover by region GRI G4-LA1

Other Average Resignations - Terminations - Region Year New hires Resignations Traditional terminations headcount Turnover Turnover 2016 12 1 9 77 1.84% 0.11% 0.97% South 2015 29 5 13 74 4.28% 0.56% 1.46% 2016 515 71 604 4,016 1.77% 0.15% 1.25% Southeast 2015 674 88 344 4,021 1.84% 0.18% 0.71% 2016 11 1 8 37 3.49% 0.23% 1.80% Midwest 2015 15 2 13 36 5.21% 0.46% 3.01% 2016 446 55 395 3,307 1.69% 0.14% 1.00% Northeast 2015 642 70 350 3,351 2.12% 0.17% 0.87% 2016 56 1 26 167 3.47% 0.32% 1.30% North 2015 4 0 4 9 5.56% 0.00% 3.70% 2016 1,040 129 1,042 7,604 1.78% 0.14% 1.14% Total 2015 1,364 165 724 7,491 2.01% 0.18% 0.81%

Turnover by gender GRI G4-LA1

Other Average Resignations - Terminations - Gender Year New hires Resignations Traditional terminations headcount Turnover Turnover 2016 405 58 548 6,551 0.90% 0.07% 0.70% Men 2015 1,087 124 616 6,537 1.86% 0.16% 0.79% 2016 635 71 493 1,052 7.26% 0.56% 3.91% Women 2015 277 59 156 955 3.36% 0.51% 1.36%

Turnover by age GRI G4-LA1

Age Other Average Resignations - Terminations - Year New hires Resignations Traditional range terminations headcount Turnover Turnover 2016 599 69 358 2,206 3.07% 0.26% 1.35% <30 years 2015 680 81 199 2,165 3.16% 0.31% 0.77% From 30 to 2016 434 59 580 4,720 1.33% 0.10% 1.02% 50 years 2015 655 84 436 4,671 1.63% 0.15% 0.78% 2016 7 1 103 677 0.73% 0.01% 1.27% 50 + 9 9 2015 29 0 89 656 0.93% 0.00% 1.13% Benefits granted to employees and supervised workersGRI G4-LA2 | G4-EC3

Amount Invested (R$) Contributed by the employee Life insurance 1,900,408 Regressive table based on time of service Health plan 51,393,908 Discount according to co-pay impairment/disability N/A Amounts paid via life insurance Maternity and paternity leave N/A N/A Pension fund 4,641,318 Percentage of employee’s salary for URS Stock option plan 14,516,762 One-third of the amount granted N/A - Not applicable

Return to work and retention rates after maternity/paternity leave (by gender)* GRI G4-LA3

Paternity Maternity Number of employees entitled to maternity/paternity leave 6,503 981 Number of employees who received maternity/paternity leave 334 51 Number of employees who returned to work after maternity/paternity leave 334 51 Number of employees who returned to work after maternity/paternity leaveand stayed 12 317 42 months after returning to work Return to work and retention rates after maternity/paternity leave 100% 100% Retention of employees who received maternity/paternity leave 95% 82%

*9 women and 17 men left less than one year after returning from leave.

10 10 Rate of accidents with lost time Rate of accidents without lost time GRI G4-LA6 GRI G4-LA6

Unit 2014 2015 2016 Unit 2014 2015 2016 UNI Suzano 0.86 1.32 1.62 UNI Suzano 4.28 2.65 2.52 UNI Rio Verde 1.99 4.54 1.86 UNI Rio Verde 1.99 4.54 1.86 UNI Mucuri 2.18 0.46 0.75 UNI Mucuri 2.77 2.32 1.69 UNI Embu 0.00 N/A N/A UNI Embu 5.82 N/A N/A UNI Limeira 1.88 0.95 0.78 UNI Limeira 2.42 1.90 2.61 UNI Imperatriz 0.67 0.97 0.32 UNI Imperatriz 3.02 2.91 2.86 UNF SP 0.23 0.28 0.3 UNF SP 1.88 1.14 0.91 UNF BA 0.52 0.46 0.2 UNF BA 1.05 1.23 1.41 UNF MA/PI 1.04 0.23 0.00 UNF MA/PI 2.26 0.94 0.51 UNF PI 0.00 0.00 N/A UNF PI 0.00 0.00 N/A SPP 1.01 0.00 0.00 SPP 2.02 0.67 2.01 SP Office 0.00 0.00 0.00 SP Office 0.00 0.00 1.34 Total 0.95 0.67 0.55 Total 2.20 1.41 1.45

Rate of lost days GRI G4-LA6

Unit 2014 2015 2016 UNI Suzano 77 1291 81.49 UNI Rio Verde 8 393.44 195.63 UNI Mucuri 886 16.06 10.5 UNI Embu 0.00 N/A N/A UNI Limeira 384 68.67 50.06 UNI Imperatriz 22 5.83 4.45 UNF SP 229 33.36 18.42 UNF BA 524 37.52 3.22 UNF MA/PI 6,257 11.08 0.00 UNF PI 0.00 0.00 N/A SPP 5 0.00 0.00 SP Office 0.00 0.00 0.00 Total 8,402 160.49 28.66 11 11 Health and safety aspects covered in formal agreements with trade unions GRI G4-LA8

Type Description Task analysis, Common Sense Inspections, OHSE, and Regular inspections assessments of legal requirements Personal protective equipment PPE (SAP Management) Joint safety and health committees fomed by OHS Committees (Areas, CIPA, CIPATR, GT OHS) senior executives and employees Participation of employee representatives in health and safety Inspections according to NR 05 and procedure for analyzing inspections, audits, and accident investigations incidents (participation in accordance with PPG) Training and education SAP training courses Formal grievance management system (GID) and Code of Grievance mechanisms Conduct Conformity with International Labor Application of OHSAS 18000 and NR Organization (ILO) Problem resolution mechanisms or structures GID system Commitment to comply with desired performance standards Targets for frequency rate, GID, IAC, recognition program, or level of practice to be applied Green Light Right to refuse unsafe work Provided for in the work access permission

Average number of training hours per employee (by gender and by function) GRI G4-LA9

Courseload, Courseload, Courseload, Courseload, with degree without degree with degree without degree Por gênero By function Women 4.14 4.08 Trainee 2.96 2.96 Men 8.02 7.29 Manager 14.26 11.10 By function Operations 8.97 8.24 Administration 4.13 4.13 Supervisor 5.83 4.94 Apprentice 2.86 2.86 Average 2016 Advisor 3.00 3.00 Per employee 7.59 6.93 Consultant 4.76 3.81 Coordinator 7.20 5.25 Director 1.57 1.57 Specialist 5.40 4.80 12 12 Purchases by region GRI G4-EC9

Regional Non regional Unit (%) (%) UNI Imperatriz 33 67 UNI Limeira 85 15 UNI Mucuri 29 71 UNI Suzano 77 23 Total 54 46

*Local (regional) purchases are items acquired from business operations located in the same regions as our mills.

