Sustainability Report 2021 slide image

Sustainability Report 2021

SUMMARY Presentation Message from Management The Águas do Brasil Group Integrity and Transparency Fostering Universal Access to Sanitation Water Security and Climate Change Efficient Water Cycle Our Utility Companies About this Report GRI Summary Corporate Information Message from Management 102-14 Strategy developments and sustainability By providing our services, we become part of the lives of millions of people, and, inevitably, the 2020 and 2021 exceptional periods confronted us with challenges never faced before. The soundness of our business and our ability to learn and adapt were fundamental attributes for us to overcome obstacles and maintain excellence in our work. In 2021, we had another year of assertive budgeting and earnings very much in line with forecasts, with an 11% growth in Ebitda compared to the previous year. We maintained cost discipline and managed our investments intelligently, in full compliance with contracts and attainment of goals. Fitch's reaffirmation of our AAA rating keeps us as the only sanitation company to have this distinction. We have further strengthened our focus on sound environmental, social, and governance (ESG) practices by formally developing our ESG Strategy. We brought together the initiatives already part of our portfolio and structured projects, actions, indicators, and targets to continue improving our reliable performance regarding critical resources for the planet and services fundamental to the population's dignity. We strengthened our governance structure and maintained ISO 37001 and ISO 19600 certification, demonstrating our commitment to ethics and compliance requirements. The publication of our first report using the GRI model is another step on the path to organizational transparency. Our commitments were recognized, in December 2021, by our adhesion to the United Nations (UN) Global Compact Network Brazil. We believe that the search for sustainability cannot be treated sporadically. On the contrary, it is a journey that involves the uniformity of procedures and the sharing of knowledge to reduce losses and impacts, preserve water security, and establish fair and lasting relationships among all stakeholders. These elements are directly related to our growth strategy, which is aligned with a crucial issue for Brazilian society: universal basic sanitation. For that matter, we are technically prepared and financially healthy to be part of this country's transformation. In this spirit, we celebrate our victory in the auction for the second phase of the basic sanitation concession in Rio de Janeiro. Cedae's Block 3 involves 19 cities in the state of Rio de Janeiro, including 22 districts in the city of Rio de Janeiro, adding 2.7 million consumers to the group, and should receive investments of BRL 4.7 billion over a 35-year contract period. In this area, universal sanitation will be reached as early as 2033. These achievements result from effective management and especially the dedication of our employees, who make daily efforts to impact the lives of the population positively. In 2021, Águas do Brasil Group was certified by Great Place to Work (GPTW), which recognizes the best work environments in 109 countries. Satisfaction with our advances in the year does not suspend our care for what is yet to come. We are attentive to economic movements and the worsening of climate change, and we remain vigilant to the unfolding health crisis caused by the pandemic. Consequently, we have not renounced the responsible and sustainable growth strategy: our business continues to be driven by execution and delivery of excellence. João Pedro Backheuser Chairman of the Board of Directors Sustainability Report 2021 7
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