Supplier social and environmental performance

Strengthened and resilient value chain in its most vulnerable parts, composed of suppliers who make use of responsible social and environmental practices to ensure good practices throughout the productive life cycle.

KODS 2030

100% of critical suppliers included in the Sustainable Supply Chain Management Program

 

 

2021 2022 2023  2024 2030 Goal
56% 70% 83.1% 89.8% 100%
 
 

In 2024, the Supply Chain Social and Environmental Responsibility Program covered 6.7% of Klabin’s critical suppliers. The Company increases the number of partners covered each year, progressing toward its goal of reaching 100%. Since its launch in 2019, the initiative has already covered 89.80% of its target audience.  

The Sustainable Supply Chain Management Program is offered to Klabin’s critical suppliers, classified by total spend, representativeness in the business units (Forestry, Pulp and Paper, and Packaging) and recurrence more than six times in different months throughout the year. The initiative trains partners to implement and follow good social and environmental practices and to properly manage the potential risks of their activities, in line with Klabin’s General Terms and Conditions of Supply and the Social and Environmental Guidelines for Suppliers.

For more information on the program, method and results, please refer to Supplier social and environmental performance management

Profile of Klabin’s supply chain

In 2024, 97% of the raw materials used by Klabin in its production processes came from renewable sources (reforestation wood, pine chips, eucalyptus chips and pulp from the company’s own operations or third parties), while 3% came from non-renewable sources (chemicals used in production processes). 

Klabin’s main suppliers are divided into ten groups: 

1. Water, power and fuel; 

2. Packaging;  

3. Machines and equipment; 

4. Non-productive auxiliary materials; 

5. Raw materials;  

6. Industrial chemicals and gases;  

7. Administrative and support services; 

8. Auxiliary production services; 

9. Logistics services;  

10. Technology. 

 

Profile of suppliers 

Profile of suppliers 

2024 

2023 

2022 

Total number of Tier-1 suppliers* 

9,743 

7,858 

7,528 

Total number of significant Tier-1 suppliers** 

450 

393 

88 

Percentage of total spend on significant Tier-1 suppliers*** 

30.00% 

66.00% 

6.00% 

Total number of significant suppliers that are not in Tier-1 

Total number of significant suppliers (Tier-1 and not Tier-1) 

450 

393 

88 

 

*Klabin recognizes Tier-1 suppliers as those with whom it has a direct supply relationship. 

**Significant suppliers are those evaluated by the Corporate Social Responsibility in the Supply Chain Program. 

***Internal transfer orders between Klabin companies are excluded from total spend. 

As part of its strategic transformation journey, in 2025 Klabin revisited its analysis of the percentage spend on suppliers, adopting a broader approach that compares the Company’s total spend with that directed to Tier-1 suppliers. This review will provide a more complete understanding of the impact of these partners on total costs, offering opportunities for resource optimization and efficiency improvements. 

Number of active suppliers by region and total spend

 

  Unit 2024 2023 2022 2021 Var. % (23/24)
North No. 235  289 262 267 -18.70% 
Northeast No. 741  978 896 832 -24.20% 
Midwest No. 164 194 180 184 -15.46%
Southeast No. 4,787  2,193 2,094 2,043 +118.30%
South No. 3,816 4,204 4,096 3,993 -9.23%
Total No. 9,743 7,858 7,528 7,319 +24.00%
Total amount spent on suppliers million BRL  12,20 9,001 7,261 6,061 +35.55% 

 

GRI-204-1

Percentage of purchases from local suppliers

State 2024 2023 2022 2021
Amazonas 69.00% 64.00% 59.74% 60.00%
Bahia 53.00% 54.00% 58.4% 36.23%
Ceará 45.00% 54.00% 50.02% 30.49%
Goiás 36.00% 52.00% 60.7% 41.52%
Minas Gerais 37.00% 53.00% 56.09% 37.80%
Paraná 62.00% 67.00% 62.62% 61.30%
Pernambuco 43.00% 49.00% 45.86% 35.18%
Santa Catarina 44.00% 58.00% 56.29% 41.08%
São Paulo 81.00% 78.00% 85.59% 82.27%
Rio Grande do Sul 45.00% 46.00% 58.46% 43.19%
Average 51.50% 66.00% 63.10% 46.9%

 

Local suppliers are those based in the same state as Klabin’s operations (head office and branches). The percentage of local purchases considers total spend on the processes negotiated by the Procurement Area (except in Argentina and intracompany orders).

GRI-308-1GRI-414-1

Percentage of new suppliers selected based on social and environmental criteria*

  2024 2023 2022 2021
Number of new suppliers 32 61 73 103
Number of new suppliers selected based on social criteria 32 61 73 103
Percentage of suppliers selected based on social criteria 100% 100% 100% 100%

 

*The number of suppliers classified as critical that participated for the first time in the Corporate Social Responsibility in the Supply Chain Program. 

This program evaluates suppliers according to criteria related to the environment, ethics, human rights and sustainable purchasing.