Social Capital Operations with negative impacts on local communities GRI G4-SO2

Area Impact Effects Procedures Maintain roads used by communities Notify affected parties of maintenance actions Damage to public property performed and clarify that other companies also (roads, sidewalks, etc.), transport loads and are responsible for roadway Vehicle traffic on resulting in time lost on maintenance roadways roads and economic losses Publicize communication channels for grievances Wood transport Wood fallingon related to road and vehicle and suggestions roadways during maintenance Remove any loose materials from loads that might transport Risk of accidents fall during transit (bark, branches and other Dust from wood transport debris) according to wood transport procedure Communicate these measures and safety procedures adopted uring loading to stakeholders

13 13 Area Impact Effects Procedures Apply herbicides according to control procedures and plantation quality Perceived health risk from Maintain a safe distance from communities, application of herbicides in wells and rivers used for public water supply Herbicide eucalyptus cultivation during aerial application, according to application Shading neighboring applicable legislation Shade caused crops, resulting in low In aerial application of herbicide, inform by eucalyptus Forestry productivity and economic stakeholders in surrounding areas of the plantations losses duration of the activity and health and safety Falling trees Power outages when trees procedures Plantation fall on lines Inform stakeholders about procedures for growth Blockage of cell phone applying herbicides signal by older plantations Maintain distance between cultivated areas and communities, residents and power lines, according to procedure Noise caused by Reduce truck speed near neighborhoods and harvesters and homes, according to procedure and route trailers schedule Cutting stands, Discomfort and sleep Train drivers Wood transport causing disturbance Avoid harvesting at night near residences and/or harvesting displacement Venomous animals and Publicize communication channels for or proliferation insects enter homes grievances and suggestions of venomous Whenever possible, when harvesting near animals and residences work from the borders toward the insects inner area of the forest Extensive Difficulties generating eucalyptus income and Engage in associations to participate in income- cultivation unemployment in the generation projects Eucalyptus Consumption of region Inform stakeholders about sustainable cultivation water from the Belief that eucalyptus management to dispel myths about water soil and water plantations reduce water consumption in eucalyptus cultivation table availability

14 14 Natural Capital Energy consumption within the organization GRI G4-EN3 | G4-EN6 Energy intensity* GRI G4-EN5

Energy consumed (GJ) Unit Measure (GJ/tsa) Unit 2015 2016 Energy intensity 23.74 Offices 6,442.75 13,962.95 *Considers energy (GJ) from Scopes 1 and 2 for marketable pulp (tsa – transferred between units + market pulp + pulp for paper). Distribution Centers 9,201.68 7,908.56 Forestry Units 856,096.82 858,418.12 Industrial Units 107,635,638.63 103,052,395.16 Total 108,507,379.88 103,932,684.79 Energy consumption outside the Energy consumption within GRI G4-EN3 | G4-EN6 organization GRI G4-EN4 Energy consumed (GJ) Energy consumed Unit Unit 2015 2016 (GJ) Non-renewable fuels (GJ) 15,996,768.08 15,980,103.08 Offices 97,720.87 Renewable fuels (GJ) 90,671,491.37 85,848,357.19 Distribution Centers 161,473.07 Electricity acquired (GJ) 1,839,120.43 2,104,224.52 Forestry Units 1,366,759.65 Electricity sold (GJ) 2,609,891.28 2,634,840.00 Industrial Units 1,423,045.30 Total (consumed): 108,507,379.88 103,932,684.79 International Logistics 2,243,196.00 Total 3,048,998.89

15 15 Water consumption and recycling GRI G4-EN8 | G4-EN10

Unit Type of source Source Consumption (m³) Reuse (m³) UNI Imperatriz Surface water Tocantins River 36,929,219.23 4,302,914.03 UNI Mucuri Surface water Mucuri River 56,026,806.00 0.00 UNI Limeira Surface water Piracicaba River 23,995,101.94 0.00 UNI Suzano Surface water Tietê River 26,677,008.00 0.00 UNI Rio Verde Surface water Tietê River 751,126.20 0.00 Surface water Various 23,420.00 0.00 UNF MA Ground water Various 6,193.00 0.00 Surface water Various 140.00 0.00 UNF PI Ground water Various 300.00 0.00 Surface water Various 338,469.00 0.00 UNF BA* Ground water Various 198,605.95 198,605.95 Surface water Various 60,471.50 0.00 UNF SP Ground water Various 9,108.86 0.00

*Effluent from the nursery is not discharged: some is used to irrigate coconut trees and grass, and some is infiltrated in a productive area (eucalyptus).

Water bodies significantly affectedGRI G4-EN9

Average annual volume Withdrawal, as percent of average Source City (m3) annual volume Tocantins River Imperatriz 344,000,000,000.00 0.01% Mucuri River Mucuri 955,225,440.00 5.87% Piracicaba River Limeira 4,541,184,000.00 0.56% Tietê River Suzano 286,815,168.00 9.3%

16 16 Water bodies significantly affected*GRI G4-EN9

Source City Attributes Located in a type 4 HCVA for communities and the Três Barras River Itararé local population, supplying 50,000 people in the region of Itararé Tributary of Ribeirão dos Veados Tributary of Ribeirão Tamanduá Itatinga Ribeirão do Atalho Upper Paranapanema River Angatuba Aquifer Piramboia Formation Located within the Botucatu Environmental Protection Unnamed tributary to the Jurumirim Reservoir Area Unnamed tributary to the Jurumirim Reservoir Avaré Serra Geral Aquifer Formation Tributary to the Santo Inácio River Pardinho Córrego Rodrigues Botucatu

*All uses are permitted by DAEE and are in accordance with sustainable forest management.

