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Last update: 2022-06-19 00:00:00

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Veracel pulp mill in Bahia Brazil, co-owned by Suzano-Fibria. Photo: Chris Lang via Flickr (BY NC ND 2.0)
Sector Pulp, Paper and Paperboard Mills
Headquarters
Ownership
listed on Brazil Stock Exchange

Suzano's main shareholders as of 31 Dec 2019 are: Suzano Holding (27%), Board members and management (18.7%), BNDESPAR (11%), Votorantim (5.5%). Suzano's complete shareholder structure can be accessed here.

Subsidiaries
Fibria – Brazil
Website

About Suzano

Suzano, based in São Paulo Brazil, is the world’s largest pulp producer, since it merged with Fibria in January 2019. It has a production capacity of 11 million tonnes of pulp per year. The company develops fibre plantations and it owns pulp mills, paper mills and energy plants, all located in Brazil. It also owns the biotechnology company Futura Gene, which apart from Brazil, has operations in Israel, the USA and China. As of early 2019, Suzano had a landbank of 2.3 million hectares, of which 1.3 million hectares contained plantations, and it owned 8,5 pulp mills.

Latest developments

Open Letter Denouncing Suzano Papel e Celulose’s glyphosate-resistant Genetically Engineered (GE) Eucalyptus

2022-06-19 00:00:00

Suzano merges with Fibria to become world's biggest pulp company

2018-12-01 00:00:00

Why this profile?

Suzano is the world's largest pulp producer. It has 1.3 million hectares of eucalyptus plantations which inevitably cause impacts such as the reduction of water availability, the increase in fire risks, the exhaustion of soils, the pollution of land and water by pesticides, the reduction of biodiversity and, indirectly, deforestation. The company is also involved in a history of land conflicts with traditional communities and it leads Brazil's research on transgenic eucalyptus trees. Financiers of Suzano should require the company to implement the highest social, environmental and governance standards.

Impacts

Social and human rights impacts

Landconflicts Suzano has a landbank of 2.3 million hectares, of which 1.3 million are tree plantations. The acquisition of this large landbank has led to several conflicts over land, mostly with indigenous, quilombola and (landless) rural workers communities. Some of the strongest land conflicts occur in the states of Espírito Santo and Bahia, where 3 of the company’s mills are located. Another region of strong conflict is in the border region between Maranhão and Piauí, where Suzano has so far failed to implement a mill, but the expansion of the eucalyptus continues.

Conflicts around the Aracruz mill date back to 1967, when it displaced thousands of indigenous, quilombola and fisheries communities to establish large eucalyptus plantations. Today, only a fraction of the quilombola families still remain in their traditional territories, struggling to survive surrounded by the eucalyptus. Deprived of means of income, they are heavily criminalized for using the eucalyptus trees to produce charcoal. Trees they say are planted on their lands. Apart from the land conflicts, the quilombolas (afro-descendant communities) also suffer from lack of water and intoxication by pesticides. According to FASE, in the North of Espírito Santo, over 130 streams have dried up since the eucalyptus plantations were introduced in the region. And the quilombolas say that the excessive use of pesticides has already killed several people, and has increased the cases of cancer and of blindness. There are also at least 6 eucalyptus farms that have been occupied by the MST, which claims that these were actually established on public lands.

After years of land conflicts and occupations around the Veracel mill, which is a joint venture between Stora Enso and Fibria, the company made an agreement with 6 social movements and government bodies which involved the sale of 16,500ha to the government for the purpose of agrarian reform, and the creation of sustainable settlements. On the other hand, the movements committed to no more land occupations. But after the accord was signed new conflicts have arisen, both between the movements that signed the agreement, and that accuse Veracel of applying divide and rule tactics, but also due to the appearance of new social movements, which by 2015 had occupied another 5,700ha of land claimed by Veracel.

In the Region of the Baixo Parnaíba, in Maranhão, Suzano and its subsidiary Paineiras are involved in several land conflicts. The company and related third parties are accused of evicting peasant families with customary rights from their land. One estimate holds that around 70% of Suzano’s plantations in the region result from landgrabs. There are also land conflicts in the region of Palmeirais, in Piauí, where third parties are accused of terrorizing local communities with the aim of obtaining their land to plant eucalyptus, to be sold to Suzano. In both cases, a run for land to plant eucalyptus was caused by Suzano’s announcement that it would build a pellets mill in the first and a pulp mill in the second region. However, the trees have since matured but the mills were not built.

Lack of Free, Prior and Informed Consent for the Imperatriz mill The Environmental Impact Assessment for the mill in Imperatriz failed to identify three indigenous territories downstream from the mill, located directly on the Tocantins river, as affected communities, and thus they were not included in a process of obtaining Free, Prior and Informed consent. They will be directly impacted as they live on the river into the mill will discharge its effluents.

