Climate Change Data

Environmental Metrics

ESG Focus Areas

• Management and governance model
• Product integrity
• Community and government relations
• Climate management
• Eco-efficiency and biodiversity
• Occupational health and safety
• Contractor management

Environmental Achievements

• Reduced greenhouse gas emissions through fleet renovation resulting in fuel savings.
• Planted 1,500 native seedlings through the 'Every Day Is Tree Day' program.
• Completed soil and gravel decontamination at the Iguaçu Complex Fuel Station.
• Renovated and replaced equipment at 29 fueling facilities, improving operational efficiency and minimizing environmental impact.

Social Achievements

• Improved accounting practices, mapped processes, and implemented new controls for better decision-making and increased business credibility.
• Developed a new hotel system for train operators, improving working conditions and safety.
• Restructured Rumo Academy, enhancing employee training and development.
• Launched the Rumo Zero Accident (RZA) program to improve occupational health and safety, resulting in a 67% drop in lost time injury frequency rate for employees and 51% for contractors.
• Implemented the 'Chave na Mão' project to improve communication between train operators and management.
• Delivered approximately 5,000 school supply kits to employees with children.

Governance Achievements

• Completed a BRL 2.6 billion capitalization process, strengthening the balance sheet and providing greater liquidity.
• Implemented integrated management software (Cognos TM1) to improve data accuracy and decision-making.
• Maintained listing at the highest corporate governance level of B3 Novo Mercado.
• Integrated Rumo Logística, simplifying the group’s structure and reducing operating costs.
• Established an Ethics Channel for reporting irregularities.

Climate Goals & Targets

Environmental Challenges

• Intense political and economic crisis in Brazil.
• Decrease in average speed of railroads.
• Lower transport volumes due to crop failure.
• Accidents with contractors.
• Negative community impacts related to train horn, lack of weeding, garbage accumulation, and level crossings.

Mitigation Strategies

• Adopted a new commercial strategy with long-term contracts.
• Adapted operations to occupy idle capacity with other cargos.
• Invested in network recovery, expansion of rail yards, and replacement of locomotives and railcars.
• Implemented the Rumo Zero Accident program and other safety initiatives.
• Addressed community concerns through education campaigns, lectures, and partnerships with municipalities.

Supply Chain Management

Supplier Audits: 72 suppliers assessed monthly (2016)

Responsible Procurement

• Supplier Portal for managing supplier information.
• Supplier Performance Index (IDF) for assessing supplier performance.
• Requirements for certifications such as AAR, AREMA, or OEM recommendations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Core)

Certifications: ISO 14001 (Santos Terminal), ISO 9001 (Santos Terminal), OHSAS 18001 (Santos Terminal)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• People
• Governance
• Sustainable Development

Environmental Achievements

• 26% reduction in specific emissions since 2015 (equivalent to 750,000 tons of CO2 avoided)
• 8% reduction in specific emissions in 2019 (avoiding 331,000 tons of CO2 emissions)
• 83% recycling rate of all waste generated in 2019
• 5.5% decrease in fuel consumption compared to 2018

Social Achievements

• Launched Women Can Work in Railways Too program
• Increased number of women employees by 8%
• Promoted four women managers to executive managers
• First woman officer appointed in early 2019
• Employee satisfaction level of 78% in 2019 (above market average in several criteria)
• No work-related fatalities in 2019
• Reduction in number and severity of injuries

Governance Achievements

• Updated Code of Conduct and Related Parties and Conflicts of Interest Policy
• Created and updated internal rules on various topics (Environmental Policy, Anticorruption, Antitrust, etc.)
• Implemented digital people management platform with 6,000 online training programs
• Established long-term goals for specific emissions, safety, and employee satisfaction

Climate Goals & Targets

Environmental Challenges

• Unfavorable soybean trading conditions in Q2 2019 due to lower demand from China
• Operating restrictions in Q1 2019 due to strong rainfall in São Paulo
• Climate change impacts on transported volume of agricultural production and operations (e.g., landslides)
• Water shortage in some regions

Mitigation Strategies

• Investments in lower diesel consumption to reduce costs and GHG emissions
• Installation of meteorological monitoring stations and landslide detectors
• Water reuse and consumption practices (closed-circuit washing, rainwater reuse)
• Expansion of Rondonópolis terminal to increase capacity
• Investments in predictive technology to mitigate climate change risks

Supply Chain Management

Responsible Procurement

• Compliance with industry standards and laws; prohibition of child labor and forced labor; audits of service providers

Climate-Related Risks & Opportunities

Physical Risks

• Excessive or insufficient rainfall affecting planting and harvesting; extreme climate phenomena (landslides)

Opportunities

• Investments in lower diesel consumption; increased transportation capacity replacing trucks

Reporting Standards

Frameworks Used: GRI Standards (Core option)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Nine commitments to sustainable development correlated to UN SDGs

Awards & Recognition

• 1st place in Transportation and Logistics category of Empresas Mais award
• 1st place in Corporate Governance - IstoÉ Dinheiro
• Best company with actions and projects focusing on social responsibility - IstoÉ Dinheiro
• 2nd place in ranking of Top Transportation Companies by Exame magazine
• Clima Paraná label, Gold category
• Pioneering, Innovation, and Development Award 2019
• 4th place in top 100 companies in Paraná ranking
• Rumo’s success featured in Harvard Business School Publishing