Use of areas GRI G4-EN11

Conservation units adjacent to our areas Biome Area (ha) Serra do Mar Environmental Protection Area (State)* Atlantic Forest 489,000 Paraíba do Sul River Basin Environmental Protection Area Atlantic Forest 292,597 (Federal) Atlantic Forest with Piracicaba-Juqueri-Mirim Environmental Protection Area (State)* 107,596 Cerrado enclaves Intervales State Park Atlantic Forest 41,704 UNF SP Carlos Botelho State Park Atlantic Forest 37,644 Itirapina Ecological Station (State) Natural fields and Cerrado 2,300 Serra do Mar State Park Atlantic Forest 332,000 Horto Florestal Natural Heritage Area and Edmundo Navarro de Atlantic Forest 2,230 Andrade (State) Araribá Indigenous Land Atlantic Forest 2,179 Caetetus Ecological Station (State) Atlantic Forest 2,179

17 17 Conservation units adjacent to our areas Biome Area (ha) Angatuba Ecological Station Atlantic Forest 1,394 Santa Maria Ecological Station (State) Atlantic Forest 1,301 Paranapanema Ecological Station (State) Atlantic Forest 635 Paranapiacaba Biological Reserve (State) Atlantic Forest 336 Sebastião Aleixo da Silva or Bauru Ecological Station (State) Atlantic Forest 300 UNF SP Vassununga State Park Atlantic Forest 151 Nascentes do Tietê Ecological Park (State)* Atlantic Forest 134 Itapeva Ecological Station (State) Cerrado 107 São Carlos Ecological Station (State) Cerrado 75.26 Nascentes do Tietê Natural Heritage Area (State) Atlantic Forest 134 Corumbataí-Botucatu-Tejupá - Botucatu Perimeter* Cerrado and Atlantic Forest 251,615.12 Chapada das Mesas at Carolina National Park Cerrado 160,046 Krikati Indigenous Reserve N/A 146,000 Bacurizinho Indigenous Reserve N/A 82,000 Mata Grande Extractive Reserve Cerrado 11,432 UNF MA Ciriaco Extractive Reserve Amazon 8,107 Gurupi Biological Reserve Amazon 271,198 Extreme North of Tocantins State Extractive Reserve Cerrado 9,071 Fossilized Trees Natural Monument Cerrado 32,067 Taquari River Environmental Protection Area Cerrado 26,152 Cassurubá Extractive Reserve* Coastal 100,768 Sooretama Biological Reserve Atlantic Forest 27,859 Conceição da Barra Environmental Protection Area* Atlantic Forest 7,728 Itaúnas State Park* Atlantic Forest 3,150 UNF BA Rio Preto National Forest (FLONA)* Atlantic Forest 2,817 Córrego do Veado Biological Reserve Atlantic Forest 2,382 Córrego Grande Biological Reserve Atlantic Forest 1,504 3,500 Costa Dourada Environmental Protection Area* Atlantic Forest (approx.)

*Areas located inside conservation units. 18 18 Use of areas GRI G4-EN11

Area (ha) Category Development Owned Leased Subtotal Wood Market Total Programs Planting 326,182 125,866 452,048 65,889 8,506 526,443 Available for replanting 7,535 2,953 10,488 3,898 3,285 17,671 Available for planting 93,351 16,027 109,378 738 0 110,116 Preservation 316,301 175,075 491,376 0 0 491,376 Infrastructure 34,320 8,706 43,026 0 0 43,026 Total 777,690 328,627 1,106,317 70,525 11,791 1,188,633

Impacts on biodiversity GRI G4-EN12

Impacts of Aspects Mitigating measure Forestry Unit Forestry Unit Pollution (introduction of We have forest management plans, manuals and procedures that guide substances that do Changes in soil/ employees on forestry processes (chemical controls, ant control, etc.) and we not occur naturally water quality also provide land use maps showing protected areas, as well as markers in APPs in the habitat, from in the field. isolated or non- isolated sources) We developed Floresta Viva, a program to strengthen our image in the Fires (forests or Damage to communities where our forestry units are located by raising awareness about equipment) biodiversity environmental preservation and prevention of fires in reforested areas. Water runoff trenches are built between the plantation rows in order to not Damage to waste space. During and after planting, when rain falls we monitor points for Erosion biodiversity correction and improvements in soil conservation and roads. This process should be continuous throughout the first cycle. 19 19 Protected habitats GRI G4-EN13

UNF Name Area (ha) City Biome Siriema II 349 Itirapina-SP Cerrado Capanhão 871.19 Biritiba Mirim-SP Atlantic Forest UNF SP Ibiti 1,024.11 Itararé-SP Atlantic Forest Montes Claros 1,231.13 São José dos Campos-SP Atlantic Forest Entre Rios 303.58 Angatuba-SP Atlantic Forest Tract - 11F 2,148.88 Caravelas-BA Atlantic Forest Tracts - 11F and 11G 135.87 Caravelas-BA Atlantic Forest Tract - 13C 434.82 Caravelas-BA Atlantic Forest Tracts - 14B and 15A 2,159.71 Mucuri-BA Atlantic Forest Tract - 21B 107.95 Pedro Canário-ES Atlantic Forest Tract - 21B II 274.38 Conceição da Barra-ES Atlantic Forest Tract - 32C 787.85 Carlos Chagas-MG Atlantic Forest Tract - 11D 854.58 Caravelas-BA Atlantic Forest Tract - 11G 587.64 Caravelas-BA Atlantic Forest UNF BA Tract - 21B III 1,011.67 Conceição da Barra-ES Atlantic Forest Tract - 15E (Água Vermelha) 449.55 Mucuri-BA Atlantic Forest Tract - 22B (Block 10 FRD) 3,450.41 São Mateus-ES Atlantic Forest Tract - 11C (Block 20) 219.90 Teixeira de Freitas-BA Atlantic Forest Tract - 13G/13H (Block 34) 2,569.47 Nova Viçosa-BA Atlantic Forest Tract - 11B (Block 48) 493.92 Alcobaça-BA Atlantic Forest Tract - 15C (Block 56) 1,195.14 Mucuri-BA Atlantic Forest Tract - 21B (Block G-3) 286.77 Conceição da Barra-ES Atlantic Forest Tract - 15A (DIDIQUESA) 818.05 Mucuri-BA Atlantic Forest Bloco Boa Esperança 3,475.10 São Pedro da Água Branca-MA Amazon Bloco Jurema 5,955.96 São Pedro da Água Branca-MA Amazon Itabaiana 1,688.37 Açailândia-MA Amazon UNF MA São Bento 421.65 Açailândia-MA Amazon Supresa 614.20 Dom Eliseu-PA Amazon Califórnia 2,096.88 Dom Eliseu-PA Amazon Santa Maria HM 385.06 Dom Eliseu-PA Amazon 20 20 UNF Name Area (ha) City Biome Sayonara 2,070.53 Paragominas-PA Amazon Senhor do Bonfim I 893.16 Paragominas-PA Amazon Senhor do Bonfim II 1,116.53 Paragominas-PA Amazon Chalé II 1,120.51 Paragominas-PA Amazon UNF MA Paraíso 2,418.63 Paragominas-PA Amazon Tamboril 1,440.27 Angico-TO Cerrado MAAB 1,097.10 Riachinho-TO Cerrado São Roque 593.11 Darcinópolis-TO Cerrado

