Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable development of growers
• Value creation in the chain
• Culture, development and employee well-being
• Strategy and sustainability
• Community
• Innovation
• Good agricultural practices
• Traceability, Assurance of Origin and Quality

Environmental Achievements

• Implemented water catchment and storage systems on farms to reduce water consumption per hectare despite overall increase.
• Farms sequestered almost 12,000 tons of carbon from the atmosphere (Scope 1 and 2).

Social Achievements

• Instituto Café Solidário (ICS) continued to provide art, culture, sport, and professional activities for 154 children and young people in Buritizeiro (MG).
• Graduated the first vocational course for 15 young people.

Governance Achievements

• Revised Code of Conduct and Ethics, including aspects related to the new General Data Protection Law and ESG strategy.
• Established a Sustainability Committee reporting directly to the Board of Directors.
• Revised Hedge Policy.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to logistical problems and supply shortages.
• Climate events (drought and frost) impacting coffee production.
• Reduction in demand for specialty coffees.
• High inflation and rising interest rates.
• Strong devaluation of the real against the dollar.
• Increased production costs.

Mitigation Strategies

• Renegotiated contracts with growers whose harvests were impacted by climate events.
• Secured a $40 million credit facility with an Australian bank at lower interest rates.
• Consolidated administrative areas and unified actions related to Legal, Finance, Accounting, Risk Management, Certifications, and Sustainability across the Group's three companies.
• Increased dealings with certified producers and selling to clients who prioritize sustainability.

Supply Chain Management

Supplier Audits: Atlantica: 316 of its suppliers; Cafebras: 127 of its suppliers; Ally: uses reports from Enveritas.

Responsible Procurement

• Supplier screening
• Certification requirements
• On-site visits to inspect farms

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Frost

Transition Risks

• Changes in consumer habits
• Market volatility

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Sustainable development of rural producers
• Value creation in the chain
• Strategy and sustainability
• Community
• Innovation
• Traceability, assurance of origin and quality

Environmental Achievements

• Installed a solar plant on the roof of the Atlantica Warehouse, achieving 77% energy autonomy.
• Conducted the first Greenhouse Gas Inventory (GHG) in 2021, with independent quantification of emissions and gas capture in 2022.
• Mutua – Matas e Nascentes Project financed environmental protection and recovery actions on 19 small farms, planting 11,630 seedlings and recovering 21 springs.

Social Achievements

• Launched GMT Green, a private label supporting suppliers' growth.
• Big Trade fintech provided R$ 4.5 million in financing for 15 coffee growers.
• Instituto Café Solidário allocated 0.3% of revenue to social initiatives, including the Realizing Dreams Project supporting 150 children.
• Code of Conduct training course disseminated to 100% of staff.

Governance Achievements

• Reviewed and updated corporate strategy in 2022.
• Implemented a series of new corporate policies and procedures to the Corporate Compliance Program.
• Established an independent reporting channel for violations of the Code of Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Turbulent coffee market conditions (bad weather in Brazil, post-pandemic logistics disruptions, war in Russia impacting fertilizer prices, economic instability).
• Credit availability needs for small and medium-sized growers.
• Ensuring compliance with increasingly stringent customer and societal criteria for coffee production.
• Balancing the needs of diverse stakeholders in the coffee value chain.

Mitigation Strategies

• Reorganized the Group's structure to capitalize on strengths and synergies of each company.
• Developed commercial intelligence to define geographic action strategies.
• Developed GMT Green certification standard to encourage continuous improvement in producers.
• Big Trade fintech to provide credit to partner producers.
• Close collaboration with suppliers and ongoing technical assistance.

Supply Chain Management

Supplier Audits: Monthly due diligence process; details on number of audits unavailable

Responsible Procurement

• GMT Green standard
• Code of Conduct
• Certifications (e.g., Rainforest Alliance, UTZ)

Climate-Related Risks & Opportunities

Physical Risks

• Bad weather (drought, frost)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient practices

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: No external assurance process, but financial data audited by an independent company

Sustainable Products & Innovation

• GMT Green standard

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 24 growers joined GMT Green program.
• 12,050 seedlings planted in Mutua Project.
• 13 biodigestor septic tanks installed in Mutua Project.
• 6 hectares of vegetation recovered in Mutua Project.
• 25 springs protected in Mutua Project.

Social Achievements

• Admission of an Independent member to the company's Board of Directors.
• Harassment training for employees.
• Campaign to strengthen awareness regarding the Complaint Channel.
• R$15 million loaned to coffee producers through Big Trade.
• Donation of over 30,000 hygiene products to charities via Cafebras.

Governance Achievements

• Unified sales team across three companies.
• Reorganized governance structure.
• Acquisition of specific software for logistics.
• Consolidation of the Global Coffee Platform equivalence for GMT Green.
• Test shipments in compliance with European Union Regulations.

Climate Goals & Targets

Environmental Challenges

• Pandemic impact on international logistics.
• Russia-Ukraine conflict impacting agribusiness inputs.
• Drought and frost affecting Brazilian coffee market.
• Negative spreads on the New York Stock Exchange.
• Skyrocketing coffee prices impacting buyer orders.

Mitigation Strategies

• Investment in specific logistics software.
• Unified leadership structure across trading companies.
• Integration of support areas to reduce costs and improve efficiency.
• Proactive adaptation to market changes (short sales, minimal inventory).
• Development of GMT Green and Mutua programs to support growers.

Supply Chain Management

Responsible Procurement

• GMT Green program
• Mutua program
• Socio-environmental criteria for supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Frost

Transition Risks

• Changes in European legislation (Anti-Deforestation Law)

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• GMT Green recognized by ABIC's Sustainability Program