TCFD

Risk management

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

To ensure a structured, science-based approach, in 2024 we conducted a detailed climate risk assessment covering all our operational assets, including the RD Saúde Campus, 14 Distribution Centers, and 3,230 pharmacies.

Physical and transition risks were mapped in collaboration with business areas, analyzed by impact and likelihood of occurrence, and classified according to the Company’s impact scale. The study used IPCC scenarios SSP1-2.6 and SSP3-7.0 for physical risks, and IEA scenarios SSP2-4.5, SSP1-2.6, and SSP1-1.9 for transition risks, covering a time horizon from 2030 to 2050.

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

The review and monitoring of RD Saúde’s risks (including climate risks) are primarily conducted by the Risk Management Committee, an advisory body to the Executive Board, which holds regular meetings specifically to monitor risks according to their nature. This phase includes monitoring key risk indicators (KRIs), tracking the progress of previously defined action plans, and defining new actions for mitigation or management.

High and very high risks are a standing item on the Risk Management Committee’s agenda and are reported to the Audit Committee according to their criticality; medium and low risks are discussed as needed. Additionally, the Company maintains ongoing monitoring activities carried out by the Risk Management Department and independent assessments performed by the Internal Audit team or external firms.

With the involvement of the Executive Board, Audit Committee, and Board of Directors, we also conduct an annual review of risks to reassess alignment with strategy and to ensure continuous 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 incorporated climate risks into the Company’s overall risk matrix. The Risk Management team ensures ongoing alignment with the Sustainability Department and with business areas directly involved in addressing and monitoring climate risks.