Types of supplier evaluation  

Type of Evaluation  Description  Indicators  Corrective or Improvement Action Plans 
Supplier document assessments  The supplier approval process includes recurring document analysis and adherence to Klabin’s General Terms and Conditions of Supply, which cover ESG aspects. The identification of nonconformities may lead to action plans for the regularization of already approved suppliers.     
  • Compliance with labor laws and regulations  

  • Deviations that require follow-up  

  • Suspended suppliers 

In the event of noncompliance, the supplier must implement a corrective action plan. Otherwise, Klabin may take measures such as suspending payments or blocking the supplier. 
On-site supplier assessments (second-party audits)     For wood suppliers, Klabin implements measures through the chain of custody (CoC) process. A rigorous system of internal audits contributes to compliance with FSC® principles, based on field and document checks. The Company also offers technical guidance, encouraging certification of the properties involved.    
  • % of wood suppliers covered by audits 

  • Find out more at: 

Audits generate action plans that may involve improvements or corrections. 
On-site supplier assessments (third-party audits) Purchased wood that is evaluated by a third party is certified by the FSC®, following the principles of sustainable management and ensuring a significant positive impact on the production chain. Find out more at: https://fsc.org/en     
  • % of purchased wood that is third-party certified  
For certification, it is necessary to demonstrate compliance and progress in relation to the FSC® principles. Action plans related to the audit process are generated.
Supplier assessments using standards and methodologies from a multisectoral initiative The FSC® is a global nonprofit organization that takes a multistakeholder approach to sustainable forest management. Its structure incorporates an equitable division of votes between three distinct chambers: environmental, social and economic. This promotes a balance of interests among different stakeholders in decision making, including environmental and social organizations, indigenous communities, the forestry industry and academics. The methodology used by the FSC® establishes international standards that must be followed for the certification of operations, which may include chain of custody verification, allowing certified products to be distinguished from non-certified products throughout the supply chain.     
  • % of units that are certified  

  • % of wood suppliers that are certified 

  • % of purchased wood that is certified 

  • For more information, see the Forest Certification section.

Certification processes generate action plans that must be implemented, and continuous improvement allows certification to be maintained year after year. 

 

Evaluation of significant suppliers 

 

Supplier evaluation 

2024 

2023 

2022 

Percentage of significant suppliers evaluated 

88.00% 

88.00% 

91.00% 

Total number of suppliers evaluated via document review / on-site assessment* 

450 

393 

88 

Total number of suppliers assessed with actual/potential substantial negative impacts** 

105 

131 

31 

Percentage of suppliers with actual/potential substantial negative impacts*** 

23.00% 

33.00% 

35.00% 

Number of suppliers with actual/potential substantial negative impacts whose contracts were terminated*** 

Target: Percentage of significant suppliers evaluated 

100% 

100% 

90.00% 

 

*Total number of suppliers evaluated vs. total number of suppliers invited. 

**Total number of suppliers with a score below 35 on the EcoVadis platform. 

***Suppliers with a score below 35 vs. total number of suppliers evaluated. 

Suppliers that obtain a score equal to or lower than 35 points in the social and environmental report filled out through Klabin’s assessment platform are classified as Medium Risk or High Risk. Medium Risk suppliers demonstrate low maturity regarding sustainability, with specific or generalized difficulties in managing ESG issues, which could pose a reputational risk to Klabin. High Risk suppliers show no evidence of management of social and environmental issues and do not demonstrate synergies with Klabin’s processes. They therefore pose a high reputational risk and could potentially harm the integrity of the supply chain.

 

Assessment of social and environmental impacts in the supply chain

 

 

2024 

2023 

2022 

2021 

Number of suppliers assessed for social impacts* 

88 

91 

88 

94 

Number of suppliers identified as causing actual and potential negative social impacts** 

20 

23 

31 

24 

Percentage of suppliers identified as causing negative social impacts – actual and potential – with which improvements were agreed as a result of the assessment carried out*** 

23.00% 

25.00% 

35.00% 

26.00% 

 

*Total number of suppliers evaluated.  

**Total number of suppliers with a score between 0 and 34 points. 

***100% of suppliers with scores between 0 and 34 points had an action plan registered on the EcoVadis platform.

 

Suppliers with corrective action plans

Support for corrective action plan 

2024 

2023 

2022 

Total number of suppliers assisted in implementing corrective action plans* 

88 

115 

31 

Percentage of suppliers assessed to have actual/potential substantial negative impacts supported in the implementation of corrective action plans** 

20.00% 

29.00% 

35.00% 

Target: Significant suppliers implementing corrective action plans*** 

100% 

100% 

100% 

 

*Total number of suppliers monitored in the 2024 cycle of the Corporate Social Responsibility Program (6th wave). This includes suppliers from the 1st wave (advanced engagement), 2nd wave (moderate engagement) and 4th wave (medium risk). 

**Number of suppliers monitored in the 2024 cycle vs. total number of suppliers assessed.  

***100% of suppliers with scores below 35 points were requested to submit an action plan. 

 

Development of suppliers 

 

Initiative 

Description  

Indicators 

Supplier information/training on the supplier ESG program, process and requirements  

ECOVADIS: The EcoVadis Academy offers various courses and materials about the ESG practices adopted by Klabin, used for training and guidance of internal teams and suppliers. 

