Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable agriculture
• Business ethics and integrity
• Innovation, quality and portfolio security
• Occupational health and safety
• Responsible credit policy
• Food safety
• Climate change

Environmental Achievements

• Implementation of a traceability program for customers and suppliers, with recognition by means of the Lavoro Seal.
• Innovation in biological solutions, low carbon inputs, foliar fertilizers and organo-mineral fertilizers.
• Expand its private label portfolio with lower environmental impact (toxicity, packaging, CO2 emissions)
• Cut illegal deforestation down to zero in the value chain by 2025
• Reduce environmental impact through packaging, private label and reverse logistics strategies

Social Achievements

• Achieved Great Place to Work (GPTW) recertification, with a 5-point increase.
• 91% of employees expressed pride in belonging to Lavoro.
• Support for charity initiatives, such as food donation campaigns, solidarity planting and harvesting.
• Women's Week was held, the Você+ Program was launched, and the company joined the federal government's (Brazil) Citizen Company program to offer extended parental leave
• Reduced voluntary turnover rate by 10%

Governance Achievements

• Robust governance, risk management and internal control structure.
• Implementation of cross-cutting ESG Targets.
• Ensure formal anti-corruption mechanisms in all forms of management
• Earn recognition for operational excellence practices

Climate Goals & Targets

Environmental Challenges

• Global challenges, especially the Russia-Ukraine conflict and the ongoing Covid-19 pandemic, combined with local challenges, have tested and proven the resilience of Lavoro's business model.
• The pandemic disturbed the supply of inputs on a global scale, especially key categories such as herbicides.
• Russia's war situation against Ukraine impacted fertilizer supply (10-15% of total).

Mitigation Strategies

• Sometimes, this implied higher costs, not passed on to customers, honoring commitments previously negotiated.
• Diversify the inventory of a same input with different suppliers.
• Limited the acquisition of NPK of Russian origin to one-off purchases.

Supply Chain Management

Supplier Audits: 100% of priority suppliers engaged in Lavoro's Sustainability Policy by 2025 (target)

Responsible Procurement

• Code of Conduct and Ethics; Code of Conduct for Suppliers and Customers; Input Purchasing Policy; due diligence procedures for suppliers and third parties.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Changes in government policies affecting the agricultural sector

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Essential option

Certifications: Great Place to Work®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 15 (Life on Earth)

Lavoro's initiatives contribute to these goals through sustainable agriculture practices, ethical business conduct, employee well-being, community investment, and environmental protection.

Sustainable Products & Innovation

• Biological inputs; specialty fertilizers; Essenziale line of specialty fertilizers; biodefensives.

Awards & Recognition

• Great Place to Work® Certification