Climate change

GHG removals (tCO₂eq per year)

GRI-305-1 GRI-305-3

GHG emissions (tCO₂eq) 

*Market-based approach

Check out Klabin’s GHG Inventory results, considering the Company’s total emissions (industrial and forestry) in its Public Emissions Registry.

GRI-305-1 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Gross and biogenic direct GHG emissions (Scope 1) (tonCO₂e) 

In 2024, Klabin recorded a 13.2% reduction in absolute Scope 1 and 2 emissions compared to the base year (2022) for the target approved by SBTi. The change in Scope 1 emissions compared to the previous year was associated with the stabilization of operations. 

The Company monitors its emission indicators on a monthly basis during critical analysis meetings, covering 100% of its industrial operations. These meetings focus on advancing the continuous improvement process and reducing specific greenhouse gas emissions (CO₂eq). In addition, opportunities to contribute to increasing the use of renewable fuels in operations are continuously evaluated. 

SASB-RT-PP-110a.1

Percentage of emissions covered by regulations

The Company’s plants in Angatuba, Piracicaba, Jundiaí, Franco da Rocha, Suzano and Paulínia (in the state of São Paulo) and all its plants in the state of Paraná are covered by the respective state environmental agency’s regulatory system, including the requirement to publish annual greenhouse gas emissions records.

GRI-305-2 SASB-RT-PP-110a.1

Energy indirect (Scope 2) GHG emissions (ton CO₂e)

In 2020, the Company decided to use the market-based methodology as the main method for measuring indirect (Scope 2) emissions.

GRI-305-3

Other indirect (Scope 3) GHG emissions (ton CO₂e)

In 2024, there was a 17.4% reduction in absolute Scope 3 emissions compared to the base year (2022) for the target approved by SBTi. The main contributions to this result were related to the expansion of internal forestry operations, yielding significant gains in productivity and efficiency, together with advances in the Programa de Engajamento da Cadeia de Valor (Value Chain Engagement Program). This initiative focuses on strengthening the commitments of suppliers and clients and encouraging their ongoing efforts in the joint decarbonization journey, promoting improvements in data quality and emissions management throughout the chain.

GRI-305-1 GRI-305-2 GRI-305-3 GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Methodology used to calculate indicators 

The methodology used to calculate the indicators, including emission factors and global warming potential (GWP), is that of the Brazilian GHG Protocol Program. 

• The operational control approach was adopted for consolidating emissions, in accordance with GHG Protocol guidelines. 

• GHGs included in the calculation of direct (Scope 1) and indirect (Scopes 2 and 3) emissions: CO₂, N₂O, CH4 and HCFCs. 

• Chosen base year: 2003, the first year in which the Company quantified its CO₂ emissions. 

SASB-RR-PP-110a.2

GHG emission reduction targets

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Comments on overall performance in 2024

Since 2023, Klabin has quantified its direct emissions (Scope 1 + Scope 2) per ton of products produced, using the methodology of the Brazilian GHG Protocol Program. In this period, specific direct emissions have been reduced by 70%, reaching 137.5 kg CO₂eq per ton of products in 2024. 

As detailed in the previous sections, the Company cut its absolute Scope 1 and 2 emissions by 13.2% and its absolute Scope 3 emissions by 17.4% compared to the base year (2022). With regard to Scope 3 emissions, the main contributions to the reduction are related to the expansion of the Company’s own forestry operations, in addition to advances in the Programa de Engajamento da Cadeia de Valor (Value Chain Engagement Program).

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Reductions in combined activities

The rationale is linked to savings resulting from the start of production at the Piracicaba II Plant (as part of the Figueira Project), a modern and more energy-efficient facility.

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Emissions from products classified as low carbon or that enable third parties to avoid GHG emissions 

For low-carbon products, the rationale is the total CO₂ removals from planted forests. Emissions avoided for third parties are based on the volume of energy sold from renewable sources compared to the same amount from fossil fuels.

SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Organization's internal carbon price

GHG removals (tCO₂eq per year)

GRI-305-1 GRI-305-3

GHG emissions (tCO₂eq) 

*Market-based approach

Check out Klabin’s GHG Inventory results, considering the Company’s total emissions (industrial and forestry) in its Public Emissions Registry.

