Sustainability Report 2020 Sustainability Report 2020

SUSTAINABILITY REPORT 2020 SUSTAINABILITY REPORT 2020

02 Highlights from the year 04 Agile and precise actions during the pandemic 06 Messages from the Administration

WORK, INTEGRITY, AND COMMITMENT 12 INNOVATION AND DIGITAL TRANSFORMATION 28 CARING IN THE FIELD 38 EXPANDING BUSINESS 48 RESPONSIBILITY TOWARD ALL STAKEHOLDERS 64 ENVIRONMENTAL MANAGEMENT 88

102 About the report 105 GRI Summary 108 Corporate Information Owned farm replaces INDUSTRIAL UNITS fossil fuel and EXCEED THE GOALS increases the use of ESTABLISHED FOR RECORD GROSS OPERATING RENEWABLE RECYCLING sources by REVENUE R$ 1.9 billion SOLID WASTE UP FROM 114% 39% 2019 SIGNIFICANT RETURN ON NET INCOME R$ 298 million NET EQUITY IN THE YEAR 77% UP FROM THE 334% PREVIOUS YEAR OF ITS PRODUCTION 87.12% IN COMPLIANCE SUPERIOR OPERATIONAL PERFORMANCE

SUPERIOR OPERATIONAL PERFORMANCE, SUSTAINING MOST ADVANCED Brazilian PRODUCTION EVEN Investment in INNOVATION IN THE MIDST OF meat processing plant in and digital transformation IN A CHALLENGING implementation of ANIMAL PROCESSES AND PRODUCTS YEAR WELFARE measures, in the fields, industry, and according to the Observatório Foreign market corporate activities Suíno report, from NGO with record volumes, driven Alianima, with 77% of its by DEMAND production in compliance FROM CHINA AGILE AND PRECISE ACTIONS DURING THE PANDEMIC AGILE AND PRECISE ACTIONS DURING THE PANDEMIC

Caring PREVENTION Attention Faced with the for people INITIATIVES to business challenges posed by the COVID-19 crisis in 2020, Pamplona acted preventively Thanks to Pamplona’s agile and coordinated ac- • Early establishment of the Coronavirus Crisis The pandemic has also had an impact tions, no cases of internal contagion or loss of life Management Committee on industrial, commercial, and logistics by monitoring risks due to COVID-19 were recorded. Due to invest- • Creating the Outpatient Care Protocol operations; however, by planning and ments and safety protocols, the chance of con- • Giving vacation time to employees with remodeling processes and actions, we and establishing work tracting the virus in the workplace is very low. Pam- children in daycare centers and school were able to overcome the resulting dif- plona acted swiftly and invested in safety measures ficulties. • Giving vacation time to employees in high- processes to ensure to protect employees and stakeholders. This in- risk groups volved changes to meet new health requirements. The supply of inputs, which is largely tied • Furloughing employees with children in safety for people to the Chinese market, has been moni- daycare centers and school or in a high-risk Protective equipment was provided by Pamplona, tored since the coronavirus outbreak was group (Based on provisional measure MP 927) and businesses with an emphasis on PFF2 masks and face shields; first reported. This made it possible to lounge areas were expanded, and partitions were • Allowing teams to work from home guarantee supply and avoid shutdowns installed in the cafeteria, which significantly re- • Quarantining employees with symptoms, due to stockouts. An accurate assess- duced physical contact between employees and, according to the protocol of the Ministry of ment of the market, proper risk manage- The committee was formed by the Presidency, Execu- consequently, the risk of contagion. Bus line avail- Health ment, and a solid partnership with sup- tive Board, internal business and management areas, ability was increased, as was the spacing of seats • Cancelling trips, meetings, and events, etc. pliers allowed Pamplona’s operational and legal services providers. In meetings held every and the frequency of vehicle sanitization. • Dismissing all young apprentices and interns and commercial performance to end the day in the first half of the year, and every other day in with early vacation and subsequent furlough year with positive results. the second half, the committee monitored govern- Intense actions were also carried out in the com- • Putting an action plan in place for confirmed ment regulations related to the pandemic and evalu- munities. Campaigns were conducted to provide cases of COVID-19 in Rio do Sul ated business needs, such as supply forecasting and information and raise awareness for employees’ • Instituting access screening at the gate logistics. families about the importance of social distanc- for carriers and outsourced services ing and adopting practices to prevent contagion at • Creating the Health Dialogue with This work ensured that Pamplona maintained com- home. Pamplona monitored not only employees, the Health and Safety team pliance throughout the year on its various fronts and but also their family members affected by the virus. allowed the company to continue serving producers Equipment was offered to entities such as nursing • Prohibiting employees from circulating between units and its commercial activities without disruptions. homes, hospitals, day care centers, and cities, and meat and clothing were donated to entities that • Intensifying sanitation in areas serve vulnerable populations. Ventilators, sanitizing of common use floor mats, hand sanitizer, and hospital masks were • Providing individual guidance also offered. to employees with questions • Donating cleaning products and materials to employees • Creating a web page, advertising video, and educational video on preventing COVID-19.

4 SUSTAINABILITY REPORT 2020 5 SUSTAINABILITY REPORT 2020 MESSAGES FROM THE ADMINISTRATION MESSAGES FROM THE ADMINISTRATION Planning and

Our networking within the sector, both at the Bra- dente Getúlio and Rio do Sul and expanded and zilian Animal Protein Association (ABPA) and the improved our feed plant in Laurentino. These mea- caring for all Union of Meat and Meat Products Industries of sures will benefit our communities, since the agri- the State of Santa Catarina (SINDICARNE), was in- business sector accounts for 34% of Santa Cata- strumental in this work. Collectively, we signed a rina state’s revenue, and the benefits also reflect at commitment with the Ministry of Agriculture stat- the local level. In Presidente Getúlio, for example, audiences GRI 102-14 ing that the agro-industry would produce while we contribute to 50% of the city’s income. Em- ensuring the safety of its workers. We are also ployees also benefit from these gains; our Profit- committed to putting food Sharing Program reached its on the tables of Brazilians maximum cap for the year. while maintaining exports Remuneration was one of and serving customers in all our concerns related to countries. people, so when possible, we advanced the payment The COVID-19 pandemic initially made everyone More than 50% of the pork of salaries to guarantee the naturally insecure because of the total lack of exported by Brazil comes 39,0% integrity of the teams and knowledge about the effects of the novel coronavi- from Santa Catarina, and we bolster the economy of the rus. However, we responded quickly and precisely, are very proud to be part of municipalities during the identifying risks and protecting our teams and com- this. Despite a troubled start Increase in Gross toughest periods. munities. This allowed us to end the year with lives to the year due to the ef- Operating Revenue saved and exceptional business performance. fects of the pandemic, the We believe that our commit- domestic market recovered - totaling a record ment to sustainability reflects The meat packing industry was highly targeted in throughout the period, es- across the entire production the first months of the health crisis. In addition to pecially in terms of prices, R$1.9 billion - chain and is critical for the operational constraints due to reduced staff and a adjustment for domestic business. Before it reaches drop in demand in the food service chains, we had inflation, and growing vol- compared to the the communities, it begins to prove that we were not the villains of the con- umes of processed prod- previous year with training producers and tagion cycle. On the contrary, it was precisely be- ucts. We ended 2020 with promoting animal welfare. cause of the health protocols in the sector, which record Gross Operating In 2020, we were featured in were stricter than in other segments, that the vi- Revenue (GOR): R$1.9 billion the report issued by Obser- rus was identified in certain regions. Internally, we (+39% compared with 2019). vatório Suíno—prepared by ended the year with a sense of accomplishment The composition of net income, R$298 million NGO Alianima, which works to protect animals—as since we did not lose any of our employees, and (+334.3%), provided a significant return on equity. the most advanced Brazilian meatpacking compa- the likelihood of those infected having contracted ny in the implementation of measures to promote the virus at our facilities is very low due to our large Together with the precautions taken because of animal welfare, with 77% of its production in compli- investments in safety. the pandemic, we proceeded with our expansion ance. This commitment also involves the attention strategy, reaching all the goals set for the year. We given to employees and the industry with the read- kicked off our growth plans for the units in Presi- justment of factory layouts and the progress of so-

6 SUSTAINABILITY REPORT 2020 7 SUSTAINABILITY REPORT 2020 MESSAGES FROM THE ADMINISTRATION MESSAGES FROM THE ADMINISTRATION

cial and environmental projects. It is also enhanced It is with the certainty that we are fulfilling our role in by our attention to product quality and the food all of these areas that we invite you to read our 2020 safety of our customers, which allows us to obtain Sustainability Report, prepared in accordance with the resources to benefit the communities where we op- standards of the Global Reporting Initiative (GRI) Stan- erate, thereby completing an extremely positive cy- dards. We know that this is an ongoing task, which Commitment cle. To support all these actions and drive efficiency, is why we have established commitments and goals we invested in digital transformation in the fields, in that will be introduced throughout this document. the industry, and in the corporate area, underscoring Our investments will continue in 2021, a year that will our determination to innovate processes and prod- require attention to the market and cautious actions, ucts in an ethical and sustainable manner. without losing our optimism and with a vision of a and good prosperous future for everyone. We trust that, with the invaluable cooperation of our employees and partners, we will achieve all of our goals. results in a challenging year Irani Pamplona Peters Chief Executive Officer

2020 was marked by an unprecedented episode in Project for the expansion of the Presidente Getúlio (SC) plant our 72-year history. Faced with this new challenge, we demonstrated resilience, following the principles that have governed all our activities since our company was created. We remain agile as we seek the most efficient mechanisms to guarantee the health of our employees, the quality of our products, and attention to our communities in the midst of a pandemic.

Our focus on planning has become even more relevant and has allowed us to continue growing. We invested our efforts in looking to increase production based on the desire to produce, enhance quality, and grow. We want to make products that make the lives of consumers easier without increasing their costs, and this is made possible through efficient processes and facilities.

8 SUSTAINABILITY REPORT 2020 9 SUSTAINABILITY REPORT 2020 MESSAGES FROM THE ADMINISTRATION MESSAGES FROM THE ADMINISTRATION

77%

To accomplish this, we already have some differen- Percentage of production tiators in place: we are very much a part of society, we have trained employees, and we maintain facili- adapted to welfare measures, ties that stand out nationally in terms of animal wel- which makes us the most fare. In addition, we continue to invest in advancing our technology, being attentive to the Industry 4.0 advanced meatpacking revolution and the digital transformation in the agribusiness sector. company in Brazil

Our expansion plan in Presidente Getúlio, for example, already includes the robotic process auto- We add to this our family values, consolidated over mation, which will drive more efficiency and im- seven decades of operation: hard work, honesty, prove the work environment for employees. Our quality, seriousness, and integrity in complying growth has always been ambitious, and this proj- with standards. These aspects reflect on the dif- ect demonstrates this; it will more than double the ferent fronts, from animal welfare to caring for the unit’s production in a project initiated in 2020 that environment, from tax obligations to our Code of will extend over the next four years. It is our biggest Ethics. Our parents, our founders, taught us that project to date, proof that this is a forward-thinking commitments made must be fulfilled. It is this re- business—Pamplona must be enduring. sponsibility—and also the confidence it elicits—that we strive to maintain in all aspects of the business. In the commercial area, we expect to maintain the We have a relevant role in the municipalities where excellent results obtained in 2020. Looking at the in- we are established, and the power our word, of our ternational market and local perspectives, we may commitment, also benefits employees. We want encounter some difficulties because of the sanitary them to be proud of belonging. Credibility is one and health issues stemming from pandemic. As 2020 of the most important values for us, and we seek to clearly demonstrated, despite our investments in risk associate this value not only with our products, but management, unexpected and impactful challenges also with the relationships we establish with people can sometimes take us by surprise. Therefore, we in all aspects of the business. will continue to rely on planning, on the engagement of managers, and on a cohesive administration guided by dialogue and respect.

Valdecir Pamplona Chairman of the Board of Directors

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34% Share of agribusiness in Santa Catarina’s revenue

In 2020, Pamplona marketed 138,133 tons of products, 51% of which in the domestic market, and ended the period with a net operating revenue of R$1.7 billion. WORK, INTEGRITY, AND COMMITMENT WORK, INTEGRITY, AND COMMITMENT

RR Corporate AP

CE AM MA RN Profile PA PB

PI PE

Pamplona drives the economy not only AL AC TO EXPORTS TO 18 COUNTRIES RO SE Asia, Middle East, Africa, BA for its economic-financial results, but also and South America MT

by maintaining more than 3,400 jobs PRESIDENTE ITAJAÍ GETÚLIO GO CAMBORIÚ SC CHAPECÓ RIO DO OESTE MG ES MS RIO DO SUL SP TROMBUDO Headquarters LAURENTINO CENTRAL 8 distribution centers RJ Pamplona Alimentos S.A., hereinafter products, and cheese, among oth- 1 Central Distribution ITUPORANGA PR referred to as Pamplona, is a family- ers. The company is the owner of Center 1 Outsourced factory owned company from the state of the Pamplona, Saudável, Rio Sul, and 1 Feed plant SC Santa Catarina, operating in 24 Brazil- Paraná brands. Pamplona is a pioneer 7 Company-owned farms ian states, which exports pork cuts to and leader in the Brazilian seasoned 2 Meat shops 2 Processing plants RS the countries where Brazil is certified. pork market. 102-2 | 102-6 Commercial operations The company operates throughout in 24 Brazilian states the production chain, from the pro- A privately-held corporation, Pam- duction of animal feed to the market- plona was founded in 1948 and is rec- ing of processed products. Adminis- ognized for its constant investment in tration and industrial operations are innovation aimed at modernizing its concentrated in the state of Santa Ca- industrial park, optimizing industrial VALUES tarina, with headquarters in the city of processes, and maintaining the quality MISSION • Encourage professional growth. Rio do Sul, eight distribution centers standards of its products. At the end of Provide practical, • Provide safety to employees established in seven Brazilian states, 2020, the company had 3,405 direct healthy, and safe foods. in the workplace. and one Central Distribution Center employees and 3,409 suppliers, which • Operate with social responsibility in the state of Santa Catarina. 102-1 | includes 310 integrated producers. In and respect for the environment. 102-3 | 102-4 the period, Pamplona sold 138,133 • Ensure compliance with tons of products (51% in the domestic food safety standards. The product portfolio has 18 lines, market and 49% in foreign markets), • Commit to the results agreed which include seasoned and fresh with a net operating revenue of R$1.7 upon with stakeholders. pork, sausages, smoked meats, cured billion. 102-5 | 102-7 • Provide customer satisfaction. meats, ham and ham products, sliced • Maintain sustainable partnerships VISION with suppliers. To be a global • Deliver satisfactory results food company. to shareholders.

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1948 1963 1969 1973 1974 1989 • The couple Lauro and Ana • Beginning of the • The company is • Pamplona becomes • Implementation of • Acquisition of the Pamplona found the company commercialization transferred to new and a corporation. the Federal Inspection meatpacking company in the city of Agronômica (SC) of pork. modern facilities in the Service (SIF) in Rio do in Presidente Getúlio (SC), for the slaughter and sale city of Rio do Sul (SC). Sul (SC). allowing for substantial of beef. market expansion.

1996 2002 2006 2013 2014 2015 • First exports to Hong • Pamplona acquires • Launch of seasoned • Change of company • Pamplona becomes • Opening of the processed Kong and Uruguay. the status of a certified meats and construction name, from Frigorífico a food company. meat plant with the operational farm by CIDASC and of the administrative Riosulense S.A. to remodeling of the plant in Rio by MAPA. headquarters in Rio Pamplona Alimentos S.A. do Sul (SC). Accreditation of do Sul (SC). the ractopamine laboratory (ISO 17025/2005).

2016 2017 2018 2019 2020 • First company in • Inauguration of the meat • First Sustainability Report • Inauguration of the • Distribution Center in Brazil authorized shop in Itajaí (SC). Extension is published. Line of sliced Distribution Center in Portão Camboriú is inaugurated with to use the Brazilian of accreditation for the products is expanded. (RS). Entry into the dairy market logistics optimization for the Pork seal. microbiology laboratory is consolidated. Expansion industry. Products in smaller and accreditation of the of the cured, matured, and servings to meet profile changes ractopamine laboratory smoked meats lines. in the domestic market. (ISO 17025/2017).

