Investor Presentaiton

BRIFETY DILVE 10-DIRETA 0405 CHU-8578 WORD FROM THE BOARD CHAIR The year 2018 might best be remembered for the many changing paradigms, numerous conflicts and intensive polarization. With another year of government under Donald Trump in the United States and the reelection of Vladimir Putin in Russia, we have witnessed a rise in populism throughout several regions, including Europe, Asia and Latin America. This has been coupled with the return of a discourse that counterposes the concepts of development and a low carbon economy. In the meantime, organized civil society continues to face difficulties in engaging and creating dialogue with the population. A quick comparison using data from Google search trends shows that news on the royal wedding between Prince Harry and Meghan Markle generated double the interest compared to all the climate coverage in 2018. Thus, entertainment continues to speak louder than science, and the public debate on climate change remains lackluster considering the urgency and relevance of transformation required. It also suggests that the subject and the civil society organizations engaged in the Climate issue continue conversing in the converts' echo chamber alone. In Brazil, 2018 was the year of a "crisis climate" and at the same time a "climate in crisis". A "crisis climate" because the economic crisis, added to intensive political polarization, led the country to think of little else. The result is that the world's interest in Brazil has dropped drastically. Not even the FIFA World Cup was able to raise interest in Brazil. To compare, the Google search trends tool again shows that, around the world, people looking up news on Brazil fell to volumes five times lower when compared to 2009, when the optimism surrounding the country was at its peak, and when the magazine The Economist said our economy was taking off. Since then, Brazil has fallen from being the 7th largest global economy to 9th. Political polarization also defined the environmental agenda, with the electoral process catching society off guard and revealing that a large percentage of voters mistrust environmental policies, giving way to a growing perception of conflict between the environment and development. The result was that the climate crisis disappeared from public debate in the nation - even with the continued high rate of deforestation and the droughts and floods afflicting the population. Implementation of a Brazilian climate agenda, which was already somewhat uninspired, practically disappeared between the cracks. The difficulty to dialogue within a polarized society and the silence of the private sector, more concerned with economic problems, created the perfect storm with a major impact on environmental issues. Both the global and national contexts forced civil society organizations to review their language and actions in order to reignite dialogue with a more conservative audience. In the case of WRI Brasil, this change revealed an opportunity. WRI Brasil has what it takes to position itself and create dialog with multiple actors, as its action is based on deep and careful analysis of the state-of-the-art in science and data. It is not an activist organization and shrewdly fills a technical and research gap, forming credible ties with both the public and private sectors. The work undertaken by WRI Brasil throughout 2018 shows that, even within the grip of the perfect storm, it is possible to push forward, as was the case in urban issues, producing quality work to improve mobility, safety, and quality of life in major cities. Other agendas, like Climate and Forests, were forced onto the defensive. Even so, by working with coalitions, the organization was able to make positive impacts, like WRI Brasil's contribution to a long-term vision for forests and agriculture, showcasing options for a new forestry and agroforestry economy. Looking to the future, WRI Brasil sees itself in a position to initiate dialogue with a new Brazil, rising up from the crisis and polarization, breathing fresh life into the environmental and climate debate with an agenda focused on a low carbon economy and sustainable development. The organization needs to adapt its language and learn to deal with new representatives, who may be more conservative, but who nevertheless believe in better cities, a strong forestry economy and a controlled climate. It's time to get to work to ensure Brazil remains in the Paris Agreement, expanding its ambitions, and betting on a low-carbon economy, which will surely provide Brazil with a competitive edge and lead the nation towards sustainable and inclusive growth. Public policies backed by science will remain a comparative advantage for WRI Brasil within the national scenario. Marcelo Furtado Board Chair WRI Brasil 6 WRIbrasil.org.br WRI BRASIL 2018 ANNUAL REPORT 7

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