  • Scores of critical suppliers  

  • Participation in training 

KLABIN FOREST COMPLIANCE PROGRAM, PLANT WITH KLABIN PROGRAM AND WOOD SUPPLIER CERTIFICATION: These initiatives provide technical training on production and management practices, as well as raising awareness of efficient and fair production in line with Klabin’s ESG practices and international standards, such as the FSC® principles. For more information, see the Forest Certification and Klabin Forest Compliance Program sections. 

  • Properties involved 

  • Hectares restored  

  • Tree seedlings donated  

  • Wood suppliers and producers certified  

CLIMATE COMMITMENT LETTER: Suppliers receive online training through the Klabin Knowledge Pathway, an educational program on climate change and greenhouse gas emissions management. 

  • Participation in training 

  • Key suppliers in terms of GHG emissions 

  • Improved climate change reporting via EcoVadis platform 

Suppliers’ access to ESG benchmarks compared to peers  

In all the programs mentioned above, the participants are ranked and grouped according to their performance, which is also reflected in the action plans to be developed.  

  • EcoVadis methodology score groups  

  • FSC® certified wood suppliers  

  • % of controlled wood purchased  

Support for suppliers (remote or on-site) in implementing corrective/improvement actions  

KLABIN KNOWLEDGE PATHWAY: Suppliers participate in an online educational program focused on climate change practices and GHG emissions management. 

  • Increase in maturity on climate change topic via EcoVadis platform 

KLABIN FOREST COMPLIANCE PROGRAM, PLANT WITH KLABIN PROGRAM AND WOOD SUPPLIER CERTIFICATION: These initiatives provide local technical training on production and management practices, as well as raising awareness of efficient and fair production in line with Klabin’s ESG practices and international standards, such as the FSC® principles. For more information, see the Forest Certification and Klabin Forest Compliance Program sections.  

  • Wood suppliers and producers certified  

  • Wood producers certified 

In-depth technical support programs to develop suppliers’ ESG capacity and performance 

KLABIN FOREST COMPLIANCE PROGRAM, PLANT WITH KLABIN PROGRAM AND WOOD SUPPLIER CERTIFICATION: Programs aimed at rural properties in Klabin’s area of influence and/or wood suppliers, designed to improve practices and raise awareness about efficient and fair production in line with Klabin’s ESG practices and international standards, such as the FSC® principles. For more information, see the Forest Certification and Klabin Forest Compliance Program sections. 

  

  • Wood suppliers and producers certified  

  • Wood producers certified 

KLABIN KNOWLEDGE PATHWAY: Suppliers participate in an online educational program about climate change and emissions management.  

  • Maturity regarding climate change topic via EcoVadis platform 

 

Suppliers in training programs 

 

Training programs 

2024 

2023 

2022 

Total number of suppliers in training programs* 

88 

115 

88 

Percentage of significant suppliers implementing training programs** 

98.00% 

29.00% 

69.00% 

Target: Percentage of significant suppliers implementing training programs 

100% 

100% 

100% 

 

*Total number of suppliers invited to participate in the evaluation cycle. 

**Total number of suppliers that filled out the EcoVadis questionnaire, based on suppliers participating in the Corporate Social Responsibility Program (on the EcoVadis platform). 

Training for our suppliers prepares them to fill out the questionnaire following the EcoVadis methodology. Those that participate in the assessment obtain access to the EcoVadis Academy, which provides content related to sustainability, human rights, ethics and sustainable purchasing. Suppliers that receive a low score are required to participate in a training program. 

The Procurement Area is responsible for Klabin’s relations with its suppliers. Its activities are geared toward developing new domestic and international partners, coordinating the purchasing process, encouraging small and medium-sized companies to participate in the Company’s supplier base and creating synergies with the Production, Sales and Logistics areas. For three years, the area has been undergoing a strategic transformation focused on process optimization and efficient supply chain management, in line with best practices. 

Among other initiatives, the Company is reviewing its criticality criteria to improve the supplier registration, approval and evaluation process, making management more effective and strategic, and prioritizing suppliers with the greatest impact on the business. 

Supplier management is segmented between industrial and forestry activities, each with its own specific characteristics and different Klabin Sustainable Development Goals. In addition to a goal applicable to critical suppliers, 100% of which are covered by the Sustainable Supply Chain Management Program (see the 2030 Agenda section), there is a specific target for each segment. 

For wood, supply management and performance are covered by the Forest Certification Klabin Sustainable Development Goal, which emphasizes the FSC® certification process, support for the development of producers to meet ESG parameters (via the Klabin Forest Compliance Program), monitoring and traceability activities, and the Plante com a Klabin business promotion initiative. Find out more in the Forest Certification section. 

For industrial activities, the Klabin Sustainable Development Goal is linked to the development of 10 circular economy benchmarking cases in partnership with stakeholders. For more information, see the Resource Use and Circularity section. 

Klabin’s performance in terms of supplier management, performance indicators and commitments to the respective Klabin Sustainable Development Goals is monitored continuously by the Executive Board and the Sustainability Committee – the latter composed of members of the Company’s Board of Directors. 

Updated and verified on: 02/09/2025