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Investor Presentaiton

ESSENCAL PLUS MATERIALS IHARA manages the purchase of raw materials and packaging via the system, following the production demand. In 2020, the company consumed 23,680t and 7,577,982 units of materials. These materials refer to the inputs used in the production process. In addition, these materials are divided into two categories: renewable and non-renewable, according to the tables below. RENEWABLE MATERIALS USED - GRI 301-1 2018 2019 2020 Material name Material type Volume/weight Volume/weight Volume/weight WASTE INTENDED FOR DISPOSAL, BY TYPE OF DISPOSAL OPERATION - GRI 306-5 Recycled plastic lids (unit) Recycled lids used to close finished product drums 3,979,700 4,772,200 7,570,950 Quantity (t) Hazardous Waste 2018 2019 2020 Recycled plastic drums (unit) Recycled packages/drums used in the packaging of finished products 240,512 227,184 0 Incineration (with energy recovery) Off-site 0 0 0 * In 2020 there was no purchase of recycled drums Incineration (without energy recovery) Off-site 371 98 73 Landfill Off-site 394 280 95 NON-RENEWABLE MATERIALS USED - GRI 301-1 Total 765 378 168 Non-Hazardous Waste 2018 2019 2020 Material name Material type Incineration (with energy recovery) Off-site 0 0 0 KOH solution - Herb (t) Neutralizing 2018 2019 2020 Volume/weight Volume/weight Volume/weight 5,730.59 9,116.34 11,097.82 Incineration (without energy recovery) Off-site 0 0 0 Landfill Off-site 344 221 122 Mineral oil (t) Raw material used in the compo- sition of finished product. 3,611.14 5,199.54 7,046.33 Total 344 221 122 5 and 20 l Mono and Coex drums; Plastic bottles and drums (unit) 250 ml and 1 l Mono and Coex flasks 3,706,643 6,771.03 7,031.95 In 2020, there was an increase in the generation of waste due to the deployment and operation of new production processes, mainly related to the Amicarbazone Synthesis Plant, which compromises comparability with data from previous years. The new processes differ from those that were already underway. Yet, they are also being monitored and make up the 2021 reduction goals. Mixture of decyl glycoside in 60% water sol. - Herb (t) Mixture of esters and ethoxylate fatty alcohol (t) Xylol (t) Surfactant Raw material 1,624.38 2,221.13 2,304.99 1,324.96 2,747.19 2,287.37 Solvent used in the manufacture of finished products 830.66 935.70 943.5 In May 2020, IHARA stopped disposing of waste hazardous and non-hazardous - for landfill, thus adopting co-processing, a more sustainable type of disposal. The company intends to apply this method throughout 2021, in order to zero the amount of waste destined for landfill. BIODIVERSITY GRI 304-2 As a way of reducing and or mitigating environmental impacts, IHARA fulfills all the requirements related to the en- vironmental licensing of new expansion projects, new equipment or new products, and the survey of environmental aspects and impacts is also carried out through LAIA (Ambiental Assessment Impact), in which the impact controls are inserted. All CETESB environmental requirements, included in the licenses, are controlled and implemented in order to reduce and mitigate potential risks of impacts by IHARA's activities. 42 ENVIRONMENTAL PERFORMANCE SUSTAINABILITY REPORT IHARA 2019 43
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