16 SUSTAINABILITY REPORT 2020 17 SUSTAINABILITY REPORT 2020 WORK, INTEGRITY, AND COMMITMENT WORK, INTEGRITY, AND COMMITMENT Business Strategic focus

Maintain investments Investments focused Work to increase Ensure profitability in the company’s core on modernizing and market share. of the mix. model business. growing the mix.

Pamplona’s policy is to prioritize the domestic market, which in the year included the expansion Geographically expand Increase customer Seek greater Strengthen the of its industrial units distribution. purchase rates. opportunities in retail brand at the POS. channels, food service, and regional chains. Strategy and management

Pamplona’s growth strategy focuses on the Brazilian domestic market through products with higher value added (processed products). Exports are treated as Chain of operation a business opportunity that is dependent on the global market outlook. Despite the impact of exports in the 2020 results, the strategy remained unchanged, in line with the expansion of the industrial units that will lead Pamplona to obtain, Suppliers as of 2021, an increase in the share of processed products. The positive results of 2020 eliminated the net debt, and Pamplona was quick to seize the moment and invest. Animal Company- Processing and Meat shops Customers Consumers feed plant owned meatpacking farms plants Distribution Pamplona’s history confirms its strategic direction, migrating from production of centers Integrated raw materials to processed products—a transformation that began in 2005. With producers Exports the production of processed products, cattle slaughter was outsourced, and focus was given to pork production with investments in genetics, slaughter, and the finished product, creating a complete chain of operations. Communities and governments

Thus, all efforts in the last decade were geared toward the increase of portioned, Long-term Agricultural Efficiency Digital Value creation Health processed, and sliced products, meeting the needs of convenience consumers relationships development in logistics transformation Commitment and safety Sustainable Animal welfare System of the Professional to results Customer with increasingly smaller portions. Pamplona also follows health criteria with partnerships Animal health Federal Inspection growth satisfaction specific product lines, not just pork products. The purpose is to expand market Service share in the domestic market with high added-value products based on the following premises. QUALITY • INNOVATION • INTEGRITY • SUSTAINABILITY

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Ethics and the Corporate fight against corruption 102-16 governance |103-2, 103-3 – Economic performance and governance | Launched in 2018, the Code of Ethics is available Reporting channels to employees and external audiences and is dis- and management closed through Pamplona’s website (https://www. Enhancements in 2020 included the pamplona.com.br/governanca.html), which also Pamplona has structures for compliance in place, contains information about internal and external re- including anti-corruption practices, channels, and preparation of a compliance manual porting channels. These can be accessed either by control mechanisms that ensure compliance with telephone +55 47 3531-3055 (or internal extension ethical principles in its relationships with stakehold- and the assessment of situations 3055) and [email protected]. 102-17 ers. The whistleblowing channels receive claims related to ethics, corruption, environment, labor involving the pandemic, which will All new employees receive training on this top- practices, human rights, and communities. Anony- ic during onboarding. In 2020, 14 members of mous reports can be made by phone or email. In be incorporated into the Risk Matrix the governance bodies, 79 of the administrative 2020, 25 grievances were received, mostly on op- area (17.52%), and 1,625 in the area of operations erational issues; 64% were deemed founded and (55.01%) received communication/training on an- dealt with in the year. Claims related to operations ti-corruption policies and procedures adopted by are escalated directly to the corresponding areas, Pamplona has clearly demonstrated its commit- The Legal Department and contracted law firms Pamplona. In addition, 100% of new suppliers are and ethics claims are forwarded to the Ethics Com- ment to best governance practices and compli- were part of the Coronavirus Crisis Management subjected to anti-corruption provisions set out in mittee, which acts independently. ance in tackling the challenges faced in 2020. In Committee created early on by Pamplona. They their contracts. 205-2 | 205-3 a year marked by myriad specific norms resulting conducted coordinated work that was maintained from the pandemic, Pamplona consistently com- throughout the year. Due to of the need to com- Starting in 2021, we will reinforce our ethical cul- plied with regulations, laws, standards, ordinances, municate at a distance, joint studies of information ture by conducting semiannual training for employ- and guidelines from the Ministry of Labor, the State technology and compliance of videoconferencing ees covering the main topics in the Code of Ethics. Prosecutors Office, and municipal, state, and fed- tools were carried out to establish the safest op- The purpose is to generate reliability in Pamplona’s eral authorities. Regulations were analyzed by the tions for holding daily meetings, since members of positioning, thus intensifying the presence and use Legal Department and adopted by Pamplona, and the committee are in high-risk groups and require of the Code of Ethics in the company’s routine. they were considered in all decisions. The effec- remote meetings. tiveness of compliance management mechanisms was put to the test in the face of frequent changes One of the year’s advances is the initial develop- in legislation, and Pamplona’s response was based ment of the compliance manual, prepared internal- on daily management of information and challeng- ly, which includes Pamplona’s risk classification and es in a model adjusted to pandemic conditions. mitigation strategy and should be completed in the first half of 2021. The situations considered in our manual will include risks imposed by the pandemic.

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Claims Number Evaluated Not evaluated Claims Comments handled Governance 2020 2019 2020 2019 2020 2019 2020 2019

Ordinary events that have been General Data Protection structure 102-18 Operational identified and corrected directly Law (LGPD) Problems/ by the appropriate areas. No People ethical or integrity violations Management 16 22 16 22 0 0 16 22 were included. Pamplona is in the process of implementing the For more than 70 years, social and environmental

Of the 6 claims addressed (2 standards provided in the LGPD, sanctioned in Sep- responsibility has been a hallmark of Pamplona, and from 2019), 4 have not been tember 2020, with the help of a specialized con- all governance work is aimed at maintaining this tra- substantiated and 2 were dealt with accordingly. 1 was not yet sulting firm to streamline the process and ensure dition and growth in line with its important internal addressed because it was received Mobbing that they are efficiently applied and in line with values. Pamplona’s approach to governance is one 5 13 6 11 1 2 6 11 in the last days of the year. Pamplona’s compliance area. The work was devel- of transparency with stakeholders, with a defined or- oped throughout the year and should be complet- ganizational framework and solid structure.

In 2020, these grievances ed in the first half of 2021. Work 0 5 0 5 0 0 0 5 were classified as operational The Board of Directors, which has independent conditions problems. For Pamplona, besides being a legal requirement, board members, was created through an initiative Of the 3 claims, 1 occurred the LGPD is additional security in the protection of of our founder, Ana Pamplona, who chaired the outside the company and was personal data, which is why the company made im- company until 2009. The decision was not imposed not addressed. The other 2 were not cases of physical violence portant investments in this process, both financially by the market, but rather through the desire of the 3 4 2 4 1 0 2 4 (i.e., swearing and bullying). These Violence and in terms of manpower. With control of storage founding family and their understanding that this were dealt with accordingly. and access, data vulnerability decreases. Among was necessary for growth and transformation. This is the improvements stemming from the law is the one of Pamplona’s principles: to pursue knowledge The complaint has not been substantiated. Measures have creation of a channel for grievances and requests and apply it in a clear organizational framework for Sexual been taken to ensure the safety related to the topic. the market. Pamplona’s governance was established harassment 1 1 1 1 0 0 1 0 of the whistleblower. following models recommended by Fundação Dom Cabral, a reference institution in the area.

One complaint received in 2020 was not addressed because it occurred outside company premises and the other because it was received in the 25 45 25 43 2 2 25 42 Total last days of the year.

Data source: Compliance Committee

LGPD In addition to being a legal requirement, for Pamplona this provision increases security in the handling of its data

22 SUSTAINABILITY REPORT 2020 23 SUSTAINABILITY REPORT 2020 WORK, INTEGRITY, AND COMMITMENT WORK, INTEGRITY, AND COMMITMENT GENERAL ASSEMBLY Commitment BOARD OF DIRECTORS to sustainability

Chairman Vice-Chairman Board Members Board Members Board Members Board Members Board Members Valdecir Elvio de Edina Osmar Guilherme Marcelo Wagner Augusto Pamplona Oliveira Flores Pamplona Peters de Borba Lima Tonini Illitch Bauer Reducing operational impacts across (independent) Pamplona (independent) (independent) the value chain is one of the pillars of Pamplona’s business model CHIEF EXECUTIVE OFFICE Irani Pamplona Peters

EXECUTIVE BOARD Sustainability

challenges 102-15

Sales Director - Administrative Industrial Expansion and Procurement and Sales Director - Foreign Market and Finance Director Logistics Director Development Domestic Sustainability is a strategic vector for Pamplona’s administra- Júlio César Director Adilor Ascari Valdecir Director Market Franzoi Sergio Luiz Bussolo Pamplona Júnior Edival Cleiton Pamplona tion, which operates under a business model that focuses on de Souza Justen Peters efficiency, reduction in the use of resources, cost reduction, and minimization of social and environmental impacts across its value chain. Pamplona remains attentive to the market and Ethics Committee Sustainability Committee up to date with industry trends, which set out challenges that include animal welfare, product healthiness, food safety, and Created in 2018, this committee is integrated into Created in 2012, this committee is a multistakeholder sustainable production practices, among others. Pamplona’s formal governance structure and con- committee, and its main purpose is to strengthen sists of five full members and five alternates, rep- Pamplona’s environmental management and assign The company looks to proactively anticipate social and mar- resenting board members, officers, internal audit, responsibilities to ensure compliance with the crite- ket needs, establishing management and production standards human resources, work safety, and the legal depart- ria and commitments assumed in the Environmental that exceed legal requirements. Based on consultations with ment. For management and control of compliance Policy. 102-11 stakeholders, Pamplona voluntarily defines its commitments and ethics mechanisms, the committee convenes related to this topic and annually monitors its progress through monthly—or extraordinarily, if required—to deal its sustainability report. with claims, investigations, and recommendations of sanctions for cases of non-compliance with the Code of Ethics.

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Ongoing commitment Postponed commitment Commitment made Partially completed commitment New

Topic GRI aspect Status Commitment 2020 Result Commitment 2021 Commitment to Strategy • Invest in machinery and new equipment • Important actions and investments were made in 2020 • Develop a system to remotely access data on sustainability intended to reduce energy consumption and in order to advance our environmental practices. water consumption and validate indicators. other resources and reduce the emission of • Start of the project to directly monitor water consumption • Authorize and implement the project. pollutants and waste. in all company-owned farms . • Disclosure in the next investment reports that • Development of a solid industrial waste management project for take this principle into account and show the the Rio do Sul (SC) plant. This includes the definition of new operational environmental gains obtained. procedures, internal logistics, storage structure, and new equipment.

Economic Fight against • Disclose the Code of Ethics and reporting • Code of Ethics: passed on to all employees, including those who have • Conduct semiannual training for all employees performance and corruption channels to all stakeholders. already received training, and also during onboarding of new employees; on the main topics in the Code of Ethics. governance • Consolidate and develop Pamplona’s integrity available on Pamplona’s website for external audiences. Reporting channels: • Complete the risk classification and mitigation program through risk analysis, classification, internal and external telephone number and email address used to f strategy, as well as the compliance manual, and mitigation. or receive anonymous reports. in the first half of 2021. • Pamplona’s compliance manual—which was started in 2020—is expected t o be completed in the first half of 2021 and includes the classification and mitigation of business risks. Development Animal welfare • Complete the transition from a system of • Ongoing practices • Maintain the commitment to carry out the individual housing of breeders to a system of transition from the individual breeder housing housing in collective pens by 2026. system to a collective housing system. • Prepare Animal Welfare Policies • Ongoing practices • Disclose Animal Welfare Policies in the second half of 2021. Product quality Customer Health • Analyze four new microbiological parameters • Proficiency tests and certificates were conducted on the following parameters: • Continue proficiency tests for the analysis and Safety with proficiency tests (increasing the number to 1) moisture content; 2) water activity; 3) staphylococcus aureus; and 4) of microbiological parameters according to seven total parameters). Enterobacteriaceae . In all, Pamplona alternately conducts nine types of tests. schedule in alternate years. • Resume planning to conduct physical- • By strategic definition, resumption of physico-chemical analysis • Conduct an external audit and obtain IFS chemical analysis in owned laboratory. in owned laboratory was canceled. Certification. • Obtain IFS Certification. • An internal audit was conducted to assess the performance of IFS certification, with a positive result. The external audit, however, was postponed due to the pandemic. • Design a computerized traceability project • Internal consultancy in the area of technology was continued aiming • Continue the development of a project to for the coming years. to optimize software to facilitate global communication, but there were computerize traceability for the coming years. no significant advances in the year. Product quality Customer Health • Continue the sensory analysis training program • The training program was temporarily deemed unfeasible given • Continue the sensory analysis program (R&D) and Safety in 2020. the necessary pandemic protocols. depending on sanitation protocols due to the pandemic. Environmental Environmental • Implement the Environmental Management • According to the schedule, completion of the project was planned • Implement EMS and complete in the first management Aspects System (EMS), which will allow the definition for November 2020, but its completion was compromised from April half of 2021, with targets already applicable of new commitments and goals in the relevant to July due to the pandemic, which postponed its completion to 2021. in the year. topics of the environmental area. Effluents • Develop the project and initial implementation • Project hindered by the pandemic due to the difficulty in carrying out • Develop and complete the project for and Waste of the effluent treatment station, restructuring technical visits. Authorization of the project is expected in early 2021, the effluent treatment station. the system. with execution expected in eight months. Emissions • Continue with the inventory of direct emissions • In addition to conducting the survey according to Scope 1 of the GHG method, • Continue with the air emissions inventory (Scope 1), aiming to implement constant the environmental management area also conducted the inventory of Scope 2 according to Scopes 1 and 2 of the GHG monitoring and possible reductions in the future. emissions using the same methodology in the 2020 inventory, thus expanding methodology. its view of the main generating sources and their share. Logistics Social and • Report efficiency in logistics in upcoming • Report on logistical efficiency actions carried out in the year • Implement the OTM to transport management environmental reports, addressing topics such as reduction (see section Operational Performance). live animals in the first half of 2021. impacts in consumption and emissions. • OTM implemented for the transportation of grains (animal feed), • Planned implementation of Oracle Transport allowing better planning of loads and hauls. Management in the transportation of grains and live animals. GRI Stakeholder • Proceed with the consultation process • There was no relevant change. • The consultation process was postponed Engagement through continuous inclusion of stakeholders to 2021 or 2022, so that it can be conducted and improved reporting. when the methodology is more productive. Digital Innovation/Digital • Execute the Strategic IT Plan as a driver and • Kick-off of the project for the implementation of a new ERP, • Select the new ERP and start the deployment Transformation Transformation catalyst for all technological and innovation a project scheduled for completion by the end of 2022. phase. Focus on the formation of a digital culture initiatives for the coming years. within the organization with committees and study groups for innovation and search for new technologies for the fields, industry, and retail.

