Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety & the Environment
• Innovation & Technology
• Business Ethics and Compliance
• Risk and Crisis Management, and Internal Controls
• Product Safety and Quality
• Social Responsibility Initiatives
• Customer Relationship Management
• Managing and Developing Human Capital

Environmental Achievements

• Reduced water consumption by 2.5 million liters through a pilot project using Piipee technology.
• Recycled 60.8% of wastewater at Interlagos and 38.7% at Forqueta.
• Installed a new gas scrubber with a washing system without added chemicals and with an activated charcoal filter.
• Reduced hazardous waste volumes through fiber-laser cutting and use of nitrogen gas.
• Increased production capacity in part coating process with 50% greater UV protection and 75% leaner workflow, reducing costs by approximately 50%.

Social Achievements

• Launched an HSE Center of Excellence with virtual reality training.
• Implemented Life-Saving Mindsets initiative to promote a culture of prevention.
• Decreased illness rate from 86% in 2015 to 74% in 2019.
• Decreased injury frequency rate by 36.4% from 2017 to 2019 and by 46.6% from 2015 to 2019.
• Implemented Florescer program benefiting 360 children and 78 adolescents.
• Organized Vida Sempre traffic safety campaign with 126 performances.

Governance Achievements

• Successfully completed second management succession process.
• Implemented a digital platform for secure access to company documents for Board and Audit Board members.
• Became signatories of the Ethos Institute Business Pact for Integrity and Against Corruption.
• Updated Disclosure Policy Handbook and Insider Trading Policy.
• Carried out due diligence on 277 suppliers to ensure compliance with good practices and Brazilian anti-corruption legislation.

Climate Goals & Targets

Environmental Challenges

• Risks associated with the Company’s strategic decisions, operational gaps, financial market changes, and regulatory non-compliance.
• Increase in third-party water consumption due to consolidation of additional companies and higher production volumes.

Mitigation Strategies

• Developed a risk management communication plan and risk indicators to monitor exposure to prioritized risks.
• Implemented initiatives to reduce water consumption, including water recycling and Piipee technology.
• Implemented initiatives to reduce occupational injuries and illnesses, including awareness campaigns and ergonomic assessments.

Supply Chain Management

Supplier Audits: 74 site visits, 131 supplier onboarding audits, 6 Quality Rating meetings in 2019

Responsible Procurement

• Randon Code of Conduct
• Compliance with applicable laws and regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards—Core option

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949:2016, OHSAS 18001:2007, ISO 17025:2017, ISO 45001

Third-party Assurance: None

Sustainable Products & Innovation

• e-Sys electric axle system

Awards & Recognition

• Marcas de Quem Decide
• Latin America Executive Team 2019
• Exportação RS 2019
• Campeãs de Inovação 2019
• Exame magazine’s Biggest & Best 2019
• Top Ser Humano – ABRH 2019
• Transparency Trophy 2019
• Rio Grande do Sul Quality & Productivity Program (PGQP) awards
• Great Place to Work® best workplaces list
• 100 Largest in Rio Grande do Sul
• Inova 2019

Environmental Metrics

ESG Focus Areas

• Commitment to the Environment
• Prosperity for All
• Sustainable Innovation
• Excellence and Safety as a Value
• Ethical and Responsible Conduct

Environmental Achievements

• 8% reduction in GHG emission intensity (2.51 in 2022 compared to 2.72 in 2020)
• 24% of waste disposed of in industrial landfills (down from previous years)
• 50% of effluent reused
• Construction of a photovoltaic plant with 2,408 solar panels at Randon Technological Center
• Construction of a photovoltaic plant at Fras-le Friction Material in China (supplies 20% of the unit's energy)

Social Achievements

• 15% women in leadership positions (in Brazil)
• R$6.9 million invested in social actions through Instituto Elisabeth Randon
• Over 68,000 people benefited by IER programs
• Launched Jornada Delas, a career acceleration program for women

