Climate Change Data

Environmental Metrics

ESG Focus Areas

• Inclusão social
• Respeito ao cliente e ao colaborador
• Compromisso com a ética e a governança

Social Achievements

• All projects since 2013 delivered on time.
• Almost all construction workers are directly employed by the company.
• Strict occupational safety and health practices.

Governance Achievements

• Company is listed on Novo Mercado (highest corporate governance level on B3).
• All board members are independent.
• 37% of total executive compensation linked to long-term incentives.

Climate Goals & Targets

Environmental Challenges

• Increased material costs impacting profitability.
• Limited ability to increase prices due to customer payment capacity.

Mitigation Strategies

• Investing in off-site construction and industrialization (wood-frame and aluminum technologies) to increase productivity and reduce costs.
• Developing a Distribution and Transformation Center (CDT) to reduce logistical complexity and costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, S&P SAM CSA

Environmental Metrics

ESG Focus Areas

• Social Inclusion
• Respect for customers and employees
• Commitment to Ethics and Governance

Social Achievements

• All projects launched since 2013 were delivered within the contractual term.
• Nearly all employees involved in construction are directly hired by the company.
• Strict occupational health and safety practices are adopted.

Governance Achievements

• Tenda is a Novo Mercado company, meeting 90% of IBGC best practices.
• All Board Members are independent, with 40% of director compensation linked to long-term incentives.
• Increased corporate credit rating from brAA+ to brAAA by Standard & Poor's.

Climate Goals & Targets

Environmental Challenges

• Increased restrictions in March 2021 due to the pandemic impacted the volume of transfers and construction progress.
• Physical stores operated intermittently with restricted opening hours.
• Pressures in construction material costs.

Mitigation Strategies

• Construction works continued as an essential activity, with some stoppages in March.
• Budget review of construction works to reflect cost increases.
• Digital transformation significantly improved selling expenses.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, S&P SAM CSA

Certifications: DATEC

Environmental Metrics

ESG Focus Areas

• Inclusão social
• Respeito ao cliente e ao colaborador
• Compromisso com a ética e a governança

Social Achievements

• All projects launched since 2013 were delivered on time.
• Almost all construction workers are directly employed by the company, not outsourced.
• Rigorous occupational safety and health practices are adopted.

Governance Achievements

• The company maintains an Ethics Committee, codes of ethics and conduct, and independent reporting channels.
• Tenda is a Novo Mercado company (highest level of corporate governance on B3), meeting 90% of IBGC's best practices.
• All board members are independent, and all directors are statutory, with 40% of total remuneration linked to long-term incentives.

Climate Goals & Targets

Environmental Challenges

• Significant increases in construction costs impacting gross margin.

Mitigation Strategies

• Implemented a significant price increase, particularly in June and July (8% higher than end of 2020), to maximize company value.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, S&P SAM CSA

Environmental Metrics

ESG Focus Areas

• Social Inclusion
• Respect for customers and employees
• Commitment to Ethics and Governance

Social Achievements

• All projects launched since 2013 were delivered within the contractual term.
• Nearly all employees involved in construction are directly hired by the Company.
• Improved factory efficiency to pre-pandemic levels (97% productivity).

Governance Achievements

• A Novo Mercado company, meeting 90% of IBGC best practices.
• All Board Members are independent, with 40% of director compensation linked to long-term incentives.
• Improved Reclame Aqui rating from "Poor" to "Good" (7.7 score).

Climate Goals & Targets

Environmental Challenges

• Cancellations reached 24% of gross sales, above historical levels.
• Reduction in adjusted gross margin (17.4%) compared to Q1 2022 (21.6%) due to AVP results and changes in allowance for loan losses.
• High raw material costs impacting profitability.

Mitigation Strategies

• Resold housing units with price gains of over 11%, contributing positively to the company's margin.
• Reduced administrative staff by 15% in support areas.
• Initiatives to increase cash balance: management of contracting, transfers, renegotiation of land payment flow, restriction on cash land purchases, reduction in the number of stores, and extension of supplier payment terms.
• Increased SFH operations by R$125 million.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, S&P SAM CSA

Awards & Recognition

• Reclame Aqui 2022 nomination

Environmental Metrics

ESG Focus Areas

• Social Inclusion
• Respect for customers and employees
• Commitment to Ethics and Governance

Social Achievements

• All projects launched since 2013 were delivered within the contractual term.
• Nearly all employees involved in construction are directly hired by the Company.
• Improved factory efficiency to pre-pandemic levels (97% productivity).
• Improved Reclame Aqui rating from "Poor" to "Good" (7.7 score).

Governance Achievements

• 40% of total director compensation linked to long-term incentives.
• Tenda is a Novo Mercado company (B3's highest Corporate Governance level), meeting 90% of IBGC best practices.

Climate Goals & Targets

Environmental Challenges

• Lower construction progress and PSV impacted net revenue.
• Cancellations reached 24% of gross sales (above historical levels).
• Reduction in adjusted gross margin explained by AVP result and changes in allowance for loan losses.
• High raw material costs prevented some projects from launching due to insufficient profitability.

Mitigation Strategies

• Imposed rigor on operations to rebuild margins and deleverage the balance sheet.
• Resold cancelled housing units with price gains of over 11%.
• Improved factory efficiency.
• Reduced administrative staff by 15%.
• Initiatives to increase cash balance: managing contracting, transfers, project measurements; renegotiating land payment flow; restricting cash land purchases; reducing number of stores; extending supplier payment terms.
• Increased SFH operations by R$125 million.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, S&P SAM CSA

Awards & Recognition

• Reclame Aqui 2022 nomination

Environmental Metrics

Governance Achievements

• Listed on B3's Novo Mercado, the highest level of corporate governance in Brazil.

Climate Goals & Targets

Environmental Challenges

• Sustainability of the FGTS as the sole source of MCMV financing.

Mitigation Strategies

• Prioritizing cost control and value generation for all stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities