Vittia Annual Report 2022
VITTIA
Risks and opportunities related to
climate change
Changes in climate, all over the world, have
caused impacts, disturbances and
transformations that are increasingly visible
and frequent. The subject has become
strategic in scientific, academic, business,
and social circles.
We are moving towards monitoring and
mitigating these risks, and we have already
been able to identify the following risk points:
► Regulatory and legal impacts: arising
from regulatory changes that encourage
the transition to a low-carbon economy
or arising from the risk of litigation, such
as, for example, the taxation of
nitrogenous fertilizers.
Technological: arising from the
of improvements and
emergence
innovations towards an economy with
greater energy efficiency and low carbon.
Market: due to the increase in the cost of
raw materials.
► Reputation: related to changes in
perceptions, from customers and society
in general, with regard to the
Organization's positive or negative
contribution to a low-carbon economy.
GRI 201-2
► Physical risks (or acute risks): arising from
extreme weather events (such as cyclones,
storms, floods, frosts, prolonged droughts),
with increased intensity and frequency.
► Chronic risks: refer to long-term changes
in weather patterns (for example, rising
average temperatures and changes in
precipitation patterns) and which,
therefore, can have different
consequences for the agribusiness sector
over time.
Opportunities include: improvements in
resource use efficiency (reduction in water
use and consumption, energy efficiency,
reuse of materials and waste, increased
recycling); use of low emission energy
of
sources; use
new technologies;
participation in the carbon market;
development of new products and solutions
for climate adaptation; public sector
incentives; among others.
Our activities are directly linked to
agricultural production, which is
substantially dependent on weather
conditions, and any variations in weather
can have a significant impact on our
operations. Droughts, floods, heat waves,
frost, hail, and excessive rain are some of
the weather phenomena that can adversely
affect the timing and yields of the harvest,
the area planted and commodity prices. As a
consequence, the production volumes of
special fertilizers and biological defensives,
as well as their quality and cost, may be
reduced or altered, which may adversely
affect the Company's sales and results.
Global warming can also contribute to the
emergence of new phenomena or to the
greater intensity and greater frequency of
the occurrence of weather events. The
minimum and maximum temperatures,
rainfall, and other characteristics of the
climatic micro-regions in which we are
present may undergo changes that impact
our business.
Annual Report 2022
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