Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 9.8% (207,000 tons of CO2eq) by replacing fuel oil with natural gas in pellet plants.
• Fourth pellet plant project (P4P) will be the first of its size in Brazil with full neutralization of carbon emissions during construction.

Social Achievements

• Voluntarily invested R$ 6.9 million in social projects focused on education, culture, and income generation, benefiting 840,000 people.
• Achieved the lowest accident frequency rate ever (0.49) with no fatal accidents for four years.

Governance Achievements

• Implemented corruption and fraud prevention policy and antitrust compliance policy.
• Annual Sustainability Report received the GRI “A+” seal for the fourth consecutive year.

Climate Goals & Targets

Environmental Challenges

• Hiring qualified labor in a context of economic growth and vast job opportunities.
• Global economic instability impacting all markets.

Mitigation Strategies

• Investing in training local workers to upskill those living near industrial facilities.
• Investing in capacity to anticipate the future, applying technology to optimize natural resource use, respecting the environment, and generating economic and social development.

Supply Chain Management

Supplier Audits: 21 service suppliers audited annually on CSR criteria.

Responsible Procurement

• Local procurement (40.1% of total purchases)
• Clauses in contracts prohibiting child labor and forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Reporting Standards

Frameworks Used: GRI G3, Mining and Metals Sector Supplement

Third-party Assurance: KPMG Auditores Independentes

Sustainable Products & Innovation

• New limestone and bentonite mixture for pellet coating

Awards & Recognition

• Best Mining Company in Brazil (Exame magazine)
• Transparency Trophy 2011 (Anefac)
• Lean Six Sigma Excellence Award
• Hugo Werneck Award of Sustainable Partner 2011
• José Costa Award
• 7th Brazil Environmental Award (Amcham)

Environmental Metrics

ESG Focus Areas

• Governance and ethics
• Risk management
• Safety and geotechnics
• Remediation
• Sustainability
• People and diversity
• Respect for life
• Environmental efficiency
• Communities

Environmental Achievements

• Recirculated around 88.4% of all water used in its process
• Implemented water monitoring by the COI – Integrated Operations Center, with monitoring of the quality of water bodies 24/7
• Installed the Automatic Particle Monitoring Network (RAMP) in nine points at the Germano dam
• Actively working in the environmental offset of its activities and around 12 thousand ha of native vegetation have already been protected

Social Achievements

• Launched diversity program
• Samarco Culture Program increased employee favorability in the Climate Survey to 90.2%, ranking 1st in the steel and mining sector and 22nd overall in the Amazing Places to Work in 2021 award.
• Invested BRL 7.1 million voluntarily, via institutional and social investments
• 53% of direct hires were from local labor markets in Minas Gerais and Espírito Santo

Governance Achievements

• Participatory review of Samarco’s Code of Conduct and compliance policies
• Ombudsman received 321 reports in 2021
• 1,770 hours of training provided on the Code of Conduct and other Compliance policies in 2021

Climate Goals & Targets

Environmental Challenges

• Coping with the Covid-19 pandemic
• Environmental licensing processes
• Relations with communities
• Company’s image and reputation
• Judicial reorganization process
• Compensation and resettlement challenges related to Fundão dam failure
• Labor productivity
• Evolution of organizational culture
• Safety
• Knowledge management
• Resumption of the performance process

Mitigation Strategies

• Maintained preventive actions to protect employee and contractor health
• Implemented the three-lines-of-defense model for risk management
• Implemented the Samarco Culture Program
• Implemented new technologies for tailings disposal (filtration system)
• Filed a request for judicial reorganization to renegotiate debt
• Actively participating in discussions about the renegotiation of remediation actions within the scope of the TTAC
• Signed a Term of Commitment with the Government of Minas Gerais to ensure completion of decharacterization of company structures within an appropriate timeframe

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Awards & Recognition

• Amazing Places to Work 2021

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Risk management
• Ethics and human rights
• Our people
• Social dialogue and communities
• Suppliers
• Government and institutions
• Safety
• Innovation
• Emissions, climate and decarbonization
• Water resources
• Energy
• Tailings and by-products
• Biodiversity
• Diversity, Equity & Inclusion
• Human Rights

Environmental Achievements

• Reached 88% water reuse in the production process.
• Reduced energy consumption by 280,642 GJ in Ubu and 145,713 GJ in Germano.
• Achieved 89% compliance with the Global Industry Standard for Tailings Management (GISTM).

Social Achievements

• Invested BRL 10.7 million in voluntary socio-institutional actions in Minas Gerais and Espírito Santo.
• Launched Diversity, Equity & Inclusion Program, resulting in 70 women hired in 2023.
• Provided more than 88.7 thousand hours of training.
• Achieved lowest accident frequency rate in operational history (0.47) and zero lost-time accidents.

