Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water
• Energy
• Biodiversity
• Professional Training/Education
• Economic Performance
• Human Rights
• Diversity and Inclusion
• GHG Emissions
• Corporate Ethics
• Solid Waste and Effluents
• Occupational Health and Safety

Environmental Achievements

• Reduced water consumption by 83 million liters/year
• Reduced energy consumption by 11 thousand MWh/year
• Offset 30 thousand tons of CO2/year
• Used 6.8 thousand tons of recycled cotton fibers

Social Achievements

• Invested BRL 155,000 in social development, culture, and sports projects impacting 5,350 people
• Reduced consultations at PraSer Humano (psychological and social service channel) indicating improved employee mental health
• Trained 6,500 employees across three continents
• Donated a 15m³ oxygen plant to Raimundo Célio Rodrigues Municipal Hospital

Governance Achievements

• Strengthened governance structure through the creation of new policies and advisory committees to the Board of Directors
• Developed five new policies (Financial, Dividend, Cotton Risk Management, Investment, and Related Party Transactions)
• Created four committees to support the Board of Directors (Financial and Risk Management, Innovation and Investment, Commercial and Cotton, and Personnel and Remuneration)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the global economic deterioration and the effects of the health crisis
• Rising raw material costs
• Logistical issues during the pandemic
• Water stress in some operational areas

Mitigation Strategies

• Diversified risks and captured opportunities
• Strengthened health, safety, and quality of life initiatives
• Maintained full production capacity
• Developed alternative sourcing strategies
• Improved water treatment processes and reuse initiatives
• Public-private partnership with Cagece to reduce water consumption in Pacajus

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Better Cotton Initiative (BCI)
• Responsible Brazilian Cotton (ABR) program
• Inspection of environmental documents of suppliers for hazardous waste treatment and transport services

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: OEKO-TEX Standard 100, ISO 9001, ISO 14001, RCS, GRS

Third-party Assurance: PWC – PricewaterhouseCoopers Auditores Independentes Ltda.

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 12 (Responsible Consumption and Production)

Initiatives related to water efficiency, sustainable fabrics, waste reduction, and community engagement.

Sustainable Products & Innovation

• V. Absolut Eco denim (recycled fibers, reduced water and chemical consumption)
• Anti-covid jeans
• Sustainable collection with recycled cotton, Lyocell yarn, LYCRA® EcoMade yarn, recycled polyester, and EarthColors® dyes
• Hemp jeans
• Anti-odor jeans

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Started operations at VSA Tratamento, a water treatment facility reducing chemical, water, and pollutant emissions.
• Reduced detergent concentration in a Denim Color desizing line.
• Reached 30% waste to landfill reduction goal.
• Implemented indigo bath automation project reducing water and chemical consumption.

Social Achievements

• Launched a new Code of Ethics and Conduct and Anti-Corruption Policy with employee training.
• Launched the "PraSer Vicunha" health and safety program in Argentina and Ecuador.
• Hired 14 migrants from Egypt, Guinea-Bissau, and Venezuela.
• Invested over BRL 713 thousand in the Pescar Project.

Governance Achievements

• Appointed a new independent director, João Carlos de Nóbrega Pecego.
• Created the Expanded Steering Committee, including managers from Argentina and Ecuador.
• Launched the Consequence Policy for standardized decision-making on achievements and violations.

Climate Goals & Targets

Environmental Challenges

• High interest rates, informality in the segment, and high cost of credit for investments.
• Political crises in Ecuador and Argentina.
• Wars in Ukraine and the Middle East affecting the textile market.
• Changes in end-customer preferences.

Mitigation Strategies

• Maintaining responsibility for sustainability in business.
• Investing in V.Laundry for agility in serving customers.
• Expanding operations with a new spinning facility in San Juan, Argentina.
• Adapting production to meet changing customer preferences.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing suppliers participating in the Responsible Brazilian Cotton (ABR) program and Better Cotton Initiative (BCI).
• Partnering with suppliers holding the Canopy environmental responsibility seal.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, Oeko-Tex Standard 100, Regenagri®

Third-party Assurance: PwC - PricewaterhouseCoopers Auditores Independentes Ltda.

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 12

Vicunha's commitments align with SDGs 3 (Good Health and Well-being), 6 (Clean Water and Sanitation), and 12 (Responsible Consumption and Production).

Sustainable Products & Innovation

• V.Eco Absolut
• Products made with cotton from regenerative agriculture
• Products with Less Water seal
• Products with Less Chemical seal
• Products with Pet Made seal
• Products with Recycle seal
• Products with Recovered seal
• Products with Regenerative seal
• Products made with hemp

Awards & Recognition

• Exame "Melhores e Maiores" Award