Integrated Report / JSL 2021 slide image

Integrated Report / JSL 2021

JSL 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 INTEGRATED REPORT / JSL 2021 ASSURANCE REPORT JSL maintains partnerships with vehicle manufacturers focused on investments in R&D, with the objective of enabling the use of alternative energies. The company also seeks to make projects viable in partnership with its customers, with a focus on mitigating and offsetting emissions. For its operations, the Company developed a study to implement the Renewable Energy Project, to define the best source of energy for each branch. In addition, the company maintains a fleet of vehicles with low average age, today one of the newest in the country (about three years, against a national average of approximately 19 years). STRATEGIC PARTNERSHIPS INCREASE INVESTMENTS IN RESEARCH INTO NEW TECHNOLOGIES The main indicator to monitor JSL's GHG emissions profile is intensity, on which the parent company SIMPAR'S goal of a 15% reduction by 2030 was built. There are no additional metrics or forward-looking metrics related to climate, and the performance of the decarbonization strategy is not linked to the Company's compensation policies. RESILIENCE AND ADAPTATION The Company is maturing its understanding of business adaptability, based on tools such as the Science Based Targets Initiative (SBTi). The scenario analysis tools consider two paths: one in which JSL does not implement low-carbon technologies and continues to increase its proportional levels of emissions; and another in which the Company implements low-carbon technologies and reduces emissions. For the latter, a greater incentive to use alternative vehicles is expected. Although it maintains a robust decarbonization strategy, JSL cannot say that it is in line with a scenario of 2°C or less. In Brazil, there are still no laws that regulate the carbon market. However, the company prepares itself for this scenario, participating in discussion forums, studying and testing new equipment and technologies in order to be prepared and resilient to changes that may occur. MATURITY IN GOVERNANCE Through the Sustainability Committee and the discussions it raises with senior management, the assessment of climate change and its risks and opportunities occurs frequently at JSL. The Risk Management Policy guides the actions of mapping, control, mitigation and prioritization of the most relevant factors, with the elaboration of the climate risk matrix. The strategic plan for transitioning to a low carbon economy is guided by leadership engagement and analysis of how climate risks and opportunities affect their products and services (e.g. changing fuel technologies and consequently the portfolio), its value chain (with stricter controls from partners and partnerships for carbon control and mitigation), its investments (seeking alliances with other companies and capital allocated to innovation) and its operations. 65
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