TCFD

Strategy

a) Describe climate-related risks and opportunities the organization has identified over the short, medium, and long term.

RD Saúde conducts a structured assessment of climate-related risks and opportunities, taking into account the likelihood of each event occurring and its potential impact on the business. Physical risks: The following threats were identified: river flooding (distribution centers and pharmacies — long term), storms (distribution centers and pharmacies — long term), heat waves (distribution centers — long term), and rise sea levels (pharmacies — long term). Transition risks: The main risk identified relates to fluctuations in the cost of fossil fuels used by the logistics fleet (long term). Opportunities: The company has identified strategic opportunities related to the transition to a low-carbon economy: consumption of renewable electricity through migration to the open market and distributed generation (short term); and the replacement of fossil fuels through the electrification of its own fleet (long term).

b) Describe the impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

Climate risks and opportunities are linked to the company’s long-term vision, influencing the development of its 2030 sustainability strategy, which guides its operations. They also have an impact on financial planning, since climate adaptation and mitigation initiatives—such as the purchase of electric trucks, the installation of flood barriers, and the purchase of insurance against extreme weather events—require investments that must be included in annual and multi-year budgets. It is worth noting that, financially speaking, climate risks have a low impact on the business, given that the company’s assets are spread across various regions of Brazil, thereby reducing the individual contribution of each operation to the company’s total revenue.

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

RD Saúde incorporates climate risks and opportunities into its strategy based on internationally recognized scientific scenarios, with a focus on the 2030 and 2050 time horizons. For physical risks, the IPCC’s SSP1-2.6 and SSP3-7.0 scenarios are used; for transition risks, the IEA’s SSP1-1.9, SSP1-2.6, and SSP2-4.5 scenarios are used—covering everything from aggressive mitigation approaches to more moderate climate policies. The analysis is reviewed annually, taking into account new assets commissioned by the company and updates to the global climate context. Based on these analyses, the organization develops mitigation initiatives—such as the use of renewable energy, expansion of its low-emission fleet, and adoption of zero-carbon modes of transport for last-mile deliveries—as well as adaptation initiatives, such as purchasing insurance and physically securing assets in critical regions, all of which are integrated into the organization’s strategic and financial planning. The broad geographic distribution of assets across Brazil reduces exposure to localized impacts and strengthens the business’ operational resilience. RD Saúde’s strategy has demonstrated resilience across all assessed scenarios—both those involving greater physical stress and those involving rapid transition—highlighting the robustness of its business model in the face of current and future climate challenges.