Sustainability Report 2021 slide image

Sustainability Report 2021

SUMMARY Presentation Message from Management The Águas do Brasil Group Integrity and Transparency Fostering Universal Access Water Security to Sanitation and Climate Change Efficient Water Cycle Our Utility Companies About this Report GRI Summary Corporate Information GOVERNANCE ADVANCES IN 2021 New Board of Directors, with the admission of two new directors, one independent director, and a lawyer who specialized in governance and compliance. At the end of the year, the Board consisted of five male members (83%) and one female member (17%), four members over the age of 50 (67%), and two members between the ages of 30 and 50 (33%). A new chairman was elected. 405-1 Board meetings are now held bi-monthly, with a scheduled agenda. The committees were restructured, and all are made up of directors. This brought greater formalization of governance structures, strengthening the Board's action. Increased transparency and availability of information to the market. To recognize the role of the executives in the management of the utility companies, the superintendents are now accountable as officers, reinforcing their duties in the local conduct of business and their institutional representation before the municipalities and regulatory agencies. In line with the vision of continuity and future growth, the Group's holding company acquired Queiroz Galvão Desenvolvimento de Negócios' equity interest (12.30%) in December 2021. Thus, the company ended the year with Developer S.A. (80.84%) and New Water Participações (19.16%) as shareholders. 102-10 Management of the utility companies The refinement of governance, compliance and management structures is an ongoing process in the organization and is part of the basis of its corporate license to operate. The Group's main strategic decisions are taken collectively at the highest level of its management, based on the planning approved by the Board of Directors. Once the strategic decisions have been made, the corporate boards are responsible for implementing them with the utilities. Compliance and risk management |102-15, 103-2, 103-3, 205-1 | 419 With a solid track record in managing operational, administrative-financial, legal, and compliance risks and managing quality, health, safety, and environmental risks, the Group seeks to unify risk management structures to improve the system. Annually, the company prepares a risk matrix to assess and create compliance risk mitigation mechanisms, which include 12 concessions², also subject to the area's processes and procedures. Specific policies are created for each risk identified, such as those related to contracting third parties and forming a commercial partnership. The company was the first private sanitation company in Brazil to obtain certification in accordance with the ABNT NBR ISO 37001:2017 Anti-Bribery Management Systems and certification of ISO 19600:2014 - Compliance Management System. There were no significant administrative or judicial sanctions for non-compliance with laws and regulations in the socioeconomic area in the three-year period 2019 to 2021. 419-1 In 2021, in line with the requirements and good practices of transparency and integrity of the market, Grupo Águas do Brasil completed the second wave of the Risk Management and Internal Controls (GRCI) project. The project aims to develop routines that allow the correct and timely identification of risks inherent to corporate processes and the deliberation of necessary corrective actions. Among the risks assessed are those of an environmental, financial, legal, and operational nature, in addition to compliance and strategic risks. The implementation of the model, which continues with the third wave in 2022, is aligned with strategic programs and, mainly, with the strategic guidelines for efficient and sustainable growth, in the dissemination of the risk management culture. Independent and linked to the Sustainability Report 2021 2 Does not include Zona Oeste Mais Saneamento. 21 21
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