Species on the IUCN Red List and national conservation lists GRI G4-EN14 National Risk Unit Quantity Species IUCN Risk Level Level Amazona farinosa (Southern mealy amazon) Near-threatened - Amazona rhodocorytha (Red-browed amazon) Endangered Vulnerable Amazona vinacea (Vinaceous-breasted Amazon) Endangered Vulnerable Malacoptila striata (Greater crescent-chested) Near-threatened - Myrmotherula urosticta (Band-tailed) Vulnerable Vulnerable 11 birds Primolius maracana (Blue-winged macaw) Near-threatened - Procnias nudicollis (Bare-throated bellbird) Vulnerable - Ramphastos vitellinus (Channel-billed toucan) Vulnerable - Schiffornis turdina (Brown-winged mourner) Least concern Vulnerable BA Thamnophilus caerulensces (Variable antshrike) - - Touit surdus (Golden-tailed parrotlet) Vulnerable Vulnerable Attila spadiceus (Bright-rumped atilla) Least concern Vulnerable Callicebus melanochir (Coastal black-handed titi) - Vulnerable Callithrix geoffroyi (Geoffrey’s tufted-ear 5 mammals Least concern - marmoset) Leopardus pardalis (Ocelot) Least concern - Tayassu pecari (White-lipped peccary) Vulnerable Vulnerable Acanthochelys radiolata (Brazilian radiolated 1 reptile Near-threatened - 21 swamp turtle) 21 National Risk Unit Quantity Species IUCN Risk Level Level Alchornea glandulosa - - Cariniana legalis (Jequitibá-rosa) Vulnerable Endangered 5 species BA Cedrela fissilis Endangered Vulnerable of flora Cupana furfuracea Radlk - Vulnerable Joannesia princeps (Arara nut tree) Vulnerable Least concern Chrysocyon brachyurus (Maned wolf) Near-threatened Vulnerable Leopardus pardalis (Ocelot) Least concern - Leopardus sp. (Oncilla) - - 6 mammals Mazama sp. (Brocket deer) Vulnerable - Puma concolor (Puma) Least concern Vulnerable Tapirus terrestris (Brazilian tapir) Vulnerable Vulnerable Alectrurus tricolor (Cock-tailed tyrant) Vulnerable Vulnerable Biatas nigropectus (White-bearded antshrike) Vulnerable - Carpornis cucullata (Hooded berryeater) Near-threatened - Cyanoloxia brissonii (Ultramarine grosbeak) Least concern - Cypsnagra hirundinacea (White-rumped Least concern - tanager) Donacospiza albifrons (long-tailed reed-finch) Least concern - SP Eleoscytalopus indigoticus (White-breasted Near-threatened - tapaculo) Embernagra platensis (Great Pampa-finch) Least concern -

19 birds Euphonia chalybea (Green-chinned euphonia) Near-threatened - Geotrygon violacea (Violaceous quail-dove) Least concern - Hemitriccus orbitatus (Eye-ringed tody-tyrant) Near-threatened - Jabiru mycteria (Jabiru) Least concern - Neothraupis fasciata (White-banded tanager) Near-threatened - Procnias nudicollis (Bare-throated bellbird) Vulnerable - Pseudastur polionotus (Mantled hawk) Near-threatened - Pteroglossus bailloni (Saffron toucanet) Near-threatened - Pyroderus scutatus (Red-ruffed fruitcrow) Least concern - Saltatricula atricollis (Black-throated saltator) - - 22 Sarcoramphus papa (King vulture) Least concern - 22 National Risk Unit Quantity Species IUCN Risk Level Level Spizaetus melanoleucus (Black-and-white hawk- Least concern - eagle) Spizaetus tyrannus (Black hawk-eagle) Least concern - Sporophila angolensis (Chestnut-bellied seed- Least concern - finch) Sporophila falcirostris (Temminck’s seedeater) Vulnerable Vulnerável + 10 birds Sporophila frontalis (Buffy-fronted seedeater) Vulnerable Vulnerable Sporophila pileata (Pearly-bellied seedeater) Least concern - Sporophila plumbea (Plumbeous seedeater) Least concern - Tangara cyanoptera (Azure-shouldered tanager) Near-threatened - Tinamus solitarius (Solitary tinamou) Near-threatened - Urubitinga coronata (Crowned eagle) - Endangered Araucaria angustifolia (Paraná pine) Endangered Endangered Campomanesia neriiflora Vulnerable Least concern Campomanesia neriiflora (Guabiroba-branca) Vulnerable Least concern SP Cedrela fissilis (Cedro-rosa) Endangered Vulnerable Euterpe edulis (Palmito-juçara) - Vulnerable Inga sellowiana Endangered Near-threatened Machaerium villosum (Jacarandá-do-cerrado) Vulnerable Least concern Myrceugenia campestris Vulnerable Least concern 18 species Myrcianthes pungens (Guabiju) Endangered Least concern of flora Myrciaria cuspidata Vulnerable Least concern Myroxylon peruiferum - Least concern Nectandra cf. barbellata (Canela) - - Ocotea odorifera - Em perigo Ocotea odorifera (Brazilian sassafrás) - Em perigo Plinia complanata (Cambuca) - Em perigo Rudgea jasminoides - - Trichilia casaretti (Pé-de-galinha) Vulnerable Least concern Zeyheria tuberculosa Vulnerable Vulnerable

