Sustainability Report

SUSTAINABILITY REPORT

2018 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

MESSAGE FROM THE MANAGEMENT [GRI 102-14]

t Portonave, we believe that building a sustainable development starts fits of this internal effort reach the community where we operate. After all, A from the inside out. That’s the reason why the Company has always 95% of our employees live in Navegantes and in two other neighboring been committed, since the start of its operations, to ensuring an econom- cities, Itajaí and Penha. ic, social and environmental balance in the business strategy. Besides strengthening our competitiveness, the good practices can spread among Focusing on the region’s development, the Company also invests in social our stakeholders, sharing benefits and inspiring initiatives focused on the and cultural projects, partnering with Portonave Institute, which is respon- future we want. In 2018 it was no different. sible for selecting and monitoring the activities supported. Own resources and tax incentives, based on Brazil’s current mechanisms of tax waiver, are One of the year’s main achievements - OSHAS 18001 certification on applied in these projects. As a result, the Company invests part of the tax- health and safety at work - strengthened Portonave’s care with our pro- es in the community itself, bringing health, education and culture benefits. fessionals: a total of 975 people at the end of December. The Company In 2018 only, BRL 2.8 million of tax incentives were allocated to activities started to get ready more than five years ago to meet the certification’s under the community’s interest. requirements, including adjusting the facilities, revising the operational

procedures, providing specific training and implementing new manage- Together with these social activities, we have a rigid control over the Ter- REPORT SUSTAINABILITY 2018 PORTONAVE’S ment tools. All to mitigate risks and increase the awareness of our teams minal’s environmental programs, to reduce as much as possible the neg- on what is truly important: all lives matter. ative impacts of our operation. In this sense, we monitor the consumption of natural resources, the generation of waste and sewage, the quality of Besides safe working conditions, we are committed to offering opportu- the water in the Itajaí-Açu River, the levels of noise and atmospheric emis- nities for the personal and professional development of our team. To this sions, among other relevant aspects. end, we have actions and programs focused on promoting well-being, offering continued education and fostering diversity; the backbones of the We are certain that the effort we place in the environment and in peo- people management model adopted by Portonave. Naturally, the bene- ple it’s what drive the business forward. We bring together the service 2 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

MESSAGE FROM THE MANAGEMENT

excellence, an integrated management and a proper infrastructure, as for the production outflow. Like other public investments in infrastruc- well as the social and environmental responsibility, all competitive ad- ture, these construction works have a huge potential to leverage Santa vantages that strengthen Portonave in challenging scenarios - such as Catarina’s economy. the one experienced by Brazil in 2018. Affected by the political and economic instability, over the year the business environment demanded There is no doubt that Brazil has huge challenges to overcome. But the assertive strategies to ensure our financial performance: the Company’s experiences of the past few years prove that there are people and or- Consolidated Gross Operating Revenue grew by 6.7%. ganizations willing to help the country thrive. Portonave is one of them. Together with our professionals, clients, suppliers, community, partners The business strengthening led to an external recognition. In 2018, and other stakeholders, we will continue working to make sustainable Portonave remained as leader in containers handling in Santa Catarina, development a reality for all. with a 49% market share. At the same time, the Company was ranked among the 20 largest ports in Latin America, in the ranking of the Eco- nomic Commission for Latin America and the Caribbean (ECLAC), and as

the 24th company among the 100 largest in Santa Catarina, according REPORT SUSTAINABILITY 2018 PORTONAVE’S to the ranking prepared by Amanhã magazine in partnership with PwC.

To improve our competitiveness, we are committed to articulate the con- OSMARI DE CASTILHO RIBAS clusion of the construction work at the Evolução Basin of the Itajaí-Açu Director - Administrative Superintendent River Port Complex, key to the future of the industry in the region.

Accordingly, we have joined those who defend the advance of the RENÊ DUARTE E SILVA JÚNIOR construction works to double the lanes of BR 470, a strategic highway Director - Operational Superintendent 3 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

HIGHLIGHTS 49% market share in Santa Catarina Obtaining the OSAS 18001 975 certification direct professionals on work health and safety 761,432 REPORT SUSTAINABILITY 2018 PORTONAVE’S TEUs handled

BRL 59 7. 4 million BRL 2.8 million in Gross Operating Revenue Invested in social projects 4 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

HIGHLIGHTS

Average of Recognized with the Decrease of Citizen Company % Award (Prêmio 81.51 Empresa Cidadã), 75 hours of training per for implementing the in the generation professional Portonave’s Gallery of waste, compared to 2016

Decrease of

% REPORT SUSTAINABILITY 2018 PORTONAVE’S BRL 808,700 34.9 invested in scholarships in energy consumption, for professionals compared to 2016

5 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

INTRODUCTION

Committed to transparency, Portonave presents this 2018 Sustain- ability Report with a special proposal: connecting actions developed PROSPERITY Ensuring a prosperous locally, from our business and our community, to global challenges and fulﬁlling life, of sustainable development. in harmony with nature. The starting point is the 2030 Agenda, proposed by the United Nations (UN) as a guideline to improve the economic, social and environmental conditions worldwide. Thus, the path to the future PARTNERSHIPS PEOPLE is based on the 17 Sustainable Development Goals (SDGs), in- Implementing the Ending poverty and cluded in the Agenda, and its 169 targets - see the SDGs on the Agenda through hunger in every solid global way and ensuring next page. partnerships. dignity and SUSTAINABLE equality. DEVELOPMENT Portonave believes in SDGs power to change the world and understands that the added efforts - from individuals and pub-

lic and private organizations - will lead to results that benefit REPORT SUSTAINABILITY 2018 PORTONAVE’S everyone, especially the next generations. Under this assump- tion, the content of this Report was distributed into five pillars of sustainable development set by the 2030 Agenda, as shown in the infographic below: PLANET PEACE Protecting the natural Promoting Peaceful, resources and climate Fair and Inclusive of our planet for future Societies. generations.

Source: UN, Agenda 2030. 6 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

Source: 2030 Agenda Platform - www.agenda2030.org.br

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MESSAGE FROM THE MANAGEMENT | HIGHLIGHTS | INTRODUCTION | TABLE OF CONTENTS

TABLE OF CONTENTS

PROSPERITY ...... 9 PLANET ...... 54 Our Campaign ...... 10 Our Ecosystem ...... 55 Corporate Governance ...... 17 Water ...... 58 In the following pages, we sought Business ...... 23 Sewage ...... 59 to connect our actions to these Energy ...... 60 pillars, as well as to the SDGs Waste ...... 62 and its targets. In addition to Por- PEOPLE ...... 26 Emissions ...... 65 tonave’s corporate profile, this Our Team ...... 27 document includes information Compensation and Benefits ...... 31 on the Company’s economic, so- Diversity ...... 33 PARTNERSHIPS ...... 66 cial and environmental performance in 2018, in compliance Health and Safety ...... 35 We are part of the whole ...... 67 with the guidelines of the Glob- Well-Being ...... 39 External Initiatives ...... 68 al Reporting Initiative (GRI) - Corporate Education ...... 41 2030 Agenda ...... 69 click here for further informa- REPORT SUSTAINABILITY 2018 PORTONAVE’S tion on the methodology used to prepare the Report. PEACE ...... 44 GRI EXHIBIT Our Community ...... 45 The Report ...... 70 Social Responsibility ...... 47 Table of Contents ...... 74 Portonave Institute ...... 49 Opportunity for Young People ... 52

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

CONTRIBUTING TO THE SUSTAINABLE

DEVELOPMENT IF ONE OF

PORTONAVE’S COMMITMENT, STATED

IN OUR CORPORATE MISSION.

PROVIDING EXCELLENT SERVICES IN A

STRATEGIC SEGMENT FOR THE COUNTRY,

GENERATING AND SHARING VALUE, STRIVING PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S TO BRING PROGRESS IN A RESPONSIBLE WAY. PROSPERITY

ENSURING A PROSPEROUS AND FULFILLING LIFE, IN HARMONY WITH NATURE.

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

OUR CAMPAIGN [GRI 102-1; 102-2; 102-3; 102-4; 102-5; 102-6; 102-7; 102-16]

eadquartered in Navegantes, Santa Ca- H tarina, Portonave is a private port terminal that contributes to the production outflow from several regions of Brazil - and other South Amer- ican countries - as well as receiving cargo from all over the world. Since its beginning in Octo- ber 2007, the Company remains committed to providing excellent services and promoting a sustainable development.

This commitment, shared by our 975 professionals in 2018, makes Portonave internationally rec-

ognized not only for the quality of its services to REPORT SUSTAINABILITY 2018 PORTONAVE’S the market, but also for the social and environmental responsibility integrated to its activities. Both are important competitive advantages, together with the Terminal’s privileged location, high productivity and infrastructure (see the box on the next page).

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

PORTONAVE IN 2018 INFRASTRUCTURE

BR-101 ➝ area of 400,000 sqm ➝ 3 docking berths BR-470 ATLANTIC ➝ 900 meters of linear wharf OCEAN ➝ 30,000 TEUs of static storage capacity SANTA CATARINA PORTONAVE ➝ 6 Portainers ➝ 18 Transtainers ➝ 40 Terminal Tractors RIO ITAJAÍ-AÇU ➝ 5 Reach Stackers ➝ 4 Forklifts for Empties ➝ 1 Scanner ➝ 2,100 Reefers Outlets ➝ 1 Automated Cold Room, with: • 16,000 pallet positions • 13 docks to receive loads REPORT SUSTAINABILITY 2018 PORTONAVE’S BRL 2.8 million BRL 59 7. 4 million • storage area with 50,000 sqm INVESTED IN SOCIAL PROJECTS IN GROSS OPERATING REVENUE

RESPONSIBLE FOR 975 1,256 45% 3,390 49% DIRECT SUPPLIERS AND SERVICE OF THE ISS COLLECTED IN THE CLIENTS MARKET SHARE IN PROFESSIONALS PROVIDERS CITY OF NAVEGANTES SANTA CATARINA 11 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

On November 16, 2018, Portonave reached the number of 7 million TEUs handled since the beginning of its operations. To record the moment, professionals placed a celebratory ribbon in the 7-million container, which went PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S to Shanghai, China.

12 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Based on these advantages, Por- FUNDAMENTAL PRINCIPLES OF THE COMPANY’S MANAGEMENT tonave remained as leader in containers handling in Santa Catarina in 2018, with 761,432 TEUs (Twen- MISSION ty-foot Equivalent Unit) handled To provide port services with throughout the year, generating a integrated logistics solutions Gross Operating Revenue of around which meet clients’ expectations BRL 597.4 million. At the end of 2018, and contribute to sustainable the Terminal was among the 500 larg- development. est companies in the Brazilian South, according to the ranking published by Amanhã magazine, and among the 20 largest ports in Latin America, according to the ranking of the Eco- nomic Commission for Latin America VISION and the Caribbean (ECLAC). To be a global reference for efficiency and quality in the port segment REPORT SUSTAINABILITY 2018 PORTONAVE’S

VALUES ➝ Focus on the client; ➝ Valuing people; ➝ Integrity; ➝ Responsibility ➝ Commitment to excellence. 13 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

TIMELINE

FINALIST, FOR THE FIRST TIME, ON LLOYD’S LIST GLOBAL AWARD AND SIGNED AN HONORABLE MENTION AGREEMENT WITH THE TERMINAL IN THE CONTAINERIZATION THE MINISTRY OF STARTED CERTIFICATION INTERNATIONAL TRANSPORTATION. OPERATING. ISO 9001. AWARDS.

2001 2005 2007 2008 2009 2010 2011 PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

STARTED BUILDING CERTIFICATION CERTIFICATION PORTONAVE. ISPS CODE. ISO 14001.

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

TIMELINE

➝ REACHED 5 MILLION SOUTH AMERICAN TEUS HANDLED. RECORD OF PRODUCTIVITY ➝ CERTIFIED AS AN BY SHIP: AUTHORIZED ECONOMIC HANDLING 270.4 OPERATOR (AEO) – CERTIFICATION PER HOUR. 1ST BRAZILIAN PORT. OHSAS

2013 2014 2015 2016 2017 2018 PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

RECOGNIZED WITH EXPANDED THE PORT CORPORATE CHANGE: THE TITLE OF PORT TERMINAL, DOUBLING TERMINAL INVESTMENT OPERATOR OF THE STATIC CAPACITY LIMITED (TIL) BECAME THE YEAR AWARD OF THE STOCKYARD THE SOLE OWNER OF BY LLOYD’S LIST TO 30,000 TEUS. THE COMPANY. GLOBAL AWARDS. 15 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