Environmental Metrics

ESG Focus Areas

• Governance and Integrity
• Risk Management and Operational Safety
• Eco-efficient Operation
• Safe, Diverse, and Prosperous Work Environments
• Customer Trust

Environmental Achievements

• Reduction of 4.9% in emissions per TKU
• More than 6.4 million tons of CO2 eq. avoided in the atmosphere
• Achieved 17% reduction in specific emissions since 2019 (ahead of 2023 target)

Social Achievements

• Launched the 'Impulsionar' project, subsidizing 100% of higher education for Black and Brown employees.
• 81.67% employee satisfaction rate
• R$ 4.3 million invested in social projects

Governance Achievements

• 100% of suppliers, donation beneficiaries, and sponsors underwent integrity analysis related to corruption.
• Over 81% of administrative and operational employees completed LGPD training.
• Inclusion of ESG/Sustainability in the Supplier Manual

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (physical risks: extreme heat, wildfires, droughts, landslides, floods, cyclones; transition risks: new technologies, market changes, carbon pricing)
• Supply chain disruptions due to climate events and crop yields
• Accidents involving communities (increased by 25% compared to 2021)

Mitigation Strategies

• Installation of derailment detectors, weather stations, and barrier monitoring systems.
• Development of alternative sourcing strategies (e.g., Fertilizers project)
• Implementation of the Passagem em Nível Sensoreada project
• Continuous improvement of safety measures and employee training (7 Rules of Life)

Supply Chain Management

Supplier Audits: 1,808 suppliers homologated; 506 environmental impact assessments

Responsible Procurement

• Socio-environmental questionnaires for all suppliers
• Reputational analysis (background check) for all suppliers
• Supplier performance index (IDF) monitoring
• Third-party audits of labor conditions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Wildfires
• Water stress/droughts
• Landslides
• Floods
• Tropical cyclones

Transition Risks

• New technologies
• Market changes
• Carbon pricing
• Sectorial impact of climate change

Opportunities

• Development of energy-efficient products and services
• Increased demand for low-carbon transportation

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UN Global Compact

Certifications: Null

Third-party Assurance: Ernst & Young Auditores Independentes S/S Ltda.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Trip Optimizer
• Hybrid locomotives

Awards & Recognition

• ISE B3 (Índice de Sustentabilidade da B3)
• ICO2 (Índice de Carbono)
• GHG Protocol Gold Seal
• Selo Clima Paraná (category A)
• Prêmio Ferrovias +Brasil (ESG Highlight)
• Prêmio Executivo de Valor 2022
• Prêmio As Melhores da Dinheiro
• Época Anuário 360°
• Selo em Direitos Humanos e Diversidade
• Prêmio Finance & Law Summit and Awards
• Teva Índices (Women in Leadership)
• Estadão Empresas Mais
• Prêmios Líderes do Brasil
• Maiores e Melhores do Transporte
• 500 Maiores do Sul
• Ranking Valor 1000
• Women on Board Certification
• Selo Multiplicador de Sorrisos

Environmental Metrics

ESG Focus Areas

• Climate Change and Emissions Management
• Safety and Operational Risks
• Governance and Ethics
• Community Relations
• Human Rights
• Diversity, Equity and Inclusion

Environmental Achievements

• 0.25% reduction in specific emissions, avoiding the emission of 6.6 million tons of CO2
• 66% of waste sent for recycling
• 45.70% reduction in scope 2 emissions through I-REC certification

Social Achievements

• BRL 14 million invested in communities
• 244,872 hours of employee training
• 27.2% reduction in railway accident rate
• 25.75% women in leadership roles
• Lowest employee turnover in the last three years (15.3%)

Governance Achievements

• Implementation of a new internal service structure for the Ethics Channel
• New Code of Conduct updated in 2023
• No records related to corruption in 2023

Climate Goals & Targets

Environmental Challenges

• Severe rains in São Carlos (SP) stopped operations, directly reflecting in volumes.
• Rise in criminal events in Baixada Santista hindered smooth train operation to the Port of Santos.
• Acts of vandalism against trains in Baixada Santista affected efficiency.

Mitigation Strategies

• Prompt response from operations, reinforced team resilience and coordination capacity.
• Contingency and Emergency Plan implemented with São Carlos City Hall to support flood coping.
• Investment in social actions to prevent future incidents.
• Implementation of electronic security systems (cameras, drones) monitored 24/7.

Supply Chain Management

Supplier Audits: 1,650 suppliers answered social and environmental questionnaires; 672 new suppliers assessed.

Responsible Procurement

• Supplier Manual
• Strict clauses regarding compliance with labor and Human Rights obligations in contracts.
• Partnership in Motion Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Forest fires
• Water stress/drought
• Landslides
• River floods
• Tropical cyclones

Transition Risks

• New technologies
• Market analyses
• Change in consumption pattern
• Greenhouse gas (GHG) pricing
• Sectoral impact of climate change

Opportunities

• Development of energy-efficient products and services
• Geographic diversification
• Technological alternatives

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: Paraná Climate Seal, Brazil's GHG Protocol Program (Gold Seal)

Third-party Assurance: KPMG Auditores Independentes Ltda.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Hybrid locomotives

Awards & Recognition

• Dow Jones Sustainability™ World Index and Emerging Markets portfolios
• ISE portfolio
• ICO2 Portfolio
• Prime Status in ISS ESG assessment
• 30% Club Brazil Awards
• Teva Women in Leadership Index
• Others listed in the report