Irani Papel e Embalagem S A : Integrated Report 2023

INTEGRATED REPORT

2023 (ESG)

ELI DIAS	AMANDA FORTUNATO
Paper MG Unit	Santa Luzia MG Unit

CONTENT

MESSAGE FROM

THE PRESIDENT

OUR BUSINESS

MODEL

SOCIAL AND RELATIONSHIP CAPITAL

FINANCIAL

CAPITAL

HUMAN CAPITAL

INTELECTUAL

CAPITAL

MANUFACTURING CAPITAL

NATURAL CAPITAL

ABOUT

THE REPORT

ALESSANDRA HULLER Forestry SC Unit

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM THE PRESIDENT

MESSAGE FROM THE PRESIDENT

OUR BUSINESS

MODEL

SOCIAL AND RELATIONSHIP CAPITAL

FINANCIAL CAPITAL

HUMAN CAPITAL

INTELLECTUAL CAPITAL

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From raw material to finished product there is a connection to nature. As an industry that produces 100% recyclable products from renewable natural resources, we strive for quality in the packaging of the most important objects in people's everyday lives.

As one of Brazil's leading companies in the packaging paper and corrugated packaging segments, we recognize that it is financial performance that underpins our ESG practices. In 2023, Irani's Re-IPO operation on the B3 completed a three-year cycle, allowing the company to implement a robust investment plan - the Gaia Platform - and generate a 200.7% return to shareholders. We were able to significantly increase the number of investors, which reached 80,000, demonstrating confidence in the results presented to the market.

The year was also dedicated to the continuous improvement of our governance systems, as reflected in the appointment of the first woman to the Board of Directors and the structuring of the Fiscal Council. Furthermore, for the second year running, Irani was included in the Corporate Sustainability Index (ISE), the Dividend Index (IDIV) and the B3 GPTW Index (IGPTW), as well as the Teva Women in Leadership Index.

In the field of environmental protection, our sustainable paper and packaging units in Santa Catarina were certified for good waste management by the Zero Waste Brazil Institute. The industrial plants in Campina da Alegria, in the municipality of Vargem Bonita, achieved a 93.38% waste diversion rate from landfills and received an "A" grade for good waste management practices. I would also

Sérgio Ribas

President and CEO.

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM

THE PRESIDENT

OUR BUSINESS

MODEL

SOCIAL AND RELATIONSHIP CAPITAL

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4

like to highlight the improvement in our Forest CDP rating and the sustainability of our Water CDP and Climate Change CDP ratings, which demonstrate Irani's constant concern about the environmental impact of our activities.

Pesquisa Humanizadas, committed to ESG principles, recognized us as a company with a high level of quality in its relations with stakeholders, awarding us a "A" rating in 2023. We also invested more than R$ 4.5 million in social projects and community funds, taking advantage of tax incentives. Through Private Social Investment, we placed R$ 660,000

in partnerships for positive action in various sectors. At the same time, Irani's volunteer groups continued to be active in all business units, involving 25.79% of our employees in volunteer activities throughout the year.

On the topic of diversity, in 2023, Irani became a signatory to the UN Women's Women's Empowerment Principles (WEPs), reinforcing our commitment to gender equality. I would also like to highlight the launch of a talent pool

exclusively for people with disabilities, with the aim of making our workplaces truly inclusive.

Innovation is one of our values: it drives us to transform people's lives with sustainable attitudes and solutions. In 2023, we can highlight the special edition of Irani Labs focused on ESG, the Irani Labs B4B edition aimed at our customers, and significant investments in startups through Corporate Venture Capital (CVC) Irani Ventures.

Another very important initiative was the commissioning of the chemical recovery boiler at the Gaia I project, a measure aimed at increasing the company's production capacity and own power generation. In 2023, we increased water reuse in energy generation processes by 5.7% with the start-up of the recovery boiler.

Finally, we cannot forget to mention some of the recognitions we've received, such as the Bronze Trophy among the Best in Management nominated by the FNQ, the ANEFAC

Transparency Trophy for the third consecutive year, and finalists in Exame's Best of ESG 2023 award. We were also awarded the Innovative Workplaces 2023 seal by MIT Technology Review Brazil, highlighting our innovation in management, products/services, marketing and processes.

In the 2023 GPTW survey, we achieved 90% employee satisfaction and ranked 29th in the national ranking of the 150 Best Companies to Work For in Brazil. We are also ranked 2nd in Santa Catarina, 4th in Rio Grande do Sul, 12th in São Paulo and 11th in the GPTW Best Companies to Work For - 50+ ranking.

For more than eight decades, we have welcomed and nurtured life, always striving for financial equilibrium and guided by ethics and respect for people and nature. We want to continue to be the protagonists of a more prosperous and sustainable future.

Have a good read!

Sérgio Ribas,

President and CEO.

GRI 2-6

OUR BUSINESS MODEL

Irani

Business Profile

Our Strategic Intent

Striving for excellence in management

Main Capital Results

ADAIR FERNANDES Paper MG Unit

INTEGRATED REPORT 2023 (ESG)

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OUR BUSINESS

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CAMILE MASCARENHAS Paper SC Unit

IRANI

GRI 2-1

Irani manufactures 100% recyclable products from renewable natural resources. The process is the result of the connection we seek with nature at every stage of production - from the raw material to the final product. This means that we have a positive impact on the surrounding communities and the environment.