26 SUSTAINABILITY REPORT 2020 27 SUSTAINABILITY REPORT 2020 INNOVATION AND DIGITAL TRANSFORMATION

IT ERP Completion System is of the under study Strategic Plan

Pamplona has been investing in the accelerated advancement of its digitalization to increase both the efficiency of corporate management and the quality and operational safety INNOVATION AND DIGITAL TRANSFORMATION INNOVATION AND DIGITAL TRANSFORMATION

Innovation has been part In 2020, digital transformation received special atten- Compliance and tion, both in corporate management and in operational of Pamplona’s history activities. After defining a new organizational model for the Information Technology (IT) area, the company built since its founding, its IT Strategic Plan during the year. Among its main ob- jectives are to promote and foster innovation and sup- management and it represents the port the organization’s entire digital transformation. company’s pioneering With the increase and acceleration of business digi- Several initiatives were adopted during tization, Pamplona also made investments aimed at spirit in practices adapting to the General Data Protection Law (LGPD). the year that are in line with legal requirements This work began in 2020 and will continue into 2021, and products. raising the maturity level of topics such as employee and process automation—leading to awareness, reducing system/equipment vulnerabili- ties, and handling sensitive data. productivity gains

During the year, the IT and governance areas began to study a new integrated management system (ERP) to replace the current one. The purpose of this work Contracted in 2020, AmbLegis soft- sanctions were recorded in 2020 as a front is to define and implement a system that can ware maps the legislation related to result of non-compliance in the envi- quickly adapt to market changes without losing its Pamplona’s activities at federal, state, ronmental, social, and economic ar- governance. For Pamplona, this will represent a great and municipal levels and classifies it eas, and this performance is expected technological and operational advance. Among the as “applicable to the company,” “ap- to be maintained in 2021 with the sup- advantages obtained from this project is the founda- plicable to suppliers,” “for knowledge port of AmbLegis. 307-1 tion for new digital businesses. purposes only,” or “not applicable.” All applicable legal requirements gener- Robotic Process Automation (RPA) ate tasks to be performed to identify was implemented in the Management whether or not obligations are being Information System of the Federal In- met, thus ensuring that each type spection Service (SIG-SIF.) Through of legislation is being monitored for it, operational tasks are robotized compliance and that evidence and through cognitive process automa- proof of compliance are recorded. By tion using artificial intelligence tools. using this software, all legal and spe- The technology uses a robot (soft- cific obligations of each unit can be ware) workforce that mimics human monitored, including aspects in the behavior to perform routine tasks. This areas of environment, labor safety, makes it possible to perform repetitive occupational health, and social re- activities in a precise and quick man- sponsibility, among others. Pamplona ner, generating standardization, pro- is committed to meeting the legal re- ductivity, and cost reduction and al- quirements applicable to its activities lowing people to focus their attention and preventing damage to the envi- on more important activities. ronment. No fines or non-monetary

30 SUSTAINABILITY REPORT 2020 31 SUSTAINABILITY REPORT 2020 INNOVATION AND DIGITAL TRANSFORMATION INNOVATION AND DIGITAL TRANSFORMATION

up PecSmart, an intelligence service for live- • In quality control, the system will compile the stock production, consists of three projects indicators for better evaluation of the whole, Pig Farming that assess the environment on the farms. identifying deviations and allowing for faster and more assertive actions by better evaluating Smartcam uses 3D cameras to monitor the the processes. pigs, generating information about their body • In PPCP, programming and production performance and indicating when to send control information will be managed faster, 4.0 them to slaughter; Smartfeed is composed of feed consumption and feed conversion with improved internal communication, data measurement sensors, and Smartmic works analysis for upper and middle management Pamplona works in partnership with with health sensors, managing events on a with greater agility and reliability, and less time daily basis. The technologies (cameras, mi- spent producing spreadsheets and reports. startups to incorporate increasingly crophones, and telemetry) provide informa- • Regarding logistics activities, the system tion to identify the best time to intervene provides visibility of the chain, enabling more innovation and technological in handling and logistics, reduce costs, and decision making focused on cost reduction improve efficiency. Data are available 24/7, as a tactical-strategic tool that makes it remotely and in real time, without the need solutions into its operations possible to project scenarios in the medium for visits or entering data into the system. and long terms. Developed in 2019, the project commenced in the field in the second half of 2020 and is • In the agricultural development area, the Two startups work directly with Pam- Industry 4.0 concepts, incorporating planned to last 24 months. advantage of this management tool is plona in the innovation of the develop- real time data capture technologies in that it can consolidate information from ment area and in the digital transfor- farms via sensing (Internet of Things) Preliminary results pointed to 97.5% accura- different sources—from a system or even mation of livestock farming. Innovation for environment monitoring; mobile cy in the Smartcam information; for the oth- from a spreadsheet—enabling the dynamic and Research Funding for Studies and devices for operation, monitoring, and er projects the equipment calibration curves visualization of information, which allows Projects (FINEP) with a new project management by farmers; and central- were under development. for quick decision making. seeking grants for technological in- ization and handling of data dedicated novation in the digital area Agro 4.0, to monitoring, optimization, and man- New areas were also implemented in the ana- which was approved in the first stage agement of agribusiness production lytical culture, with the implementation of the and is awaiting the next phases. processes. The tool continued to be business intelligence (BI) system in the devel- improved during the year. opment, PPCP, quality, and logistics fronts. In 2020, the Meu Lote app, which originated from an open innovation Most of the costs in livestock produc- process carried out in 2019 with the tion are associated with nutrition and startup Granter, had more than 230 health. Current models are based on pig farms on the platform. Due to the performance after slaughter of the specifics of the year, the app was in- lots, and most monitoring on zoo- strumental in communicating with the technical indicators (such as weight producers, helping maintain social dis- gain, consumption, and respiratory tance when necessary. Meu Lote uses health) is either by one-off observation technological potential to improve or by estimates based on a historical management with data from the fields series, which provides low accuracy and facilitate decision making. In line on what happens during housing. In with Pamplona’s purpose, it applies this regard, the partnership with start-

32 SUSTAINABILITY REPORT 2020 33 SUSTAINABILITY REPORT 2020 INNOVATION AND DIGITAL TRANSFORMATION INNOVATION AND DIGITAL TRANSFORMATION Research in Experimental evaluations conducted in 2020 Compose formulations with different raw materials, nutritional levels 12 Nutritional (energy, enzymes, protein), presentation of the feed Reduce antimicrobials; vaccine protocols and immunity enhancers 8 Health Evaluate performance of collective pens and sensors for measuring innovation 3 Animal Welfare and Environment environment (air quality, water quality, and temperature) Performance enhancers, comparing technologies available Validate products and on the market, and validating the use of apps and sensors 11 new technologies for monitoring animal performance (startups) Partnerships with institutions enable Separate slaughter, carcass quality, genetics, optimal slaughter weight, 13 Other Evaluations water quality, and modeling, among others. knowledge exchange and support 47 TOTAL The experiments produced allow Pamplona to benefit from Lei do Bem (Law of Good) (Law 11,196/05), which grants tax incentives to Legal Entities conducting capacity building initiatives for Research, Development, and Technological Innovation. integrated producers and farms

Technical support for integrated producers and company- owned farms is based on research in innovation conducted in the experimental units. In 2020, six employees on the development team were pursuing professional master’s degrees in the area, conducting academic research on topics such as animal welfare, environment, genetics, and reducing and/or replacing the use of antimicrobials, among others. Pamplona has also signed agreements and partnerships with universities % and research institutions, such as Instituto Federal Catarinense 30 (IFC), FINEP, and Embrapa Suínos e Aves (Swine and Poultry). Reduction of By consulting with a private company, integrated employees and producers were trained in people and process manage- administrative ment for the rearing of piglets. supplies planned In October 2020, Pamplona promoted the first Pamplona for 2021 in all units, Workshop: Agribusiness with Research, Development, and In- novation. This event was held in partnership with the Livestock whose processes are Production and Health and Technology and Environment master’s degree courses from Instituto Federal Catarinense to be automated (IFC). During the event, Pamplona’s employees and course professors presented their projects, and specialists from other institutions gave lectures. The event was held online, free of charge, and open to the public.

34 SUSTAINABILITY REPORT 2020 35 SUSTAINABILITY REPORT 2020 INNOVATION AND DIGITAL TRANSFORMATION INNOVATION AND DIGITAL TRANSFORMATION Smart New arrivals factory on the shelves

In order to meet the needs of end consumers, Pamplona includes innovation in its product

For Pamplona, the concept of Industry 4.0 repre- In addition, an automated factory must be more mix as well sents a new vision of processes, which become sustainable. Initiatives to reduce consumption of more agile and efficient as the level of automation, administrative supplies, such as paper, have been integration, and analysis of information in the facto- implemented in factories and administrative areas. ry increases. To this end, the expansion of the unit The goal is to reduce consumption by automating in Presidente Getúlio with a high level of automa- quality, production, and administrative processes. Pamplona is always working to make the best use tion and applied technology was initiated in 2020. Through this initiative, the goal is to achieve a 30% of raw material through machinery and packaging Nearly 80% of production and storage will be auto- reduction in 2021. upgrades, studying new products to complement mated. The expansion is expected to be completed its lines, and following market trends. For Pamplo- in the third quarter of 2022 and be a benchmark for Digital transformation also extends to logistics, which na, innovating is not only about investing in import- other Pamplona factories. includes an integrated system for planning, control- ed machines with embedded technology, but also ling, and monitoring shipments from their origin to about meeting customer expectations. One of the characteristics of Industry 4.0 and of the final destination of deliveries via smart phone. a smart factory is the generation and use of infor- The full implementation of the system, which should Innovation initiatives also involve the product mix mation, and this is no different at Pamplona. Since be completed in 2021 in transporting live animals, is intended to meet the needs of end consumers. For 2019 Pamplona has been investing in the develop- expected to yield financial and environmental gains example, the use of different additives allowed for ment and expansion of its BI. Information from the with better cargo planning, better vehicle occupan- the improvement and preservation of chilled sea- production lines is consolidated and demonstrated cy, and the reduction of kilometers traveled. soned bone-in pork cuts in 2020. The company in order to streamline decision-making and neces- also started developing products in smaller por- sary changes in production. tions, which will be launched in 2021, such as the 125g sliced smoked calabresa type (pepperoni) sau- The acquisition of more modern equipment that stan- sage and the 500g frozen ground pork. dardizes the quality of the processes contributes to productivity and ensures safer products for consumers.

36 SUSTAINABILITY REPORT 2020 37 SUSTAINABILITY REPORT 2020 CARING IN THE FIELD

96% Producers’ adherence to online tools

R$ 200.000 Investment in training integrated producers

The mission of the agricultural development area includes the use of sustainable practices to meet the needs of its stakeholders, contributing to rural development CARING IN THE FIELD CARING IN THE FIELD

Through sustainable solutions and practices, we meet the demands of society

Meeting the needs of the industry, suppliers, and consumers through sustainable practices is Pam- plona’s agricultural development mission. It works to supply the best raw material, fully compliant with the specifications of legislation, quality, environment, welfare, food safety, cost, and volume. The area provides technical support and quality inputs to the farms and has its own program for the genetic enhancement of pigs.

These measures drive sustainable rural development, which is economically viable, socially desir- able, and environmentally correct. We adopt best market practices and processes and provide small- and medium-sized producers with access to the means of production, inputs, knowledge, and technology. In addition to ensuring animal welfare and quality of supply, development activities play a key role in generating income in the fields and in sustainable behaviors in communities.

40 SUSTAINABILITY REPORT 2020 41 SUSTAINABILITY REPORT 2020 CARING IN THE FIELD CARING IN THE FIELD

Digital Development transformation in overcoming Operates based on good production practices Integrated producers challenges by standardizing management and meeting biosafety requirements 11 GRSC Farm Unit 64 Piglet Producing Units In 2020, Pamplona invested more than R$200,000 All integrated producers are trained in the standards Development activities were part of our digital in- in training integrated producers and the technical established by Pamplona, which include compli- clusion even before the pandemic. Producers were team in animal welfare, routine management, and ance with welfare and biosafety requirements and 6 familiar with smart phones and the Meu Lote app improvements in zootechnical performance. The performing the daily production activities estab- Nursery (more information on page 28), so the use of virtual company also expanded the open innovation initia- lished in the Good Management Practices Manual. Units communication was just another step, which had tives, developed with startups from Santa Catarina, They must also comply with the labor legislation already been planned before March with the acqui- incorporating the use of the Internet of Things and and respect human rights, have a history of good sition of the Zoom videoconferencing tool. By April artificial intelligence in pig farming (veja mais na pá- practices and relationships with the neighboring 2020, the communication channel had already gina 28). This expansion will lead to improved infor- areas, and be committed to the activity. Any opera- 75 been implemented, and it allowed for the continu- 158 Wean to mation management, which benefits both production involving child labor and/or compulsory labor ity of development activities. Finishing Finish Units ers and the industry by increasing the quality and is repudiated by Pamplona, which, before including Units safety of the products that arrive on the shelves. a new integrated producer, uses specific criteria to Daily online meetings helped ensure our connec- evaluate social, environmental, and animal welfare tion with the producers and the progress of the ac- In addition to the seven company-owned farms, issues, starting in the implementation phase of the tivities planned for the year. Despite the peculiari- more than 300 integrated and partner properties unit. The properties must have a valid environmen- ties of online interaction, producers’ adherence to were maintained during the year, with a stock of tal operating permit in order to house the animals. the tools reached 96% by the end of 2020. more than 511,000 company-owned pigs. To ensure that compliance with environmental re- Genetic enhancement quirements is met in practice, Pamplona has an in- CORE program The technical team, pig producers within the inte- The purpose of Pamplona’s Agricultural Develop- ternal control in place that is audited by the relevant gration system, and partners used web communi- 308-1, 414-1, FP12 ment is to ensure the supply of the best raw ma- environmental agencies. MULTIPLIERS cation tools (Zoom) to monitor production at the terials based on the traceable production of pigs, farms. Upon resuming on-site technical support ac- at the lowest production cost, and with the best BREEDERS tivities, social distancing was maintained, respect- meat quality. It meets the demands of the produc- Integration ing sanitary protocols. In order to preserve people’s tion chain, together with official bodies such as the NURSERIES health and safety, the following health protocols WEAN TO FINISH Environmental Institute (IMA), the Integrated Com- FINISHING were implemented due to the pandemic: use of pany for Agricultural Development of Santa Cata- PIGS/YEAR/SLAUGHTER Industry masks, hand sanitizer, and temperature checks. rina (CIDASC), the Ministry of Agriculture (MAPA), Pamplona stimulated the use of hand sanitizer by and the Environmental Police of Santa Catarina making donations to its integrated producers and (BPMA), with which it has a cooperation agreement Consumer/Market partners and by establishing a channel for moni- for inspection activities and environmental educa- toring COVID-19 in its integration system with the tion aimed at preserving, conserving, and improv- support of specific tools for the area. ing the environment. FP12

42 SUSTAINABILITY REPORT 2020 43 SUSTAINABILITY REPORT 2020 CARING IN THE FIELD CARING IN THE FIELD

Genetic Animal nutrition Traceability enhancement and use of medications

Pamplona’s in-house genetic enhancement pro- Animal nutrition is all about balance: the proper Quality in animal feed, The traceability of the production chain has been gram develops specific genetic lines to meet the amount of each nutrient provides maximum per- solid for many years and is intrinsic to the production needs of its meat processing plants, providing more formance and prevents diseases. Pamplona is at- good practices, welfare, system. It is one of the prerequisites to ensure the efficiency in processing food into products of bet- tentive to the nutritional requirements that make and reduction in the use quality of the pigs produced by Pamplona. It involves ter quality and industrial performance. The work is up the animals’ diets, providing quality food of re- all breeding stages—farms, logistics, and industries. developed in partnership with institutions such as liable origin. The goal is to ensure, through food, of antibiotics the Brazilian Company of Innovation and Research that they grow as much as possible, in a healthy At Pamplona, traceability is monitored through the Funding for Studies and Projects (FINEP) and the way, and can express their potential as individu- R-SUI system, which allows for obtaining the prod- Brazilian Agricultural Research Company (EMBRA- als in efficient reproduction and milk production, uct’s history throughout the production process. PA), a consulting firm specializing in the genetic im- among other aspects. There are diets suitable for the animals’ immunity, removing antibiotics from The information is audited by the Integrated Agri- provement of pigs and meat quality, and an in-house each stage of animal life. their diets, and analyzing their responses related cultural Development Company of Santa Catarina enhancement team. The farms are certified by the to mortality and performance. This practice fol- (CIDASC). Pamplona monitors 100% of the inputs Ministry of Agriculture (MAPA) and by the Integrated Diets that optimized the use and cost of raw materi- lows recommendations from the World Health Or- for producing feed, medications, equipment used Agricultural Development Company of Santa Cata- als without compromising the balance of materials, ganization (WHO) and the World Organization for in production, standardized technical manage- rina (CIDASC) and are audited every six months. vitamins, proteins, and sources of carbohydrates Animal Health (OIE) to replace conventional anti- ment, zootechnical indexes, and environmental and fibers were developed in 2020. Pamplona biotic therapy with alternative substances, without and health legislation. In recent years, genetic materials have been incor- values the quality of animal feed, meeting the re- compromising the health and zootechnical perfor- porated through imports and acquisitions in the Bra- quirements of both welfare and operational per- mance of pigs. zilian market, aiming to enhance the current genetic formance. Its feed plant is certified by Normative lines of Pamplona’s pigs. In 2020, genetic invest- Instruction 4 of Good Manufacturing Practices and For three years, no antibiotics have been used at ments were made through two imports, which will Normative Instruction 65 for the use of medicated Pamplona as growth promoters—only in a thera- allow for an evolution in piglet production. Imports products, which guarantees the production pro- peutic way. At each year, the experiments conduct- are scheduled for the first and second halves of cess of the feed. ed allow for a reduction in the use of medications 2021, following through with the genetic improve- and define management of the farms, handling ment program. Three experimental units on different farms assist of the animals, and cleaning and disinfection ac- in agricultural development by conducting experi- tivities. Pamplona does not use ractopamine in its ments to optimize the nutritional investment and animals and performs continuous laboratory tests return on the animals. During the year, they con- to meet the requirements of the foreign market to ducted seven experiments aimed at innovations prove that the company does not make use of this for health and nutrition with a focus on increasing substance. FP12

