Suppliers’ Socio-environmental Performance 

Klabin's value chain

Klabin is a vertically integrated company whose products serve a wide range of economic sectors, particularly the food, personal care, and construction industries, and it offers a comprehensive portfolio of solutions across multiple stages of the value chain.

Reflecting the diversity of its operations, Klabin works with a wide range of supplier profiles. These include suppliers such as providers of wood, forestry chemicals, and high-tech forestry and industrial equipment, as well as suppliers that support multiple business units by leveraging scale and corporate synergies, including providers of logistics services, IT solutions, and employee benefits, among others. For management purposes, Klabin’s suppliers are grouped into the following categories: Water, Energy, and Fuels; Packaging; Machinery and Equipment; Non-Production Auxiliary Materials; Raw Materials; Industrial Chemicals and Gases; Administrative and Support Services; Production Support Services; and Logistics and Technology Services.

 

Supplier profile

Supplier Profile	2022	2023	2024	2025
Total number of Tier-1 suppliers¹	7.528	7.858	9.743	8.031
Total number of key Tier-1 suppliers²	88	393	450	431
Total number of key suppliers that are not in Tier-1.	0	0	0	0
Total number of key suppliers (Tier-1 and non-Tier-1)	88	393	450	431
Percentage of total expenses with key Tier-1 suppliers³	6%	66%	30%	11%

Note 1: Key suppliers are those that have been assessed through the Company’s Supply Chain Corporate Social Responsibility program.

Note 2: Klabin defines tier-1 suppliers as those with which it has a direct supply relationship.

Note 3: Internal transfer transactions between Klabin companies are excluded from the total spend

Klabin is undertaking a three-year strategic transformation of its supply chain aimed at optimizing processes and strengthening supply chain management to better meet market needs. As part of this initiative, the Company is revising its supplier criticality criteria to enhance its supplier registration, qualification, and evaluation processes. These improvements will enable more efficient supplier management by focusing on detailed supplier assessments and reviewing suppliers’ ABC classification and business criticality. This will help prioritize suppliers with the greatest impact on the business.

Number of active suppliers by region and total expenses incurred

Between 2024 and 2025, Klabin streamlined its supplier base by reducing the number of active suppliers across all regions, with the most significant reductions occurring in the Northeast, North, and Southeast. This reflects the Company’s strategy to aggregate purchasing, prioritize strategic suppliers, and capture economies of scale. At the same time, the increase in total procurement spend indicates a greater concentration of purchasing among a smaller group of suppliers, enhancing bargaining power and supporting more efficient and strategic supply chain management.

Region	2022	2023	2024	2025	Change % (24/25)
North	262	289	235	190	-19,15%
Northeast	896	978	741	593	-19,97%
Midwest	180	194	164	153	-6,71%
Southeast	2.094	2.193	4.787	3.946	-17,57%
South	4.096	4.204	3.816	3.149	-17,48%
Total	7.528	7.858	9.743	8.031	-17,57%
Total amount spent with suppliers (Millions of R$)	7,28	9,00	12,20	13,60	+11,48%

Note 1: The analysis includes suppliers in 2025, excluding suppliers of imported products and intercompany transactions.

 

 

Percentage of purchases from local suppliers

State	2022	2023	2024	2025
Amazonas	60%	64%	69%	65%
Bahia	58%	54%	53%	52%
Ceará	50%	54%	45%	51%
Goiás	61%	52%	36%	53%
Minas Gerais	56%	53%	37%	55%
Paraná	63%	67%	62%	73%
Pernambuco	46%	49%	43%	46%
Santa Catarina	56%	58%	44%	66%
São Paulo	86%	78%	81%	77%
Rio Grande do Sul	59%	46%	45%	51%
Average	63,1%	66,0%	51,5%	58,7%

Note 1: Klabin defines local suppliers as those located in the same state as the Company's operations (head office or branch).

Note 2: The percentage of purchases from local suppliers is based on total spending with suppliers whose procurement processes are managed through the Purchasing function, excluding imported products and intercompany transactions.

In addition to the ESG criteria applied during supplier selection and due diligence, Klabin conducts periodic assessments to evaluate suppliers’ sustainability maturity. These assessments include reviews by internal teams and audits conducted by independent specialized firms, helping to ensure that business partners comply with the Company’s policies, standards, and requirements. 

