Sustainable Finance
Green Financing
Klabin’s financial strategy incorporates a disciplined approach to indebtedness supported by sustainable financial mechanisms, aligning the Company’s capital strategy with its sustainability commitments and the progress it has made in this area.
For the issuance of Klabin’s green bonds, a range of eligibility criteria were met in accordance with the four pillars of the Green Bond Principles established by the International Capital Market Association (ICMA). Compliance with these criteria was verified by Sustainalytics, which provided the Second Party Opinion (SPO).
Proceeds from the issuances are allocated exclusively to the financing and/or refinancing, in whole or in part, of investments and/or expenditures related to eligible “Green Projects,” which are evaluated by Klabin’s sustainability governance bodies.
In September 2017, the Company issued its first sustainability-linked bond, valued at US$ 500 million and maturing in 2027. In 2019, Klabin became the first Brazilian company to issue a sustainability-linked bond with a 30-year maturity (the 2049 Notes). In January 2020, the Company reopened the 2049 Notes issuance (re-tap) to raise an additional US$ 200 million, bringing the total outstanding debt under this instrument to US$ 1.2 billion.
In 2023, Klabin fully substantiated the use of proceeds from its first green bond, a US$ 500 million issuance from 2017 with a ten-year maturity. By 2025, the Company had completed the verification of 100% of the proceeds from its green bond issuances, ending a cycle that began nearly a decade earlier.
Resource Allocation (US$ MM)
DETAIL HISTORY (2015 TO 2025)
| Total issued X verified | Total by Category - US$ Equivalent | ||
|---|---|---|---|
| Eligibility Criteria | 2027 (US$ MM) | 2049 (US$ MM) | Total (US$ MM) |
| Native Forest Restoration and Biodiversity Conservation | 14 | 5 | 19 |
| Renewable Energy | 34 | 21 | 55 |
| Waste Management | 8 | 6 | 14 |
| Clean Transportation | 24 | 1 | 25 |
| Energy Efficiency | 2 | 5 | 7 |
| Sustainable Forest Management | 361 | 631 | 992 |
| Sustainable Water Management | 0,2 | 9 | 9 |
| Eco-efficient and/or circular-economy-adapted products, technologies, and production processes | 48 | 13 | 61 |
| Climate Change Adaptation | 9 | 10 | 19 |
| TOTAL | 500 | 700 | 1,200 |
Klabin’s sustainable finance strategy has evolved beyond the issuance of use-of-proceeds bonds to include debt instruments with financial terms linked to the achievement of sustainability targets. These targets are based on the commitments set out in Klabin’s 2030 Agenda, which encompasses 23 goals across 23 material topics. The commitments span four key areas: building a renewable future, contributing to a sustainable economy, fostering prosperity for people, and advancing technology and information security.
| Financial instrument | Issued amount (US$) | Validity | Mechanism | Linked target | 2025 Result |
| Sustainability-Linked Bond | 500 million | 2030 | 12.5 bps penalty for failure to meet the 2025 targets | Water – Reduce by 3.68 m³ per ton of production | 2.60 m³/ton |
| 6.25 bps penalty for failure to meet the 2025 targets | Waste – Reuse/recycle at least 97.5% of solid waste. | 99,49% | |||
| 6.25 bps penalty for failure to meet the 2025 targets | Biodiversity – Promote the reintroduction or population reinforcement of at least two species native to the ecosystem. | 2 species | |||
| Sustainability-Linked Loan | 800 million | 2027 | 6.25 bps (3.125 bps per target) penalty for failure to meet the 2025 targets | Biodiversity – Reintroduce or promote population growth within the ecosystem for two extinct or threatened species by December 2025, and three species by December 2027. | 2 species |
| Revolving Credit Facility | 500 million | 2026 | 2.5bps discount on the interest rate if the target is met. | Waste – Reuse/recycle at least 97.5% of solid waste. | 99,49% |
| Accounts Receivable Financing | Not applicable | - | 5 bps interest rate discount upon meeting the target. | Waste – Reuse/recycle at least 97.5% of solid waste. | 99,49% |
Presented below are the annual results for each sustainability-linked financial instrument issued by the Company that remains outstanding.
Klabin priced US$ 500 million of senior unsecured notes linked to sustainability performance targets and maturing in 2030, with the achievement of the 2025 targets determining the subsequent interest rate adjustment.
The Key Performance Indicators (KPIs) are aligned with three of Klabin’s Sustainable Development Goals (KODS), which are directly linked to the Company’s strategy. The securities issued under this transaction are subject to coupon (interest) adjustments depending on whether the Company meets the 2025 targets established under the Sustainability Performance Trigger (SPTs).