44 SUSTAINABILITY REPORT 2020 45 SUSTAINABILITY REPORT 2020 CARING IN THE FIELD CARING IN THE FIELD Animal welfare

Pamplona addresses this topic by making voluntary commitments

Concern for animal welfare is increas- The new projects are based on ani- ingly relevant on the international mal welfare, so they can exhibit the agenda, and it is a growing demand species’ natural and social behaviors. from society and consumers. For Gradually, the international market is more than ten years, Pamplona has expected to discontinue the use of been aware of the importance of this individual pens throughout the gesta- topic, establishing voluntary com- tion period of the breeding sows. mitments to improve its practices in aspects ranging from genetics to The set of actions planned by the pre-slaughter management, includ- Animal Welfare Development area in- ing balanced nutritional diets and cludes aspects such as transport den- adequate farm environments. Pam- sity and conditions, pain mitigation, In terms of environment, several aspects are monitored in the project plona believes that efficiency and high and spacing of animals in their pens. carried out in partnership with startups and private companies. Tech-

productivity can be achieved without Equipment and its functionalities were nologies were implemented to improve air quality by measuring CO2; foregoing conditions that provide ani- evaluated in 2020 in order to establish humidity and temperature levels are controlled; and the curtains are mal welfare. a strategic vision for technology inte- automated. The goal is to create the best possible environment for gration. Equipment validation includes animals to grow and have better performance. The welfare of the pigs Pamplona stands out among Brazil- defining the measurement of key indi- is in line with industry results.

ian swine producers due to the use of cators such as CO2, temperature, and collective pens during the gestation water volume. The year 2021 will be dedicated to consolidating Pamplona’s animal period. Pamplona was in the most ad- welfare policies for the entire production chain, including farms, lo- vanced stage in the implementation of gistics, and industries. Over the next 12 months, Pamplona will con- this measure during the year, with 77% solidate the practices established over the last decade and reinforce of the pregnant sows in collective pens. its culture as a differentiator. The company understands that part of its role is to communicate and make consumers and the market aware of good animal welfare practices, so that this also can also becomes a decisive factor in purchasing.

46 SUSTAINABILITY REPORT 2020 47 SUSTAINABILITY REPORT 2020 EXPANDING BUSINESS

39% R$ 600 Increase in MILLION gross sales in the year Planned investments in the next four years

As part of its plan to expand its processed products, in Rio do Sul (SC), Pamplona plans to increase five lines, which will require a budget of R$155 million EXPANDING BUSINESS EXPANDING BUSINESS

In 2020, agribusiness showed INSTALLED excellent results and reduced the CAPACITY X widespread losses in the Brazilian EXPANSION economy as a result of the pandemic

BACON from 18 tons/day to 31 tons/day, as of the first quarter of 2022

18 ton 31 ton The sector’s Gross Domestic Product (GDP) in Bra- Attentive to the current opportunities, Pamplona zil had a record increase of 24% in 2020, accord- zeroed its net indebtedness and converted its earn- ing to the Center for Advanced Studies in Applied ings into investments. The projection is for R$600 Economics (CEPEA). Despite the slow expansion in million to be invested over the next four years, as COOKED SAUSAGES April and May due to the health crisis, from June per the expansion of the meat packing units. from 55 tons/day to 68 tons/day, onwards the sector showed a strong acceleration as of March 2021 in GDP growth. Brazilian pork exports hit an all-time Phase 1 of the Presidente Getúlio expansion started 55 ton 68 ton record and reached 1.02 million tons, up 36% over with the modernization of the storage/palletization the previous year, which boosted the sector, ac- area, with R$72 million invested by the company. cording to data from the Brazilian Animal Protein At the end of the year, the next stages—expansion Association (ABPA). of slaughter and deboning—were undergoing final SEASONED PRODUCTS studies. The total cost of the project is R$445 mil- from 38 tons/day to 57 tons/day, Aligned with the market, Pamplona showed record lion, to be invested over a period of four years. as of June 2021 levels of performance. Gross revenue was R$1.9 38 ton 57 ton billion, up 39% over the previous year; adjusted The plan for the expansion of processed products EBITDA was also at a record level, totaling 21% of in Rio do Sul, with a total budget of R$155 million, is net revenue. Sales in the foreign market reached to increase volumes through five lines of processed historic highs, driven by demand from China. The products to meet demand: FRESH SAUSAGES strategy to grow and expand into new markets from 18 tons/day to 38 tons/day, continued unscathed, despite the pandemic. Pros- as of June 2021 pects for 2021 are positive for agribusiness, and an 18 ton 38 ton increase in slaughtering is expected in the second half of the year. On the other hand, the year will bring challenges in production costs with rising raw material prices, which was already seen at the end SLICED PRODUCTS of 2020. from 12 tons/day to 31 tons/day, by 2024

12 ton 31 ton

50 SUSTAINABILITY REPORT 2020 51 SUSTAINABILITY REPORT 2020 EXPANDING BUSINESS EXPANDING BUSINESS Markets Pamplona operates with a view to balancing business, in Brazil and abroad

Although Pamplona’s expansion strategy is geared toward the processed products area in the domestic market, with a focus on customer purchase rates and on increasing the sales mix of processed products, Pamplona continues to ex- Main plore opportunities in the foreign market. This balance is precisely what guaran- foreign teed excellent results for Pamplona in 2020, despite the impacts of the pandemic. markets Brazil broke records in pork exports, and this was also reflected in the domestic served market, which offset the difficulties faced in the first half, especially in the food service sector.

UNITED ARAB EMIRATES CHILE ARGENTINA Fresh pork meat CHINA HONG KONG PHILIPPINES SOUTH KOREA Fresh pork Fresh pork and processed Fresh pork Fresh pork Fresh pork Fresh pork Foreign market meat meat products meat meat meat meat

Market Accounted for A market with Largest market A market with Market Market opened opened in 3% of exports a large product in 2020, a large product accounted for in 2018 and Physical sales Pamplona understands the foreign market as an opportunity to diversify its 2018. In 2020 in 2020, and mix. In 2020 it accounted for mix. In 2020 it 5% of exports growing Foreign market it accounted Pamplona' s accounted for 77% of exports. accounted for in 2020. significantly, products and be present in different countries, building customer loyalty and for 1% of the share is 10.25% 7.25% of sales, 2% of exports. Pamplona's accounting for annual volume. of Brazil's and Pamplona' share accounts 1% of exports strengthening its brand. In 2020, following the trend of Brazilian pork exports, 2020 highlights exports. s share is 47% for 39% of in 2020. more than 70% of Pamplona’s foreign sales volume was geared toward China; of Brazil's pork Brazilian Pamplona's due to swine fever, it was the market that presented the best price and volume exports. exports. share accounts for 10% of opportunities. With cases of the disease continuing in the country, Chinese pro- Brazil's total duction is still around 30% below pre-2018 levels, so there is a need to import pork exports.

49% pork cuts to meet domestic consumption. Chinese production is recovering, Expansion Maintenance Growth in sales Increased Volume drop Increased share Expansion

43% of the market. of sales volume volume and share from due to approval from 4% to of the market. with a small drop in the cost of local production (live pigs), gradually reducing in the market. acquisition of 66% to 77%. of pork offal 5%, due to the new customers for China. increase in local the purchase prices of imported cuts. in the retail imports.

2020 Results channel. Although the scenario for exports to the Chinese market is expected to remain positive in 2021 and in the next two years, Pamplona is following a continuous Increase share, Maintain the Expand the Maintain sales Maintain Increase Continue 2020 2019 market expansion strategy, either by expanding its share in countries where it al- seeking to volume. customer volume for the market volume, since to work establish itself base and sell next two years presence. Pamplona is directly with ready operates or by opening new ones, always looking for the best opportunities in the market. seasoned and one of the food service processed few Brazilian customers. to make the business more profitable and increase its share in different countries. foods. companies approved for

Expectation 2021 this market. Data source: Foreign Market Dept.

52 SUSTAINABILITY REPORT 2020 53 SUSTAINABILITY REPORT 2020 EXPANDING BUSINESS EXPANDING BUSINESS Domestic market Products Flexibility was demonstrated in the launch of products in smaller portions to meet demand Physical sales The domestic market experienced a Retail expanded with the pandemic. Domestic market downturn between March and May, Products focused on convenience and during the pandemic likely a reaction to the insecurity caused ready-to-eat meals have seen great by the pandemic. Gradually, despite the growth and are expected to continue decrease in production and compro- their upward trend. This consumption mised sales in food service, there was trend, observed mainly during social dis- an increase in food consumption in tancing, are expected to be incorporated 57%

51% retail. Internally, the production of pro- into consumers’ habits due to changes cessed products was impacted because in family dynamics. Sliced products in- Pamplona has 18 product lines, including ham and of the adjustments required by sanitary creased significantly, used for snacks and ham products, seasoned pork, smoked pork, sliced precautions in the industry’s operation. purchased in smaller quantities. pork, sausages, salamis and capicola, and salted and fresh products. The mix is extensive and com- Production was normalized in the sec- In 2020 Pamplona invested in a central plete, meeting the needs of traditional retailers, 2020 2019 ond half of the year, with good com- DC in Camboriú that will structure lo- wholesalers, and food service markets such as piz- mercial volumes and an increase in gistics in the market, and the focus of za parlors, bars, and restaurants. Pamplona’s main the number of customers month on internal commercial growth in 2021 differentiator is flavor and quality, and it is always in month, due to marketing strategies that will be on the South Region, especially search of new trends to maintain competitiveness focused on consumption of the prod- in northern Paraná, with a new branch, without losing quality and food safety. ucts at home. Commercial actions in- on strengthening the operation in Rio There were fewer launches during the year due to cluded investing in the company’s pres- Grande do Sul, and on the expansion in In 2020, the following lines grew: sausages (21%), the pandemic and because there were no trade ence in smaller points of sale as well, São Paulo and Minas Gerais. This defini- sliced products (21%), and seasoned products (7%), fairs. In the last four months, new products were such as small branded supermarkets, tion will increase numerical distribution among others. The volumes for the food service launched to meet the current market demand for and in e-commerce, which expanded and improve production flow. The po- channel (sausage packs, for example) were read- smaller portions for those at home, such as the the customer base. sitioning of Pamplona’s branches de- justed to lighter weight products, for consumption 400g Tuscan-type sausage, an alternative that al- pends on market opportunities, wheth- at home. The average price of processed products lows consumers to spend less and avoid waste. It er owned, leased from third parties, or increased because of the price adjustment of pork facilitates consumption by smaller families, offer- entirely outsourced. The increase of re- raw materials, shortages of materials due to the ing diversification of pork protein for everyday life. tail structures to cater to food service is temporary closure of factories because of the pan- Other products were developed and will be intro- one of the goals for 2021. demic, and the increased demand from exports. duced to the market in 2021: frozen ground pork In 2020, Pamplona invested in a On the other hand, there was an increase in cus- with 500g net weight and 125g sliced smoked Cal- Distribution Center in Camboriú tomer purchase rates—driven by the stimulus pack- abrian-type sausage. In the beef cuts line, cuts such age—and in sales in all channels, with instability in as chilled Cupim A (beef hump) and chilled center to strengthen its presence in food service only. cut ribeye were launched. the domestic market

54 SUSTAINABILITY REPORT 2020 55 SUSTAINABILITY REPORT 2020 EXPANDING BUSINESS EXPANDING BUSINESS

Marketing and communication

In partnership with a third-party consultancy, a marketing architecture survey was conducted in order to design Pamplona’s new brand language for end consumers. Covering the states of the South region—São Paulo, Rio de Janeiro, Minas Gerais, and Bahia—the work was carried out for eight months in 2020. The results are expected to be finalized in the first half of 2021, involving the communication and marketing agencies that serve Pamplona.

In addition to the marketing and advertising services that have been underway for four years with the SMBB agency (since June 2020), Trama Comu- nicação, from São Paulo, has been responsible for Pamplona sponsored the third season of the food planning and implementing Pamplona’s public re- reality show Receitas de Família (Family Recipes) lations strategies. This initiative reinforced Pamplo- on SBT in Santa Catarina, hosted by Bertolazzi. The na’s image during the year, with significant growth show is also broadcast live on Facebook and You- in brand building on social media and a return of Tube and showcases recipes from families in Santa 82 articles in the press during the first months of Catarina. The initiative reinforces Pamplona’s phi- operation. The publications totaled a valuation of losophy of participating in projects that highlight R$943,000, an indicator that shows how much emotional cuisine and Brazilian flavors. would have been spent to achieve these same results with investments in advertising. In a year in which the organization of events was hampered, Pamplona was a partner of Joinville’s In order to increase the brand’s visibility, in 2020 First Sanduba Week, which took place from June Pamplona launched a film campaign on social me- 23 to July 26, following all the applicable health dia and on TV, on broadcast and cable TV, produced protocols. The 18 participating restaurants were by SMBB. The video, starring chef Carlos Bertolazzi challenged to create unique sandwiches for in- and journalist Luís Lacombe, shows the versatility store and delivery consumption. The event was of Pamplona products, which can be used by dif- promoted by CDL Joinville’s Câmara Setorial de ferent audiences, from chefs to those who want Gastronomia e Entretenimento, and Pamplona something tasty and quick to eat. The campaign’s supplied items from its portfolio. developments could be followed on Pamplona’s and the influencers’ Instagrams.

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Extensive monitoring of the market Pamplona’s logistics and cargo transportation activities continued throughout the year without supported the challenges posed negative effects, in compliance with the health protocols imposed during that period—the only signifi- by the pandemic cant change was that administrative management worked from home. Pamplona operates in inbound and outbound logistics using third party carriers divided into the feed, animal, and refrigerated segments, and it follows the best efficiency, traceability, While many sectors had a major reduction in activi- ing employees in high-risk groups away from the Despite the pandemic, many of the goals set for the and animal welfare parameters. ties in the first months of the pandemic, the meat workplace, providing the best personal protective year were achieved, such as increased production of industry had to stay in business, both for animal wel- equipment available in the market, and increasing sliced and cooked sausages; production at the Rio One of the activities in this area in 2020 was the fare reasons and to ensure food for the population. the distance between workstations to avoid conta- do Sul unit ended the year with more than 3,000 logistics team’s first workshop, which gathered all gion while maintaining the quality of the products. tons. The opening of the distribution center in Cam- employees during Pamplona’s sales convention in Pamplona’s operational challenges were circum- Consequently, there was a temporary impact on boriú increased the space to be used by the factory March in order to integrate with the commercial vented in an exemplary manner, based on intense the production volume and mix. To avoid having to for stock, thereby giving fluidity to production. sector and align goals. During the year, carriers market monitoring, risk management, supply and stop the slaughter line, the production of processed and loading teams were trained in how to pro- operation management, and occupational health products was reduced, and employees were trans- The focus in 2021 will remain on total quality man- mote animal welfare and comply with the legisla- and safety. Although some projects and indicators ferred to the fresh cuts line. agement in the industrial area, which is already tion on this topic. were adversely affected, the efforts to keep pro- showing significant results, as well as on increas- duction going were successful, thanks to planning, Because of the staff reduction, and in order to re- ing production volumes in new projects that are in The renewal of the fleet, which belongs to out- efficient management, and collective cooperation duce the circulation of third parties in Pamplona’s progress and will enter into operation. sourced partners, is also a permanent concern to among employees, suppliers, and partners. facilities, some projects have been temporarily sus- maintain efficiency in logistics and quality in the ser- pended. This generated the need to optimize the vices provided and in delivering products to custom- In the area of inputs, the effects of the novel coro- operational efficiency of the manufacturing pro- ers. Moreover, Pamplona has made increasing in- navirus have been monitored since its emergence cesses in 2020, which can be seen in the evolu- Unit of Production Effort vestments in technology with the implementation of in order to foresee the difficulties to be faced by tion of the Unit of Production Effort per Man-hour per Man-Hour (UPE) the Oracle Transport Management (OTM) software, indicator (UPE/Mh), showing that the value added which should be completed in the first half of 2021, the chain. This prevented factory shutdowns due to 2016 1,276 stock-outs and helped reduce costs. to the products was maintained despite the reduc- and the adoption of business intelligence mecha- 2017 1,273 tion in manpower. nisms in the logistics department. Other goals for 2018 1,248 In the industry, the first measure was to guarantee the year are to improve the logistics network in the the safety and health of the employees by keep- 2019 1,272 north of the states of Paraná and Minas Gerais and 2020 1,387 implement operational standards in all DCs.