Governance Achievements

• Separation of CEO and President Director positions
• Implementation of the performance evaluation of the Board of Directors
• Update of the Bylaws to include guidelines on conflicts of interest and board member independence
• Scored above the average of publicly traded companies in the CVM's Governance Report

Climate Goals & Targets

Environmental Challenges

• Disposal of foundry waste (slag, refractory)
• Achieving zero waste disposal in industrial landfills and 100% reuse of treated effluent by 2025

Mitigation Strategies

• Studies in progress for foundry waste disposal
• Investment of R$100 million in renewable energy projects by 2030
• Eco Sand project (using foundry sand in asphalt paving)

Supply Chain Management

Supplier Audits: 306 audits in 2022

Responsible Procurement

• Supplier Requirements Manual
• Due diligence process for new suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: ELEVATE

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 5
• SDG 9
• SDG 11
• SDG 12
• SDG 13

The report details how initiatives contribute to these goals.

Sustainable Products & Innovation

• Randon Solar
• Hybrid R line of semi-trailers
• Products with niobium nanoparticles

Awards & Recognition

• Valor 1000 Award (leader in Vehicles and Parts category)
• Best of ESG 2022 Award
• Money Report's Notables Gallery
• Great Place to Work 2022

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Businesses

Environmental Achievements

• Inaugurated a photovoltaic power plant at the Randon Technology Center (CTR) with a capacity to generate 1.3 MWp.
• Building the ‘Caldeira Verde’ (Green Boiler) at Frasle Mobility subsidiary to replace natural gas with biomass, lessening CO2 emissions.
• 85% rate of conversion of waste into raw material in the production process.

Social Achievements

• +7 thousand employees trained across all regions in ethics, integrity and compliance procedures.
• 400 women attended the women’s career development program “Jornada Delas” (Women’s Journey).
• +35 thousand people impacted by IER’s programs and initiatives.

Governance Achievements

• Reviewed materiality, redefining the most relevant focuses for monitoring and reporting to stakeholders.
• Achieved first place in seven of eight categories in the Institutional Investor ranking for best Investor Relations practices and initiatives.

Climate Goals & Targets

Environmental Challenges

• High waste volume from foundry waste (sand, slag, and refractory).
• A fatality at the Randon Triel-HT unit in 2023.
• Supply chain disruptions (implied, not explicitly stated).

Mitigation Strategies

• Eco-sand project to find productive use for foundry sand.
• Implemented additional safety measures at Randon Triel-HT unit after fatality, including enhancements to prevent direct human access to vehicle areas and installation of new monitoring sensors.
• Continuous audit process focused on Corporate Procurement.

Supply Chain Management

Responsible Procurement

• Supplier Requirements Manual (including ESG criteria), due diligence for new suppliers, annual Suppliers Meeting.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (e.g., e-Sys, railway footing).

Reporting Standards

Frameworks Used: GRI 2021 Standards (baseline option), SASB guidelines

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949, ISO/IEC 17025

Third-party Assurance: Bureau Veritas Certification Brazil; DNV (for GHG inventory)

UN Sustainable Development Goals

• 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• e-Sys electric traction system, Composs composite materials, railway footing, Maxcoating brake discs and drums, copper-free brake pads, modular trailer line, Randon Solar refrigerated trailer.

Awards & Recognition

• Best of ESG Award from Exame magazine, Most reminded brands in Rio Grande do Sul, Valor 1000 Award, Shared Services Center of the Year, Best legal department awards, O Equilibrista Award, Engineer of the Year, Latin America’s 100 Innovative People, Farroupilha Medal of Merit, 100 Open Startups Ranking 2023, Great Place to Work, Champions of Innovation, 500 Largest Companies in the South Ranking and Top of Mind of RS, Best Annual Report, Investor Relations awards, NTC Award, Sindirepa-SP Award, Inova 2023 Award, Marcas da Oficina survey, Automotive Business Award, Iaaf Award, Supplier of the Year, RS Export Award, Brand of the Year, Transport Top of Mind, VOL 2023 Award.