 

Types of supplier assessments  

Type of Assessment	Description	Indicators	Corrective or improvement action plans
Supplier document review	The supplier qualification process includes a review of supplier documentation and acceptance of Klabin's General Terms and Conditions of Supply, which incorporate environmental, social, and governance (ESG) requirements. Documentation is reviewed regularly, and the process may result in corrective action plans to address non-conformities identified among previously approved suppliers.	Compliance with labor laws and regulations Deviations that require follow-up Suppliers under suspension	In the event of non-compliance, suppliers must implement a corrective action plan as promptly as possible. Failure to do so may result in measures such as the suspension of payments or the supplier's disqualification.
Sustainability performance and maturity assessment	Since 2019, Klabin has assessed the sustainability performance and maturity of its key suppliers using the EcoVadis platform. Key suppliers are identified primarily based on procurement spend, while also considering purchase frequency and the supplier’s commercial relationship with the Company. The assessment results are used to classify suppliers and define the frequency of subsequent re-assessments.	Percentage of key suppliers assessed Distribution of scores among assessed suppliers Percentage of suppliers with below-expected performance	Suppliers with below-expected performance are required to submit a corrective action plan addressing the key gaps identified in the assessment. Suppliers that receive very low scores (below 25 points) or decline to participate in the assessment process are subject to an on-site audit, followed by the implementation of a corrective action plan and monitoring of the agreed actions.
On-site supplier assessments (second-party assessment)	For timber suppliers, actions are carried out through the Chain of Custody (CoC) process. A robust system of internal audits helps ensure compliance through on-site inspections and document reviews conducted in accordance with FSC principles. In addition, technical guidance is provided to encourage certification of participating properties.	Percentage of timber suppliers covered by audits More information under Forest Certification	Audits result in corrective action plans that may include improvement measures or corrective actions
On-site supplier assessments (third-party evaluation).	The Forest Stewardship Council (FSC®) certification program has had a significant positive impact on the timber production chain. Timber sourced from third-party suppliers is subject to independent assessment and is FSC-certified, demonstrating compliance with internationally recognized standards for responsible forest management. Learn more at: https://fsc.org/en	Percentage of timber purchased that is certified by a third party	Certification requires compliance with the FSC Principles and continuous progress toward meeting its requirements. As part of the certification process, audits may result in action plans.
Supplier assessments conducted using the standards and methodologies of a multi-sector initiative	The Forest Stewardship Council (FSC®) is a global, non-profit organization that promotes responsible forest management through a multi-stakeholder governance model. Its governance structure is based on an equal balance of voting rights among three chambers—environmental, social, and economic—ensuring that decisions reflect the interests of a diverse range of stakeholders, including environmental and social organizations, Indigenous Peoples, the forest products industry, and the academic community. The FSC certification system establishes internationally recognized standards for responsible forest management. Depending on the scope of certification, it may also include Chain of Custody (CoC) verification, which ensures that certified materials are identified and kept separate from non-certified materials throughout the supply chain.	percentage of certified units percentage of certified timber suppliers percentage of purchased timber that is certified More information on Forest Certification	Certification processes may result in action plans that must be implemented, while continuous improvement is essential to maintaining certification year after year.

 

GRI-308-1 GRI-414-1

Percentage of new suppliers screened using social and environmental criteria 

	2022	2023	2024	2025
Number of new suppliers¹	73	61	32	7
Number of new suppliers selected based on social criteria.	73	61	32	7
Percentage of suppliers selected based on social criteria.	100%	100%	100%	100%

Note 1: The number of suppliers refers to key suppliers that participated in the Company's Supply Chain Corporate Social Responsibility Program for the first time in 2025. 

Each year, new suppliers deemed significant or critical to the Company are added to the process, while previously assessed suppliers undergo periodic reassessments. In this way, Klabin strengthens the continuous monitoring of its supply chain and encourages the evolution of its business partners' socio-environmental practices.  

Since 2019, Klabin has continuously expanded the scope of its supplier socio-environmental responsibility assessment program. The program reviews documentary evidence covering areas such as environmental management, ethics, human rights, and sustainable procurement to evaluate supplier performance and determine appropriate re-assessment cycles.  