The targets selected by Klabin for this transaction—covering water, waste, and biodiversity—reflect the Company’s commitment to strengthening the resilience and efficiency of its resource extraction, processing, reuse, and regeneration model. Klabin’s performance in these three areas directly influences its cost efficiency and its ability to maintain constructive relationships with society, while also supporting the resilience of the ecosystems in which it operates and their capacity to respond positively to productivity-enhancing initiatives across both its forestry and industrial operations.
The triggers established for 2025 were successfully met, fulfilling - and in some cases exceeding - the commitments made to the market at the time of the bond issuance. However, achieving these goals does not mark the end of the Company’s efforts. Continuous improvement remains essential as Klabin advances its growth strategy, strengthens operational resilience, and remains committed to creating sustainable value and delivering long-term profitability. Sustainability Performance Triggers (2025)
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In 2022, Klabin amended the US$800 million financing agreement for the Puma II Project, comprising A-Loans and Co-Loans with IDB Invest, IFC, and JICA, as well as B-Loans with commercial banks. The amendment extended the average maturity from 3.1 to 6.9 years while maintaining the original financing cost. In addition, the financing cost was made contingent upon meeting sustainability targets.
Biodiversity Goal: Reintroduce or support the population growth of two extinct or threatened species within their ecosystems by December 2025, increasing this to three species by December 2027.
2025 Result: The goal was achieved through two successful conservation initiatives: the reintroduction of Aburria jacutinga (black-fronted piping-guan) and the population reinforcement of Amazona vinacea (vinaceous-breasted amazon).
Klabin secured a US$ 500 million sustainability-linked revolving credit facility (RCF) with nine financial institutions, maturing in October 2026. The facility is linked to the waste indicator below, which forms part of the KODS 2030 framework:
Waste Target: a minimum of 97.5% of solid waste is reused or recycled.
2025 Result: 99.5% of solid waste was reused or recycled, exceeding the original target by 2.0%.
In 2023, Klabin launched a sustainability-linked receivables financing program, resulting in a 5-basis-point reduction in financing costs. Annual performance against the waste target, aligned with the target established for the RCF, will be incorporated into the receivables financing program.
Linked waste target (annual): a minimum of 97.5% of solid waste is reused or recycled.
2025 Result: 99.5% of solid waste was reused or recycled, exceeding the original target by 2.0%.
2030 Target: reduce specific industrial water consumption by 20%.
Sustainability Performance Target: Achieve water consumption intensity equal to or less than 3.68 m3/t. This is equivalent to an estimated 16.7% reduction from the 2018 baseline.
In 2025, Klabin surpassed, ahead of schedule, both the corporate target set for 2030 and the target established for the 2025 cycle, thereby avoiding a 12.5-basis-point increase in the SLB interest rate that would have applied had the target not been met.
The metric linked to leaders’ variable compensation also outperformed expectations, with 21.1 m³/t captured versus the projected 22.17 m³/t.
Water security and hydro-solidarity management
In addition to reducing specific water consumption, Klabin contributes to water security in the regions where it operates. In 2025, the Company maintained initiatives in 18 of the 21 municipalities prioritized for its operations, trained 360 public-sector professionals across Paraná, São Paulo, Santa Catarina, Rio Grande do Sul, and Bahia in environmental education through the Klabin Transforma Caiubi Program, and maintained “hydro-solidary” management practices across 96.6% of its forestry operations.
| Year | Water Consumption Intensity (m³/ton) | Water Consumption Reduction (%) | Total Production (ton) | Target (m³/ton) | Target (%) |
|---|---|---|---|---|---|
| 2016 | 5,14 | 3.596.836,01 | |||
| 2017 | 2,91 | - | 4.461.077,89 | ||
| 2018 | 4,42 | - | 4.235.263,86 | ||
| 2019 | 3,96 | 10,41% | 4.368.164,12 | ||
| 2020 | 3,63 | 17,87% | 4.468.946,22 | ||
| 2021 | 3,73 | 15,61% | 5.194.848,71 | ||
| 2022 | 3,63 | 17,87% | 5.265.456,42 | ||
| 2023 | 3,10 | 29,86% | 5.119.896,36 | 3,90 | 11,76% |
| 2024 | 3,17 | 28,28% | 5.441.767,76 | 3,79 | 14,25% |
| 2025 | 2,60 | 41,18% | 5.637.028,66 | 3,68 | 16,74% |
| 2026 | 3,64 | 17,65% | |||
| 2027 | 3,61 | 18,33% | |||
| 2028 | 3,57 | 19,23% | |||
| 2029 | 3,54 | 19,91% | |||
| 2030 | 3,50 | 20,81% |
2030 Target: Eliminate the disposal of industrial waste in landfills.
Sustainability Performance Target Trigger: achieve a solid waste reuse and recycling of at least 97.5%.