In 2018, Portonave remained as leader in containers handling in Santa Catarina. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

16 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

CORPORATE GOVERNANCE [GRI 102-5; 102-18; 102-19; 102-20; 102-22; 102-23; 102-25; 102-26] GOVERNANCE STRUCTURE – 2018

ortonave is part of the business group Terminal Investment BOARD OF DIRECTORS* P Limited (TIL), sole holder of the Company’s share capital. Headquartered in Switzerland, TIL operates over 30 port terminals in several countries.1

Portonave’s Management is led by the Board of Directors, re- CHAIRMAN MEMBERS sponsible for establishing business policies and guidelines. The Ammar Yahya Kanaan ➝ Alistair John Baillie Board Members advise the Executive Board - Superintendency, ➝ Antônio José de Mattos Patrício Júnior which leads the implementation of the strategy with the professionals and other stakeholders, including economic, social and environmental actions. EXECUTIVE BOARD - SUPERINTENDENCY Pursuant to the best governance practices, the Chairman of the Board has no executive role in the Company and there are no REPORT SUSTAINABILITY 2018 PORTONAVE’S conflicts of interest between the work of the Board Members in other organizations and their relationship with Portonave.

EXECUTIVE OFFICER – EXECUTIVE OFFICER – 1 In 2017, TIL purchased the shares of Triunfo Participações e Investimentos, Brazilian company that was TIL’s partner in the Terminal. ADMINISTRATIVE SUPERINTENDENT OPERATIONAL SUPERINTENDENT The transaction was duly approved by the Brazilian Agency for Osmari de Castilho Ribas Renê Duarte e Silva Júnior Waterway Transportation (Antaq - Agência Nacional de Transportes Aquaviários) and the Administrative Council for Economic Defense (CADE - Conselho Administrativo de Defesa Econômica). [GRI 102-10; 102-48] * Invested on December 03, 2018, with the all members reelected for the term of office ending on December 31, 2019. 17 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Integrated Management

To ensure the ongoing improvement of operational and administrative processes, the Integrated Manage- ment System (SGI) of Portonave has guidelines and indicators on quality, environment, work safety and health of those involved in its activities.

Among SGI’s fundamental principles include requirements on standards in which the Terminal is certified: ISO 9001 (Quality Management), ISO 14001 (Environmental Man- agement) and OHSAS 18001 (Work Health and Safety Management). The goals set in the Company’s strategic REPORT SUSTAINABILITY 2018 PORTONAVE’S plan are also monitored in the Sys- tem, making it possible for the Man- agement to assess the progress and adjust actions whenever necessary.

18 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Risks Monitored [GRI 102-15] AUDITS

Identifying and monitoring risks are part of Portonave’s Internal and external audits are an important management routine, given their importance in the im- control mechanism adopted by Portonave. An plementation of the business strategic and sustainabil- independent external organization annual- ity plan. Thus, macroeconomic, regulatory, financial, ly audits the SGI to verify non-compliances social and environmental matters - including climate and/or opportunities to improve. Comput- issues - are part of the Company’s Risk Matrix. This er systems and access control processes for Matrix results in action plans focused on eliminating or people, vehicles and cargoes also undergo a mitigating risks, implemented by the Management and specific audit. These procedures are import- monitored monthly by the Executive Board. Besides ant for customs control, generating informa- validating the Matrix, the Board of Directors regularly tion for the intervening agencies, such as the reviews the results of the plans. Federal Revenue Service, the Ministry of Ag- riculture, Livestock and Food Supply (Mapa) and the National Agency of Health Surveil-

lance (Anvisa). REPORT SUSTAINABILITY 2018 PORTONAVE’S

Within the accounting area, the Company’s Financial Statements are subject to quarterly reviews carried out by independent auditors. In 2018, EY was the company responsible for auditing the Company’s Financial Statements.

