Sustainability is a highly relevant topic for different areas, including finance. Therefore, investments in companies and activities committed to respecting and valuing ESG aspects are growing. According to a survey by the consulting firm PWC, 79% of investors believe that ESG issues are important factors in their investment decision-making.

In line with our sustainability strategy, we have issued debt linked to ESG targets in areas such as water use and diversity, equity and inclusion. This means that while we are able to raise funds at more attractive rates, we can also be financially penalized through an increase in these rates if our ESG targets are not met. This way, the company leverages its goals in a sustainable manner, while society benefits from ambitious targets that support the environment and social development.

Sustainability-Linked Bonds

Sustainability-Linked Bonds (SLBs) are internationally traded fixed-income financial instruments where the issuer, which can be a company, commits to achieving preestablished environmental, social or governance targets.

We were the second company in the world to issue an SLB, in 2020, and the first company in Latin America to issue a diversity-linked bond, in 2021.

Sustainability-Linked Loans

Sustainability-Linked Loans (SLLs) are financing lines granted directly by public or private banks to companies. As with SLBs, the debtor commits to meeting ESG targets.

In 2021, Suzano signed a sustainability-linked export prepayment contract. In 2022, the company signed a financing agreement with the International Finance Corporation (IFC), a member of the World Bank Group, linked not only to sustainability targets, but also to an action plan to comply with IFC’s rigorous ESG Performance Standards.

Green Bonds

Like SLBs, Green Bonds are internationally traded fixed-income financial instruments. The difference is that Green Bond issuers, instead of being tied to sustainability targets, are committed to investing the resources in specific projects that have environmental benefits.

Before the merger of Suzano and Fibria, the two companies issued Green Bonds in 2016 and 2017, respectively.