Climate Change Data

Environmental Metrics

ESG Focus Areas

• Products for a healthy and sustainable lifestyle
• Governance for sustainable development
• Climate and environmental changes
• Responsible value chain
• Social engagement

Environmental Achievements

• 6% reduction in greenhouse gas emissions
• 57% of total energy requirement derived from renewable sources
• Approximately 44,000 native saplings planted
• Average grove infestation rates at 1% (well below the São Paulo citrus belt average of 17%) for citrus greening disease

Social Achievements

• 11% more training hours per employee
• 37% less absenteeism due to NCDs
• R$ 13 million allocated to environmental protection and social programs
• “For All” program initiatives to support the inclusion of persons with disabilities

Governance Achievements

• Established a Governance, Risk and Compliance function
• Implemented Citrosuco Anticorruption Policy
• 226 reports received through the ethics hotline, 191 investigated and addressed

Climate Goals & Targets

Environmental Challenges

• Poorest orange harvest in three decades (low Brix levels)
• Increased psyllid population (vector of citrus greening disease)
• Extended dry season impacting water resources

Mitigation Strategies

• Investment of US$ 87 million in the business
• Biological control measures to combat citrus greening (Tamarixia radiata wasps)
• New fruit receipt facilities to reduce truck queues and fuel consumption
• Eight newly built high-capacity water storage reservoirs for irrigation

Supply Chain Management

Responsible Procurement

• Supplier due diligence process
• Citrosuco Code of Conduct incorporated into supplier contracts
• “Trilhar” program to disseminate sustainable citrus farming practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: FSSC 22000, SGF/IRMA, FDA, USDA, ACS G029, AIB International, Halal, Kosher, GMP+, SAI Platform – FSA, Rainforest Alliance Certified, Fairtrade, SEDEX - SMETA, ISO 9001, ISO 14001, OHSAS 18001, Sustainable Aerial Application Certification

Awards & Recognition

• Instituto Votorantim awards in two categories: Environment (Biological control) and Employee Vote (Behavioral group – a culture of health and safety)

Environmental Metrics

ESG Focus Areas

• Sustainable Agriculture
• Climate Change
• Responsible Value Chain
• Social Engagement
• Products for a Healthy and Sustainable Lifestyle

Environmental Achievements

• Renewable energy share of more than 55% in energy mix
• Biomass from felled trees provided 10% of industrial biomass requirement
• 6.8 million Tamarixia radiata wasps released for biological control of citrus greening
• 31,000 native tree saplings planted
• 22% reduction in hydraulic oil consumption
• 76% of solid waste composted into organic fertilizer
• Pilot project demonstrated feasibility of converting diesel tank truck fleet into flex-fuel vehicles

Social Achievements

• Trilhar program provided more than 8,000 hours of training for growers
• More than 168,000 hours invested in employee training and development
• 23,000 people benefited by social initiatives
• 343 people with disabilities hired through the 'Para Todos' program
• Pescar Project supported 83 young students, 72% of whom found employment

Governance Achievements

• 100% of operations assessed on social and environmental aspects
• 100% of operations covered by Conduct Line
• Strengthened risk management process through training and proactive mitigation

Climate Goals & Targets

Environmental Challenges

• Citrus greening disease
• Ammonia spill at Santos facilities resulting in a fine
• Discrepant invoice entry procedures resulting in ICMS fines

Mitigation Strategies

• Innovative crop protection model combining off-site and on-farm control of psyllids
• Investing in technologies to reduce greenhouse gas emissions (biomass, flex-fuel vehicles)
• Submitting defense against CETESB fine
• Resolving issues with invoice entry procedures to prevent recurrence of ICMS fines

Supply Chain Management

Supplier Audits: More than 80 farms audited for sustainable agriculture; 100% of fruits sourced in compliance with procurement policy

Responsible Procurement

• Supplier onboarding conditional on acceptance of Code of Conduct and compliance with legislation
• Due diligence process assessing suppliers’ financial position and quality
• Trilhar program for fruit growers focusing on food safety, best practices, and regulatory compliance

Climate-Related Risks & Opportunities

Physical Risks

• Temperature and water changes affecting grove yields

Opportunities

• Carbon capture and emissions reduction through citrus groves and technologies

Reporting Standards

Frameworks Used: GRI Standards, Core option

Awards & Recognition

• Child-Friendly Company (Fundação Abrinq)

Environmental Metrics

ESG Focus Areas

• Products
• Governance
• People
• Planet

Environmental Achievements

• More than 55% of our energy requirement derived from renewable sources
• Carbon capture in our orange groves and protected areas offsets 63% of our scope 1 and 2 emissions
• 35% lower lost-time injury rate compared to the previous season
• 17,000 hectares preserved in the Atlantic Forest and Cerrado biomes
• 35,620 native saplings planted in reforestation programs

Social Achievements

• Launched For All program to promote diversity and inclusion, resulting in a 143% increase in employees with disabilities in three years
• 29% reduction in the absolute number of injuries involving third-party employees
• Invested R$ 2.51 million in community initiatives reaching 27,000+ people
• Improved favorability rating in employee climate survey by two percentage points to 75%

Governance Achievements

• 100% of employees and suppliers engaged around our code of conduct
• Implemented a Compliance Week program to strengthen a culture of compliance
• No incidents of corruption or anti-competitive behavior reported