(2-2) We are one of Brazil's leading companies in the packaging paper and corrugated cardboard packaging segments. With integrated production, our own forests and self-generated energy, we manufacture packaging paper, corrugated cardboard sheets and boxes, pine, rosin and turpentine resins. But our business goes beyond manufacturing products: we constantly seek to sow relationships in order to reap prosperity.

For more than eight decades, we have been embracing and packaging life, carrying items that improve people's daily lives. The certainty that we are collectively shaping the future has always motivated us. Over the next few years, we want to continue planning, shaping and involving life. Of people, of the planet.

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM

THE PRESIDENT

OUR BUSINESS

MODEL

SOCIAL AND RELATIONSHIP CAPITAL

BUSINESS PROFILE

(2-1)

Irani Papel e Embalagem S.A.'s businesses are comprised of three segments, which operate independently, harmoniously, and in an integrated manner. We seek to optimize the use of planted pine forests by multipurposing them, recycling paper and verticalizing the business.

FINANCIAL CAPITAL

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SUSTAINABLE PACKAGING SEGMENT

SUSTAINABLE PACKAGING PAPER SEGMENT

RS FORESTRY AND SUSTAINABLE RESINS SEGMENT

manufactures light and heavy corrugated cardboard boxes and sheets, with two industrial units: Packaging SC, in Campina da Alegria, and Packaging SP, in Indaiatuba.

produces low and high-grammage Kraft paper and recycled paper for the foreign and domestic markets, most of which is transferred at the Sustainable Packaging Segment units. They operate a facility in Vargem Bonita, home to four paper machines (Paper SC Campina da Alegria), and another plant in Santa Luzia, home to one paper machine (Paper MG Santa Luzia).

sells wood, rosin and turpentine. The products are manufactured from forest assets owned by the company and purchased from third parties. The Resin RS Balneário Pinhal business unit, with an industrial plant in Balneário Pinhal (RS), uses natural resin from the pine forest to produce rosin and turpentine. Mainly destined for the foreign market, the substances are used in the manufacture of varnishes, paints, soaps, glues and adhesives, among other items.

Click on the icons to see each of Irani's units.

Back to the beginning

Check out details of the segments in which we operate

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM THE PRESIDENT

OUR BUSINESS MODEL

GRI (2-2)

SUBSIDIARIES

Irani Papel e Embalagem S.A. has the following wholly-owned subsidiaries

SOCIAL AND RELATIONSHIP CAPITAL

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Habitasul

Florestal

S.A.

Iraflor Comércio de Madeiras Ltda.

Irani Soluções para E-commerce Ltda.

Has a land base of 5,900 hectares, of which 3,900 are planted with pine in Rio Grande do Sul. It supplies resin to Irani Papel e Embalagem S.A.'s Resinas unit and wood to customers in the region.

Is responsible for managing and selling wood and forests for the parent company Irani Papel e Embalagem S.A. and for the market.

operates in packaging e-commerce where it seeks to provide sustainable packaging solutions to the market. During the year, its activities were closed, given the low demand at the moment

HGE - Geração de Energia Sustentável S.A.

Irani

Ventures

Ltda.

CLAYTON DA SILVA

Indaiatuba SP Unit

non-operational

A Corporate Venture Capital (CVC) vehicle for prospecting, selecting, investing in and accelerating startups that have high growth potential and work in synergy with our business model.

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM THE PRESIDENT

OUR BUSINESS MODEL

Seedling	Resin
Supplier
Nursery

Silviculture and Management

Forestry

SOCIAL AND RELATIONSHIP CAPITAL

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Energy Self-generation

Paper

Plastic recycling

Forest

Energy generationHarvesting (Biomassa)

Resin

Clients,	Clients
Log Sales

Cellulose

Clients

Clients

Paper Rolls	Corrugated
	Cardboard Sheets

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Wood Chip Supplier

Paper recycling

Packaging

ChipsClients

Boxes

INTEGRATED REPORT 2023 (ESG)

MESSAGE FROM

THE PRESIDENT

OUR BUSINESS

MODEL

SOCIAL AND RELATIONSHIP CAPITAL

FINANCIAL CAPITAL

HUMAN CAPITAL

INTELLECTUAL CAPITAL

MANUFACTURING

CAPITAL

NATURAL CAPITAL

ABOUT THE REPORT

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OUR STRATEGIC INTENT

(2-22)

In 2021, Irani revised its Strategic Intent based

on the guidelines of the Strategic Plan drawn up

for the 2021-2030 cycle, with the approval ofMISSION the Executive Board and the Board of Directors.

In the revision process, the following purpose was added to the Company's Strategic Intent:

VALUES

Transforming people's lives with sustainable attitudes and solutions

It is our purpose, that which guides our attitudes and drives us to be the Iranivwe want to be in 2030

Build valuable	VISION	To be the best and most
relationships to	admired company in the
generate prosperity.		businesses in which it operates.

Life, first of all	We respect all the lives that make up our
ecosystem. We seek balance and security in
	everything we do.
Sustainability	We work in balance, with proper governance,
environmental, economic and social responsibilities
Protagonism	We make it happen. We have courage and we believe
in autonomy and empowerment.
Diversity and	We respect and welcome each individual.
Inclusion	We value the power of differences.
Cordiality	We treat people with cordiality
and respect, essential for building valuable
	relationships.
Integrity	We understand integrity and ethics as
the foundation of everything we do.
Focus on the	We understand the challenges of our clients and
work together, with agility and excellence, for the
Client
sake of prosperity.
Innovation	We value the new. We understand that resilience,
agility and permission to make mistakes are
	essential for creating new solutions.