Integrated Report / JSL 2021 slide image

Integrated Report / JSL 2021

JSL INTEGRATED REPORT / JSL 2021 ENTENDER PARA ATENDER INTRODUCTION JSL PLANNING AND FUTURE PEOPLE AND CULTURE BUSINESS IMPACT ENVIRONMENTAL MANAGEMENT CLIMATE CHANGE: OUR APPROACH FINANCIAL PERFORMANCE GRI AND SASB SUMMARY ASSURANCE REPORT CLIMATE-RELATED OPPORTUNITIES AND FINANCIAL IMPACTS Type of opportunity Opportunity Geographic Sector / region Area Resource Efficiency Diversification Power supply of the energy matrix هه Potential Impact Time horizon Probability Impact Magnitude Estimated Financial Potential Explanation of Estimated Implementation Implementation strategy Financial Potential cost Adaptation or mitigation activity REDUCTION IN DIRECT COSTS. Level of dams below the minimum limits necessary for energy production contribute to the reduction of the security of the electric energy supply to the Company, causing an increase in the vulnerability of the Company's operations in the face of the availability of electric energy in a scenario of complete dependence (100%) of energy consumption directly from the National Interconnected System (SIN). In addition, this scenario also causes an increase in energy operating costs, which results in a direct increase in electricity tariffs from the SIN, negatively impacting the Company's operating budgets. Faced with this scenario, JSL identified the opportunity to diversify its energy matrix, enabling internal investments to implement other forms of energy production, with the objective of progressively reducing the energy acquired from the SIN by prioritizing the implementation of clean and renewable energy in its facilities. Short term Very probable Medium- high Not calculated We do not have an estimated value of the financial impact arising from the risk Not calculated Analysis and diversify its energy matrix, enabling internal investments to implement other forms of energy production, with the objective of progressively reducing the energy acquired from the SIN by prioritizing the implementation of clean and renewable energy in its facilities. 103
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