Each year, new suppliers identified as significant or critical are incorporated into the program, while previously assessed suppliers are re-evaluated at defined intervals. This approach reinforces continuous oversight of the supply chain and supports the ongoing enhancement of suppliers’ sustainability practices. 

Assessment of key suppliers 

Supplier assessment  2022 2023 2024 2025 Percentage of key suppliers assessed   91% 88% 88% 91% Total number of suppliers assessed through document reviews and on-site assessment¹  88 393 424 431 Total number of suppliers assessed with substantial actual or potential negative impacts² 31 156 174 183 Percentage of suppliers with substantial actual or potential negative impacts³  35% 40% 41% 42% Number of suppliers with substantial actual or potential negative impacts whose contracts were terminated³  0 0 0 0

Nota 1: Total number of suppliers assessed. 

Note 2: The total number of suppliers identified as having negative impacts includes those that scored below 35 points in the EcoVadis assessment. 

Note 3: Suppliers with a score lower than 35 on Ecovadis/total number of suppliers assessed. 

Note 4: Klabin has set a target of assessing 100% of its suppliers for their impacts by 2030. 

Note 5: This table presents cumulative results over the years. 

 

GRI-308-2 GRI-414-2

Assessment of socio-environmental impacts in the supply chain.

	2022	2023	2024	2025
Number of suppliers assessed for environmental and social impacts¹	88	91	82	56
Number of suppliers identified as having actual or potential negative environmental and social impacts²	31	23	18	9
Percentage of suppliers identified as having actual or potential negative environmental and social impacts that agreed to implement corrective action plans following the assessment ³	35%	25%	22%	16%
Total number of suppliers supported in implementing corrective action plans⁴	31	12	6	1
Percentage of suppliers identified as having substantial actual or potential negative impacts that were supported in implementing corrective action plans⁵.	35%	13%	7%	2%

Note 1: The data represents the total number of suppliers assessed and re-assessed in each assessment cycle.

Note 2: Total number of suppliers with a score lower than 35 points.

Note 3: Although improvement actions were not agreed with 100% of the suppliers that scored below 35 points in the EcoVadis assessment, all of these suppliers had a corrective action plan registered in the EcoVadis platform.

Note 4: The data represents the number of suppliers re-evaluated and monitored year after year. Support for the implementation of corrective action plans is provided in the year following the assessment or re-assessment. As a result, suppliers identified in a given year as presenting potential social or environmental impacts are only reflected in the following year as having received support for implementing corrective action plans. The figures are also influenced by changes in Klabin’s supplier base, depending on each supplier’s commercial relationship with the Company.

Note 5: Number of suppliers supported in the implementation of corrective action plans /number of suppliers assessed for environmental and social impacts.

Note 6: Klabin aims to support 100% of suppliers scoring below 35 points in the implementation of corrective action plans. Accordingly, corrective action plans were requested from 100% of these suppliers.

 

Supplier development

Action	Description	Indicators
Supplier communication and training on the ESG supplier program, processes, and requirements.	EcoVadis: Through the EcoVadis Academy, Klabin leverages a range of courses and learning resources on ESG practices to train its internal teams and provide suppliers with guidance and capacity-building on the Company's ESG practices.	Key supplier scoring Participation in training sessions
	MATAS LEGAIS (LEGAL FORESTS), PLANTE COM A KLABIN (PLANT WITH KLABIN) AND TIMBER SUPPLIER CERTIFICATION: promote technical training in production practices, management, and awareness regarding more efficient and equitable production in line with Klabin's ESG practices and international principles, such as the FSC principles. More information at Forest Certification and Legal Forests.	Properties served Hectares restored Donated seedlings Certified timber suppliers and producers
	CLIMATE COMMITMENT LETTER: Suppliers receive online training through the Klabin Knowledge Trail, an educational program focused on climate change and emissions management.	Participation in training sessions Suppliers with significant GHG emissions Improved climate change reporting through Ecovadis
Supplier access to ESG benchmarks compared to peers.	Across all of the programs described above, participants are assessed and classified according to their performance. The results of these assessments also determine the corrective action plans to be developed.	Scoring group based on the Ecovadis methodology FSC certified timber suppliers Percentage of controlled timber purchased
Provide suppliers with remote or on-site support in implementing corrective and improvement actions.	KLABIN KNOWLEDGE TRAIL: Suppliers participate remotely in a learning program focused on climate change and emissions management	Enhanced climate change maturity through EcoVadis
	MATAS LEGAIS (LEGAL FORESTS), PLANTE COM A KLABIN (PLANT WITH KLABIN) AND TIMBER SUPPLIER CERTIFICATION: These programs provide local technical training on sustainable production practices, forest management, and responsible business practices, while raising awareness of more efficient and equitable production aligned with Klabin's ESG practices and international principles, including the FSC Principles. More information can be found at Forest Certification and Legal Forests.	Certified timber suppliers and producers Certified timber producers
In-depth technical support programs to develop ESG capacity and performance in suppliers.	MATAS LEGAIS (LEGAL FORESTS), PLANTE COM A KLABIN (PLANT WITH KLABIN) AND TIMBER SUPPLIER CERTIFICATION: Programs targeting rural properties within Klabin's area of influence and its suppliers, designed to improve production practices and raise awareness of more efficient and equitable production in line with Klabin's ESG practices and international principles, including the FSC Principles. More information at Forest Certification and Legal Forests.	Certified timber suppliers and producers Certified timber producers
	KLABIN KNOWLEDGE TRAIL: Suppliers participate remotely in a learning program focused on climate change and emissions management.	Climate maturity through EcoVadis

