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GRI 102-50, GRI 102-51, GRI 102-52, GRI 102-53, GRI 102-54, GRI 102-56 IHARA annually discloses its economic, financial, so- cial and environmental results through the publication of its Annual Sustainability Report. The latest report, referring to the year 2019, as well as previous ver- sions, are available to be inquired at the organization's website (http://www.ihara.com.br/institucional). This report was prepared in accordance with the GRI Standards in the essential option and covers the period from January 1 to December 31, 2020. IHARA chose not to carry out an external verification of this document. In order to clarify doubts or answer questions on the in- formation contained in this report, IHARA offers the fol- lowing email address: [email protected] MATERIALITY GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44, GRI 102-46 In order to define the content of its Annual Sustainabil- ity Report and the respective GRI indicators, in 2015, IHARA conducted a stakeholder inquiry process, which culminated in the preparation of its Materiality Matrix. Through this process, the company learned about the most relevant issues for itself and its stakeholders. An online materiality questionnaire was applied, cov- ering three major themes - Environment, Value Chain and Economic/Products -, subdivided into seven sub- jects, to be ordered from the most relevant to the least relevant. Three strategic stakeholders were selected to participate in the process: internal public, suppli- ers and customers. This choice was made based on the impact of the company's activities, products and services, as well as its expectations, interests and ca- pabilities on these audiences. After preparing the Materiality Matrix, IHARA surveyed all GRI indicators related to material aspects, select- ing those that are most important to its business. In 2020, due to the updating of GRI Standards protocols, IHARA carried out a review of the new indicators, in order to identify which the company should report in its report. GRI 102-47, GRI 103-1, GRI 103-2, GRI 103-3 Material Topics Limit: where the impact takes place Material topic description GRI Standards correlation Management approach Strategy Material inside the organization. Professional development Material inside the organization. Strategy: GRI 102-14, Management approach assessment Knowing IHARA's growth strategy and its long-term vision. How IHARA values its employees, planning training sessions, strengthening competencies and offering a motivating work environment. GRI 102-15 Ethics and Integrity: GRI 102-16 Governance: GRI 102-18 Economic performance: GRI 201-1, GRI 201-2 Market presence: GRI 202-1, GRI 202-2 Training and education: GRI 404-1, GRI 404-2, GRI 404-3 Diversity and equal opportunities: GRI 405-1, GRI 405-2 IHARA's business strategy is to deliver solutions and invest in re- search and development to constantly launch products that meet the complex needs of agriculture, with productivity and sustainability. Its management tool is the Objectives and Goals Panel, which is the re- sponsibility of the financial area, monthly shown at a Board meeting. It includes all the indicators deployed in the corporate strategy for the other departments: Presidency, Business, Marketing, Technical, Industrial and Financial Boards. Such indicators are defined once a year, as per the contribution of each area to achieve the corporate guideline. The management of people development at IHARA is monitored through the Human Development area, which, in turn, has periodic meetings with the managers of each area. In this approach, the con- cept used is KSA (Knowledge, Skill and Attitude), and for questions of Knowledge and Skill, the intervention by the Human Development area is made by means of training. Issues related to Attitude must be treated and monitored by the respective managers. The strategic indicators are broken down by area, with a periodic monitoring by the senior management, so that monitoring and intervention are timely when necessary. This control is the driver for achieving the established goals. To develop the roles, the Human Development area works with each manager through the ATP (Annual Training Plan), identifying the training needs of each employee in the performance of their roles. Water: GRI 303-1, Water consumption management Material inside the organization. IHARA's water consumption monitoring actions. GRI 303-2, GRI 303-3, GRI 303-5 54 ABOUT THE REPORT Water consumption management is a topic widely discussed at IHARA. Consumption management is monitored and appraised on a weekly basis by the Environment department, which reports results every month to the senior management, with the definitions of caus- es and actions for positive and/or negative results. The goal set for reducing water consumption is 5% less than the re- sult obtained in the previous year. This is measured in an index, that is, total water collected (for use in utilities - consumption subject to reduction actions), divided by the volume produced. According to the results/monitoring, the Environment department, together with the Sustainability Committee, sets improvement projects for driving, which are presented to senior management to submit earnings and authorization for deployment. The management of water consumption indicators is monthly assessed by the senior management, as well as monitored and dis- cussed on a quarterly basis with the Sustainability Committee. The size of the periodic measurements, causes and actions are de- fined to achieve the established goals and the continuous improve- ment in water consumption reduction at IHARA. SUSTAINABILITY REPORT IHARA 2019 55

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