Environmental and climate impacts

Fibre sourcing The establishment of large monocultures is very detrimental to biodiversity and the conservation of valuable biomes. Though Suzano’s involvement in direct deforestation for the establishment of plantations is limited, apart from the Baixo Parnaíba and Piauí regions, the plantations do indirectly contribute to land use change and deforestation in other areas for competitive uses. Suzano claims it has a vast area of preserved forests, far more than the legally required. However, the company does not provide georeferenced maps of the areas it owns, leases or sources from. And though around 70% of its landbank is FSC certified, FSC also does not disclose georeferenced maps of the plantations it certifies. This makes social control on compliance with both the law and the certification criteria impossible.

Genetically Engineered Trees In 2015 Suzano obtained permission from Brazil’s Biosafety Commission to commercialize a transgenic variety of eucalyptus trees. The variety H421 has been engineered to grow faster. Despite the authorization, Suzano claims it is not yet using the genetically engineered eucalyptus trees on a commercial scale. Doing so could mean it would lose its FSC certificate, as this is forbidden by the Certification Scheme’s Principles and Criteria. Suzano does not provide information about the location of its experimental plots of transgenic trees.

Impacts on water quality and availability Fast growing pulpwood plantations use vast amounts of water and often impact the availability of water for other uses, such as subsistence farming, agriculture or even drinking water. Though the industry stresses the fact that the Eucalyptus tree uses water efficiently and that its water use is similar to that of other plants (282 g water/g dry biomass according to one study), when compared to the use per biomass created, the problem with these trees is that they grow very fast, and thus when converted to water use per hectares, per year, it uses actually much more water than slow growing native vegetation. 

The state of Espírito Santo is rapidly heading toward desertification. In just a few decades, the region has gone from being one of the last refuges for the seriously threatened Atlantic Forest, to having 36 percent of its territory officially considered susceptible to desertification, according to Brazil’s Ministry of Environment.

Long term research in South Africa has shown that the fast growing and exotic Eucalyptus trees require, on average, 30 liters of water per day. When planted at a density of 400 trees/hectare, this means 12,000 l/ha/day. This may cause water levels in nearby streams and wells, as well as the groundwater levels, to drop. 

Apart from the direct use of water by the trees themselves, there is also the impact from water being taken from rivers for irrigation purposes, the reduced uptake of water by soils due to erosion and the destruction of rivers and streams when the land is being prepared for plantations. Complaints of water scarcity by communities that live nearby plantations are numerous, whether in the Baixo Parnaíba, in Espírito Santo or in Três Lagoas.

Pulp mills also use vast amounts of water. The new and relatively efficient 1,5 mty mill in Imperatriz uses 168,000m3/day. In 2017, Suzano used 143 mln m3 of water.

On top of the high water usage of the pulp industry, it also pollutes water ways, both due to the excessive use of agrochemicals and due to the discharge of polluted effluent in waterways. The effluent of Suzano’s pulp mills contains among other things carcinogenic dioxins, as it uses chlorine in the bleaching process.

Other impacts

Green Bonds In 2016, Suzano emitted USD 500 mln worth of green bonds on the international market and another R$ 1 bln worth on the national market. In addition, it emitted another USD 200 mln worth of Green Bonds in 2017. The proceeds of these bonds were mostly applied in plantation management. The assumption of these bonds is that the plantations have a positive impact as the work as CO2 sinks and thus contribute to mitigate climate change. However, most of these plantations will be transformed in short lived consumer products, which will release large part of their CO2 content back into the atmosphere after they have been disposed of. This undoes the initial positive effect of the plantations as carbon sinks. Apart from a possible contribution to mitigate climate change, plantations are not very “green”. Monoculture plantations have a very low biodiversity, occupy vast areas of land, use large amounts of water and create very few jobs.

Governance

Applicable norms and standards

Equator Principles
FSC Principles and Criteria
ILO Guidelines for labour inspection in forestry
ILO Safety and health in forestry work
Land Use, Land-Use Change, and Forestry (LULUCF) Guidance for GHG Project Accounting
Social & Environmental Responsibility Policy of Brazilian financial institutions (CMN Resolution No. 4327)
Soft Commodities Compact
WWF Guidelines for Investment in Operations that Impact Forests

Timeline

Open Letter Denouncing Suzano Papel e Celulose’s glyphosate-resistant Genetically Engineered (GE) Eucalyptus

2022-06-19 00:00:00

More than 50 organizations, networks and movements from Brazil and around the world denounce the release into the environment and the commercial use of a new transgenic eucalyptus from the Brazilian company Suzano Papel e Celulose!

