Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Agenda
• Environmental Agenda
• Economic & Governance Agenda

Environmental Achievements

• Increased organic production to 66.35% of output (12.80% increase from the previous year)
• Expanded use of vinasse to 80% of planted area (12.75% increase from the previous year)
• Used organic compost in 100% of sugarcane planting
• Zero effluent discharge due to 100% effluent reuse in fertigation

Social Achievements

• Launched Leader Development Program (PDL)
• Implemented salary surveys
• Commemorated special dates with campaigns (Women’s Day, Pink October, Blue November, Yellow May)
• Participated in the GPTW program
• Established Jalles Machado educational foundation
• Provided subsidized recreational club for employees and their relatives

Governance Achievements

• Established an Audit Committee committed to analyzing risks and business opportunities, including climate change
• Established a Financial Committee responsible for financial policies, annual goals, budget, investments, and divestments
• Established a Sustainability practice committed to climate change issues, reporting directly to the CEO
• Defined ESG 2030 metrics, including climate change indicators

Climate Goals & Targets

Environmental Challenges

• Shortage of natural resources (water)
• Climate risks (forest fires, extreme temperatures, water shortages)
• Seasonal factors affecting sugarcane harvest and production
• Demand forecasting challenges
• Risks related to loss of revenue, non-compliance, loss of competitiveness, product non-compliance, and inability to meet demand

Mitigation Strategies

• Investments in new agricultural techniques to reduce water dependence
• M&A process to mitigate risks related to natural resource scarcity
• Requesting water licenses above requirements
• Building water impoundments to harvest rainwater
• Implementing controls over misappropriation of materials
• Hierarchy reorganization to eliminate conflicts of interest
• Using security tools to intercept fraudulent emails
• Organic production, precision agriculture, Industry 4.0 technology

Supply Chain Management

Supplier Audits: 33 audits (2021/2022)

Responsible Procurement

• Social impact assessment of all suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires
• Extreme temperatures
• Water shortages and droughts

Transition Risks

• Taxes on products due to carbon footprint
• Electrification of cars
• Changing consumer preferences for sustainable products
• Loss of brand value due to lack of Paris Agreement alignment

Opportunities

• Revenue from organic, sustainable, and healthy products
• Revenue from CBIOS credits (Renovabio Program)
• Lower expenses on chemical inputs
• Resource efficiency and higher productivity

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, Bonsucro, Renovabio, Fair Trade IBD, SEDEX/S-target, NON GMO

Third-party Assurance: KPMG (financial), BVQI (non-financial), Bureau Veritas (GHG inventory)

Sustainable Products & Innovation

• Organic sugar
• Organic ethanol
• Bioelectricity

Awards & Recognition

• Elected as one of the 100 most influential personalities in the energy sector in Brazil
• Participation in the united by the vaccine movement
• Elected one of the 500 most influential people in Latin America
• President of the Goiás State Association for Industrial Development
• Director of the Goiás State Federation of Industry
• Elected one of the most influential personalities in the National bioenergy sector
• Tribute from EY in the entrepreneur of the year program in Brazil