 

Suppliers participating in training programs

Training programs	2022	2023	2024	2025
Total number of suppliers participating in training programs¹	88	115	88	74
Percentage of key suppliers implementing a training program²	69%	29%	98%	76%

Note 1: The data represents the total number of suppliers invited to participate in the 2025 EcoVadis

Note 2: The data represents the total number of suppliers that completed the 2025 EcoVadis.

Supplier training is designed to help participants complete the questionnaire in accordance with the EcoVadis methodology. In addition, assessed suppliers have access to the EcoVadis Academy, which offers learning resources on topics such as sustainability, human rights, ethics, and sustainable procurement.

Klabin’s management of supplier socio-environmental performance is supported by a set of corporate instruments—including the Company’s sustainability policies, the Socio-environmental Responsibility Guidelines for Suppliers, the Supplier Code of Conduct, and the General Conditions of Contracting—which establish clear requirements regarding human rights, labor practices, environmental management, ethics, and integrity, applicable from the selection process through to the ongoing monitoring of partners. 

In addition, Klabin uses a category risk matrix to classify and prioritize suppliers, a tool that is currently being reviewed and continuously enhanced. The matrix considers factors such as supplier criticality, risk exposure, and business impact, supporting the ongoing refinement of supplier assessment, monitoring, and development processes, with a particular focus on strengthening the management of key suppliers. 

Supplier management is led by Klabin’s Procurement teams, which are responsible for developing new domestic and international sources of supply, managing relationships with qualified suppliers, promoting the participation of small and medium-sized enterprises (SMEs) within the supplier base, and fostering synergies across production, sales, and logistics, among other activities. In this context, Klabin recognizes that sustainability maturity varies across its supply chain, particularly among smaller suppliers, reinforcing the importance of ongoing engagement, capacity-building, and supplier development initiatives. 

With respect to timber sourcing, Klabin continues to strengthen the management and performance of its forestry supply chain through ongoing improvements implemented as part of its Forest Certification KODS. Key initiatives include the FSC certification process, programs that support producers in meeting ESG requirements (such as Klabin Transforma – Matas Legais), monitoring and traceability activities, and incentive programs, including Plante com a Klabin. Together, these initiatives enhance ESG maturity across the forestry supply chain and reinforce the Company’s commitment to responsible and sustainable forest management. 

This topic is addressed within the framework of the Klabin Sustainable Development Goals (KODS), which structure the Company’s strategic priorities. In this context, the Sustainable Supply Chain Management Program establishes mechanisms for evaluating supplier performance, maturity progression, and continuous improvement. Performance and commitments related to this topic are continuously monitored, with oversight by the Executive Board and the Sustainability Committee, ensuring governance and integration with corporate strategy. 

Finally, initiatives to modernize procurement and supplier management processes enhance transparency, standardization, and operational efficiency, strengthening Klabin’s ability to manage environmental and social risks across its supply chain while promoting its long-term sustainable development.