ESG STRATEGY

Timbro has adopted several actions aimed at promoting a positive socio-environmental impact and mitigate risk, both in its activities and in the value chain, in order to strengthen its governance and value diversity. In line with the best market practices and aiming to further strengthen these initiatives, we designed our ESG strategy in alignment with Timbro's values. It will guide the company's actions in the coming years.

Based on the mapping of themes with the greatest impact and influence for the business, we listed 17 commitments for the 2023-2030 Agenda, aligned with the UN Guiding Principles on Business and Human Rights (UNGPs), the Sustainable Development Goals (SDGs), the principles of the Global Compact and the Organization for Economic Cooperation and Development (OECD) Guide.

ESG Commitments

Governance

ETHICS, TRANSPARENCY AND COMPLIANCE

We conduct our business ethically, with transparency, and in compliance with the applicable
legislation. In order to strengthen the dissemination of the company's values, internally and in
our value chain, we are committed to:

2023 COMMITMENTS:

  • Structure the Sustainability Policy concerning internal activities and the value chain.
  • Elaborate and disseminate the Supplier Code of Conduct.

2024 COMMITMENTS:

  • Disseminate among customers, suppliers, partners, and employees the Group's
    policies: the Code of Conduct, the Integrity Policy, and the Labor Relations Policy, thus
    strengthening mechanisms to inhibit illicit acts and corruption.
  • Establish mechanisms and processes to map the risks associated with Timbro's
    suppliers, so that the company does not have commercial relations with partners
    whose activities do not comply with laws related to: the environment, corruption,
    money laundering and human rights, such as child exploitation, slave labor, violation of
    the rights of native communities and the use of illegal weapons.

2030 COMMITMENTS:

  • Foster, in the value chain, the implementation of resilient agricultural practices that
    increase productivity and the yield and maintain the health of ecosystems.

SOCIETAL

RESPONSIBLE SOURCING AND ECONOMIC GROWTH

We are aware of the potential societal and environmental impacts that may occur in the
progress of our value chain and we are committed to addressing mechanisms that can enable
responsible sourcing. As a company formed by people, we also seek to value our human
capital, diversity, and inclusivity.

2023 COMMITMENTS:

  • Implement questionnaires to evaluate suppliers of goods and services on labor
    practices, human rights protection, environmental issues, and their anti-corruption
    compliance.
  • Train employees on issues related to diversity, inclusivity, non-discrimination and
    Timbro's integrity policy.

2024 COMMITMENTS:

  • Elaborate and disseminate among customers, suppliers, partners, and employees the
    Responsible Sourcing Policy, with standards and guidelines.
  • Expand the internal affirmative action policies of gender inclusion and equity.

ENVIRONMENTAL

CLIMATE RESILIENCE AND ENERGY TRANSITION

As one of the largest foreign trade companies in Brazil, with activities focused on importing,
exporting and commercialization of various products, such as metals and soft commodities on
a large scale, Timbro is committed to contributing to climate change mitigation.

2023 COMMITMENT:

  • Elaborate an inventory of Greenhouse Gas (GHG) emissions.

2027 COMMITMENTS:

  • Neutralize direct emissions (Scopes 1 and 2).
  • Define a mitigation strategy for indirect emissions (Scope 3).
  • Use of 100% renewable energy in direct operations.

SUSTAINABLE USE OF AQUATIC AND TERRESTRIAL ECOSYSTEMS

The responsibility for our value chain also involves a commitment to protect biodiversity,
inhibit illegal deforestation, and foster scientific research and output on these topics.

2024 COMMITMENT:

  • Establish mechanisms and processes to map the risks associated with Timbro's
    suppliers, in order to avoid commercial relations with partners whose activities do not
    comply with environmental standards, such as threats to UNESCO heritage sites, to
    wetlands listed by the Ramsar Convention, to endangered species of fauna and flora,
    and illegal deforestation..

2027 COMMITMENT:

  • Encourage the protection of Brazilian biodiversity in the value chain.

2030 COMMITMENT:

  • Foster research and scientific knowledge to improve ocean health, in view of the use
    of maritime transports in the value chain.

As we are engaged in behaving with transparency about our commitments to maximize value
creation and mitigate impacts, we will now publish the ESG agenda progress report annually.