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 RISKS AND FINANCIAL IMPACTS Sector / Type of Risk transition risk Geographical Area region Potential Impact Time horizon Probability Impact Magnitude Estimated Financial Impact Explanation of the Financial Impact Cost of risk response Replacement of existing products Technological and services with options that emit less GHG - Products and services; - Supply chain and/or value chain; - Adaptation and mitigation activities; - Investment in research and development; - Operations (including types of operations and location of facilities); - Acquisitions or divestitures. INCREASE IN DIRECT COSTS. The insertion of electric vehicles in the market is still less real than one would like, especially when heavy trucks are mentioned. The vehicles sold in Brazil are almost entirely powered by internal combustion engines and the automobile industry still does not have operational and commercial conditions to enable the production of vehicles with more efficient, economic and ecological technologies. In this way, the supply of less polluting vehicles on a large scale by the automotive industry to logistics/transport companies is practically non-existent, which is a challenge to ensure a significant participation in the SIMPAR group's 15% reduction target, of which the largest part of the emissions comes from JSL. This risk may, in a medium and long term scenario, result in high internal costs for the company to be able. to satisfactorily achieve the public commitment. Long term R$ Probable High Mitigation and Adaptation Measures هه 514,000,000.00 The potential financial impact was estimated considering the possible internal cost that the Company will have in the long-term scenario to enable and invest in technologies that aim to ensure the lowest emission of polluting gases in the fleet, such as: electric trucks and buses, telemetry, trucks powered by biomethane and to NGV. To estimate the potential financial impact, it was considered that 1 electric truck costs R$ 950,000.00, 1 electric bus costs R$ 1,100,000.00. Telemetry requires an investment of R$100.00 in addition to R$69.00 monthly fee, biomethane trucks cost R$930,000.00 and the installation of the gas kit requires an investment of R$54,000.00 per vehicle. Therefore, considering the technology application scenario for the next 10 years, R$514 million would be needed. R$ 410,000,000.00 The response to risk implies the acquisition of vehicles and technologies that promote the lowest emission of greenhouse gases. To do so, the amount to be invested in these products over the next 10 years was considered. 101
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