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Investor Presentaiton

COVER LETTER The year 2018 was particularly intense, punctuated by elections and a possible change in government and priorities, coupled with economic and environmental crises. However, this did not get in the way of WRI Brasil fulfilling its mission to produce quality studies and articulate relevant actions to promote sustainable development in the country. To the contrary, the year presented opportunities for the organization to act, in the form of partnerships and alliances, increasing scale and impact in the areas of Forests, Cities and Climate. The WRI Brasil Forests program continued to unveil innovative means to provide incentives for the restoration of landscapes and forests. Estimates are that some 30 million hectares in the country are currently degraded and do not fulfill any economic role, not to mention an ecological function. To unlock the potential of forest restoration in Brazil, the Forests team has sought to demonstrate the economic viability of restoring with native species, mapping mechanisms for governance and financing on landscapes and testing new sustainable production technologies, by means of the VERENA, Pró-Restaura and Landscape Restoration projects. The team launched two studies about natural infrastructure for the supply of water in Brazil that show that planting forests improves water quality and generates a return on investments for sanitation companies and states. The program strives for the promotion of business, social inclusion and gender equality, with highlights including projects in Pintadas (state of Bahia, Northeast Brazil) and Juruti (state of Pará, North Brazil). The challenge of making our cities more accessible, equanimous, healthy and resilient guides the Cities program in discovering innovative ways to deal with the problems inherent to major urban centers. In 2018, we promoted partnerships and projects in several cities, including São Paulo, Belo Horizonte and Rio de Janeiro. Among the leading lines of action are efforts involving Active Mobility, Sustainable Urban Mobility and Urban Development. These lines produced results such as the dissemination of the Complete Streets concepts, the identification of barriers and solutions for bus electrification - a viable and efficient solution for public transport in Brazilian cities -, and work with a tool that measures the impact of air pollution on the health of the population. Partners such as the National Mayors Front (FNP) and the Ministry of Cities were fundamental in efforts developed to improve planning and the well-being of Brazilian urban centers. In 2018, we once again witnessed the dangers of a new world: as a result of climate changes caused by human activity, Brazil, too, suffered from high temperatures, torrential downpours and severe droughts. The WRI Brasil Climate program sought to bolster initiatives and mechanisms to implement the Paris Agreement. The program supports the inclusion of climate change amongst the strategic topics of the 4th Open Government Plan of Action, under the coordination of the Government Accountability Office (CGU). Together with Instituto Escolhas and the Brazilian Business Council for Sustainable Development (CEBDS), the program was involved in the Thematic Chamber on the Long-Term Outlook of the Brazilian Forum on Climate Change (FBMC). It worked to enhance and disseminate the GHG Protocol - Agriculture and the GHG Protocol - Silviculture, which allow the private sector to tally and mitigate emissions. Efforts around climate governance create inroads for the Climate program to be more effective in favor of a low-carbon economy aimed at improving the lives of Brazilians, while simultaneously mitigating and adapting the country to climate changes. Internally, WRI Brasil has been focusing on retaining talent and promoting respect and diversity. We have enhanced the recruitment process, fostering greater transparency. We have bolstered WRI Brasil's financial control standards and updated our Code of Conduct, reinforcing our internal policies. And we have engaged the team in essential subjects through activities by Diversity and Sustainability Work Groups. The Communication department prioritized leveraging the WRI Brasil brand and website and initiated a new strategy with the press. The Strategic Relations department ensured the fulfillment of goals and strengthened efforts to attract resources and identify new partners. WRI Brasil is well prepared to support Brazil in its challenges in favor of sustainable development, with social inclusion and gender equality, working alongside capable partners in the public and private sectors, the voluntary sector and academia. We are immensely grateful for our supporters, board members, staff and partners, on whom we rely to continue along the road to sustainability. Rmansion Rachel Biderman Executive Director WRI Brasil 8 WRIbrasil.org.br WRI BRASIL 2018 ANNUAL REPORT 9
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