Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental performance
• Social performance
• Governance, ethics and integrity

Environmental Achievements

• Reduced CO2e emissions by 7% compared to 2019
• Increased renewable energy generation to 1,328,380 MWh, preventing the generation of 2,235,776 Tn of CO2
• Achieved a total CO2e emission factor of 0.312 t/MWh

Social Achievements

• Launched scheduled vaccination campaigns against the flu and tetanus, periodic examinations, and an awareness campaign on breast cancer
• Implemented home office and mixed work modality, offered virtual gym classes, and provided medical support follow-up due to the COVID-19 pandemic
• 50% of new personnel were women

Governance Achievements

• Implemented an Integrity Plan to prevent, detect, and correct illegal events
• Established a Due Diligence Procedure for Third Parties and adherence to the Integrity Program
• Established several channels for receiving complaints of Code of Business Conduct infringements

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on electricity demand (1.3% decrease)

Mitigation Strategies

• Renewables were not affected due to dispatch priorities
• Thermal plants received a high proportion of their power payments
• The impact affected mostly inefficient machines with lower prices

Supply Chain Management

Responsible Procurement

• Purchase and Corporate Hiring Policy establishes basic requirements for bids in terms of ethics, safety, hygiene, legislation, labor regulation, human rights, etc.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Essential Option), IIRC, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social Performance
• Economic Performance
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions by -1% compared to 2022
• Reduced Scope 1 CO2e emissions per MWh generated by -9.5% compared to 2022
• Reduced Scope 2 CO2e emissions per MWh generated by -12% compared to 2022
• Reduced total generated waste by 78.15% compared to 2022
• Achieved a significant reduction in fire-affected forestry surface compared to 2022 (31 ha vs. an average of 522 ha over the last 10 years)
• No fires in natural reserves or high conservation value areas in 2023
• Final disposal of phytosanitary and hydrocarbon containers
• Monitoring results show no negative impacts on water; no operations in water stress areas

Social Achievements

• No discrimination complaints received in 2023
• Implemented the Hiring Room platform to simplify the hiring process
• Implemented training indicators to assess training effectiveness
• Improved onboarding process
• Implemented the Performance Management Platform (HR Advant) to assess employee performance
• No fatal accidents from work incidents
• Significant improvement in lost time incident rate compared to 2022
• Maintained FSC® certificate for over 10 years

Governance Achievements

• Implemented whistleblowing mailboxes in several wind farms
• Relaunched the Awareness Campaign with an ethical line training video
• Updated the Gifts and Hospitality Policy
• No corruption or fraud cases recorded
• Trained 387 people in ethical behavior

Climate Goals & Targets

Environmental Challenges

• Wildfires (main high-impact risk for forestry business)
• Extended droughts increasing risk of rural fires
• Need to unify criteria and redesign the Monitoring Plan for Forestal Argentina's 5 companies
• Need to design indicators to measure social programs
• Need to achieve Group FSC® certification
• Need to implement the Citizen Participation Plan
• Need to align suppliers’ assessment and control processes
• Need to reach 100% of suppliers aligned to company policies and standards
• Need to improve the complaint record system
• Need to reinforce the detection network by improving surveillance cameras
• Need to continue the training program for direct and indirect collaborators and the community
• Need to increase the firewalls network and the availability of roads or accesses
• Need to increase the investment budget in equipment for firefighting
• Need to improve the Performance Management Process
• Need to conduct a workshop for leaders (feedback and assessment sessions)
• Need to align the whole organization and service providers to the preventive management of health and safety
• Need to implement improvements to the emergency management process
• Need to visit wind, solar and forestry farms
• Need to expand the training and prevention plan of the wind, solar and forestry farms
• Need to expand ISO 45001 Certification scope to Mendoza and San Lorenzo sites
• Need to digitalize prescriptions by the CPSA Department Head

Mitigation Strategies

• Robust fire prevention program (operation centers, detection towers, trained brigades)
• Collaboration with local communities and other forestry companies to reduce wildfire probability
• Investment in fire prevention (USD 2,211,000, ARS 3,442,700, USD 41,564)
• Incorporation of air transport for firefighting
• Courses and technical talks to neighbors and communities on fire prevention
• Improved temporary waste storage
• Internal communications addressing order and cleaning campaigns
• Circularity measures based on own activities and upstream/downstream activities in the value chain
• Training on waste segregation and raising awareness for the reduction of hazardous waste
• Triple-cleaning treatment of containers to remove hazard
• Social-environmental risk assessments for products used
• Monitoring of superficial waters to ensure maintenance of hydrologic patterns
• Biodiversity Management and Monitoring Plan (BMMP)
• Biodiversity Adaptive Management Plans (BAMPs)
• Ecological restoration project in Villarino
• Conservation strategies for Pampas Meadowlark populations
• Improved access and internal roads
• Collaboration with competent entities in the maintenance of public roads
• Mitigation of impacts from truck traffic on public roads
• Maintenance of firewalls
• High standard of quality in rural housing infrastructure
• Improved 114 Provincial Route
• Improved water supply system for firefighting aircrafts
• Hiring of two firefighting aircrafts
• Standardization of rural housing conditions for workers
• Consolidation of alliances for improvement and maintenance of provincial routes

Supply Chain Management

Responsible Procurement

• Corporate Procurement and Contracting Policy (ethics, safety, hygiene, regulations, labor regulations, human rights)
• Code of Corporate Conduct for Third Parties
• Integrity Affidavit
• Environmental risk level allocation for each supplier

Climate-Related Risks & Opportunities

Physical Risks

• Extended droughts increasing risk of rural fires

Opportunities

• Investment in renewable energy generation assets

Reporting Standards

Frameworks Used: GRI, SASB, UN Sustainable Development Goals

Certifications: ISO 14001, ISO 9001, ISO 45001, FSC®

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Alignment with SDGs detailed in the report