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Portonave’s Integrated Management System (SGI) ensures that the operations comply with the law and the commitments voluntarily made by the Company, such as certifications. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Ethics and Integrity [GRI 102-16; 102-17; 205-3]

hared with our key stakeholders, Portonave’s Operating since 2015, the Ethics Channel receives S Code of Business Conduct and Ethics complaints, grievances or any others regarding guides the individual behavior - especially of our corruption, discrimination, harassment, conflicts of own and outsourced employees - and the corporate interest and suspected fraud, among the matters behavior regarding integrity. In line with the provi- set in the Code of Conduct. The Channel can be sions of the Anti-Corruption Law (Law 12846/13), used by professionals, clients, suppliers or third the purpose of the document is to minimize ethical parties that want to formalize an occurrence on CHANNEL OF ETHICS conflicts, actions or omissions that may contradict the ethical conduct, in a safe and responsible the organization’s strategic goals. way. The complaints can be made anonymously The complaints can be made anonymous- or not and can be sent by email or telephone (see ly or not through the following channels: Another instrument that strengthens the Compa- the box on the side). Throughout 2018, the Ethics E-mail: [email protected] ny’s integrity is Portonave’s Ethics Committee, which Channel received no complaints on corruption Phone: 0800 878 9017 has three members appointed by the Board of Di- and discrimination. rectors, including a representative of the Execu- PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S tive Board - Superintendency. The Committee is responsible for matters related to the compliance with the Code of Conduct, for deciding on matters not foreseen in the document and for evaluating complaints sent to the Ethics Channel.

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

The integrity of actions and relationships is one of Portonave’s core values. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

BUSINESS MACROECONOMIC AND INDUSTRY SCENARIO IN 2018* [GRI 102-6; 102-7; 102-8; 102-9] BRAZIL

esides the challenges of the Brazilian B economy (see the 2018 scenario in the infographic on the side), Portonave is part GDP INFLATION (IPCA) TRADE BALANCE CÂMBIO of a highly competitive market and its main 1.1% 3.75% SURPLUS: 58.3 BILLION ( 13%) DÓLAR: 16.9% clients are shipowners, importers and exporters. In Santa Catarina alone, four other EXPORTS: 9.3% port terminals offer solutions for this audi- IMPORTS: 19.7% ence; therefore, the Company has to adopt proactive and innovative strategies, based SANTA CATARINA PORT INDUSTRY on operational excellence, to attract and re- tain business partners. This effort is recognized by the market: ince 2009, Portonave is the leader in cargo containers handling in INDUSTRIAL PRODUCTION TRADE BALANCE 10 MILLION TEUS Santa Catarina. EXPORTS: 8.5% 4% HANDLED REPORT SUSTAINABILITY 2018 PORTONAVE’S Top exported goods: poultry 7.22% and pork, soy and wood. * The indicators are compared to the 2017 indicators issued by the official entities. IMPORTS: 22.9% 28.9% OF Top imported goods: polymers THIS TOTAL WAS Sources: Brazilian Institute of Geography and Statistics (IBGE - Instituto Brasileiro of ethylene and yarn of textile, HANDLED BY PRIVATE de Geografia e Estatística), Ministry of artificial or synthetic fibers. TERMINALS, SUCH AS Economy, National Agency of Waterway PORTONAVE. Transportation (Antaq - Agência Nacional de Transportes Aquaviários). 23 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

In 2018, with a 49% market share², the Company handled 761,432 TEUs. Despite the 16.6% decrease year-over-year, the operation profitability continued to rise, with a 25.69% increase in net income. At the end of the year, Portonave had eight shipping lines in operation, through agreements with 11 shipowners - responsible for shipping goods and interconnecting ports around the world.

Among exporters and importers, the Company’s portfolio totaled 3,390 clients. In YTD, the main goods imported by the Terminal were textiles, plas- tics and machinery. Wood, frozen meat and paper were the highlights of exports, totaling 83% of ship- ments abroad. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

2 Refers to the market in Santa Catarina. Source: Datamar 24 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR CAMPAIGN | CORPORATE GOVERNANCE | BUSINESS

Generation and Distribution of Value Supply Chain [GRI 201-1] [GRI 102-9; 204-1]

In 2018, Portonave’s Added Value Revenue reached around Companies that produce goods and service providers from differ- BRL 602.4 million. The chart below shows the distribution of the ent regions of the country - and, in some cases, from abroad - are added value. part of Portonave’s supply chain. Committed to local development, the Company gives preference, whenever possible, to partners from DISTRIBUTED ECONOMIC VALUE Santa Catarina. In 2018, 62% of the BRL 86.8 million paid to sup- (In BRL ‘000) pliers went to state-based companies - most of them in Itajaí and Navegantes.

