JOBS OUTCOMES STORY THE CHALLENGE GROWING LIVELIHOODS Brazil has committed to a 43 percent reduction in GHG emissions between 2005 IN BRAZIL and 2030 - mainly through increasing the share of sustainable biofuels and clean en- IFC’s Sustainably-managed Forestry ergy in the energy mix, and through forest Partnership with Suzano S.A. restoration and reafforestation. Sustain- able investments in the forestry sector help support the country’s path to GHG AT A GLANCE emission reduction and economic growth. REGION/COUNTRY Latin America and the Caribbean | However, it is critical that these invest- Brazil ments are well planned and operations carefully managed to mitigate potential PROGRAM/PROJECT IFC Suzano S.A. social and environmental risks. FUNDING $950 million sustainability-linked loan A loan from IFC to Suzano S.A. supports climate change mitigation through invest- ments in sustainably managed planta- RESULTS tions that will sequester carbon, and by increasing the use of renewable energy 10,000 construction jobs, 2,700 direct jobs sources. Specifically, the proceeds of the and 40,900 indirect jobs in the value chain loan have been used for the construction 2 million hours of training of a greenfield pulp mill and development of eucalyptus plantations in Ribas do Rio Export of 180 megawatts of clean energy to the Pardo, in the state of Mato Grosso do Sul, power grid concluded in 2024. WBG APPROACH An IFC investment of $250 million, supplemented by an additional $700 million from partner financial institutions, has supported Suzano S.A., the world’s largest producer of hardwood pulp, in the construction and operation of an elemental chlorine free (ECF) pulp mill - the “Cerrado Project”. Project components included the mill itself, with a capacity up to 2.55 million tons per year, and associated infrastructure – water intake and effluent pipelines, road and rail access, and worker accommodation. The mill’s basic raw material, euca- lyptus wood, is sourced from certified responsible forest management and controlled wood areas, on land incorporated into Suzano’s owned and leased properties and third-party within an average radius of 65 km from the mill. The pulp mill, where operations commenced in the second half of 2024, is the first fossil-fuel free pulp mill in Brazil and in Latin America, representing a new milestone in eco-efficiency and sustainability for the industry in the region. It incorpo- rates design to allow for the optimal use of biomass byproducts, leading to a highly efficient production process. The project includes generation of renewable electricity, with the capacity to sell approximately 180 MW of surplus energy to Brazil’s power grid. To maximize electricity production, the recovery boiler and biomass boiler are high efficiency and designed for higher steam pressure and temperature than any existing units in the region. The project has made a substantial contribution to rural employment and livelihoods in Brazil, with the creation of around 45,000 jobs in the construction of the plant and associated nursery, and in eucalyptus planting activities. Since the start of operations, the new mill - located in a city with a population of 25,000 and a high prevalence of poverty at 28 percent - has employed approximately 3,000 employees. Suzano S.A. is committed to training and hiring people from local communities, including indigenous groups, and to provid- ing jobs for women. The IFC investment comes with incentives to increase the share of women in leadership positions from a baseline of 22.5 percent in 2021 to 30 percent in 2025. LESSONS LEARNED The project has highlighted the importance of collaboration – even between competitors – in building sustainable value chains. The region where the project is located is experiencing a risk of labor shortage, thanks to rapid development of the manufacturing industry in the last 15 years. The Company and its competitors have faced challenges in attracting, hiring and retaining workers, especially for field activities that involve manual labor. The Company has been investing in improv- ing local infrastructure and offering technical training. In December 2024, it started a training course in partnership with eucalyptus producer MS Florestal and the national training institution SENAI, in the belief that that working collaboratively is essential in developing workers and strengthening the forestry chain. NEXT STEPS IFC and Suzano have formalized a partnership to implement ecological corridors in the Brazilian Cerrado, with pilot projects in Mato Grosso do Sul to connect 35,000 hectares of native Cerrado vegetation fragments. Additionally, the partnership aims to promote the socio-biodiversity chain in the Cerrado, to engage landowners, encourage them to register or rectify their details in the Rural Environmental Registry, and to conduct training and outline technical and financial incentive strat- egies for large-scale restoration partnerships. Before joining Suzano, I worked in an ice cream shop. I was motivated to enroll in the Technical Course in Mechan- ics and, when I fell in love with the area, I started working at Suzano. The company brought me a new perspec- tive on Ribas and transformed my life, both professionally and personally. Today, I continue to seek to grow and improve my knowledge. — Sabrina Prado Benevenuto, Maintenance Mechanic