Climate Goals & Targets

Environmental Challenges

• 28% decline in citrus yields in São Paulo due to factors such as a large crop in the previous season and international price contraction
• Greening disease threatening citrus groves
• Need to improve sustainable sourcing practices across the supply chain

Mitigation Strategies

• Implementing precision agriculture using technologies like scanning, telemetry, and drones to optimize resource usage
• Pioneering large-scale biological control against citrus greening
• Trilhar program to disseminate and implement sustainable farming practices with growers
• Joining the Sustainable Juice Covenant to achieve 100% sustainable sourcing by 2030

Supply Chain Management

Supplier Audits: More than 50% of fruit processed sourced from audited farms

Responsible Procurement

• Trilhar program
• Grower Assessment and Qualification process
• Agrochemical Monitoring Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Mombuca orange juice
• Orange emulsion
• Smoothies
• Low-acid juice
• Orange tree biomass
• Natural gas trucks

Environmental Metrics

ESG Focus Areas

• Products
• People
• Planet
• Governance

Environmental Achievements

• Reduced GHG emissions from 528,574 tCO2eq/year in 2018 to 435,881 tCO2eq/year in 2019. Increased renewable energy share to 65% of total energy use.
• 2000+ hectares processed, cutting down 750,000 orange trees that generated 76,000 tonnes of orange tree chips.
• 53,400 native saplings planted in reforestation projects (50% increase compared to 2018/2019).

Social Achievements

• Launched "Trilhar" program to promote sustainability among fruit growers.
• Implemented Covid-19 safety measures, including paid leave for at-risk workers.
• Invested R$ 3.2 million in social actions to fight Covid-19, benefiting 30+ municipalities.
• Provided training and development opportunities for employees, including 22 average training hours per employee.

Governance Achievements

• Implemented and published the Company's Donation and Sponsorship Policy.
• Bolstered continuous capability building in compliance.
• Implemented a set of tools to monitor the progress of the controls in our Compliance Program.
• Improved monitoring of the Regulatory Framework in Health, Safety and the Environment, Food Security and Social Responsibility.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic created new challenges for the global economy and supply chain.
• Price of orange juice dropped, impacting revenue and financial covenants.

Mitigation Strategies

• Negotiated with financial institutions to avoid debt acceleration.
• Implemented Covid-19 Crisis Committee and rigorous safety protocols.
• Reorganized social investment projects to address pandemic challenges.
• Maintained seamless supply to clients despite pandemic.

Supply Chain Management

Supplier Audits: 100% of operations evaluated using requirements based on Brazilian legislation, corporate instruments, and international standards.

Responsible Procurement

• Trilhar Program
• Sustainable Juice Covenant (SJC)

Climate-Related Risks & Opportunities

Physical Risks

• Changes in ability to farm in some regions due to climate change

Reporting Standards

Frameworks Used: GRI Standards

Certifications: FSSC 22000, SGF/IRMA, FDA, USDA, ACS G029, Halal, Kosher, GMP+, SAI Platform, Rainforest Alliance, SMETA, ISO 9001, ISO 14001, OHSAS 18001

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Various initiatives contribute to these goals through sustainable agriculture, renewable energy use, job creation, waste reduction, emissions reduction, and biodiversity conservation.

Sustainable Products & Innovation

• Orange tree biomass project
• CitroApis honey production

Environmental Metrics

ESG Focus Areas

• Climate change
• Water
• Biodiversity
• Social management
• Diversity
• Sustainable value chain

Environmental Achievements

• Reduced CO2 emissions by 28% compared to 2019
• Increased net removal of 1.6 million tons of CO²e
• Increased industrial water efficiency by 20%
• 50.1% of energy matrix from renewable sources

Social Achievements

• Launched Evera, a new business unit specialized in natural ingredients
• Launched Fiberfeel OP and Fiberfeel OF, natural fiber ingredients
• 19.3% women and black people in leadership positions
• 27 strategic philanthropy projects, totaling R$3 million and impacting 20,000 people
• Reduced rate of severe work-related injuries among employees to 0.23 (from 0.71 in 2020/2021)

Governance Achievements

• Successfully completed a $150 million loan operation tied to ESG goals
• Achieved an A- rating in CDP and a gold seal on the Ecovadis platform
• Updated Code of Conduct
• 68% of total fruit volumes are certified through international platforms

Climate Goals & Targets

Environmental Challenges

• Global reduction in orange juice supply due to greening disease and droughts/frosts
• Climate change risks impacting fruit yield and quality
• Water stress in some regions

Mitigation Strategies

• Resilience and efficiency in meeting customer demand
• Climate resilience plan
• Investments in water reservoirs and drip irrigation
• Seeking new sources of biomass for energy generation
• Decarbonization project pipeline

Supply Chain Management

Supplier Audits: 160 on-site inspections in 2021/2022; 45 suppliers subjected to human rights impact assessments

Responsible Procurement

• Code of Conduct
• Anti-Corruption Expectations Letter
• ESG criteria in contracts
• Trilhar Program

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Frosts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Carbon credit generation

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB metrics, UN Global Compact

Certifications: SAI Platform, Rainforest Alliance, Fairtrade, FSSC 22000, EcoVadis Gold

Third-party Assurance: Bureau Veritas Certification Brazil

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 16

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Fiberfeel OP and OF
• Other natural ingredients from Evera

Awards & Recognition

• Not disclosed