Climate Change Data

Environmental Metrics

ESG Focus Areas

• Healthy and safe working conditions
• Customer relations and satisfaction
• Research and innovation
• Human capital development
• Business ethics and integrity
• Climate change and greenhouse gases (GHG) reductions
• Regulation and compliance
• Impact in the regions where we operate

Environmental Achievements

• 22% thermal substitution rate globally (29% in Brazil) in alternative fuels, reducing CO2 emissions by 947,013 tons.
• 22.6% reduction of CO2 emissions compared to the base-year (1990).

Social Achievements

• Launched diversity manifesto.
• Invested R$ 18.4 million in social initiatives.
• 19,000 people benefited by the Corporate Volunteer Program in Brazil.
• Average of 21.75 hours of training per employee.

Governance Achievements

• Created an integrated department of Governance, Risks, Compliance and Global Audit.
• Contracted a new Facility with Sustainability Linked Loan (SLL) provisions in the amount of US$ 290 million.

Climate Goals & Targets

Environmental Challenges

• Severe economic crises in Argentina and Turkey, complex political scenario in Bolivia and lower demand in Uruguay, lower-than-expected growth in Brazil.
• Death of a contractor in one of our plants in Morocco.

Mitigation Strategies

• Strategy of geographic and product diversification.
• Improved corporate governance.
• Investments in energy substitution processes.
• Creation of new business units (Verdera and new aglime brand).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Local suppliers account for 48% of supply spending.
• Certification process for suppliers (environmental and social criteria).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy sources

Reporting Standards

Frameworks Used: IIRC, GRI Standards: Core option, GCCA guidelines, Global Compact principles, UN Sustainable Development Goals (SDGs)

Certifications: ISO 45001:2018 (Imbituba Port terminal)

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16

The report aligns its material topics with the UN SDGs.

Sustainable Products & Innovation

• Lightweight concrete
• E-40 cement (using slag)
• High-strength CP-V cement

Awards & Recognition

• Anamaco Awards
• Best Places to Work
• WBCSD Integrated Report Award
• Época Negócios 360° Award
• Valor Innovation Brazil
• Transformers Latin-American Award
• Clemente Greco Awards
• NAOS Strategy Award
• UEPG Sustainable Development Award
• IHSA Achievement Award
• OSSGA Awards
• Slag Cement Project of the Year Award
• Great Place to Work® Bolivia
• MERCO

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Ethics, integrity and transparency
• Diversity and inclusion
• Safety, health and well-being
• Innovation and technology
• Climate change
• Responsible use of materials and circular economy

Environmental Achievements

• Reduced net CO2 emissions by 4%, from 579 kg of CO2/tonne of cementitious material in 2022 to 556 kg of CO2/tonne of cementitious material in 2023.
• Achieved a 30.9% thermal substitution rate globally (4.4 percentage points increase compared to 2022).
• Reduced global cement clinker factor to 72.8% (from 73.9% in 2022).
• Increased renewable energy share to 35.1% globally (from 22.9% in 2022).
• Inaugurated Ventos do Piauí wind farm in Brazil (55 MWm).

Social Achievements

• Increased percentage of women in leadership positions to 22.8% globally.
• More than 1,700 recognitions for embracing Our VC Way.
• R$19.8 million in external social investments globally (9% increase compared to 2022).
• Launched the “My Company” tab on LinkedIn to increase employee engagement.
• Held the 1st Meeting of Traditional Communities in Brazil.

Governance Achievements

• Improved MSCI ESG Rating to A.
• Received an ESG Risk Rating of 21.9 from Sustainalytics.
• Received an A score from CDP for climate performance.
• Updated Code of Conduct to include human rights, diversity, and anti-discrimination.
• Established Sustainability and Innovation Committee.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and market uncertainty.
• Geopolitical tension and social disruption.
• Extreme weather events.
• Supply chain and logistics challenges due to macroeconomic factors and extreme weather events.

Mitigation Strategies

• Balanced geographic portfolio exposure.
• Growth of new businesses with sustainable solutions.
• Robust competitiveness and decarbonization plan.
• Investments in competitiveness, modernization, decarbonization, and business development (R$2.4 billion in Capex).
• Efficient margin management.
• Sustainability-linked financing agreements (US$150 million with IFC).

Supply Chain Management

Supplier Audits: 100% of suppliers go through a homologation process via the SIPM Ariba platform, including environmental and social criteria.

Responsible Procurement

• ESG aspects considered in supplier selection.
• Focus on local sourcing (53.8% of expenses with local suppliers).
• Sustainable Procurement Program.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes (carbon pricing), market shifts

Opportunities

• Development of energy-efficient products and processes (e.g., blended cements, hydrogen injection).

Reporting Standards

Frameworks Used: IIRC, GRI Standards, GCCA guidelines, SASB for Building Materials, TCFD

Certifications: ISO 14001:2015 (Environmental Management System), ISO 45001 (Occupational health and safety), ISO 50001 (Energy Management)

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Votorantim Cimentos' initiatives contribute to these goals through decarbonization efforts, sustainable product development, community engagement, and responsible resource management.

Sustainable Products & Innovation

• Envirocem (Portland Limestone Cement)
• GULbs (Portland Limestone Cement with additional slag)
• CP-IV cement (Brazil)
• Spectra concrete
• Viter agricultural solutions

Awards & Recognition

• ABERJE Award
• ANAMACO Awards
• ECO Awards
• Valor Innovation Brazil
• Agro Vision Awards
• The Best of Dinheiro 2023
• Companies that Best Communicate with Journalists
• 8th Best Companies in Customer Satisfaction Award
• Diversity Leading Company
• Energy Star certification
• Energy Manager Award
• Environmental Excellence
• Época Negócios 360º
• Estadão Best Company Award
• Exame Best and Largest
• Exame Best ESG
• Excellence on Concrete Construction Award
• Family-Friendly Company (EFR)
• Gold Seal GHG Protocol
• Great Place to Work
• Progressive Rehabilitation
• Stevie Awards
• Top of Mind
• Top Employer 2023
• Valor 1000