Sustainability Report 2020

Sustainability for Portobello regenerative extraction 90,000 m² 200 native seedlings 100% suppliers of restored areas planted at Cedro deposit, in São João (Sergipe) subjected to environmental assessment Earth Portobello Mining activities deserve special atten- tion to minimize their potential impact on biodiversity. Our raw materials come from our own sources and from third parties. Portobello-owned deposits account for 15% of extraction activities. We have laid down rules for restoring these deposits after they have been explored, respec- ting the natural vocation of these areas. In 2020, we promoted the environmental restoration of 90,000 square meters or 9 hectares in six different areas explored by Portobello Mining. For example, at the Cedro mineral depo- sit, located in São João, in the Northeast state of Sergipe, we planted 200 native tree seedlings in 2020. To offset a hot semi-arid climate that sees no rain for the better part of the year, we have im- plemented a drip irrigation system that slowly and directly provides water to the plant roots. This way we can be sure that the new seedlings will receive enough water to grow and that no water will be lost through evaporation. Moreover, the soil surrounding a seedling is always kept wet, which means this system uses the le- ast amount of water possible. We also manage the mined materials su- pplied by third parties. In these cases, we adopt pre-established criteria for managing social impacts and mining permits, conduc- ting regular audits intended to conserve biodi- versity, control water quality and reduce CO2 emissions. In 2020, we evaluated all of our 16 suppliers in terms of environmental impact. None of them were shown to be performing activities that cause significant effect. Other than extracting, we also remain vigi- lant as to how materials are disposed of. Ceramics are made almost entirely of earth. Therefore, if properly disposed of, they will create no impact for the environment. The right way to dispose of them is by using containers provided by qualified companies, who will then send them for recycling. Cera- mics are then ground and become a mate- rial to be used in construction. Disposal ins- tructions are detailed in the Portobello Shop Customer Manual. It is our company's goal to increasingly share these best practices. Sustainability Report 2020 16

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