TCFD

Risk management

a) Describe the organization's processes for identifying and assessing climate-related risks.

We conducted a comprehensive climate risk identification and assessment study that covered all operating units in 2022 (RD Saúde Campus, 11 DCs, and 2,697 pharmacies). Physical and transition risks were identified with business areas and assessed based on their impact and probability, and classified according to the Company’s impact scale. The study considered SSP1-2.6 and SSP3-7.0 scenarios for 2030 and 2050. As an action plan for 2024, we will update and expand the analysis to units opened in 2023.

b) Describe the organization's processes for managing climate-related risks.

Risk review and monitoring at RD Saúde, including climate-related risks, are primarily conducted by the Risk Management Committee, an advisory body to the Board of Directors, which establishes regular and specific meetings to monitor risks according to their nature. This phase involves tracking key risk indicators (KRIs), the progress of action plans previously defined by those responsible for managing the respective risks and the definition of new actions for management and/or mitigation. High and very high risks are permanently monitored by the Risk Management Committee and are reported to the Audit Committee according to their criticality. Medium and low risks are discussed as needed. Additionally, the Company maintains continuous monitoring activities conducted by the Risk Management and independent assessments made by the Internal Audit area or by contractors (external audit). With the involvement of the Executive Board, Audit Committee, and Board of Directors, an annual risk review is also conducted to reassess alignment with the Company’s strategy and to ensure continuous verification of the implementation and results of mitigation measures.

c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization's overall risk management.

Since 2022, we have included climate-related risks in the Company’s risk matrix. The Risk Management team promotes continuous alignment with the Sustainability area and the business areas directly involved to address and monitor climate-related risks.