TCFD

Metrics and targets

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk managment process.

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 using quantitative and qualitative criteria and classified according to likelihood of occurrence and business impact. This approach enables effective responses to financial, reputational, operational, regulatory compliance, health and safety, environmental, and social risks, analyzed over short-, medium-, and long-term horizons.

b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.

Our emissions can be consulted in GRI indicators 305-1, 305-2, and 305-3. Associated GHG risks include:

Transition risks: 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 and ESG targets, and pressure to adopt voluntary decarbonization goals.

Physical risks: heat waves, river floods, vector proliferation, windstorms, landslides, sea-level rise, and fires;

Transition risks: 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 and ESG targets, and pressure to adopt voluntary decarbonization goals.

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

In 2023, we revisited our 2030 sustainability commitments and updated our climate-related goals. We committed to:

1. Reduce Scope 1 and Scope 2 GHG emissions in line with a 1.5 °C trajectory, using 2021 as the baseline year;
2. Engage suppliers responsible for emissions from purchased goods and services (Category 1) to adopt science-based targets by 2030.

In addition, in 2024 we also achieved the following targets: supply 100% of operations with renewable energy and develop a tactical decarbonization plan for the Transportation area—both tied to the variable compensation of all corporate professionals, with greater weight for the C-level. Some areas also had specific targets, such as supplier engagement for value chain emission reductions, assigned to the Sustainability team.