23 23 National Risk Unit Quantity Species IUCN Risk Level Level Amazona farinosa (Southern Mealy Amazon) - - Anodorhynchus hyacinthinus (Hyacinth macaw) Vulnerable - Celeus obrieni (Kaempfer’s woodpecker) Endangered Vulnerable Charitospiza eucosma (Coalcrest) Near-threatened - Euscarthmus rufomarginatus (Rufous-sided Near-threatened - pygmy-tyrant) Grallaria varia (Variegated antpitta) Least concern Vulnerable Guaruba guarouba (Golden parakeet) Vulnerable Vulnerable Harpy harpyja (Harpy eagle) Least concern Vulnerable Odontophorus gujanensis (Marbled wood- Least concern - quail) Patagioenas subviinacea (Ruddy pigeon) - - Penelope pileata (White-crested guan) Vulnerable Vulnerable Critically 23 birds Penelope superciliaris (Rusty-margined guan) Least concern endangered Phlegopsis nigromaculata (Black-spotted bare- Least concern Vulnerable eye) MA Piprites chloris (Wing-barred pipirites) Least concern Vulnerable Porphyrospiza caerulescens (Blue finch) Near-threatened - Primolius maracana (Blue-winged macaw) Near-threatened - Pteroglossus bitorquatus (Eastern red-necked Endangered - araçari) Pyrrhura amazonum (Santarem parakeet) Endangered - Pyrrhura lepida (Pearly parakeet) Vulnerable Vulnerable Ramphastos tucanus (Red-billed toucan) Vulnerable - Ramphastos vitellinus (Channel-billed toucan) Vulnerable - Rhea americana (Greater rhea) Near-threatened - Urubitinga coronata (Crowned eagle) - Endangered Cedrela odorata L. (Spanish cedar) Vulnerable Vulnerable Hymeneae courbaril L. - Least concern 5 species Myracrodruon urundeuva Allemão - Least concern of flora Protium heptaphyllum (Aubl.) March. - - 24 Tabebuia impetiginosa (Mart.) Standl. Least concern Near-threatened 24 National Risk Unit Quantity Species IUCN Risk Level Level Alouatta belzebul (Red-handed howler) Vulnerable Vulnerable Ateles sp. (Spider monkey) - - Critically Chiropotes satanás (Black-bearded saki) Critically endangered endangered Leopardus tigrinus Vulnerable Em perigo MA 9 mammals Puma concolor Least concern Vulnerable Saguinus niger (Black-handed tamarin) Vulnerable Vulnerable Speothos venaticus (Bush dog) Near-threatened Vulnerable Tapirus terrestris (Brazilian tapir) Vulnerable Vulnerable Tayassu pecari (White-lipped peccary) Vulnerable Vulnerable

25 25 Direct Greenhouse Gas Emissions (Scope 1) GRI G4-EN15 Direct Greenhouse Gas Emissions (Scope 2) GRI G4-EN16 Emissions Gross biogenic Unit (tCO2e) emissions (tCO2e) Unit Emissions (tCO2e) UNI Suzano 197,114.62 360,980.97 UNI Suzano 15,869.72 UNI Imperatriz 233,453.62 3,296,094.14 UNI Imperatriz 299.47 UNI Mucuri 198,277.96 3,974,304.80 UNI Mucuri 59.74 UNI Limeira 127,793.01 1,397,594.30 UNI Limeira 28,031.49 UNI Rio Verde 26,822.73 0.68 UNI Rio Verde 3,186.25 UNF SP 33,934.46 1,306.97 UNF SP 46.88 UNF BA 47,883.85 1,454.55 UNF BA 7.55 UNF MA 57,970.92 1,613.77 UNF MA 12.61 UNF PI 109.10 19.60 UNF PI 33.14 SPP 17.99 0.62 SPP 119.67 Headquarter 347.75 565.82 Headquarter 33.16 International offices 79.71 0.00 International offices 238.96 Total 923,805.72 9,033,936.22 Total 47,938.64

Indirect Greenhouse Gas Emissions (Scope 3) GRI G4-EN17

Unit Emissions (tCO2e) Gross biogenic emissions (tCO2e) UNI Suzano 12,697.35 608.16 UNI Imperatriz 36,066.48 2,074.64 UNI Mucuri 41,985.75 2,901.72 UNI Limeira 25,845.38 1,198.02 UNI Rio Verde 688.60 35.73 UNF SP 31,421.62 2,754.41 UNF BA 35,798.83 2,581.17 UNF MA 51,999.45 1,930.83 UNF PI 0.02 0.00 SPP 10,056.78 692.44 Headquarter 1,876.41 0.00 Outbound Port a Port 174,189.38 0.00 International offices 99,299.83 83.05 Total 521,925.87 14,860.17 26 26 GHG emissions intensity Emissions of ozone-depleting GRI G4-EN18 substances (ODS) GRI G4-EN20

Intensity (tCO e) Imports (kg) 2015 2016 Unit 2 2015 2016 HCFC-22 7,511.92 8,571.18 UNI Suzano 0.432 0.381 HCFC-141b 493.00 727.05 UNI Imperatriz 0.157 0.167 HCFC-124 27.00 54.40 UNI Mucuri 0.113 0.115 Total 8,031.92 9,352.63 UNI Limeira 0.185 0.186 Overall average 0.215 0.212 Controlled emissions - By type (in tons) GRI G4-EN21 *Scope 1 emissions, considering marketable pulp (transferred between units + market pulp Particulate Unit NOx SOx TRS + pulp for paper). Matter UNI Imperatriz 2,745.18 227.00 485.06 58.49 UNI Mucuri 3,293.00 567.00 869.00 146.00 UNI Limeira 1,685.68 1,219.60 891.92 4.52 UNI Suzano 969.60 122.90 320.50 22.80 UNI Rio Verde 15.60 0.00 0.00 0.00

27 27 EffluentsGRI G4-EN22

Reused by

Unit Volume (m³) COD (mg/L) BOD5 (mg/L) Treatment method Destination another Methodology organization UNI Tocantins Direct 25,208,769.96 298.29 3.410 Activated sludge No Imperatriz River measurement Primary Treatment UNI followed by lake Mucuri Direct 42,068,613.00 335.00 27.800 No Mucuri aeration and River measurement MBBR reactors Primary treatment, activated sludge, UNI Piracicaba Direct 18,282,047.39 276.00 14.000 secondary No Limeira River measurement treatment, polishing Primary treatment, secondary UNI Direct 20,321,664.00 228.10 24.000 treatment through Tietê River No Suzano measurement lake aeration, polishing Primary treatment, secondary UNI Rio Direct 674,822.00 224.00 50.000 treatment through Tietê River No Verde measurement lake aeration, polishing