The approval by the National Technical Commission on Biosafety (CTNBio) of the GE eucalyptus resistant to glyphosate, identified as 751K032, is a serious threat to life, to society and to nature. It was approved without any democratic consultation with Brazilian civil society in general and the neighboring communities of the areas where the plantations will be located in particular. The only concern was granting the license in the benefit of the commercial interests of Suzano Papel e Celulose, instead of the detrimental effect on life.

Organizations denounce the CTNBio decision from November 16, 2021 to approve the release into the environment, commercial use and any other related activities of the new GE eucalyptus developed by FuturaGene, owned by Suzano Papel e Celulose.

The letter ends by demanding the immediate revocation of the license granted for the use of Suzano GE eucalyptus 751KO32, as well as the action and intervention of the Federal Public Prosecution Service to revoke the decision made by the CTNBio, a decision made without a full public debate, especially in regions of Brazil that have been exposed for many years to eucalyptus monoculture.

Read the complete letter in English, Spanish and Portuguese.

Suzano merges with Fibria to become world's biggest pulp company

2018-12-01 00:00:00

In January 2018 rumours surfaced that APP’s Paper Excellence was interested in buying Fibria. A month later Fibria communicated that Suzano had also shown interest in merging with the company. In March, after a short bidding race, the controlling shareholders of Fibria accepted a USD11 billion bid by Suzano, in a deal to create the world’s biggest pulp producer. In November Brazil’s anti-trust authority, CADE, approved the deal.

Financiers

News

| |
Type:
Year:
blog
external news
our news

With plantation takeover, Brazil’s Indigenous Pataxó move to reclaim their land

2022-07-14 | Mongabay
blog
external news
our news

Indigenous Rights, Paper Giants and Armed Squads. Scenes from Land Conflicts in Brazil

2022-07-04 | Environmental Paper Network
blog
external news
our news

Suzano and COP26: The Glasgow climate debacle, part 3

2022-01-06 | REDD Monitor
blog
external news
our news

Brazil’s Suzano boasts its pulpwood plantations are green; critics disagree

2021-12-15 | Mongabay
blog
external news
our news

Reunião para despejo do Acampamento Fidel Castro é cancelada

Em Pinheiros, 130 famílias sem-terra lutam para não serem despejadas na pandemia de terras reivindicadas pela Suzano
2020-12-21 | Seculo Diario
blog
external news
our news

Contra lei, Suzano quer ampliar eucalipto em Conceição da Barra

Movimentos sociais denunciam projeto de expansão do monocultivo, que fere a Lei Orgânica do município
2020-09-25 | Seculo Diario
blog
external news
our news

Two sides of the same coin: How the pulp and paper industry is profiting from deforestation in the Amazon rainforest

Agriculture and cattle ranching are the notorious drivers of deforestation in the Brazilian Amazon. But the cattle and soy industry are only one side of the coin, with pulp & paper companies refusing to carry the blame because they do not directly burn the land – other industries do that for them. In Brazil, pulp & paper companies Suzano, Eldorado Brasil and Klabin own the largest pulp mills and should face their responsibilities for the destruction of the Amazon forest.
2020-09-22 | Environmental Paper Network
blog
external news
our news

Two sides of the same coin: How the pulp and paper industry is profiting from deforestation in the Amazon rainforest

2020-09-22 | Environmental Paper Network
blog
external news
our news

Em resposta a reportagem, Veracel diz que não planta em áreas reconhecidas como indígenas

2020-07-24 | Brazil | De Olho Nos Ruralistas
blog
external news
our news

Autorizações para desmatamento na Bahia incluem gigante da celulose e fazendeiro parricida

2020-07-22 | Brazil | De Olho Nos Ruralistas
blog
external news
our news

Suzano assume projeto de fábrica de celuose de Ribas do Rio Pardo

Suzano takes over on the pulp mill project of Ribas do Rio Pardo
2019-12-12 | Brazil | EPN, Perfil News
blog
external news
our news

Governo não incentiva desmatamento, mas não o coíbe como deveria, diz presidente da Suzano

2019-08-24 | Brazil | EPN, Folha de Sao Paulo
blog
external news
our news

Não podemos permitir o desmate da Amazônia, diz presidente da Suzano

2019-08-13 | Brazil | Valor
blog
external news
our news

Veja os salários de presidentes de grandes empresasa

Suzano president earned Brazil's third largest salary in 2018
2019-05-31 | Brazil
blog
external news
our news

Green bonds used to finance damaging industrial tree plantations

2019-05-15 | Mandy Haggith – Environmental Paper Network
blog
external news
our news

The hidden land conflicts of Suzano

the world’s largest pulp producer
2019-01-15 | Brazil | EPN, EPN
blog
external news
our news