GRI-305-1 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Gross and biogenic direct GHG emissions (Scope 1) (tonCO₂e) 

In 2024, Klabin recorded a 13.2% reduction in absolute Scope 1 and 2 emissions compared to the base year (2022) for the target approved by SBTi. The change in Scope 1 emissions compared to the previous year was associated with the stabilization of operations. 

The Company monitors its emission indicators on a monthly basis during critical analysis meetings, covering 100% of its industrial operations. These meetings focus on advancing the continuous improvement process and reducing specific greenhouse gas emissions (CO₂eq). In addition, opportunities to contribute to increasing the use of renewable fuels in operations are continuously evaluated. 

SASB-RT-PP-110a.1

Percentage of emissions covered by regulations

The Company’s plants in Angatuba, Piracicaba, Jundiaí, Franco da Rocha, Suzano and Paulínia (in the state of São Paulo) and all its plants in the state of Paraná are covered by the respective state environmental agency’s regulatory system, including the requirement to publish annual greenhouse gas emissions records.

GRI-305-2 SASB-RT-PP-110a.1

Energy indirect (Scope 2) GHG emissions (ton CO₂e)

In 2020, the Company decided to use the market-based methodology as the main method for measuring indirect (Scope 2) emissions.

GRI-305-3

Other indirect (Scope 3) GHG emissions (ton CO₂e)

In 2024, there was a 17.4% reduction in absolute Scope 3 emissions compared to the base year (2022) for the target approved by SBTi. The main contributions to this result were related to the expansion of internal forestry operations, yielding significant gains in productivity and efficiency, together with advances in the Programa de Engajamento da Cadeia de Valor (Value Chain Engagement Program). This initiative focuses on strengthening the commitments of suppliers and clients and encouraging their ongoing efforts in the joint decarbonization journey, promoting improvements in data quality and emissions management throughout the chain.

GRI-305-1 GRI-305-2 GRI-305-3 GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Methodology used to calculate indicators 

The methodology used to calculate the indicators, including emission factors and global warming potential (GWP), is that of the Brazilian GHG Protocol Program. 

• The operational control approach was adopted for consolidating emissions, in accordance with GHG Protocol guidelines. 

• GHGs included in the calculation of direct (Scope 1) and indirect (Scopes 2 and 3) emissions: CO₂, N₂O, CH4 and HCFCs. 

• Chosen base year: 2003, the first year in which the Company quantified its CO₂ emissions. 

SASB-RR-PP-110a.2

GHG emission reduction targets

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Comments on overall performance in 2024

Since 2023, Klabin has quantified its direct emissions (Scope 1 + Scope 2) per ton of products produced, using the methodology of the Brazilian GHG Protocol Program. In this period, specific direct emissions have been reduced by 70%, reaching 137.5 kg CO₂eq per ton of products in 2024. 

As detailed in the previous sections, the Company cut its absolute Scope 1 and 2 emissions by 13.2% and its absolute Scope 3 emissions by 17.4% compared to the base year (2022). With regard to Scope 3 emissions, the main contributions to the reduction are related to the expansion of the Company’s own forestry operations, in addition to advances in the Programa de Engajamento da Cadeia de Valor (Value Chain Engagement Program).

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Reductions in combined activities

The rationale is linked to savings resulting from the start of production at the Piracicaba II Plant (as part of the Figueira Project), a modern and more energy-efficient facility.

GRI-305-5 SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Emissions from products classified as low carbon or that enable third parties to avoid GHG emissions 

For low-carbon products, the rationale is the total CO₂ removals from planted forests. Emissions avoided for third parties are based on the volume of energy sold from renewable sources compared to the same amount from fossil fuels.

SASB-RR-PP-110a.1 SASB-RT-PP-110a.1

Organization's internal carbon price

To address this matter, refer to the Climate Transition Plan.

Climate change management is part of Klabin's strategy, integrated into the agenda of risks and opportunities for the Company's business and its stakeholders, based on the Guidelines for Climate Change Management – Mitigation and Adaptation. Among the main guiding principles is Business Ambition for 1.5ºC, a global campaign by the UN, and the commitment to reduce emissions considering science and neutralization by 2050.