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New Central DC EFFICIENCY in Camboriú IN LOGISTICS Economic- A major highlight of the year in logistics was the opening of the dis- • 22% reduction in the average age of the fleet: tribution center (DC) in Camboriú adaptation of the fleet for transporting live animals, (SC) in September. The new Central DC is part of Pamplona’s logistics following the animal welfare standard. financial expansion and efficiency project, • Reduction in the number of claims: establishment 103-2, 103-3 – and it improves the supply chain of the risk management committee; driver refresher Economic of distribution centers in Brazil and courses and training; speed control; control of performance and governance raises service levels. The DC has cargo temperature through risk manager; travel performance the capacity to receive an average time control. of 60 trucks of different sizes per day, which will handle up to 12,000 • 18% reduction in the cost of returns in logistics tons of food/month. To meet this and 50% in re-deliveries: monitoring return demand, the team is made up of 67 registrations through the delivery app (OTM); Pamplona endured a highly competitive and re- On the other hand, there was an increase in the employees. control of cargo temperature through risk manager; markable year and came out of it better prepared production cost of feed compared with 2019—27% improvement in the flow of information, with the and stronger to face future opportunities. Opera- in corn, 36% in soybean meal—raising the cost of Internally, the new Central DC con- integration of the systems helping to reduce returns tional discipline and compliance with the stan- the company’s pork, despite early purchases of the centrates stock in a single location, (OTM); monitoring, registration, and tracking by dards, combined with the fulfillment of the strate- main commodities. The rise in the acquisition cost improving turnover and distribution registration in the delivery app (OTM). gies outlined, appropriate to the global reality, were of animal proteins, with an increase of 41% for pigs of production from the factories. It • Central DC: concentration of domestic market stock instrumental in achieving the results. and 46% for cattle, was also significant. also provides greater shipping agility, at the Central DC in Camboriú (as it was previously better control of product dates, and Despite the negative impacts of COVID-19, which The appreciation of the U.S. dollar in 2020 (+30.4% concentrated in factories, there was an improvement increased agility in replenishing the was felt mainly in the domestic market, especially compared to 2019) and the recovery of prices in in planning, shipment preparation, and shipping); branches. With more efficient sup- due to the loss of purchasing power in the popula- U.S. dollars (+10.3%) generated an increase in prices ply planning, it provides productivity reduction in customer service time; increased storage tion and the prohibitions on the operation of vari- in BRL, with a positive impact on the contribution gains in deliveries and reduced trav- capacity for foreign markets at the factories; reduced ous establishments, the production of pork in Brazil margin of sales to the foreign market. Despite high el times. Industrial production also shelf life and product turnover; improved visibility broke records, according to the Brazilian Animal competition in the domestic market, there was a benefited from the new space, since of replenishment of DCs; strategic location easily Protein Association (ABPA). Also reflecting the out- partial recovery in prices thanks to the increase in it freed up prime areas in the fac- accessible from all regions of Brazil; greater availability break of the African Swine Fever (PSA), there was an foreign demand. tories for expansion and increased of refrigerated cargo carriers. increase in exports of basic pork cuts to China and storage capacity for exports. • 18% improvement in inventory accuracy. to other markets, especially in Asia. Pamplona in- Regarding industrial investments, in line with the creased its exports to the Chinese market by 34.4% strategy outlined, a highlight is the beginning of • Improvement in managing reverse logistics in volume and 44.6% in sales revenue. Pamplona’s expansion plan of R$600 million over of finished products: in order to reduce damages the next four years, adapting the unit in Presidente and reprocessing. Getúlio to serve even more demanding markets, • Tackling the pandemic: distribution of a pandemic and expanding the unit in Rio do Sul (SC), adding prevention information booklet; intensified 16,5000 tons of processed products per year (more communication with transport partners and drivers. information on page 50).

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This focus on planning became even more relevant in Gross operating revenue Shareholders’ equity Also noteworthy is the adjusted EBITDA, which such a turbulent year, allowing Pamplona to continue reached R$369.5 million (21.2% margin), compared 2020 1,905,748 2020 581,770 to seize opportunities and greatly improve its perfor- 39,04% 70,07% with R$145.8 million (11.9% margin) in 2019. The ex- mance. Pamplona ended 2020 with record Gross 2019 1,370,608 2019 342,079 ceptional EBITDA made it possible to make early Operating Revenue (GOR) of R$1.9 billion (+39%). Net settlements of interest bearing bank operations income was R$298 million (+334.3%), mostly due to Domestic market Net debt and working capital (R$201 million - 99.7%). Net fi- the exceptional performance of the operation. nancial debt ended the year at R$673,000, with a 2020 928,742 2020 673 19,05% -99,67% leverage of 0.0x. The operational performance in Due to the recovery of sales in the foreign market 2019 780,140 2019 201,555 the period yielded cash and cash equivalents in line and the transit time of sales to China, in addition with the minimum cash policy. to price adjustments in the domestic market and Foreign market Return on invested capital the appreciation of the exchange rate, Pamplona had a substantial increase in accounts receivable. 2020 977,006 2020 84,61% 63,47 65,46% p,p, In the foreign exchange hedge, the company oper- 2019 590,467 2019 21,14% ated with daily exchange contracts at a fixed rate in order to maintain the margins, without foreign Net operating revenue exchange exposure. GOR in the domestic market 2020 1,739,675 closed the year at R$928 million (+19.05%) and at 43,06% R$977 million (+65.46%) in the foreign market. 2019 1,216,064

Economic indicators 201-1 Gross income Indicators 2020 2019 Net sales 1,739,675 1,216,064 2020 509,342 92,51% Investment income 0 428 2019 264,580 Income from sales of assets 235 174 Operating costs (1,230,334) (951,484) EBITDA - Adjusted Net income 298,029 68,621 EBTIDA 360,132 141,442 2020 369,033 153,09% Adjusted EBTIDA 369,033 145,809 2019 145,809 Employee salaries and benefits 138,398 111,903 Spending on suppliers 1,342,166 937,853 Net income Payments to capital providers 91,550 46,484 Dividends/interest on equity 64,449 17,155 2020 298,029 334,31% Government payments 181,637 161,215 Net income was R$298 2019 68,621 Investments in the community 2,327 869 million (+334.3%), mostly Waste treatment and disposal 360 327 Total assets Environmental management and prevention costs 1,066 846 due to the exceptional Gross sales in foreign markets (exports) 977,006 590,467 2020 1,115,161 performance of the 35,57% Gross sales in the domestic market 928,742 780,140 2019 822,590 Data source: Controllership operation

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IFS ABNT Certification Accredited in progress Laboratory

Food safety is a priority for Pamplona, which continuously invests in product development, allowing it to export to demanding markets RESPONSIBILITY TOWARD ALL STAKEHOLDERS RESPONSIBILITY TOWARD ALL STAKEHOLDERS

Pamplona has a commitment to act responsibly Product toward all its stakeholders and in every environment in which it operates. People are a priority for quality Pamplona, whose values include concern for its customers, employees, suppliers, and shareholders, 103-2, 103-3 – and safety Product quality as well as social responsibility and respect for the environment. These are considered essential for Pamplona continuously invests the sustainable development of all communities. in systems and processes that go beyond legal requirements

Ensuring the quality of the product that reaches The production process is continuously audited consumers’ table and food safety are part of Pam- by different customers and regulatory agencies. plona’s mission. To this end, Pamplona has pro- In 2020, however, due to the restrictions result- cesses and mechanisms in place that meet and ing from the pandemic, audits were suspended or exceed legal requirements, investing in product postponed by companies and institutions; alterna- testing and development, which qualifies the com- tively, they were carried out remotely, by telephone pany to export to markets recognized by their high and internet. level of quality demands. Another initiative that was affected was the imple- The priorities of Pamplona’s Quality Program in- mentation of the International Food Standard (IFS) clude continuous improvement, maintenance of certification, an internationally recognized standard planning, documentation and control of processes that will qualify Pamplona for the most demanding and their measurement, measurement of custom- food safety standards worldwide. er feedback, and compliance with regulatory and market requirements, while always ensuring that the area’s programs are being implemented.

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Laboratory and Product sensory practices healthiness

and labeling 416-1

All of Pamplona’s products are also regulated by specific legislation as to labeling and inclusion of items such as a nutrition facts table and net weight. The legislation that is most applied is normative instruction IN 22/2005, specific to food labeling. One Pamplona’s laboratory performed 41,229 micro- Pamplona’s cuts are submitted daily to microbio- case of non-compliance with product labeling was recorded in biological and ractopamine analyses in 2020, 27% logical analysis in its own laboratory, guarantee- 2020, which resulted in a citation. For the year 2021, mandatory more than 2019, to comply with domestic and for- ing healthy and high quality products. Pamplona preparation, use, and preservation instructions must be added eign market legislations. It also made 860 analyses meets the requirements of international certifica- to the labels of raw pork products, which include pork cuts and of moisture and water activity in samples of salami tions for food safety and extends these practices offal, bacon, ground pork, raw encased meats, and seasoned and processed products, as well as 420 analyses to its product line. products, according to RDC 459/21/12/2020, to be implement- of acidity in lard and animal fat. These analyses are % ed by December 2021. 417-1, 417-2 necessary for greater quality control when releasing All products (100%) undergo tests during the devel- 100 products for consumption. To ensure its credibility opment and/or launch phase, following the legisla- Products are tested and ABNT NBR ISO/IEC 17025:2017 accreditation, tion, mainly of additives allowed according to the during the development the laboratory undergoes nine types of proficiency RDC 272 of March 14, 2019 - Food Additives for use and/or launch phase testing, performed alternately each year. In 2020, in meat and meat products, their respective func- Requirements for product and service information and labeling 417-1 three new parameters began to be analyzed—wa- tions, maximum limits and conditions of use (notes). not ter activity, moisture, and Enterobacteriaceae—with Where there are changes in legislation, 100% of the mandatory mandatory proficiency in all tests performed.FP5 relevant product categories are re-evaluated. FP6 Outsourcing of product or service components x Content of substances that could In terms of Research and Development, the activi- The evaluation of the sodium and fat content in generate environmental or social impacts x ties of the sensory analysis laboratory were ham- each formulation, conducted during the develop- Safe use of the product or service pered due to health restrictions during the year. The ment of the products, follows ANVISA’s standards x program, whose objective is to perform a sensory and the Technical Identity and Quality Regulation Product disposal and environmental/ social impacts x evaluation of products to adapt them to consumer (RTIQ). Prior to launch, the products are submitted Allergens (27 items considered trends, requires working in small spaces, without for external analysis and description of the nutrition % allergenic that need to be declared) x protective masks, which made it impossible to pro- facts table, and they are all registered with the Min- 27 Use of the transgenic seal for foods vide training and develop new programs. istry of Agriculture (MAPA). The product lines are Increase in the number containing soy or corn in their formulation x also subjected to periodic tests according to legal of microbiological and Amount of water and protein added, when applicable x and customer requirements. FP6 ractopamine analyses to Percentage of significant product or service categories covered and assessed for compliance meet legal requirements with such procedures: Fresh Cuts (8.41%) and Pork Offal (1.11%) from the Domestic Market and the categories of Seasoned products (7.25%), Cooked Encased Meats (12.31%) and Fresh Encased Meats (3.51%), Lard (4.54%), Hams (4.93%), Smoked products (5.77%) and Cured products (0.64%), Sliced products (3.21%),Cheese (0.23%), and Salted products (2.30%).

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Customer Satisfaction People

103-2, 103-3 – management People management

In addition to direct contact with its customers, Number of complaints Creation of a specific committee Pamplona’ website also has a contact channel and per ton produced email dedicated to customer service: sac@pamplo- for dealing with the effects of na.com.br. In customer relationship channels, the SIC Consumer Information System (SIC) and Customer COVID-19 attests to Pamplona’s Service (SAC) indexes showed the results to the right. 2020 0.0051 2019 0.0035 concern with its employees Pamplona is also a reference on web pages that liai- son companies and customers to resolve problems and measure satisfaction with the services provided. SAC On the Reclame Aqui website in 2020, Pamplona At Pamplona, the main concern of the coronavirus crisis management 2020 was rated as having a “Great” reputation regarding 0.0009 committee since the beginning of the year was to protect the health and the service received, with an average score of 9.5. 2019 0.0011 safety of employees. Pamplona followed all the health and safety proto- During the year, 100% of complaints were answered cols of the health regulatory agencies (Ministry of Health and state and within 3 days with a 100% solution rate. Data source: Quality municipal health departments) to prevent the spread of COVID-19 among employees, partners, and their families. In addition to providing Personal Protective Equipment (PPE) and cleaning materials, the bathrooms, chang- ing rooms, and leisure areas were expanded. The fleet of buses that transport the staff was also doubled and employees’ temperatures were taken at the beginning and end of their workday. No one is allowed to enter any of Pamplona’s units without having their body temperature checked.

Pamplona bears the cost of the RT-PCR test, the most efficient test in de- tecting COVID-19, for all employees suspected of having contracted the virus. Approximately 700 employees were tested in 2020. When someone tests positive, everyone who has had contact with the infected person is sent home, undergoes the RT-PCR test, and may only return to work after testing negative.

People in high-risk groups have been kept away from the workplace since the beginning of the pandemic, such as pregnant women and people over 60 years of age. To make up for the shortfall in its staff, Pamplona hired more than 200 new employees during the year.

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Training and Management development panel

At the beginning of the pandemic, when there was Personal development activities and internal training Average hours of training by The management panel, which was implemented still uncertainty about the work routine and how have had to be adapted because they used to be employment category and gender 404-1 during the year, gives access to the payroll and con- the world would be affected, the psychological im- conducted in person. During the most critical period tractual information of each employee. With the impact on employees was huge. Over the weeks, the of the pandemic, the onboarding process for new Administrative plementation of the software, payroll for the 3,400 teams began to gain trust in the health and safety hires had to be adapted by reducing the time and employees is no longer submitted in physical form protocols and in the operational stability, and work the number of people. It began to be held twice a 162 2020 3.48 and does not have to be signed. It is now available continued more smoothly. week, strictly complying with the rules regarding so- 93 2019 4.5 through the management panel, providing gains by cial distancing and prevention of COVID-19. reducing spending on paper, optimizing the time of Pamplona invested in learning and consolidating 239 2020 1.17 the people management team, and facilitating em- the use of new digital communication tools, fol- The pandemic affected the training scheduled for 143 2019 0.93 ployee access to contractual information, time and lowing an information technology plan that was 2020, resulting in the cancellation of internal and ex- attendance control, and professional history. already under development. The reduced use of ternal courses. Seeking the adequate and continu- Operational resources and optimization of work time due to ous qualification of the team, Pamplona hired a dis- A handbook explaining how to use the software was travel restrictions imposed by the pandemic was a tance learning training platform, and the first module 1.097 2020 1.13 prepared so everyone could easily and indepen- learning experience that streamlined the hiring proof a series of short-term courses was released in De- 989 2019 4.2 dently use the new app. In addition, the managers cesses and meetings with stakeholders. cember 2020, to be continued in 2021. of each area received training to assist their teams 1.907 2020 1.89 in using the tool, which has an intuitive design and In Human Resources—in addition to improvements in 1.613 2019 4.36 is simple to use. payroll access, time and attendance control, and se- • The Pamplona School of Leadership, which lection processes—the company’s participation in la- began in 2019 and would have ended in 2020 bor hearings is now online (it used to require the com- with student graduations, has been sus- pany to be physically present at the Labor Courts). pended and is expected to return in 2021.