28 28 Solid waste disposal, weight and destination (in tons) GRI G4-EN23 | G4-EN25

Type of UNI UNI UNF SP UNF MA UNF BA UNI Mucuri UNI Suzano UNI Limeira destination Imperatriz Rio Verde Storage 0.00 0.00 616.00 201,400.30 0.00 0.00 0,00 0.00 Landfill 0.00 0.00 59,400 87,696.30 99,100.85 39,663.00 124.00 0.00 Composting 0.00 0.00 0.00 0.00 0.00 11,152.00 39,900.00 905.00 Co-processing 35.18 0.00 0.00 0.00 0.00 0.00 190.74 0.00 Incineration 0.00 67,223.00 0.00 0.00 47.89 98.35 0,00 0.00 Recycling 3.77 8,035.00 5,207.00 4,065.00 51,431.07 82,919.80 30,072.00 14,787.35 Reuse 0.00 0.00 0.00 2,647.66 0.00 7,335.00 24,942.00 0.00 Refining 7.83 19,990.00 0.00 130.70 25.41 0.00 0.00 0.00 Recovery 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 46.78 95,248.00 65,223.00 295,939.96 150,605.22 141,168.14 95,228.74 15,692.35

Hazardous waste weight (in tons) GRI G4-EN23 | G4-EN25

UNI UNI Hazard Level UNF SP UNF MA UNF BA UNI Mucuri UNI Suzano UNI Limeira Imperatriz Rio Verde Non- 3.77 8,035.00 5,823.00 295,809.26 150,531.15 141,067.55 165.09 15,692.35 hazardous Hazardous 43.01 87,213.00 59,400.00 130.70 74.07 100.59 95,063.65 0.00 Total 46.78 95,248.00 65,223.00 295,939.96 150,605.22 141,168.14 95,228.74 15,692.35

29 29 Water Bodies significantly affected by water discharge GRI G4-EN26

Unit River Flow (m³/s) UNF BA Mucuri 30.29 UNI Limeira Piracicaba 133.60 UNI Suzano Tietê 9.07 UNI Maranhão Tocantins 8,000.00

Environmental impacts of transporting products GRI G4-EN30

Impact Number of complaints Speed, impact on traffic, etc. 3 Dust 8 Roadway maintenance and soil erosion 51 Accidents involving wildlife 1 Noise 2

Environmental protection expenditures and investments GRI G4-EN31

Environmental protection Forestry Units expenditures (R$) Flora and fauna monitoring 243,063.75 Hydrological monitoring 889,847.38 Waste disposal 438,490.27 Preventing and fighting forest fires 34,186.69 Environmental restoration 3,765,158.00 Environmental protection Industrial expenditures (R$) Disposal of solid waste1 28,746,803.00 Management/Monitoring2 9,651,719.00 Other investments 131,537,161.00

1 Total annual value (R$) posted on the balance sheet for waste for each unit 2 Total annual value (R$) for balance sheets for environment (except waste), including personnel 30 30 GRI Content Index GENERAL STANDARD CONTENTS

Global Sustainable Chapter/Answer Compact Development Goals

Strategy and Analysis G4-1 Message from the CEO. Message from the CEO. G4-3 Name of the organization. About Suzano G4-4 Primary products, brands and services. About Suzano G4-5 Location of organization’s headquarters. About Suzano Number of countries where the organization G4-6 About Suzano 9 operates. G4-7 Nature of ownership and legal formorganization. About Suzano G4-8 Markets served. About Suzano Manufactured Capital/ G4-9 Scale of the organization. Operation Total number of employees, broken down by Human Capital/ G4-10 6 employment contract and gender. Employees 100% of employees are Percentage of employees covered by collective G4-11 covered by collective 8 bargaining agreements. bargaining G4-12 Organization’s supply chain. GRI/Human Capital 11 Significant changes regarding the organization’s Manufactured Capital/ G4-13 size, structure, shareholding or supply chain. Operation How the precautionary approach or principle is About Suzano /Risk G4-14 7 12 addressed by the organization. Management Externally developed charters, principles, or other GRI Annex/Corporate 10 | 12 | 13 | 15 | 16 G4-15 1 | 10 initiatives. Governanc | 17 Membership in national or international GRI/Corporate 10 | 12 | 13 | 15 | 16 G4-16 1 | 10 associations and organizations. Governance | 17 Entities included in the organization’s consolidated GRI Annex/Relationship G4-17 financial statements. with subsidiaries

G4-18 Process for defining report content. Transparency in reporting

32 32 GENERAL STANDARD CONTENTS

Global Sustainable Chapter/Answer Compact Development Goals

Strategy and Analysis Material aspects identified in the process for G4-19 Transparency in reporting Defining report content. G4-20 Material aspect boundary within the organization. Transparency in reporting G4-21 Material aspect boundary outside the organization. Transparency in reporting Restatements of information provided G4-22 Transparency in reporting In previous reports. Significant changes from previous reporting periods G4-23 Transparency in reporting in the Scope and Aspect boundaries. Stakeholder engagement Stakeholder groups engaged by G4-24 Transparency in reporting the organization. Basis for identification and selection of stakeholders G4-25 Transparency in reporting with whom to engage. Approach to stakeholder engagement and G4-26 Transparency in reporting frequency. Key topics and concerns that have been raised G4-27 Transparency in reporting through stakeholder engagement. Report profile G4-28 Reporting period. Transparency in reporting G4-29 Date of most recent report. Transparency in reporting G4-30 Reporting cycle. Transparency in reporting Contact point for questions regarding the report G4-31 Transparency in reporting or its contents. G4-32 “In accordance”option the organization has chosen. Transparency in reporting Transparency in reporting Policy and current G4-33 Transparency in reporting practice with regard to seeking external assurance. Governance About Suzano /Corporate G4-34 Governance structure of the organization. governance

