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Investor Presentaiton

98 NATURAL CAPITAL ENVIRONMENTAL MANAGEMENT GRI 103-1, 103-2, 103-3 | 307 2021 INTEGRATED ANNUAL REPORT Our environmental strategy focuses on minimizing environmental impacts stemming from our activities and combating climate change, guided by the concept of sustainable development and complying with applicable legal provisions. The Company is committed to the Sustainable Development Goals (SDGs) and the Principles of the Global Compact, with emphasis on 7 (preventive approaches to environmental challenges), 8 (initiatives to promote increased environmental responsibility), 9 (development and diffusion of environmentally friendly technologies) and 13 (urgent measures to combat climate change and its impacts). We have a standardized management tool, focused on environmental demands and on monitoring developments, called Environmental Rating. We also have a qualified multidisciplinary team managing the topic at the units. In addition, the entire management system implemented complies with the requirements of ISO 14001, an internationally recognized standard that guides the best practices in Environmental Management. The Company also performs internal and external audits to assess compliance with legal requirements and the effectiveness of its management system. GRI 103-2, 103-3 | 307 In 2021, six non-compliances with environmental laws and regulations were recorded regarding: Jaboatão dos Guararapes/PE unit is ISO 14001 certified Two non-monetary notices requesting specific documents; Notice of infraction with a fine for cutting vegetation, in excess of what was licensed during construction; Notice for inappropriate waste disposal by a commercial partner (case still under investigation); Debt notice for the environmental control and inspection fee - TCFA (case still under investigation); Notice of infraction for failing to submit documentation (judged unfounded, as the company has proof of delivery). R$ 47,761.89 were paid in fines related to environmental aspects. Considering the cases that are under investigation, the amount is R$ 133,981.27. In the last three years, there have been no records filed through arbitration means. GRI 307-1 CLIMATE CHANGE GRI 201-2 Climate change is a material topic that is part of the Sustainability Agenda established by M. Dias Branco. In 2021, the Company achieved a B-rating in CDP ranking, with progress in all categories covered, evidencing its maturity in risk management related to the topic. In 2020, the Company's rating was D, and CDP requirements were also included into its Sustainability Policy. Management of climate risks was strategically analyzed to define actions focused on reducing and controlling risks considered in the matrix, as well as identifying opportunities based on the new climate scenario. Materiality analysis used as a reference considered the particularities of our segment, including physical and transition risks. Among the main climate risks identified by the Company, the following stand out: Intensification of droughts and water scarcity, which can affect the supply chain, impact the price and availability of commodities; Intensification of rainfalls may result in physical damage to properties, machinery and equipment; Rising fuel and energy costs, including considering the implementation of carbon pricing initiatives. In addition, during the year, Climate Change Working Group (WG) defined climate change management guidelines and emission mitigation strategies relating to SDG 13 (Climate Action). It also completed the 1st stage of M. Dias Branco's Emissions Management System (GHG) implementation. Thus, the Company intends to advance towards defining science-based targets (Science Based Targets Initiative). Evolution of M. Dias Branco score at CLIMATE CDP Leadership Management Knowledge Disclosure A- B B- M. Dias Branco C C- D D- Source: Carbon Disclosure Project (CDP) Solar energy panels in Eusébio/CE
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