In 2025, Klabin exceeded its waste reuse and recycling targets, reflecting consistent and ongoing efforts, including the implementation of an Integrated Waste Management Plan across all industrial units and continuous collaboration between the Environmental Responsibility department and the Klabin Technology Center on research and development initiatives for innovative waste disposal solutions.
A highlight of the year was the Itajaí Unit achieving a 100% recovery rate, joining the Rio Verde Unit, which has maintained a 100% rate since February 2023. Through its Integrated Plan, the Company aims to increase the number of units reaching this level and advance toward its goal of zero industrial waste sent to landfills by 2030.
By expanding waste reuse, the Company reduces its reliance on industrial landfills while reintegrating waste into production processes, thereby strengthening industrial symbiosis and advancing circularity. By exceeding this target, the Company also avoided a 6.25-basis-point increase in the SLB interest rate that would have applied had the target not been met.
Alignment with 2030 SDG Targets
Progress on waste recovery indicators is part of Klabin’s broader circular economy strategy. In 2025, the Company achieved its KODS goal ahead of schedule by developing 10 circular economy benchmarking case studies in collaboration with customers, suppliers, and institutional partners.
Each case study represents a concrete opportunity to reduce the consumption of primary resources, extend material lifecycles, and identify new reuse pathways that can be scaled across other units.
| Year | Percentage of Waste Reused | Total Production | Target |
|---|---|---|---|
| 2016 | 97.50% | 3.596.836,01 | |
| 2017 | 94.30% | 4.461.077,89 | |
| 2018 | 96.90% | 4.235.263,86 | |
| 2019 | 96.70% | 4.368.164,12 | |
| 2020 | 98.30% | 4.468.946,22 | |
| 2021 | 98.20% | 5.194.848,71 | |
| 2022 | 98.50% | 5.265.456,42 | |
| 2023 | 99.30% | 5.119.896,36 | 96,70% |
| 2024 | 99.35% | 5.441.767,76 | 97,10% |
| 2025 | 99.49% | 5.637.028,66 | 97,50% |
| 2026 | 98,00% | ||
| 2027 | 98,50% | ||
| 2028 | 99,00% | ||
| 2029 | 99,50% | ||
| 2030 | 100,00% |
2030 Target: Reintroduce two species confirmed to be extinct and support population reinforcement for four additional threatened species.
Sustainability Performance Target Trigger: reintroduction or population reinforcement of at least two species native to the ecosystem.
In 2025, Klabin continued population reinforcement efforts for two species: the black-fronted piping-guan (Aburria jacutinga), which remains under active monitoring, with 15 previously reintroduced individuals tracked using a VHF system to assess their behavior and adaptation to the ecosystem; and the vinaceous-breasted amazon (Amazona vinacea), with three new individuals released by the Klabin Ecological Park (PEK) in Telêmaco Borba, Paraná, which are now also being monitored. Achieving this target prevented a 6.25-basis-point increase in the SLB interest rate.
Klabin also conducts systematic monitoring of High Conservation Value Areas (HCVAs) and Private Natural Heritage Reserves (RPPNs), where 866 fauna species and 2,041 flora species have been identified.
Another key milestone in 2025 was Klabin’s joining the Taskforce on Nature-related Financial Disclosures (TNFD). By publishing its Nature Transition Plan, aligned with the framework’s recommendations, Klabin joined the growing group of organizations committed to the TNFD, reinforcing transparency in the management of financial dependencies, impacts, risks, and opportunities related to biodiversity, land use, water use, and climate change.
For a forest-based business, biodiversity conservation directly supports productivity: healthy ecosystems provide essential services such as water regulation, soil fertility, and natural pest control.
Klabin Ecological Park (PEK)
In addition to releases linked to SLB and SLL targets, PEK operates a comprehensive wildlife rescue, rehabilitation, and welfare program that delivered significant results in 2025.
The Park maintains its AZAB certification, reinforcing its commitment to animal welfare through ongoing environmental enrichment, skilled husbandry, and specialized veterinary care.
These figures reinforce the Park’s role as a central pillar of Klabin’s biodiversity strategy, integrating science, conservation, and engagement with the regional ecosystem.
| Klabin Ecological Park — 2025 Results | |
| Rescues carried out | More than 460 |
| Animal releases | More than 170 |
| Assisted births | 15 (red howler monkeys, pacas, white-lipped peccaries, dwarf brocket deer, and black-fronted piping-guans) |
| Animal welfare activities | 7,124 |
Updated and verified on: 01/09/2026