TCFD

Risk management

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

RD Saúde conducts an annual assessment to identify and analyze climate risks. The most recent one covers all assets in operation in 2025: RD Saúde Campus, 15 distribution centers, 1 hub, and 3,547 pharmacies. The process is multidisciplinary, involving the areas of Sustainability, Risk Management, Procurement, Pharmacy Operations, Engineering, and Expansion. The severity of the impacts is assessed from four perspectives—financial, image and reputation, operational, and regulatory—and each risk is classified into four levels: low, moderate, high, and very high. This classification is based on a combination of the event’s potential impact and the likelihood of its occurrence. To estimate the financial impact, lost profits are used for pharmacies and the volume of units billed for distribution centers. The probability of occurrence is estimated differently depending on the type of risk. For physical risks, the MOVE® (Model for Vulnerability Evaluation) is used, a tool aligned with the IPCC (2014) methodology that combines climate, geomorphological, and vegetation variables. The analysis considers a one kilometer radius around each asset, covering not only the direct impacts on the facilities but also potential effects on the surrounding area that could jeopardize the operations. For transition risks, the probability is determined based on the trends associated with the climate scenarios used. Pharmacies are analyzed by specific geographic clusters for each type of climate-related threat.

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

Climate risk management at RD Saúde follows the same process as corporate risk management. Each risk is assigned to a responsible department, which conducts the necessary controls and implements improvement measures.

Monitoring is performed by the Risk Management Committee, an advisory body to the Executive Board, with regular meetings organized according to the nature of each risk. This phase involves monitoring key risk indicators (KRIs), tracking the progress of action plans, and identifying new measures for management and/or mitigation. Serious and very serious risks are monitored on an ongoing basis and reported to the Audit Committee; minor and moderate risks are discussed as needed. In addition, the company conducts ongoing monitoring activities, carried out by the Risk Management Department, as well as independent assessments, conducted by the Internal Audit Department or by third-party firms (external audit). Each year, a comprehensive risk review is conducted to reassess strategic alignment and verify the effectiveness of the measures implemented. This process involves the Executive Board, the Audit Committee, and the Board of Directors.

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

Since 2022, climate risks have been formally incorporated into RD Saúde’s corporate risk matrix, following the same methodology, assessment criteria, and governance process applied to the company’s other risks. The Risk Management Department maintains ongoing coordination with the Sustainability Department and the business units directly involved to monitor and address these risks in an integrated manner.