In 2021, Pamplona will physically separate Human • The machine operator course, conducted in Resources from the Personnel Department, which partnership with SENAI, was completed with will provide more specific services for the needs of the class that was in progress after in-person employees and the development of people, con- classes resumed. flict management, and supervisor management.

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Recruitment Compensation Health and safety 403-2 | 403-4 and selection and benefits401-2

Every year Pamplona conducts an extensive pro- In 2020 there was an increase in the value of the Pamplona invests in reducing accidents In 2020, a total of 5,217 observations cess for selecting young people via the Young Ap- meal voucher and in the starting salary, which is and developing a solid safety culture, were made using the Administrative prentice program. During the pandemic, the tests, compatible with the average in the city. In 2021 making it a safer working environment. Standard of Safety Deviation tool. Acci- which used to be held in person, were moved on- a larger workforce will be invested to track turn- The Pamplona Zero Accident program dent rates were 9.74 at the Headquar- line. Besides eliminating the risk of contagion be- over. The 2020 Profit Sharing Program totaled the (PAZ - Pamplona Acidente Zero) man- ters in Rio do Sul and 11.67 at the unit in tween employees and participants, this improved equivalent to 1.5 salary, reaching its maximum cap ages employees’ health and safety Presidente Getúlio. The recognition pro- efficiency in the process of applying and correcting at all levels. Directors, managers, and supervisors through tools that help reduce risks, in- gram, with the participation of industry the questions and also reduced paper usage. are also entitled to bonuses, linked to goals and to crease the commitment of leaders and supervisors, which analyzes health and the Management Tournament. teams, and reduce incidents. The pillars safety indicators, began during the year. Employee recruitment, which until then was also con- of the Pamplona Zero Accident program In December, the areas that showed the ducted in person, is now done via WhatsApp, reducing Pamplona’s employees are also entitled to group include the Safe Practice Index and the best performance in safety indicators the number of people circulating in the workplace. life insurance, extending to spouse and children; Administrative Standard of Safety Devia- were recognized. medical and dental care in the Rio do Sul and tion, instruments that focus on the ob- Both initiatives have been so successful that this Presidente Getúlio units; a self-managed cafeteria servation of unsafe behavior, generating The Weekly Safety Dialogue helps em- more efficient and practical working model should (in Rio do Sul, Presidente Getúlio, and in the feed data for the monitoring and application ployees identify and report difficulties be maintained. The decrease in the flow of people plant branch); a partnership card for purchases in of improvements. In 2020, in addition by suggesting improvements directly to in the offices and factories benefits everyone. The markets and pharmacies, deducted from payroll; to accident prevention tools, Pamplona their supervisors. Investigations of critical process is faster and reduces the use of paper and partnership with universities for graduate and post- implemented solutions to reduce the deviations and accidents use the cause costs, both for Pamplona and for the candidate, who graduate courses; a partnership with laboratories risk of spreading COVID-19. analysis methodology, conducted after does not have to spend money on transportation. for lab tests; and a pregnancy care program, in- the event by the area supervisor along cluding care from an obstetrician at Pamplona, one with the safety team. The goal is to iden- Pamplona’s Trainee Program, which was scheduled ultrasound exam per pregnancy, and a maternity kit tify flaws in the system to prevent the to be launched in 2020, was put on hold due to the (a bag with several items for the baby). situation from recurring. After comple- pandemic and is expected to resume in 2021. tion of the analysis, the action plans are monitored weekly by the safety team. 1.5 Extra salary paid as part of the PPR, reaching the maximum cap at all hierarchical levels

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Pamplona’s Health and Safety Committee is composed of managers and employees from the op- Disease prevention 403-6 eration and encompasses the areas of safety, production, human resources, maintenance, and In June 2020, Pamplona implemented a procurement. The group convenes monthly to social assistance service with specialized evaluate indicators and programs and to define services for employees, who are individually strategies, and the meetings were maintained in monitored as needed. As a preventive mea- PAZ 2020. Some of the main actions were the creation sure for COVID-19, a remote health care sys- of the working group for the Safe Work Permit tools tem was implemented, through which the and the working group for the safe operation of health team guides and answers questions. Initiative aimed forklifts and pallet lifters. For employees classified with suspected cases of COVID-19, Pamplona pays for the at risk reduction, The Internal Commission for Accident Prevention test, provides assistance, and monitors posi- accident reduction, (CIPA) held a different version of the traditional Inter- tive cases through remote assistance. nal Workplace Accident Prevention Week (SIPAT) in and internal 2020 due to the need for social distancing. This topic Health exams, whether or not related to was addressed through a phrase contest. The win- the professional activity, are handed in by commitment ning phrase, written by employee Paulo Sergio Bar- the employees or sent remotely to be eval- reto, was: “Valorizar a vida é trabalhar com segurança, uated by the occupational health physician cuidar e deixar lhe cuidar. Após o dia de trabalho, para and receive follow-up and assistance with casa com saúde voltar.” (Valuing life involves working treatment when necessary. The topic of safety is addressed during the on- safely, caring, and allowing yourself to be cared for. boarding process of all new hires at Pamplona. And after the workday, go home in good health.”). Associação Recreativa Cultural Esportiva After the onboarding process, specific training ses- Pamplona (ARCEP) offers dental services sions are held according to development in other In 2021, the goal is to further develop leaders and for employees and their dependents. In activities, including the operation of machinery and supervisors in safety issues. Training leaders in safe- 2020, ARCEP promoted the Pink October equipment and the operation of pallet lifters and ty, which began in October 2020, is scheduled to campaign, in which women over the age forklifts. 403-5 continue in 2021. of 45 were able to receive a mammogram free of charge. In addition, an online lec- ture was held with the theme “We need to talk about breast cancer.” The following month was the Blue November campaign, Work-related injuries GRI 403-9 Pres. Getúlio Factory Rio do Sul Factory TOTAL (Pres. Getúlio + Feed Plant + in which male employees over the age of Rio do Sul) Development 45 were able to receive a PSA (prostate 2020 2019 2020 2019 2020 2019 2020 2019 specific antigens) test at no cost. Number of accidents* ACA = 28 ACA = 17 ACA = 41 ACA = 34 ACA = 69 ACA = 51 ACA = 0 ACA = 0 ASA = 42 ASA = 70 ASA = 64 ASA = 45 ASA = 83 ASA = 115 ASA = 0 ASA = 0 In April and May 2020, the tetravalent in- Injury rate 91.66 23.55 111.17 97.81 104.7 59.94 0 0 fluenza vaccine was made available at low Occupational disease rate 0.25 2.99 0.24 2.27 0.24 5.26 0 0 cost and deducted from payroll. The em- Number of lost days 220 97 309 287 529 384 0 0 ployees who were interested were vacci- Frequency rate 11.67 7.25 9.74 8.59 10.44 15.84 0 0 nated at Pamplona's facilities with the sup- Absentee rate 2.29% 2.44% 3.27% 3.45% 2.91% 5.89% 1.49% 1.19% port of SESI. Types of injuries Cuts caused by work tools. * LTA: Lost time accident. NLTA: No lost time accident

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Retention Rate of new employee hires and turnover 401-1 Culture of excellence and turnover 2020 2019 Total Rate Total Rate The evolution of a culture focused number number on management and excellence is Total number and rate of new hires, by age group stimulated and monitored at Pamplo- up to 30 1,169 34.33 1,085 31.86 na through the Management Tourna- between 31 506 14.86 414 12.16 ment, an initiative that evaluates man- and 50 agement tools and methodologies and over 50 23 0.68 24 0.70 verifies their compliance. The Manage- There was an increase in the total number of em- Total number of employees by gender 102-8 Total 1,698 49.87 1,523 44.73 ment Tournament was held twice in ployees between 2019 and 2020, going from 3,010 Total number and rate of contractors hired, by gender 2020 and evaluated the results in both to 3,405 employees. There was also an increase in Men 1,022 30.01 951 27.93 industrial units. The best areas were turnover compared with 2019, due to the growth 2020 1,299 awarded trophies, and the results were Women 676 19.85 572 16.80 in production in some areas and as a result of CO- 2019 1,087 also reflected in the bonuses of super- Total 1,698 49.87 1,523 44.73 VID-19. In the year, there were 1,698 hires and 1,303 visors, managers, and directors. Audits layoffs.102-8 | 401-1 Total number and rate of contractors hired, by region are planned to take place in January, 2020 2,106 South 1,685 49.49 1,513 44.43 May, and September 2021. The activities of the People Management Com- 2019 1,923 Southeast 13 0.38 9 0.26 mittee formed in 2019, whose goal is to decrease Northeast 0 0.00 1 0.03 The Quality Circles act in a cross- turnover and workplace accidents, were reduced in Total 1,698 49.87 1,523 44.73 cutting manner, with groups aimed 2020 because of the pandemic. The goal is to re- at industrial process improvements. Total number and rate of employees who left the company, sume work in 2021, with proposals and action plans by age group In 2020, they conducted work involv- planned for the beginning of the year. up to 30 871 25.58 867 27.68 ing the 5S Program, with 15 groups in Presidente Getúlio and 26 groups in between 31 379 11.13 443 15.81 and 50 Rio do Sul.

over 50 53 1.56 27 1.2

Total 1,303 38.27 1,337 44.7

Total number and rate of employees who left the company, by gender Men 839 24.64 881 29.46

Women 464 13.63 456 15.25

Total 1,303 38.27 1,337 44.7

Total number and rate of employees who left the company, by region 49.5% South 1,291 37.91 1,327 44.37

Southeast 12 0.35 9 0.3 Percentage of Northeast 0 0.00 1 0.03 employees hired Total 1,303 38.27 1,337 44.7 during the year in the South Region

78 SUSTAINABILITY REPORT 2020 79 SUSTAINABILITY REPORT 2020 RESPONSIBILITY TOWARD ALL STAKEHOLDERS RESPONSIBILITY TOWARD ALL STAKEHOLDERS

Proportion of spending Supplier on local suppliers 204-1 OUTROS 2020 2.67 management 2019 5.16 102-9; 103-2, 103-3 – Supplier management and development, FP1

MT Pamplona seeks to ensure its 2020 8.55 MS 2019 12.48 ethical standards in all contracts GO with business partners SP 2020 6.17 2019 7.52 2020 19.71 PR 2019 11.11

SC 2020 51.18 2019 54.12

Pamplona has developed strong, solid partnerships Volume of purchases by supplier category 102-9 More than half of the contracts in 2020 were estab- RS 2020 11.72 with suppliers throughout its history, ensuring quality Purchases Purchases lished with suppliers in the state of Santa Catarina 2019 9.61 that reaches the tables of consumers in Brazil and in 2020 (%) 2019 (%) (51.18%), positively impacting the generation of jobs several other countries. and local income and the socioeconomic develop- PIGS 42.96 40.94 ment of the state. 204-1 | FP1 The long-term relationship with this audience is managed by the procurement team, dedicated to GRAINS 25.40 23.76 To ensure that the work of our suppliers is in line safety aspects. Suppliers are also qualified through the ensuring Pamplona’s ethical standards in all com- with appropriate institutional and legal frameworks, application of questionnaires sent annually with ques- mercial transactions while establishing competitive the procurement team evaluates suppliers through tions related to product quality, quality programs, trace- partnerships for the development of business and CATTLE 6.97 8.50 consultations with the Department of Finance, Tax ability, and other criteria related to food safety. After the the regions where Pamplona operates directly and Authorities, and Sintegra. To comply with quality questionnaire is completed, a score for the supplier is indirectly. AGRIBUSINESS standards, suppliers are qualified annually, whereby generated, which will indicate whether or not the sup- INPUTS 8.78 8.01 documents are requested in order to validate com- plier is fit to supply.414-1 In 2020, approximately 3,409 suppliers were part of pliance with the mandatory requirements in regula-

Pamplona’s supply chain, including pigs, cattle, and PACKAGING 5.51 5.88 tions for maintaining product quality. To avoid situations in which people working for grains—which together accounted for more than suppliers are denied the social and labor protection

75% of the purchase volume for the year—in addi- INVESTMENTS For the largest and most extensive group of suppliers in mechanisms to which they are entitled, after the tion to suppliers of inputs for agribusiness, packag- IN FIXED ASSETS 3.90 4.72 Pamplona’s supply chain—pigs, cattle, and grains—the formalization of the contract, a checklist of docu- ing, equipment for investments in fixed assets, and hiring process also provides for the application of con- ments required to prove the regular status of the REFRIGERATED refrigerated ingredients, among others, as auxiliary INGREDIENTS 2.13 2.34 tractual procedures and clauses that take into account contractor’s employees is issued, and onboarding materials (inputs for the Feed Mill, medications, etc.). the industry’s relevant social, environmental, and food training is given to explain internal rules.

OTHER 4.35 5.85

Data source: Procurement

80 SUSTAINABILITY REPORT 2020 81 SUSTAINABILITY REPORT 2020 RESPONSIBILITY TOWARD ALL STAKEHOLDERS Community relations 103-2, 103-3 - Presence in the community

To prevent and fight the pandemic, during the year Pamplona made contributions totaling R$1.9 million

Projects supported through tax incentives Mechanism Beneficiary Entity Tax Incentive Amount (R$ thousand) 2020 2019 Rouanet Law/ Associação Centro Cultural Lilly Bremer - Rio do Sul (SC) 206 254 Audiovisual Law Correio Lageano Collection, Preservation of the Memory of Serra Catarinense 70 0 (Instituto José Paschoal Baggio) Lages (SC) Pamplona’s community and institutional presence In 2020, Pamplona’s social initiatives were strongly Festival Internacional Música na Serra (Instituto José Paschoal Baggio) Lages (SC) 36 72 is very relevant in all municipalities where it oper- geared to mitigating the effects of the pandemic Taió Literary Festival (SC) 68 0 ates. This positive impact for socioeconomic devel- on the communities where it operates. To this end, Pro-Life Art - São Bento do Sul (SC) 68 36 opment in the city and in rural areas can be seen equipment and materials for hospitals, nursing Art for Life - São Bento do Sul (SC) 40 0 Cinderella Tour (Touchê Entretenimento Ltda) 210 0 through the number of jobs created, the hiring of homes, day care centers, municipal public institu- Chicago - The Musical - São Paulo (SP) 110 0 local suppliers, development in the fields, and signifi- tions, and other institutions were donated, as well Instituto Escola do Teatro Bolshoi in Brazil - Joinville (SC) 358 0 cant contributions to the income of municipalities. as food and clothing for charities that support the SUBTOTAL 1,166 362 Pamplona continues to nurture its relationship with needy. Contributions totaled approximately R$1.9 Sports Law Racing Porsche (Racing Association) 0 90 farmers, investing in the economic development of million in the year. Table Tennis Association in Rio do Sul (SC) 148 0 Meninos da Baixada - Clube Atlético Hermann Aichinger Ibirama (SC) 113 0 rural regions and strengthening rural work and the Jaraguá Futsal - Year II - Associação Desportiva Jaraguá - Jaraguá do Sul (SC) 30 0 families that work in these areas. Like the history of All activities involving contact between people SUBTOTAL 291 90 Pamplona, this relationship spans generations. were suspended during the pandemic. The dental Child and Rio do Sul (SC) 45 90 Adolescent Presidente Getúlio (SC) 194 0 assistance program, for example, only responded Fund (FIA) Ituporanga (SC) 22 0 On the other hand, Pamplona also has a relevant to emergencies. Face-to-face activities should be Rio do Oeste (SC) _ 22 0 role to play in coordination and business leader- resumed after a more compressive coverage of the Central Trombudo (SC) 22 0 ship, working strongly with entities such as trade vaccination campaign. 413-1 SUBTOTAL 305 90 associations of Rio do Sul (ACIRS) and Presidente Elderly Fund Laurentino (SC) 60 0 Getúlio (ACIPG), Brazilian Animal Protein Associa- Rio do Sul (SC) 245 90 SUBTOTAL 305 90 tion (ABPA), Meat Industry Union of the State of Pronas Hélio Angotti Hospital - Uberaba (MG) 0 90 Santa Catarina (SINDICARNE), and the Federation SUBTOTAL 0 90 of Industries of the State of Santa Catarina (FIESC). Pronon Associação de Combate ao Câncer do Brasil Central - Uberaba (MG) 0 90 102-13 Fundação Pio XII - Barretos Cancer Hospital - Barretos (SP) 83 0 SUBTOTAL 83 90 TOTAL 2,150 812

82 SUSTAINABILITY REPORT 2020 83 SUSTAINABILITY REPORT 2020 RESPONSIBILITY TOWARD ALL STAKEHOLDERS RESPONSIBILITY TOWARD ALL STAKEHOLDERS

Social Responsibility Value Added in the most impacted municipalities in the Alto Vale do Itajaí region - by Pamplona's percentage share Municipality Share in 2020 (R$ thousand) Share in 2020 (%) Share in 2019 (%) Certification Presidente Getúlio (SC) 439,389 49.89 42.47 Rio do Oeste (SC) 75,174 28.68 31.56 Witmarsum (SC) 29,383 26.03 25.43 Rio do Campo (SC) 46,407 22.83 23.06 Mirim Doce (SC) 18,655 21.32 24.24 In its tenth consecutive participation in the So- Dona Emma (SC) 17,988 16.79 15.47 cial Responsibility Certification event of the State Salete (SC) 50,951 15.06 18.96 House of Representatives in State of Santa Catarina Laurentino (SC) 31,671 14.47 3.42 (ALESC), Pamplona was one of the finalists in the Pouso Redondo (SC) 65,867 13.04 11.56 Social Responsibility Award, which recognized, as a Trombudo Central (SC) 31,640 11.98 11.03 good practice, its third edition of the Sustainability Petrolândia (SC) 19,051 11.49 11.31 Report prepared in accordance with the guidelines Taió (SC) 58,857 10.04 11.43 of the Global Reporting Initiative (GRI). Atalanta (SC) 6,014 8.51 9.7 Vitor Meireles (SC) 6,349 7.56 8.14 Rio do Sul (SC) 138,046 7.18 5.55 Agrolândia (SC) 17,399 7.11 6.95 Presidente Nereu (SC) 2,419 7.09 9.94 Chapadão Lageado (SC) 5,553 7.05 6.27 Agronômica (SC) 9,981 6.56 7.05 Data source: Associação dos Municípios do Alto Vale do Itajaí (AMAVI) Only municipalities where Pamplona accounts for more than 5% of their revenue were considered. Data for 2019 with return to the municipality in 2021 and data for 2020 with return to the municipality in 2022.

