Suzano CEO Beto Abreu is guiding the world’s largest pulp producer through a period of transformation. As the Brazilian company expands its global footprint and navigates rapid technological and societal change, Abreu is focused on creating long-term value while advancing Suzano’s sustainability ambitions.
In this episode of Brilliant Moves: Coffee with CEOs, Tracy Francis, McKinsey senior partner and managing partner for Latin America, sits down with Abreu to discuss the values that have shaped Suzano, how to attract the right talent, and why leaders must look beyond their own fence.
The following is an edited transcript of their conversation.
Building for the next generation
Tracy Francis: McKinsey is 100 this year, and Suzano was 100 a couple of years ago. You have been CEO of Suzano for about two years. I would love to hear about the values that are core to Suzano and how you see them reflected over the century.
As part of our culture, we have a very long-term view about what we want to build.
Beto Abreu: We are a listed company with half the shares owned by a family. I believe in this business model. You have rules to follow, and that brings a lot of discipline related to the strategy and the way we allocate capital.
As part of our culture, we have a very long-term view about what we want to build. We are not looking for the next quarter. We are not looking for the year. We are looking for the next generation. And that’s very attractive in terms of managing a business, and being able to attract people with the right spirit.
Transforming institutions that shape societies
Tracy Francis: We do notice that you have excellent talent. How do you think about sourcing?
Beto Abreu: Being a leader in the segment helps a lot. We also have a strong sustainability agenda. We are trying to build something that can combine profit, people, and the planet. Our challenge is to keep working and learning because the world changes very fast. You must be awake.
Our challenge is to keep working and learning because the world changes very fast. You must be awake.
Tracy Francis: Awake. I like that. Something we talk about quite a lot in Latin America and at McKinsey is partnering with the boldest leaders that are transforming the institutions that shape our societies. This idea that, through the private sector, you are genuinely transforming the societies in which you operate.
Beto Abreu: I used to say, Tracy, it’s not only about the job. There’s something else that you want to build in the long term.
It’s impossible to look at this without understanding what’s going on around you, without understanding the ecosystem. At the end of the day, it’s about society, it’s about the environment, and it’s about the country. In our case, we interact with more than 200 cities in Brazil.
You have to understand what’s going on beyond your fence. You also have to be aware of what’s going on in the world and prepare yourself. Because we supply pulp to more than 100 countries, I think the only way to do this is not by reading reports. It’s having a team sitting there, having breakfast, lunch, and dinner in the city, interacting with people and living there. The team is 100 percent dedicated to doing business, interacting with the private sector and the central government, and understanding what’s happening.
Learning before leading on AI
Tracy Francis: Talk to me about implementing tech and AI in your business. How are you moving?
We plant one million trees every day. We have a lot of data to work with. On the operational side, how do you plant? How do you transport wood?
Beto Abreu: We see opportunities to apply AI in most of our main processes: supply chain, sales, and understanding our customers better. We plant one million trees every day. We have a lot of data to work with. On the operational side, how do you plant? How do you transport wood?
The concerns that I have are how to implement it in the right way, because there is a big risk in taking on the cost of the new technology without measuring the savings and the gains, and cybersecurity, making sure that you have protocols to protect the business.
And I realize we must go back to school; that’s where we are now. It’s a learning process. You must know which questions you’re going to ask the team. To ask the right questions on the AI side, you must learn.
Tracy Francis: That’s true. Everything you say gets magnified a million times, so if you ask the wrong question, people are scurrying off doing 100 different things that you don’t need.
Beto Abreu: That’s right. I don’t believe in leading a team or managing a team without having a clue about what you’re talking about. You must dedicate time, learn, and try to be together with the team on the journey.
Global ambition, complementary competencies
Tracy Francis: Suzano was already a global company, but you have embarked upon quite a transformation, including the JV [joint venture] with Kimberly-Clark. Talk to us about your aspiration.
Beto Abreu: There’s an obligation to try to understand the market outside of Brazil if we plan to keep growing. We see Kimberly-Clark with a lot of competence on the marketing side, including product development and branding. We thought it was a great combination in terms of complementary competencies.
Balanced leadership, out of the spotlight
Tracy Francis: Let’s talk about you as a leader. You are a very discreet leader. If we were to spend half an hour on the internet searching about you, we would come up with very little about you personally. In today’s world, it is a deliberate posture. Talk to me about how you chose that posture, the value it creates for you, and how you maintain it.
Beto Abreu: I don’t believe in the leader moving alone, about being the superstar. The strength of building something is in bringing the team together with you. If I could, I would be under the radar.
I want to do everything that we do without losing the connection with my family. I’ve been married for 23 years. I have three kids who still need me. My younger boy is only 12.
Tracy Francis: Yes, I have a 12-year-old, too.
Beto Abreu: And I really like the idea of underpromising.
The strength of building something is in bringing the team together with you.
Tracy Francis: Speaking through action. You have said that leaders should never lose their right to be outraged.
Beto Abreu: In our role, you must be very consistent. You have capital markets. You have shareholders. You have your team. You have suppliers. And if you do this in a very consistent way, when somebody else is doing something that you think is not fair, I think you have this right.
But you get the right if you are consistent all the time with what you believe and with your values. Someone who is working for a better world, a better country, and a better business.
Lightning round
Tracy Francis: What’s your favorite sport?
Beto Abreu: Biking and swimming.
Tracy Francis: Like long-distance swimming?
Beto Abreu: Yeah, in the sea.
Tracy Francis: Oh, in the sea. I like swimming in the sea, too. Right now, I really love surfing. I am obsessed with surfing right now.
Tracy Francis: What’s a small habit that has a big impact on you?
Beto Abreu: Reading every night before getting to sleep.
Tracy Francis: One book you’ve read recently that you would recommend to others?
Beto Abreu: The trilogy of Ken Follett. It’s a trilogy about the 20th century. I love history. It helps you to understand what’s going to happen in the future.
Tracy Francis: Who do you call when you need honest advice?
Beto Abreu: My wife. She’s my partner, and I’m proud about it. It’s a privilege to live with her.
Tracy Francis: I was going to say my husband. Did you ever think you’d be a CEO?
Beto Abreu: I have to say that I was always very concentrated on choosing the movements that would give me the opportunity to learn more. At the end of the day, it’s what I did. But I didn’t plan to be a CEO.
And I used to say that I’m not a CEO. I’m CEO for a period of time.