The Company has a history of investments and adoption of low-carbon technologies, which allowed for a reduction of more than 70% in the intensity of GHG emissions (scopes 1 and 2) between 2003 and 2023. It is emphasized that among Klabin's Sustainable Development Goals (KODS) is the commitment to develop science-based carbon reduction targets. Approved by the Science Based Target initiative (SBTi), the targets are challenging and aligned with the global challenge of limiting the average temperature increase to well below 2ºC.

In January 2024, Klabin submitted new targets to SBTi, including updating the short-term target, which considered scope 3 emissions and the more ambitious scenario aligned with the 1.5ºC temperature increase limit, and a long-term target (net-zero) considering scopes 1, 2, and 3 emissions by 2050.

In 2021, the Company launched the Impacto NetZero campaign, with the Brazil Network of the UN Global Compact. The goal is to engage the private sector and civil society in the urgency to develop concrete actions to combat climate change, minimize GHG emissions, and neutralize the balance, completely zeroing it by 2050.

In the realm of climate adaptation or risks/opportunities, the Company adheres to the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD). In 2020, Klabin became a TCFD Supporter, implementing actions in governance, strategy, risk management, and goals/metrics. Supporting TCFD and enhancing the adoption of its recommendations will enhance transparency and communication with Klabin's stakeholders, particularly those in the capital markets.

Since 2020, Klabin has begun considering Scope 2 emissions using a methodology based on purchasing choices.

GRI-3-3 SASB-RR-PP-110a.2 SASB-RT-CP-110a.2

Mechanisms and actions adopted

Klabin's MACC curve allows the medium and long term evaluation of technologies to reduce carbon emissions. It supports the prioritization of climate mitigation and resilience measures organized around a single, understandable metric: the economic cost of reducing emissions. Through this, it is possible to evaluate/compare the (i) cost of regulation vs. (ii) the cost of investing in low-carbon technology. From this analysis, it is understood that, for Klabin, it is more economically attractive to invest in low-carbon technologies than to pay a carbon tax or buy a permit to emit. 

In 2019, the Company adopted internal carbon pricing by establishing a shadow price to prepare for and reduce the possible impacts of carbon regulation in Brazil. In addition to analyzing the financial impact of a possible cap-and-trade or carbon taxation system in Brazil, the Company is evaluating a number of low-carbon technologies in the medium and long term. 

Klabin also adopts measures to identify and mitigate climate risks, as well as to exploit opportunities. The Forestry Research, Development and Innovation area, for example, invests in biotechnology to develop and test pine and eucalyptus clones that are more resistant to climate change. 

On the opportunity side, the Ortigueira Unit provides the Brazilian electricity system with a considerable surplus of renewable energy. The Company also monetizes this clean energy by generating and trading renewable energy certificates – iRECs. 

GRI-3-3 SASB-RR-PP-110a.1 SASB-RT-CP-110a.1

Risks related to the targets

The risk of inconsistent management of the climate agenda can impact Klabin's image and business, potentially leading to loss of investments. Therefore, the company conducts a risk management assessment, continuously updated in meetings with members of the Sustainability Committee, the Risks and Internal Controls Committee, and the Board of Directors, entities responsible for adjustments and contributions on the subject.

Reputation is one of the elements of Klabin's risk management assessment, which constantly monitors its image in various media outlets. The market holds an excellent perception of Klabin's socio-environmental and climate image, directly linked to maintaining certifications such as FSC and ISO 14.001. This has resulted in Klabin being included in the CDP Triple A List for three consecutive years, making it the first Latin American company to join this prestigious group.

SASB-RR-FM-450a.1

Risks and Opportunities for Climate-Related Forest Management and Wood Production

Climate risks and opportunities are integrated into the Company's management and decision-making processes, particularly those related to forest management, given their significance to the business.

Klabin's forest research area – the Department of Efficiency and Ecophysiology – monitors potential future climate scenarios, develops data modeling related to climate parameters, and assesses their impact on planted forests. The Department recommends necessary measures in case of adverse effects.

Among the identified potential risks is that of forest fires, which could have significant financial impacts on the Company. To reduce the likelihood of these occurrences, Klabin invests in a series of climate mitigation and adaptation measures.

One outcome of this effort is the installation of monitoring towers throughout forest areas, enabling the identification of fire outbreaks, along with the provision of a dedicated response infrastructure including trucks, cars, and even helicopters.

Learn more details about climate risks identified in the TCFD topic.

Materiality