Among the incentives in the year, Pamplona sup- In order to adapt and respect social distancing pro- ported the Bolshoi Theater School in Brazil, an In- tocols, Bolshoi resorted to technology and posted stitution that gives children access to the world of performance videos on its YouTube channel, pre- culture through art and education. Located in Join- miering with ballet 432, created and inspired during ville (SC), it has 250 students from 22 Brazilian states the pandemic, on the online platform. In this ver- and two countries. It is the world’s only branch of sion, the choreographies presented are based on this famous and traditional ballet and opera com- this current moment in time, reflecting the issues pany. The training of ballet artists requires scholar- faced by society in this period: anguish, fear, uncer- ships and benefits, and the school is supported by tainty, reinvention, and life. companies and individuals in order to maintain its structure and secure the necessary resources to carry out its activities.

84 SUSTAINABILITY REPORT 2020 85 SUSTAINABILITY REPORT 2020 RESPONSIBILITY TOWARD ALL STAKEHOLDERS RESPONSIBILITY TOWARD ALL STAKEHOLDERS

2020 Annual Social Audit in R$ thousand

1- Calculation Basis 2020 Amount (Thousand BRL) 2019 Amount (Thousand BRL) 5 -Workforce Indicators 2020 2019 Net revenue (NR) 1,739,675 1,216,064 Nº of employees at the end of the period 3,405 3,010 Operating income (OI) 334,167 122,007 Nº. of hires during the period 1,698 1,523 Gross payroll (GPR) 132,528 114,803 Nº. of outsourced employees 94 161 2 - Internal Social Indicators Amount % over % over Amount % over % over Nº. of interns 22 21 (thousand) GPR NR (thousand) GPR NR Nº. of employees over the age of 45 534 474 Food 5,486 4.14% 0.32% 2,902 2.53% 0.24% Nº. of women working for the company 1,299 1,087 Mandatory payroll taxes and benefits 28,093 21.20% 1.61% 25,142 21.90% 2.07% % of management positions held by women 20% 18% Health 331 0.25% 0.02% 211 0.18% 0.02% Nº. of black people working for the company 747 610 Occupational health and safety 1,868 1.41% 0.11% 1,365 1.19% 0.11% % of management positions held by black people 5% 3% Education 19 0.01% 0.00% 28 0.02% 0.00% Nº. of people with disabilities or special needs 59 40 Culture 222 0.17% 0.01% 194 0.17% 0.02% 6 -Relevant Information on Corporate 2020 Goals for 2021 Training and professional development 153 0.12% 0.01% 191 0.17% 0.02% Citizenship Daycare or daycare allowance 11 0.01% 0.00% 118 0.10% 0.01% Ratio of highest to lowest remuneration 32 (times) 30 (times) Transport allowance 808 0.61% 0.05% 402 0.35% 0.03% in the company Funeral assistance 7 0.00% 0.00% 1 0.00% 0.00% Total number of work-related accidents 69 45 ( ) upper (x) upper ( ) all employees ( ) upper (x) upper ( ) all employees Employee life insurance 285 0.22% 0.02% 246 0.21% 0.02% The company’s social and environmental management and middle management and middle projects were defined by: management management Profit sharing 13,001 9.81% 0.75% 8,317 7.24% 0.68% Workplace safety and sanitary ( ) upper ( ) all (x) everyone ( ) upper ( ) all employees (x) everyone Other 527 0.40% 0.03% 104 0.09% 0.01% and middle employees + Internal and middle + Internal standards were defined by: management Commission management Commission for Accident for Accident Total - Internal social indicators 50,810 38.33% 2.92% 39,222 34.16% 3.24% Prevention Prevention (CIPA) (CIPA) 3 - External Social Indicators Amount % over % over Amount % over % over (thousand) (thousand) (x ) does not get ( ) follows ILO ( ) supports and (x) will not get ( ) will follow ( ) will support OI NR OI NR Regarding freedom of association, right to involved standards follows ILO involved ILO standards and follow ILO collective bargaining, and internal worker standards standards 1,221 0.37% 0.08% 411 0.34% 0.04% Culture representation, the company:

Health and sanitation 83 0.02% 0.00% 180 0.15% 0.01% ( ) upper ( ) upper (x) all employees ( ) upper ( ) upper (x) all employees Profit sharing program covers: management and middle management and middle Sports 291 0.09% 0.02% 90 0.07% 0.01% management management ( ) are not ( ) are (x) are required ( ) will not be ( ) will be (x) will be Other 732 0.22% 0.04% 189 0.15% 0.02% In selecting suppliers, the same ethical, considered suggested considered suggested required social responsibility and environmental Total contributions to society 2,327 0.69% 0.13% 869 0.71% 0.07% standards adopted by the company: 160,002 47.88% 9.20% 145,402 119.18% 11.96% Taxes (excluding payroll taxes) ( ) does not get (x) supports ( ) organizes ( ) will not get (x) will support ( ) will organize Regarding employee participation involved and encourages involved and encourage Total - External social indicators 162,329 48.58% 9.33% 146,272 119.89% 12.03% in volunteer work, the company: 4 - Environmental Indicators Amount % over % over Amount % over % over Total value added for distribution (R$ thousand) In 2020: 676,639 In 2019: 388,465 (thousand) OI NR (thousand) OI NR Distribution of Value Added: 26.84 % government 41,50 % government Waste disposal 360 0.11% 0.02% 327 0.27% 0.03% 20.45 % employees 28.81 % employees Treatment of eEissions 1,066 0.32% 0.06% 846 0.69% 0.07% 9.52% shareholders 4.42% shareholders Remediation costs 40 0.01% 0.00% 1 0.00% 0.00% 8.66% third parties 12.03% third parties 34.52% retained 13.25% retained Environmental management and prevention costs 1,466 0.44% 0.08% 1,174 0.96% 0.10% Regarding the establishment of "annual goals" to ( ) does not have goals ( ) does not have goals minimize waste, overall consumption in production/ ( ) fulfills 51% to 75% ( ) fulfills 51% to 75% operation, and increase efficiency in the use of ( ) fulfills 0 a 50% ( ) fulfills 0 a 50% natural resources, the Company: (x) fulfills 76 a 100% (x) fulfills 76 a 100%

86 SUSTAINABILITY REPORT 2020 87 SUSTAINABILITY REPORT 2020 ENVIRONMENTAL MANAGEMENT

30.000 Seedlings of native trees donated as part of an environmental project

94% of trucks approved in the Vehicle Emissions Inspection

Management of industrial solid waste stands out due to an increase in recycled materials and a sustainable strategy for treating WWTP sludge via composting ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL MANAGEMENT

103-2, 103-3 – Environmental management

Pamplona is aware that good social Energy 302-1 and environmental practices are key Environmental concern guides to projecting a prosperous future for Pamplona’s partnership with the business and its stakeholders, the utility company Engie as well as for the planet as a whole

In a very challenging year, Pamplona once again Pamplona’s Sustainability Committee played an im- Pamplona prioritizes the purchase of clean energy Total fuel consumption from non-renewable sources (m3) registered important advances in its social and en- portant role during the implementation phase of on the free market, and in recent years the com- Units 2020 2019 vironmental projects. Adaptations provided satisfac- the EMS, promoting online group workshops for pany has acquired wind energy from Engie for use Liquefied petroleum gas - LPG¹ tory conditions to maintain all ongoing works and 40 to 50 people, in addition to an onsite meeting in its factories. The purchase contracts are of great Factory in Pres. Getulio (SC) 82,414 80,601 ensure continuous evolution according to the orga- held before the pandemic period. The group facili- strategic importance for the good performance of Factory in Rio do Sul (SC) 0 0 nization’s plans, set out in the Environmental Policy. tates the assigning of responsibilities and meeting the manufacturing units. According to the partner- Company-owned farms (SC) 70 7,995 the project’s schedule of activities. ship, Pamplona’s brand will be displayed on Engie’s Natural gas - NG One the main initiatives is the project to implement turbine—an action that will be disseminated via vid- Factory in Pres. Getulio (SC) 0 0 the Environmental Management System (EMS), For our main environmental goals, we had employ- eo on social media and other media. The key mes- Factory in Rio do Sul (SC) 281,075 207,662 which will result in an even more efficient and ees from all units involved in training courses and sage of this partnership is Pamplona’s environmen- Company-owned farms (SC) 0 0 structured environmental management approach events in this area and greater efficiency in reus- tal concern and its commitment to clean energy, Total non-renewable fuels 363.559 296.258 that shows interested parties the organization’s en- ing and recycling waste. Our main goal for 2021 is sustainability, and transparency with the conscious Data source: Environment vironmental commitment. Scheduled for comple- to raise awareness about the responsibility of each use of natural resources. tion in November 2020, the implementation of employee in the construction of an efficient EMS the EMS was postponed, given the impossibility by providing content that provides understanding In 2020, the volume of LPG consumed on com- Liquefied petroleum gas consumption rate - LPG¹ of making technical visits between the months of on the system’s methodology, further improving pany-owned farms was reduced, replaced by fire- (m³) per production volume (ton) April and July. Thus, the new schedule foresees the the work dynamics in the organization. wood (originated from reforestation in accordance Unit 2020 2019 completion of the project in May 2021, with goals with legal requirements), contributing to increased Factory in Pres. Getulio (SC) 3,583 2,785 to be achieved as early as this year. Other important actions continue to be developed, use of renewable sources. Data source: Environment such as encouraging sustainability and environmen-

tal awareness. In 2020, through the Mais Água (More Natural gas consumption rate - GN (m³) Water) Project, Pamplona helped several rural prop- per production volume (ton) erties in the integrated producer chain with the dis- Unit 2020 2019 tribution of approximately 30,000 native seedlings, Factory in Rio do Sul (SC) 1,334 1,357 aiming to recover and protect water springs. Data source: Environment

90 SUSTAINABILITY REPORT 2020 91 SUSTAINABILITY REPORT 2020 ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL MANAGEMENT

Total fuel consumption from renewable sources Types of fuel Unit of measure 2020 2019 Wood shavings Factory in Pres. Getúlio (SC) Tons 191 229 Factory in Rio do Sul (SC) Tons 110 557 Company-owned farms (SC) Tons 548 443 Wood chips Factory in Pres. Getúlio (SC) Tons 8,217 8,108 Factory in Rio do Sul (SC) Tons 13,520 12,094 Company-owned farms (SC) Tons 0 0 Firewood Factory in Pres. Getúlio (SC) m3 88 103 Factory in Rio do Sul (SC) m3 0 0 Company-owned farms (SC) m3 3,611 1,619 Total renewable fuels Tons 22,586 21,431 m3 3,699 1,722 Data source: Environment

Wood chip consumption rate (ton) per production volume (ton) Units 2020 2019 Factory in Pres. Getulio (SC) 0.133 0.136 Factory in Rio do Sul (SC) 0.172 0.162 Data source: Environment

Energy consumption (kWh) per unit 2020 2019 Feed plant (SC) 3,245,238 3,291,276 Factory in Pres. Getúlio (SC) 16,918,564 18,067,923 Factory in Rio do Sul (SC) 28,116,219 25,564,435 Company-owned farms (SC) 645,686 513,557 Total electricity consumption 48,925,707 47,437,191 Company-owned Data source: Environment farm replaces fossil fuel and increases the use of RENEWABLE 3 Energy intensity rate (kWh/ton) Units 2020 2019 sources by m 3,699 Feed plant (SC) 9.89 10.97 Total consumption Factory in Pres. Getúlio (SC) 273.99 304.35 Factory in Rio do Sul (SC) 358.41 342.87 of fuels from Data source: Environment renewable sources 114% in 2020, in all units

92 SUSTAINABILITY REPORT 2020 93 SUSTAINABILITY REPORT 2020 ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL MANAGEMENT

Despoluir Emissions 305-1 Program In order to support actions to reduce GHG emissions, Pamplona prepares its The Despoluir Program, a joint initiative between The Despoluir Emissions Inventory annually the National Transport Confederation (CNT), the Social Transport Service (SEST), and the Transport program has been Learning Service (SENAT) with the aim of reduc- monitoring third- ing vehicle emissions was maintained in 2020 and marks one of Pamplona’s environmental educa- party fleets serving Pamplona’s second air emissions inventory was prepared in tion initiatives. In the year, the percentage of trucks 2020 using the GHG Protocol methodology (the approach approved reached 94%, presenting the best index the feed plant most widely used by companies and governments world- since the beginning of the program, in 2014. since 2014. wide for their inventories) using the calculation tool version 2020.1.2, ABNT NBR ISO 14064. The scope of the project has been extended to include Scope 2 emissions of the methodology, and based on the results obtained, evalua- To learn more about the project, tions will be made to identify possible strategies to reduce visit: www.despoluir.org.br/ greenhouse gas (GHG) emissions.