33 33 GENERAL STANDARD CONTENTS

Global Sustainable Chapter/Answer Compact Development Goals

Governance 1 | 2 | 3 | 4 Organization’s values, principles, standards and About Suzano /Beliefs/ G4-56 | 5 | 6 | 7 9 | 15 | 16 | 17 rules of behavior. Values | 10 Internal and external mechanisms for seeking About Suzano /Corporate 1 | 2 | 6 G4-57 advice on ethical and lawful behavior. governance | 10 Internal and external mechanisms for reporting About Suzano /Corporate 1 | 2 | 6 G4-58 concerns about unethical or unlawful behavior. governance | 10

GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ECONOMIC Aspect: Economic performance G4-DMA Management. Financial Capital 1 | 2 | 3 | 4 | 6 | 7 | Direct economic value generated G4-EC1 GRI Annex/Finance Capital 8 | 9 | 11 | 13 | 15 and distributed. | 16 Part of the risks and opportunities are Financial implications of climate change Financial implications of G4-EC2 raised during the strategic assessment 7 | 8 13 climate change. process and later incorporated into our strategic planning. Coverage of obligations G4-EC3 GRI Annex/Human Capital 8 established in pension plan. 34 34 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ECONOMIC We do not have a history of receiving Financial assistance received from G4-EC4 financial assistance from the government the government. during the period covered by this report. Aspect: Market presence G4-DMA Management. Financial Capital Variations of ratios of standard The variation between our lowest wages entry level wage by gender G4-EC5 paid and the national minimum wage was 8 compared to local minimum 11.53% during the period. wage. Senior management hired from G4-EC6 GRI Annex/Corporate governance the local community Development and impact of 1 | 2 | 3 | 4 | 7 | 9 | G4-EC7 investments in infrastructure and GRI Annex/Financial Capital 11 | 13 services offered. Significant indirect economic 1 | 2 | 3 | 4 | 7 | 9 | G4-EC8 impacts, including the reach of Human Capital/Suppliers 11 | 13 the impacts. Proportion of spending directed G4-EC9 at local suppliers in major GRI Annex/Human Capital 10 | 11 | 12 operational units. CATEGORY: ENVIRONMENTAL Aspect: Energy G4-DMA Management. Natural Capital Energy consumption within the G4-EN3 GRI Annex/Natural Capital 7 | 8 | 12 | 13 organization. Energy consumption outside the G4-EN4 GRI Annex/Natural Capital 7 | 8 | 12 | 13 organization. G4-EN5 Energy intensity. GRI Annex/Natural Capital 7 | 8 | 12 | 13 G4-EN6 Reduction in energy consumption. GRI Annex/Natural Capital 7 | 8 | 12 | 13

35 35 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ENVIRONMENTAL Aspect: Water G4-DMA Management. Natural Capital Total water withdrawal by G4-EN8 GRI Annex/Natural Capital 13 | 14 | 15 source. Water sources significantly G4-EN9 GRI Annex/Natural Capital 13 | 14 | 15 affected by withdrawal of water. Percentage and total volume of G4-EN10 GRI Annex/Natural Capital 7 | 8 | 9 13 | 14 | 15 water recycled and reused. Aspect: Biodiversity G4-DMA Management. Natural Capital Natural Capital Operational sites owned, leased, managed in, or G4-EN11 adjacent to, protected areas and GRI Annex/Natural Capital 13 | 15 areas of high biodiversity value outside protected areas. ISignificant impacts from activities, products, and services on biodiversity in areas that are G4-EN12 GRI Annex/Natural Capital 7 | 8 | 9 13 | 15 protected and of high value to biodiversity, outside protected areas. Habitats protected or G4-EN13 GRI Annex/Natural Capital restored. G4-EN14 Species on conservation lists. GRI Annex/Natural Capital Aspect: Emissions G4-DMA Management. Natural Capital Direct greenhouse gas emissions G4-EN15 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 (Scope 1). Indirect Greenhouse gas emissions from purchased energy G4-EN16 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 (Scope 2).

36 36 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ENVIRONMENTAL Other indirect greenhouse gas G4-EN17 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 emissions (Scope 3). Greenhouse gas emissions G4-EN18 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 intensity. Reduction of greenhouse gas G4-EN19 Natural Capital 7 | 8 | 9 7 | 13 | 15 emissions. Emissions of ozone-depleting G4-EN20 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 substances. NOx, SOx, and other significant G4-EN21 GRI Annex/Natural Capital 7 | 8 | 9 7 | 13 | 15 air emissions. Aspect: Effluents and waste G4-DMA Management. Natural Capital Water discharge by quality and G4-EN22 GRI Annex/Natural Capital 7 | 8 | 9 6 | 13 | 14 | 15 destination. Weight of waste by type and G4-EN23 GRI Annex/Natural Capital 7 | 8 | 9 13 | 14 | 15 disposal method. Total number and volume of No significant spills G4-EN24 13 | 14 | 15 significant spills. were registered this year. G4-EN25 Weight of waste deemed GRI Annex/Natural Capital Identity, size, protected status and biodiversity value of water bodies G4-EN26 and related habitats significantly GRI Annex/Natural Capital 7 | 8 | 9 6 | 13 | 14 | 15 affected by the organization’s discharges of water and runoff. Aspect: Compliance G4-DMA Management. Natural Capital We received five environmental fines in Monetary value of significant fines 2016, none incurring significant values. and number of non-monetary We were not subjected to non-monetary G4-EN29 penalties resulting from non- sanctions (seizure, suspension, embargo on compliance with environmental project or activity, or restriction of rights) as a laws and regulations. result of non-compliance with environmental laws and regulations. 37 37 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ENVIRONMENTAL Aspect: Transport G4-DMA Management. Natural Capital Significant environmental impacts of transporting products and other goods and materials G4-EN30 GRI Annex/Natural Capital 7 | 8 | 9 11 | 13 for the organization’s operations, and transporting members of the workforce. Aspect: Overall G4-DMA Management. Natural Capital Environmental protection G4-EN31 GRI Annex/Natural Capital 7 | 8 | 9 11 | 13 investments and expenditures. Aspect: Environmental assessment of suppliers G4-DMA Management. Human Capital/Suppliers In addition to competitive sales conditions and quality of the products and services contracted, we require our suppliers to have engagement policies regarding health and operational Percentage of new suppliers safety, labor regulations, socio-environmental 7 | 11 | 13 | 14 | G4-EN32 selected based on environmental 7 | 8 | 9 practices, and human rights. These policies are 15 | criteria. part of the legal contracts signed between the parties and are accompanied by internal and external audits and monitoring processes for managing supervised workers and risks. Our suppliers are periodically evaluated Negative environmental impacts G4-EN33 by the supply area with regard to their 7 | 8 | 9 12 in the supply chain. environmental performance.

