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Investor Presentaiton

ENERGY GRI 302-1 ELECTRICITY CONSUMPTION IHARA's energy matrix is mainly made up of electricity, and IHARA has a goal of reducing annual consumption. The efficiency indicator is based on consumption in MWh / ton produced. In 2020, IHARA reduced the consumption MWh / ton produced by 5% compared to 2019, reaching the reduction tar- get through projects for this purpose. Despite the total consumption in MWh having grown by 6% compared to the previous year, the production volume rose 11.5%, demonstrating the increase in energy efficiency in the processes. ENERGY CONSUMPTION WITHIN THE ORGANIZATION - GRI 302-1 ELETRICIDADE MWH 9,969 9,432 8,132 PRODUCTION VOLUME (TON) ENERGY (MWH/TON) 80,106 0.16 71,826 0.13 0.12 RISKS ASSOCIATED WITH CLIMATE CHANGES In 2020, IHARA identified risks and opportunities arising from climate change. The risk arises from prolonged droughts or excessive rainfall in regions producing grain and Livestock, which can negatively affect the customers' business as well as their financial capacity. EMISSIONS GRI 305-1, GRI 305-2, GRI 305-3 For the eleventh time, IHARA elaborates its inventory of greenhouse gas emissions, based on the GHG Protocol methodologies. In 2020, the company emitted 16,736.1 tCO2, 2,015.4 of which refer to direct emissions (Scope 1) and 867.0 tCO2 e referring to indirect emissions (Scope 2). Scope 3 Emissions (other indirect emissions) were 13,853.7 tCO2 e, always considering CO₂, CH, N2O and HFC in the calculations. As for direct and indirect biogenic emissions, total emissions were 2,594.4 tCO2 e. 50,093 18 19 20 18 19 *The calculation is performed based on energy consumption (MWh) divided by the total volume of production. 20 ENERGY CONSUMPTION WITHIN THE ORGANIZATION - GRI 302-1 Electricity MWh ENERGY CONSUMPTION OF THE SYNTHESIS PROCESS Electricity MWh 18 19 20 20 GREENHOUSE GAS EMISSIONS Gross direct emissions of greenhouse gases - SCOPE 1 - GRI 305-1 Indirect greenhouse gas emissions - SCOPE 2 - GRI 305-2 Other indirect greenhouse gas emissions - SCOPE 3 - GRI 305-3 2018 2019 2020 Biogenic emissions - SCOPE 1 - GRI 305-2 Biogenic emissions - SCOPE 3 - GRI 305-3 8,1032 9,432 9,969 2018 2019 2020 0 0 654 GRI 102-11 ENVIRONMENTAL RISKS In order to manage potential environmental impacts, IHARA establishes mitigation controls and actions. IHARA works with the implementation of projects, always focusing on reducing the consumption of water and energy, in addition to reducing the generation of industrial waste, such as improving the efficiency of its processes by reducing the consumption of natural resources, thus making use of more efficient lighting systems, seeking for renewable energies and so forth. 38 ENVIRONMENTAL PERFORMANCE GREENHOUSE GAS EMISSIONS, BY SCOPE (%) 2018 2019 2020 2,159.12 2,083.30 2,015.40 650.61 753.10 867.00 11,945.40 15,582.70 13,853.70 2018 2019 2020 1,108.78 1,120.20 1,095.70 1,131.07 1,679.80 1,498.70 REDUCTION OF GHG EMISSIONS 18 19 20 20 12.0 SCOPE 1 - 621.77 5.2 SCOPE 2 - 684.88 82.8 SCOPE 3 - 735.32 * Reduction related to Scope 2 emissions. SUSTAINABILITY REPORT IHARA 2019 39
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