Governance Achievements

• Launched Code of Conduct for Suppliers.
• Developed Human Rights Policy.
• Reviewed Corporate Risk Management Policy.

Climate Goals & Targets

Environmental Challenges

• Decarbonization agenda.
• Global water management challenges.
• Judicial reorganization proceeding.
• Volatile macroeconomic scenario with fluctuating ore prices and international conflicts impacting energy costs.
• Covid-19 pandemic.
• Market volatility due to geopolitical tensions.

Mitigation Strategies

• Preparing decarbonization plan with reduction targets in Scopes 1 and 2.
• Optimizing reuse and recirculation processes for water.
• Maintaining respectful and transparent dialogue with creditors.
• Consolidating operational restart with stability and operational safety.
• Investing in innovative solutions for tailings and overburden management.
• Developing a specific governance to support the Strategic Sustainability Program.
• Investing in experimental landfills and a filtration plant to prepare for a new phase of the Dry Stacking project.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Supplier Assessment Program
• Força Local Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), UN Global Compact Ten Principles, UN Sustainable Development Goals (SDGs), ICMM sustainability principles

Third-party Assurance: KPMG Auditores Independentes

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

Samarco's initiatives contribute to these goals through various programs and actions detailed in the report.

Awards & Recognition

• Amazing Places to Work (1st in mining, metallurgy and steel industry)
• Ibram Best Practices in Mining Award (Mental Health case)
• BHP HSEC Awards (finalist)

Environmental Metrics

ESG Focus Areas

• Ethics, governance and transparency
• Tailings: disposal management and mitigation of impacts caused by the dam collapse
• Community engagement and participation
• Safe, sustainable and responsible production
• Human and organizational development
• Water
• Biodiversity
• Climate change

Environmental Achievements

• Achieved 95% compliance in the Environmental Performance Index (IPA)
• Nearly 50% drop in the volume of disposed effluents
• 77.3% of waste sent for recycling
• 100% of our electrical energy purchased comes from renewable and traceable sources
• 17 thousand hectares of area covered by biodiversity preservation initiatives
• Completed de-characterization of the Germano Pit

Social Achievements

• BRL 1 billion in purchases made with local suppliers through the Força Local Program
• BRL 12 million in voluntary investments (socio-institutional/PIIS)
• 46.8% of women hired by the Company
• More than 80.2 thousand hours of training provided
• Recognized for the third consecutive year in the Amazing Places to Work award

Governance Achievements

• Construction and completion of the Strategic Sustainability Program 2023-2032
• Structuring an Internal Sustainability Committee linked to the Executive Board
• 100% of employees underwent training on the Company’s Code of Conduct and anticorruption policies
• Approval of the Judicial Reorganization Plan
• Achieved 98% adherence to the Global Industry Standard for Tailings Management (GISTM)

Climate Goals & Targets

Environmental Challenges

• Remediation of the Fundão dam collapse
• Gradual recovery of full production capacity
• Addressing climate change risks and opportunities
• Maintaining operational stability and safety
• Strengthening relationships with stakeholders

Mitigation Strategies

• Allocated BRL 6.6 billion to programs carried out by the Renova Foundation
• Investment plan to reach 60% capacity in 2025 (BRL 1.6 billion in 2023, BRL 2 billion planned for 2024)
• Strategic Sustainability Program with 122 indicators
• Focus on minimizing or eliminating the use of tailings dams
• Continuous improvement programs and innovation projects

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Força Local Program; Supplier Code of Conduct; ESG Journey; Supplier Assessment Program

Climate-Related Risks & Opportunities

Physical Risks

• Changes in rainfall and climatological patterns; extreme events affecting costs, assets, and market dynamics

Transition Risks

• Regulatory changes; market shifts towards a low-carbon economy

Opportunities

• Innovation in processes and solutions; competitive differentiation; new business opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD, UN Global Compact, ICMM Principles, Integrated Reporting Framework

Certifications: ISO 31000 (Risk Management), GISTM (Global Industry Standard for Tailings Management)

Third-party Assurance: KPMG Auditores Independentes

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

Samarco's initiatives contribute to these goals through various programs and actions related to environmental protection, social development, economic growth, and good governance.

Sustainable Products & Innovation

• Dry Stacking project; use of marble mining waste in pellet production; use of charcoal as sustainable input

Awards & Recognition

• Amazing Places to Work; Gold Seal of the Brazilian GHG Protocol Program; BHP HSEC award