TCFD

Strategy

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

With ESG practices integrated into our corporate strategy, we use the Corporate Risk Matrix to anticipate risks, identify opportunities, and ensure business continuity. Risks and opportunities are assessed based on quantitative and qualitative criteria and classified according to their likelihood of occurrence and business impact. This approach enables us to design effective responses to financial, reputational, operational, regulatory compliance, health and safety, environmental, and social risks, which we analyze over short-, medium-, and long-term horizons.

In 2024, we identified seven main physical threats to our operations: heat waves, river floods, vector proliferation, windstorms, landslides, sea-level rise, and fires. For pharmacies, windstorms, floods, and sea-level rise represent the greatest challenges; for Distribution Centers and the RD Saúde Campus, fires and rising temperatures require closer attention. Windstorms and heat waves account for the highest number of assets with critical risk, while floods were the most significant materialized risk during the year.

The transition risks mapped include carbon pricing, fossil fuel costs, exposure to climate litigation, noncompliance with climate-related financial disclosure requirements, noncompliance with emission disclosure requirements, liability for actions by suppliers and/or service providers without climate or ESG targets, and pressure to adopt voluntary decarbonization targets. From a financial perspective, climate risks do not represent a significant impact on the business, as the Company’s assets are widely distributed across several regions of Brazil. This dispersion reduces the individual representativeness of each unit in total revenue, diluting potential climate impacts.

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

Risks and opportunities are reflected in our 2030 Commitments, which guide investment and financial decisions over the short, medium, and long term.

Several areas of the Company, such as Engineering, Risk Management, and Operations, work together to implement mitigation actions, including projects for the development of sustainable low-emission products and services, fleet decarbonization, and more efficient construction practices. Highlights include investments in renewable energy, through participation in the free energy market and distributed generation, ensuring supply from renewable sources.

Through this governance and climate risk management approach, we incorporate a social and environmental agenda into our strategy and operations, identifying opportunities that generate long-term business benefits.

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 has developed a consistent mitigation and adaptation strategy that strengthens business resilience in the face of climate change: we maintain a high percentage of electricity consumption from renewable sources and have implemented energy efficiency solutions; we invest in training our drivers and optimizing processes to increase vehicle efficiency; we expanded the volume of last-mile deliveries using less-polluting modes of transport; we acquired electric trucks for our fleet; we are working closely with suppliers to engage them in the climate agenda; and we have adopted public emission reduction targets and value chain engagement initiatives.