Public commitments and SDGs OUR COMMITMENTS FOR THE FUTURE

Our highlights:

• Greater involvement of leadership in this topic through the reporting in the Social Responsibility Committee.
• We ensure annual third-party verification of carbon footprint results.
• The carbon footprint of our products is included as part of the employees' variable pay.
• We joined the CDP Supply Chain to evolve together with our suppliers in managing emissions and climate change risks
• We will continue to act on the main routes to reducing the carbon footprint of our ethanol: (i) reduction in the use of synthetic fertilizers; (ii) reduced fossil fuel consumption in agricultural operations; (iii) increase in the TCH (ton of cane per hectare) of the sugarcane field; (iv) innovation projects in the agricultural area, such as precision agriculture, which tend to generate savings in the use of inputs and increase productivity.
• We included climate risks in the business risk matrix.
• In 2020, we achieved grade A- (leadership level) in the CDP, demonstrating robust management and strategy on this topic.

Our highlights:

• The 20/21 harvest was challenging, particularly due to a long period of drought that had an impact on the quality of the sugarcane. A positive was the historically unprecedented high quantity of ATR.
• On the other hand, since the water used by Raízen comes from sugarcane, this water occurred in smaller quantities, which was also without historical precedent.
• Thanks to the Reduza Program, we were able to keep water withdrawal from external sources during the crushing period at the same level as the previous harvests, even during the drought.
• We have improved the withdrawal system, made some investments in water reuse throughout the process, and closed some of the open circuits; consequently, we expect to see even better results. 

Our highlights:

• Our proposals for improving the indicator (GJ/ha) are the development of a plan for the expansion of renewable energy and continued investments to increase agricultural productivity. An example of our growth is the 2020 opening of our first plant for the production of biogas using vinasse and filter cake, with 21 MW of installed capacity.
• Sugarcane is the crop that has the highest energy yield per occupied area, and this indicator represents Raízen's efficiency in land use, on an energy basis; in other words, how much energy content the company can extract from sugarcane and its by-products in the same area of cultivation.
• We have made a continuous effort to guarantee this high standard, even in this dynamic sector.
• A premise of our business model is the traceability of the origin of our raw material, even for sugarcane from third-party suppliers.
• The traceability of our raw material allows us to have active participation in our supply chain. This is the case for the ELO Program, which made great progress in 20/21.

Our highlights:

Technical monitoring of producers:

• We made 3,700+ visits to engage and technically monitor sugarcane producers and share value, encouraging the adoption of best practices.
• We distributed various guidance materials, along with training and updating the ELO team. 
• We constantly train and update the ELO team.
• We created a new app, developed in partnership with Solidaridad, to support the ELO team in managing improvement actions.
• In 2019, we certified 20 units with Bonsucro and achieved certification at the Santa Cândida unit, located in the Bocaina-SP region.
• In 2020, we reached 21 Bonsucro certified units and achieved certification at the Paraíso unit, located in the Brotas-SP region.

Engagement of producers through the ELO Program's value proposition:

• We conducted 12 labor law forums in partnership with producer associations and the participation of 318 sugarcane suppliers.
• In the 18/19 harvest, we entered into a partnership with SENAR and other institutions to conduct training courses for suppliers' employees, totaling 60 classes.
• In the 18/19 harvest, we promoted six itinerant pick-ups of agrochemical containers in places that were far from authorized collection sites. 
• In the 20/21 harvest, we launched the 1st Annual Report of the ELO Program, showing the main impacts of the program in the field.
• We are constantly seeking partnerships that will increase the program's reach and take best practices to other producers in the sector.

Several actions were implemented to maintain our certifications, such as: 

• Environmental Management Plan (PGA - Plano de Gestão Ambiental), with actions to reduce possible impacts and manage natural resources.
• Availability and extensive disclosure of an open communication channel (SAC) for questions, complaints, suggestions, and compliments because we understand the importance of people's involvement for the proper execution of activities.
• Initiatives that made it possible to demonstrate compliance with the indicators established by Bonsucro and concerns with the sugarcane production chain.

Our highlights:

• Since 2018, we have been signatories to the Business Pact Against the Sexual Exploitation of Children and Adolescents on Brazilian Highways, proposed by Childhood Brasil and the Ethos Institute.
• In 2019 and 2020, we implemented internal and external actions to raise awareness on the topic and engage the value chain in the fight against sexual exploitation of children and adolescents by adhering to the Business Pact Against Sexual Exploitation of Children and Adolescents on Brazilian Roadways, proposed by Childhood Brasil and the Ethos Institute.
• One of our guidelines is to uphold the protection of the rights of Indigenous communities, and we strictly follow the policy of not acquiring sugarcane from suppliers in areas declared Indigenous.
• Through the Parceiro Raíz Award, we stimulate and recognize good practices related to this topic in our supply chain.
• We evaluate all our procurement categories (which include more than 4,000 suppliers) based on social and environmental criteria and classify them in a criticality matrix. In this way, we improve our management of risks and opportunities.  
• We implemented the Sustainable Procurement Policy, which includes guidelines on human rights, and we will go further in the next harvests by developing specific guidelines for each procurement category.
• We created the Employee Assistance Program, which includes psychological assistance, legal guidance, financial consulting, social services, and livestreaming with specialists in mental and financial health.
• We are concerned with the wellbeing and safety of our employees during the pandemic, so we implemented measures such as the inclusion of specific life insurance coverage and the donation of baskets of staple products.

Our highlights:

• We mapped compliance risks across the entire company, together with an independent consulting firm.
• We reviewed Raízen's Integrity policy, and with the objective of influencing our supply chain, we disseminated it to our suppliers.
• We developed and implemented an Integrity Audit for service providers.

Our highlights:

• In 2018, the Raízen Foundation revised its operating model and started a pilot class for a new educational approach that encourages the development of socioemotional skills and permanence in school. The program is aimed at 9th grade students and lasts for 12 months. This change made it possible to increase the number of young people benefited.
• In 2019, we expanded the program to 5 branches of the Raízen Foundation.
• In the 19/20 harvest, we reached the highest number of young people assisted since the Raízen Foundation revised its operating model and started the pilot class for a new educational approach that encourages the development of socioemotional skills and permanence in school.
• In 2020, during the pandemic, the methodology was adapted to a remote model. The positive results obtained made it possible to develop a program using the same principles in a hybrid model. This change enabled our ambition to reach a larger number of locations.
• Also in 2020, the Raízen Foundation revised its program aimed at children.
• In 2021, in line with the Raízen Foundation's strategy—which involves the affective relationship with children and young people, the family, and the school and the contribution to reducing school drop-outs in Brazil—we have committed to be present in 100% of the areas surrounding* our operations by 2030, expanding our ties with the community and generating a positive social impact.

*surroundings = third party operations at Refueling Points at Airports are not considered.

Our highlights:

• Since we believe in the importance of open dialogue, we have created listening sessions with women's groups.
• We established a gender/women’s seat on the Diversity and Inclusion Committee and linked in groups within the company that worked on the proposal.
• We pushed our hiring funnels to make sure the recruitment and selection process includes at least 30% women.

* Leadership positions are considered Coordinator and above