Direct GHG emissions (tCO2e) Scope 1

Factory in Rio do Sul (SC) 2,014,602.16 Factory in Presidente Getúlio (SC) 615,962.11

Biogenic emissions (tCO2e) Scope 1

Factory in Rio do Sul (SC) 24,774.13 Factory in Presidente Getúlio (SC) 14,995,.03

Energy indirect GHG emissions (tCO2e) Scope 2

Factory in Rio do Sul (SC) 2,109.88 Factory in Presidente Getúlio (SC) 1,269.60

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Water resources Effluent treatment

With the reduction of water availability in Total volume of water withdrawn by type of source (m3) 303-3 One of the main projects under development, par- The volumes of effluents generated by the units in recent years in the region where the plants Types of source 2020 2019 allel to the expansion of the Presidente Getúlio unit, 2020 are proportionate to the volume observed in operate, Pamplona saw the opportunity to Surface water (including wetlands, rivers, lakes, and oceans) was hindered by the effects of the pandemic. Due water consumption. The effluents are discharged conduct, in 2021, a technical study to sur- Factory in Pres. Getúlio 0 0 to the difficulty in conducting technical visits to into the body of water after proper treatment, are vey the best alternatives available within Factory in Rio do Sul 309,208 294,252 evaluate similar systems in other companies, and monitored, and comply with the thresholds estab- the local Drainage Basin in order to cater Company-owned farms 480,783 427,043 also to perform onsite studies, the action had its lished by the applicable standards. With the project to its future needs. Currently, 99% of all Granjas Próprias (SC) 100,956 88,287 final validation compromised. One of the main ac- to install water meters and receive data to monitor water resources used in the units come Groundwater tions in this area planned for next year, the activat- water consumption in company-owned farms , the from surface water withdrawal. Factory in Pres. Getúlio 0 0 ed sludge installation project, should complete its effluents from these units can also be managed us- Rio do Sul Factory 0 0 validation in the first quarter of 2021 and be imple- ing the same system, considering the ratio of efflu- In the fields, in order to effectively manage Company-owned farms 0 0 mented throughout the year. ent generation to volume of water consumed. this resource in Pamplona’s owned farms, Granjas Próprias (SC) 5,095 9,100 a project was initiated to directly measure Municipal water supply or other water utility companies water consumption with the installation of Factory in Pres. Getúlio 1,414 1,527 water meters in 100% of the supply lines. Rio do Sul Factory 0 0 Company-owned farms 0 0 This investment will allow for accurate in- Total water discharge, broken down by quality and destination (m3) 306-1 Granjas Próprias (SC) 1,232 835 formation and immediate access to num- Units Type of wastewater Water quality and treatment Reused water 2020 (m3) 2019 (m3) bers. As a result of this monitoring process, TOTAL (m3) 898,688 821,044 disposal method indicators can be validated, and more ef- Data source: Environment Feed plant (SC) Surface water Septic tank and NO 1,343 1,451 Note: The volume measured for industrial and meatpacking plants is direct, single disinfection box ficient actions for using the resource can source. For farms, the volume is estimated following the recommendations of EMBRAPA (IN 11/2014), the ratio of animal breeding phase to water consumption. Factory in Pres. Getúlio (SC) Surface water Physical, chemical, NO 293,748 279,552 be determined. and biological Factory in Rio do Sul (SC) Surface water Physical and biological NO 456,744 405,691 The numbers for consumption in 2020 Owned farms (SC) Surface water, Stabilization ponds, YES 80,554 72,920 indicate an increase in both units, with a incorporation physical, and composting in compost, and 4.8% increase in Presidente Getúlio and an Rate of water consumption (m³) by surface source per production volume (ton) distribution in 11.2% increase in Rio do Sul. This increase soil as fertilizer Factory 2020 2019 was attributed mainly to the activation TOTAL 751,835 759,614 Factory in Pres. Getúlio (SC) 5,007 4,956 of new processing areas in the industry. Data source: Environment Factory in Rio do Sul (SC) 6,128 5,727 Note: The methodology used to determine the volume of effluents generated in the farms is the IN 11/2014 Embrapa Swine and Poultry. In determining the There was also increased consumption Data source: Environment volume of effluents generated in the industry, the following calculation was used: (volume of effluent = volume of water consumed - 5%). on farms resulting mostly from a greater number of animals housed.

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Waste

Total weight of waste by type and disposal method 306-2 Types of Waste Unit of UNITS measure Factory in Rio Factory in Pres. Feed plant/SC Company-owned do Sul/SC Getúlio/SC farms /SC Class I waste 2020 2019 2020 2019 Autoclave/Landfill Ton 0.28 0.63 0 0 1.19 0.15 14 14 Class II waste 2020 2019 2020 2019 2020 2019 2020 2019 Composting Ton 901 920 634 856 54 118 0 0 The topic of waste management is key for Pamplo- The construction project for the Waste Center at Recycling Ton 570 399 206 189 24 8 0 0 na’s environmental management, and a sequence the Headquarters unit is underway, and it is expect- Reuse Ton 127 55 48 31 5.32 2.9 0 0 of initiatives has reflected the significant increase in ed to enter into operation in early 2021. This physi- Autoclave/Landfill Ton 592 483 144 165 0 0 0 0 the percentage of recyclable waste in the last three cal restructuring will further contribute to the total TOTAL (except light bulbs) Ton 2,190 1,858 1,032 1,076 85 129 14 14 years. In 2020, Pamplona continued to achieve sig- volume of recycled waste, along with the goals and Data source: Environment nificant results by monitoring the sorting process targets set by the Environmental Management Sys- and creating indicators related to the efficiency of tem. In recent years, Pamplona has treated 100% of waste reuse and recovery. Throughout the period, the sludge produced in the WWTPs using compost- work was intensified for better sorting and classifi- ing technology. 306-2 cation in these processes, mainly to provide a final selection of reusable waste in their external disposal. This was due to a partnership between Pamplo- na and partner companies that carry out the final disposal and reuse of this waste. Industrial Units exceed As a result, the target of 45.5% of waste sent for recycling was exceeded, reaching 49.2% at the Headquar- goals set for solid waste ters unit. At the Presidente Getúlio unit, the results were even more positive, reaching 58.6% of recycled waste compared with the target goal of 53%. RECYCLING

Another practice is associated with the management of solid waste generated by the chain of company-owned farms and the integrated producers, involving the collection of medication and other packaging classified as Class I. This collection is done by and sent to a properly qualified company, contributing to one of the environmental aspects related to company activity.

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Consumption A SUSTAINABLE of materials PRACTICE

The Lauro Pamplona Composting Unit has been sustainably treating agro-industrial organic waste for more than three years using a process of biological degradation of waste that was previously sent to The main materials consumed by the Pamplona landfills. A new milestone was reached agro-industrial processes are grains (soy meal and in 2020 through the characterization of corn) and animals (swine and cattle). In 2020, the its treatment unit as an organic fertilizer feed plant was responsible for the consumption of plant, allowing generated product to 315,000 tons of grains and materials. The indus- be used in regional agricultural crops trial processes of the Rio do Sul/SC and Presidente and even marketed, benefiting the Getúlio/SC units, together, accounted for the consumption of more than 145,000 tons of beef and regional production chain and promoting pork in the year. sustainable practices. This reuse process also reduces pressure on landfills, as the solution meets the National Solid Waste Policy (PNRS). Type of materials used in production 301-1 Total weight (tons) A technical-scientific work has been jointly 2020 2019 developed with the Agricultural Research Agriculture: renewable inputs and Rural Extension Company of Santa Catarina (Epagri) since the beginning of the project through a cooperation agreement, Corn 226,875 210,011 where, together with the organization’s environmental technical team, a Soybean meal 57,425 49,799 standardized and efficient operational process has been developed. Other 30,437 26,831 Total 314,737 286,641 In 2021, the challenges continue and new Factory outlooks are already being built in view of the various opportunities to use the Pork 140,483 129,394 final product, i.e. to develop the Unit so that it can produce and market organic fertilizers, so that the product generated Beef 5,170 6,766 can be used in regional agricultural crops, Total 145,653 136,160 benefiting the regional production chain Data source: Environment and encouraging sustainable practices.

100 SUSTAINABILITY REPORT 2020 101 SUSTAINABILITY REPORT 2020 ABOUT THE REPORT ABOUT THE REPORT Engagement Material topics 102-43 | 102-44 | 102-46 | 102-47 Considered Relevant Very relevant

Materiality GRI Aspects Customers Suppliers Trader Public materials authorities and materiality Economic Economic tax performance performance and governance Fight against corruption This report was prepared in accordance with the The process of defining the content of this publi- Environmental compliance GRI Standards: Core option, an international stan- cation includes prioritizing the material topics for Social compliance dard in sustainability reporting developed by the Pamplona’s sustainability issues according to inter- Global Reporting Initiative (GRI), with information nal (leadership) and external stakeholders (repre- Supplier Purchasing practice management referring to the period from January 1st to Decem- sentatives of trade associations, public authorities, and development Environmental ber 31st, 2020. The financial information contained business partners, suppliers, and customers, in- evaluation of in this publication refers to all Pamplona’s owned cluding a trading company in China). Consultations suppliers units, and the other sustainability information (en- were made between January and February 2020 Social evaluation of suppliers vironmental, social, and product), when applicable and were conducted by an independent third-party Product quality Marketing and/or available, refers to the manufacturing units company. The concerns of external audiences are and labeling in Rio do Sul, Presidente Getúlio, the feed plant in in line with the topics already reported by Pamplo- Customer health Laurentino, the seven company-owned farms, the na. The definition of material topics for reporting and safet two meat shops, and the central DC in Camboriú, remained the same as in previous years, including Animal welfare all located in Santa Catarina. the need for the presentation of goals and com- Environmental Materials mitments on sustainability and the priority reporting Management Energy The scope of this report does not include the so- of product development and quality practices. The cial and environmental information of outsourced main aspects are used to define the content of the Water industrial units, distribution centers, and integrated report and support future guidelines in the report Emissions producers. Questions, suggestions, or comments and in management. Based on this information, about the report can be sent to pamplona@pam- Pamplona defined its scope of 20 material aspects Effluents and waste plona.com.br or by phone +55 47 3531-3131. 102- and 31 indicators, which are introduced throughout People Employment 45 | 102-50 | 102-53 | 102-54 this publication. 102-40 | 102-42 | 102-43 | 102-46 management | 102-47 Training and education Occupational health and safety Presence in Indirect economic the community impacts Local communities

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Topics where stakeholders Aspects such as logistics improvements, modern- GRI Summary 102-55 expect Pamplona to elaborate ization, technology, and investments, in addition on or qualify the information to practices directly involving quality and develop- reported (in order of ment, can already be seen in the expanded content GRI Standards Disclosure Page, link or direct disclosure Omission importance) in this edition of the report. The content associated title GRI 101: Foundation 2016 with other topics may be incorporated or expand- GRI 102: General Disclosures 2016 ed in future editions, in line with the expectations of GRI 102: 102-1 Name of the organization 14 Pamplona’s stakeholders. General 102-2 Activities, brands, products, and services 14 Disclosures 102-3 Location of headquarters 14 2016 102-4 Location of operations 14 102-5 Nature of ownership and legal form 14 102-6 Markets served 14 102-7 Scale of the organization 14 102-8 Information on employees and other workers 78 102-9 Supply chain 80 102-10 Significant changes to the organization and its supply chain 7 01 02 03 04 102-11 Precautionary Principle or approach 24 102-12 External initiatives Pamplona does not Quality Use of Quality of Technology subscribe to or endorse sustainability charters or of animal antibiotics transport, and systems principles. nutrition and sanitary refrigeration for traceability 102-13 Membership of associations 82 practices and storage of 102-14 Statement from senior decision-maker 6 the product 102-15 Key impacts, risks, and opportunities 25 102-16 Values, principles, standards, and norms of behavior 21 102-17 Mechanisms for advice and concerns about ethics 21 102-18 Governance structure 23 102-40 List of stakeholder groups 102 05 06 07 08 102-41 Collective bargaining agreements 100% of employees are covered by collective Quality control Working Modernization Optimization of bargaining agreements. and team conditions and of the industry natural resources, 102-42 Identifying and selecting stakeholders 102 training labor practices and sustainability such as water 102-43 Approach to stakeholder engagement 102, 103 102-44 Key topics and concerns raised 103 102-45 Entities included in the organization’s consolidated financial 102 statements or equivalent documents 102-46 Defining report content and topic Boundaries 102, 103 102-47 List of material topics 102, 103 102-48 Restatements of information None. 102-49 Changes in reporting None. 102-50 Reporting period 102 102-51 Date of most recent report 03/08/2020 102-52 Reporting cycle Annual. 102-53 Contact point for questions regarding the report 102 102-54 Claims of reporting in accordance with the GRI Standards 102 102-55 GRI Content Index 105 102-56 External assurance This report has not been assured by a third party.

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Material topic: Economic performance and governance Material topic: Environmental management GRI 103: 103-1 Explanation of the material topic and its Boundary In 2020, Pamplona did GRI 103: 103-1 Explanation of the material topic and its Boundary 103 Management not receive or have Management 103-2 The management approach and its components 90 Approach 2016 significant fines due to Approach 2016 103-3 Evaluation of the management approach 90 non-conformities in the environmental, social, GRI 301: 301-1 Materials used by weight or volume 101 and economic areas. Materials 2016 103-2 The management approach and its components 59 GRI 302: 302-1 Energy consumption within the organization 91 Energy 2016 103-3 Evaluation of the management approach 59 GRI 303: Water 303-3 Water withdrawal 96 GRI 205: 205-2 Communication and training about anti-corruption policies and 21 and Effluents Anti-corruption procedures 2018 2016 205-3 Confirmed incidents of corruption and actions taken 21 GRI 305: 305-1 Direct GHG emissions 94 Material topic: Product quality Emissions 2016 GRI 103: 103-1 Explanation of the material topic and its Boundary 103 GRI 306: 306-1 Water discharge by quality and destination 97 Management 103-2 The management approach and its components 67 Effluents and 306-2 Waste, broken down by type and disposal method 98,99 Approach 2016 103-3 Evaluation of the management approach 67 Waste 2016 GRI 416: 416-1 Assessment of health and safety-related impacts on product and 68 GRI 307: 307-1 Non-compliance with environmental laws and regulations 31 Consumer service categories Environmental Health and Compliance Safety 2016 2016 GRI 417: 417-1 Requirements for product and service information and labeling 69 GRI 308: 308-1 New suppliers that were screened using environmental criteria 42 Marketing and Supplier Labeling 2016 Environmental Material topic: People management Assessment GRI 103: 103-1 Explanation of the material topic and its Boundary 103 2016 Management 103-2 The management approach and its components 71 Food Processing Sector disclosures Approach 2016 103-3 Evaluation of the management approach 71 Food FP1 Percentage of purchased volume from suppliers compliant 80, 81 GRI 401: 401-1 Rate of new employee hires and turnover 78,79 Processing, with company’s sourcing policy Employment sector FP5 percentage of production volume manufactured in sites certified 68 401-2 Benefits offered to full-time employees that are not offered to 74 Disclosures 2016 temporary employees by an independent third party according to internationally recognized standards GRI 403: 403-2 Hazard identification, risk assessment, and incident investigation 75 FP6 Percentage of total sales volume of consumer products, 68 Occupational 403-4 Worker participation, consultation, and communication on 75 by product category, that are lowered in saturated fat, health and occupational health and safety trans fats, sodium and added sugars safety 2018 403-5 Worker training on occupational health and safety 76 FP12 Policies and practices on antibiotic, anti-inflammatory, hormone, 42, 45 403-6 Promotion of worker health 77 and/or growth promotion treatments, by species and breed type 403-9 Work-related injuries 76 GRI 404: 404-1 Average hours of training per year per employee 73 Training and Education 2016 Material topic: Community presence GRI 103: 103-1 Explanation of the material topic and its Boundary 103 Management 103-2 The management approach and its components 82 Approach 2016 103-3 Evaluation of the management approach 82 GRI 413: Local 413-1 Operations with local community engagement, impact assessments, 82 Communities and development programs Material topic: Supplier management and development GRI 103: 103-1 Explanation of the material topic and its Boundary 103 Management 103-2 The management approach and its components 80 Approach 2016 103-3 Evaluation of the management approach 80 GRI 204: 204-1 Proportion of spending on local suppliers 81 Procurement Practices 2016 GRI 414: 414-1 New suppliers that were screened using social criteria 42, 81 Supplier Social Assessment 2016

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Responsibility GRI Technical Consultancy Administrative and Finance Director Avesso Sustentabilidade

Validation Copy Chief Executive Officer KMZ Conteúdo Industrial Director Procurement and Development Director Graphic Design Sales Director - Domestic Market Marcia Godoy Sales Director - Foreign Market Commercial Director for Expansion and Logistics English Translation Gotcha! Idiomas Accountant in Charge Élvis Justen | CRC-SC-028194/O-3 Contact GRI 102-53 Areas involved Phone: +55 (47) 3531-3131 Internal Audit [email protected] Commercial Accounting Rod. BR 470, Km 150, nº 13.891 Controllership Bairro Pamplona - CEP 89164-900 Financial Rio do Sul - Santa Catarina Tax pamplona.com.br Development Quality Feed Plant Legal Logistics Maintenance Marketing Environment Research & Development Human Resources SESMT Procurement Information Technology

Support Associação Cultural Esportiva e Recreativa Pamplona (ARCEP)

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