38 38 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: ENVIRONMENTAL Through Suzano Answers, during the year at the São Paulo Unit we received 41 complaints: four related to odors at the mill, and the rest to report fires. At the MA UNF there were 151 grievances: one reporting a traffic accident involving wildlife, 22 reporting theft of native wood, 1 product Number of grievances about 1 | 2 | 7 | 8 G4-EN34 spill, 11 reports of erosion, 62 reports of fire, 12 environmental impacts. | 10 52 reports of livestock in LR and APP areas, and 2 reports of predatory hunting/fishing. At the BA UNF there were 63 grievances: 40 reporting traffic accidents involving wildlife, 12 related to erosion, 4 reporting predatory hunting/fishing, and 6 reports of livestock in LR and APP areas. CATEGORY: SOCIAL/ LABOR PRACTICES AND DECENT WORK Aspect: Employment G4-DMA Management. Human Capital/Employees Total number and rates of new employee hires and employee G4-LA1 GRI Annex/Human Capital 6 5 | 8 | 10 turnover by age group, gender and region. G4-LA2 Benefits provided to employees. GRI Annex/Human Capital 3 3 | 5 | 8 | 10 Return to work after maternity/ G4-LA3 GRI Annex/Human Capital paternity leave. There is no deadline for the communication Notice periods regarding of important operational changes. G4-LA4 operational changes. However, notice to the internal audience is prioritized.

39 39 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: SOCIAL/ LABOR PRACTICES AND DECENT WORK Aspect: Occupational health and safety G4-DMA Management. Human Capital/Employees Percentage of the workforce G4-LA5 represented in formal health and 100% 3 | 8 safety committees. Types and rates of injuries, Work-related illnesses, lost days, G4-LA6 GRI Annex/Human Capital 3 | 8 absenteeism, and number of deaths by region and gender. Our activities are not related to a high incidence of specific diseases. However, Employees with high incidence or any work-related risk is attenuated by G4-LA7 high risk of work-related illness. engineering and administrative provisions, 3 | 8 use of personal protective equipment (PPE), and workplace gymnastics activities and ergonomics programs. Topics related to health and G4-LA8 safety covered by formal Human Capital/Employees 3 | 8 agreements with trade unions. Aspect: Training and education G4-DMA Management. Human Capital/Employees Employees Average Number of training per year per employee, G4-LA9 GRI Annex/Human Capital 12 by gender and functional category. Programs for skills management skills and continuous learning We do not have programs with G4-LA10 that contribute to continuing 8 | 12 this focus. employability during preparation for retirement.

40 40 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: SOCIAL/ LABOR PRACTICES AND DECENT WORK Percentage of employees who receive regular performance G4-LA11 reviews and career development, 100% 8 | 12 by gender and functional category. Aspect: Diversity and equal opportunities G4-DMA Management. Human Capital/Employees Ratio between men’s and The ratio between the average salary of men G4-LA13 women’s salary and women was 0.1% in 2016. Aspect: Evaluation of suppliers’ labor practices G4-DMA Management. Human Capital/Employees Percentage of new suppliers 100% of new suppliers in 2016 were selected G4-LA14 selected according to 4 | 5 | 6 8 | 12 according to labor practice criteria. environmental criteria. In 2016, 272 suppliers were evaluated on their labor practices, and in one case potential negative impacts were identified, such as: compromised employee performance and quality of deliverables and results, Significant impacts for the labor high turnover, loss of intellectual capital G4-LA15 8 | 12 practices in the supply chain. and operational knowledge, negative exposure, and costs related to labor lawsuits. Improvements were agreed to in order to minimize these impacts, and the contract with that trading partner was consequently maintained. Aspect: Mechanisms for grievances and complaints related to labor practices G4-DMA Management. Human Capital/Employees Number of grievances and complaints related to labor In 2016 34 labor-related grievances were G4-LA16 practices filed, addressed, and 8 | 12 reported through formal mechanisms. settled through formal grievance mechanisms. 41 41 GENERAL STANDARD CONTENTS Sustainable Global Chapter/Answer Development Compact Goals CATEGORY: HUMAN RIGHTS Aspect: Indigenous Rights G4-DMA Management. Social Capital Total number of cases in which the rights of indigenous and No cases of this type were registered in 1 | 2 | 3 | 4 | 10 | 11 G4-HR8 traditional peoples were violated, 2016. | 15 | 16 and measures taken in this regard. CATEGORY: SOCIETY Aspect: Local communities G4-DMA Management. Social Capital Percentage of operations with 100% of operations are accompanied by 1 | 2 | 3 | 4 | 10 | 11 G4-SO1 local community engagement community engagement programs. | 15 | 16 programs. Operations with significant real 1 | 2 | 3 | 4 | 10 | 11 G4-SO2 and potential negative impacts Anexo GRI/Capital Social | 15 | 16 on local communities. Aspect: Unfair competition G4-DMA Management. Social Capital Number of lawsuits related to No lawsuits motivated by Unfair G4-SO7 unfair competition, anti-trust, competition, antitrust, or monopoly were 9 and monopoly. registered. G4-DMA Management. Social Capital We received 11,800 calls related to 74 Number of grievances related impacts, 63 of which were resolved this to impacts in society filed, G4-SO11 year and 11 are still under analysis. Another 12 addressed, and resolved through seven impacts remaining from 2015 were formal grievance mechanisms. resolved.

42 42 Team ACKNOWLEDGEMENTS PHOTOGRAPHY ILLUSTRATION GRAPHIC DESIGN MATERIALITY MATRIX COPY &EDITING COORDINATION &WORKINGGROUP to thedevelopmentofthisreport. We thankalltheemployees andpartnerswhocontributed Suzano PulpandPaperImageBank Kiwi EdiçõeseArtesLtda Manolo PachecoandSergioHonorio Avesso Sustentabilidade KMZ Conteúdo Magnabosco, Valéria Parisottoand LayaneSerrano Braga, MariaAugustaBottinoG.Santos,André Alexandre DiCiero, Marcela Porto,Talita Sato,Estevão .