The hidden land conflicts of Suzano – the world’s largest pulp producer

2019-01-15 | Brazil | EPN, EPN
blog
external news
our news

Cerrado towns terrorized to provide toilet paper for the world, say critics

2018-10-02 | Brazil | Mongabay
blog
external news
our news

Fazenda em posse da Fibria em Fundão é ocupada pelo MST

Acampamento Marielle Franco já conta com cem famílias e está aberto a receber mais sem-terras
2018-08-28 | Brazil | Seculo Diario
blog
external news
our news

Banks should demand high ESG criteria on Suzano-Fibria deal

2018-06-05 | Brazil | EPN, EPN
blog
external news
our news

Brazil creates pulp giant, expansion plans shelved

2018-03-16 | Brazil | Reuters
blog
external news
our news

Suzano agrees $259 million land deal, securing supply for Brazil mill

2016-10-26 | Reuters
blog
external news
our news

Brazil approves commercial use of the first GM eucalyptus tree

2015-04-30 | WRM
blog
external news
our news

MST protest before vote on approval of GE trees: MST invade empresa de eucalipto transgênico da Suzano e votação sobre liberação é adiada

2015-03-05 | Reuters
blog
external news
our news

Celulose deve seguir em alta no início deste ano

2015-01-05 | Jornal do Comercio
blog
external news
our news

Suzano will return to Piauí, says senator Wellington - Suzano voltará a operar no PI, garante Wellington

2014-04-29 | Portal o dia
blog
external news
our news

Suzano plant in Piauí is another dream that is over - Fábrica da Suzano no Piauí é mais um sonho que acabou

2013-03-13 | 180 graus
blog
external news
our news

Suzano confirms its leaving Piauí and criticizes actions by public ministry - Suzano confirma saída do Piauí e critica ação judicial da Procuradoria

2013-03-13 | cidade verde
blog
external news
our news

Court puts environmental license for Suzano on hold - Justiça suspende licença ambiental da Suzano Papel e Celulose

2012-06-26 | Cidade Verde

Documents

Type:
Year:
ngo documents
2022-12-14 00:00:00

Scorching The Earth

Pulp and paper expansion in Três Lagoas, Brazil
2022-12-14 00:00:00 | Environmental Paper Network
correspondence
2020-11-22 00:00:00

Letter from Forests & Finance to JPMorgan Chase on JPMorgan Chase' forest-risk financing

2020-11-22 00:00:00 | Forests & Finance
correspondence
2020-11-22 00:00:00

Letter from Forests & Finance to BNP Paribas on BNP Paribas' forest-risk financing

2020-11-22 00:00:00 | Forests & Finance
other documents
2020-09-25 00:00:00

Decree that withdraws the license for Suzano's expansion

2020-09-25 00:00:00
ngo documents
2019-05-01 00:00:00

Industrial Tree Plantations and Green Bonds

Investor briefing
2019-05-01 00:00:00 | EPN
company documents
2019-01-24 00:00:00

Green CRA report 2018

2019-01-24 00:00:00 | Suzano
annual reports
2018-06-30 00:00:00

Sustainability Report 2017

2018-06-30 00:00:00 | Suzano
other documents
2016-06-30 00:00:00

Autonomia Camponesa no Baixo Parnaíba Maranhense:

Conflicts, Fighting Processes and Territorial Guarantee
2016-06-30 00:00:00 | Saulo Barros da Costa, Universidade Federal da Grande Dourados
ngo documents
2013-10-31 00:00:00

Eucalyptus Plantations for Energy

A case study of Suzano's plantations for wood pellet exports in the Baixo Parnaíba region, Maranhão, Brazil
2013-10-31 00:00:00 | Biofuelwatch, CEPEDES, WRM
other documents
2013-02-05 00:00:00

Eucalyptus and Water Use in South Africa

International Journal of Forestry Research Volume 2013, Article ID 852540, 11 pages
2013-02-05 00:00:00 | Janine M. Albaugh
ngo documents
2015-10-05 00:00:00

Acuados - Especial Quilombolas

Prisões em série, perseguição e conflitos acossam os quilombolas no norte do Espírito Santo
2015-10-05 00:00:00 | A Pública

Media




Links

Suzano, by the WRM

http://wrm.org.uy/?s=Suzano

Territorios Livres do Baixo Parnaíba

Blog about conflicts in the rural areas of the Baixo Parnaíba region, in the northeast of the state of Maranhão.

https://territorioslivresdobaixoparnaiba.blogspot.com/

SPOTT - ESG policy transparency assessments

https://www.spott.org/timber-pulp/suzano-s-a/

Business & Human Rights Resource Centre

https://www.business-humanrights.org/en/suzano-papel-e-celulose

FSC Watch

https://fsc-watch.com/
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