Suzano – Heng Cao – 2025

Summary

Heng Cao developed a strategic roadmap for Suzano to enhance its internal carbon pricing, aligning its practices with global leaders in the pulp and paper industry.

Goals

As global carbon markets expand and major corporations require suppliers to price carbon, Suzano sought to evaluate its internal carbon pricing strategy. Heng Cao was enlisted to assess if the company’s current approach was robust enough to future-proof investments and maintain a competitive advantage. Her goal was to benchmark Suzano against peers and recommend a strategic path forward.

Solutions

Heng conducted a comprehensive analysis of the global internal carbon pricing landscape and the pulp and paper sector. She benchmarked Suzano against competitors using the Transition Pathway Initiative framework to identify best practices. Her research revealed that industry leaders use higher carbon prices and more transparent models. To address this gap, she developed a detailed implementation roadmap. Her key recommendations included adopting a stronger internal carbon fee, formally integrating carbon cost into capital expenditure approvals, and enhancing climate-related disclosures to meet investor expectations. This strategic plan provides a clear, phased approach for Suzano to strengthen its decarbonization strategy.

Potential Impact

If fully implemented, Heng’s strategic framework would position Suzano as a leader in corporate climate action. The enhanced internal carbon pricing model is projected to accelerate decarbonization investments, potentially reducing emissions by tens of thousands of metric tons annually. More importantly, it would future-proof Suzano against rising regulatory costs, secure relationships with major sustainability-focused customers, and boost investor confidence by providing a transparent and credible plan for navigating the low-carbon transition.