Management Report 2020

SLC Agrícola Management Report 2020 Communities Our actions to foster local development were expanded in 2020 with the creation of the SLC Institute, which was conceived by the SLC Group (our shareholder) and is responsible for managing the funds we allocate to Private Social Investment (PSI). Created as a non-profit organization, the SLC Institute focuses on developing people and communities by supporting education as an important vector of social transformation and opportunity creation. In 2020, its initiatives focused on cooperation in combating the coro- navirus pandemic, with donations amounting to R$1.6 million. Of this amount, R$1 million came from the own funds of SLC Agrícola. Com- bined with the funds involving tax incentives allocated to social pro- jects in 2020, the Company's total social investment last year came to R$2.9 million. One of these was the Entrepreneur Project, which works to reduce dropout rates through educational initiatives that foster knowledge, self-esteem and better communication between students and teachers. Suppliers Our suppliers are a strategic link in our goal of reaching maximum efficiency and production in our operations. The relations we build with suppliers help us to find innovative solutions that drive the entire production chain towards more sustainable operation in terms of economic, social and environmental impacts. Guided by the Procurement Policy, we require these partners to adopt conduct that is aligned with our values, comply with legisla- tion and fully incorporate respect for human rights. Our Ethics Channel also is open to receiving reports on the improper behav- iors and attitudes of our commercial partners. All suppliers undergo an approval process that involves verifying the documents attesting to their legal compliance and, depending on the case, specific evaluations in the areas of Health, Safety and Environment. We also monitor the payment of all labor contribu- tions and taxes and other obligations related to employment con- tracts involving outsourced companies, whose compliance is nec- essary for approving the payments to these partners. 58

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