SUSTAINABILITY REPORT 2021

SUSTAINABILITY REPORT 2021 Providers GRI 102-10, GRI 102-9, GRI 103-1, GRI 103-2, GRI 103-3, GRI 204-1, GRI 301-3, GRI 308-1, GRI 308-2, GRI 407-1, GRI 408-1, GRI 409-1, GRI 410-1, GRI 412-3, GRI 414-1, GRI 414-2 Portobello Portobello's relationship with its 2,600 active suppliers in 2021 is improving year after year. Critical Suppliers (5.4% of the total), who supply the company with essential inputs for production, are evaluated after the service is provided for their quality, and must receive a minimum score of 7. Those who do not reach this score are submitted to an action plan to improve their practices. In this group, mining companies, which extract clay, gravel, among other materials, are periodically inspected on-site. On the other hand, Main Suppliers (16.3%), responsible for transport and packaging, need to present an environmental license and guarantee the quality of the product under specific conditions (packaging producers) and sign a term with a series of requirements. In the most relevant category, the remaining 27% undertake a contract to follow good environmental, social and governance practices. In 2021, all of them complied with their environmental, social and human rights obligations, and no cases of child, forced or slave-like labor were identified. With the remaining 51.3%, whose relationship is sporadic, formalization takes place by purchase order and invoice. In addition, there is a joint research and development effort to improve deliveries. In the period, this type of action occurred with packaging suppliers. In 2021, boxes were developed that use 10% less cardboard, a material that had its cost raised due to supply shortages. This program eliminated the need to produce 3 tons of cardboard a month. The company replaced, with the support of suppliers, the iron braces essential to support the load on pallets for a similar one made of reforested wood, generating less environmental impact. It also developed a new angle to transport the items, totally produced with recycled plastic, which uses around 180 tons of residues per month. These angles replace similar ones made of eucalyptus fiber or cardboard. EPS sheets are also being changed for molded ORIGIN OF PURCHASE 65% 16% 12% 5% 2% State National Municipal Internacional Regional pulp sheets made from recycled cardboard, reducing EPS usage by around 14 cubic meters (494 cubic feet) per month. Portobello's premise is to hire local suppliers, based in states where operations are located. In the year, 79% of purchases had municipal, regional and state origins. In 2021, there were no significant changes in the supply chain. PORTOBELLO MORE ENGAGEMENT The ESG Planning 2022-2026, which will be implemented by the group, has among its goals a comprehensive socio-environmental assessment of suppliers. Currently, the process is limited to a few groups, as described above. Portobello does not use, for example, social or environmental criteria for selection, and does not measure relevant details of its supply chain, such as companies that guarantee freedom of unionization for employees. To support this initiative, a management system will come into operation, which will monitor the adequacy of this public to environmental and social criteria, qualifying them with scores, in addition to controlling contracts, quotations, documentation, among other items. It is a work in partnership with the Compliance area for Supply Chain Due Diligence. Currently, there is no training of suppliers, including those working with security services, in human rights policies. <3 MESSAGE FROM THE CHAIRMAN PORTOBELLO STRATEGY GOVERNANCE THE REPORT SUSTAINABILITY AT PORTOBELLO SOCIAL ENVIRONMENTAL ECONOMIC GRI CONTENT INDEX 60

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