Salaries and Payments Besides fostering the local economy, Portonave strives to positively Benefits for to Capital influence its value chain related to good social and environmental Employees Providers practices. Thus, all agreements signed include clauses prohibiting BRL 82,695 BRL 206,007 13.7% 34.2% the use of child labor, forced labor or work analogous to slavery, as well as practices that can be construed as corruption.

The Company has a strict process to evaluate suppliers, requiring REPORT SUSTAINABILITY 2018 PORTONAVE’S Operational from the contracted parties document that prove their compliance Costs with environmental, labor, legal, administrative and work safety obli- BRL 149,628 Payments to the gations. Every six months - or at the end of the agreements, suppliers 24.8% Government undergo a new evaluation, verifying if the documents and evidence BRL 164,145 presented are still valid, the quality of the services, the compliance 27.3% with deadlines and other specifications. If necessary, these require- TOTAL BRL 602.4 million ments may be verified on site by the Company. 25 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

PORTONAVE BELIEVES THAT CARING FOR

PEOPLE IS SOMETHING THAT STARTS FROM

INSIDE OUT. WE BELIEVE THAT THE FIRST STEP

TO POSITIVELY IMPACT SOCIETY IS TO CREATE

CONDITIONS FOR OUR PROFESSIONALS

TO REACH THEIR FULL POTENTIAL. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S PEOPLE

ENDING POVERTY AND HUNGER IN EVERY WAY AND ENSURING DIGNITY AND EQUALITY.

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OUR TEAM [GRI 102-8; 401-1; 401-2]

uilding a safe, healthy and stimulating work B environment is a commitment shared between Portonave and each of its professionals. Thus, the Company strives to ensure integrity, promote the well-being and provide development opportunities for its team, which totaled 975 people at the end of 2018. 95% of the professionals live in Navegantes or in two neighboring cities - Itajaí and Penha. This reflects Portonave’s engagement to the community where it operates. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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PROFILE OF PROFESSIONALS - 2018

Gender Age Group

UP TO 30 YEARS OLD 30 TO 50 YEARS OLD OVER 50 YEARS OLD

814 161 242 87 549 73 23 1 MEN WOMEN (83%) (17%) 33.7% 63.8% 2.5%

Origin / Residence PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

NAVEGANTES...... ➝ 64%

ITAJAÍ...... ➝ 24%

PENHA...... ➝ 7%

OTHER CITIES...... ➝ 5% 28 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Every day, our professionals put into practice the Company’s corporate values, policies and strategic guidelines. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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Throughout 2018, 200 professionals PROFILE OF ADMISSIONS AND DISMISSALS were hired, most of them to replace [GRI 401-1] retired professionals - 196, in the full year. Thus, Portonave’s hiring Admissions - Gender Dismissals - Gender rate reached 20.5% in the period, while the turnover rate came clos- er to 1.34. Among the new people hired, 68% reside in Navegantes - 149 51 170 26 the others live mainly in Itajaí (19.5%) MEN WOMEN MEN WOMEN and Penha (6.5%). (74.5%) (25.5%) (86.7%) (13.3%)

Admissions - Age group and gender

Age Men Women Total

Up to 30 years old 105 (52.5%) 43 (21.5%) 148

30 to 50 years old 42 (21%) 8 (4%) 50

Over 50 years old 2 (1%) 0 2 REPORT SUSTAINABILITY 2018 PORTONAVE’S

Dismissals - Age group and gender

Age Men Women Total

Up to 30 years old 71 (36.2%) 10 (5.1%) 81

30 to 50 years old 94 (48%) 16 (8.1%) 11 0 Over 50 years old 5 (2.6%) 0 5 30 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

COMPENSATION AND BENEFITS [GRI 102-41; 401-2] BENEFITS OFFERED ortonave strives to offer a fair and attractive remuneration, con- P sistent with the market, based on the salary practices of the Health and Dental Insurance region and of its operating segment. In this sense, the company offers additional benefits - besides those set forth by law - to provide more safety and comfort in health, finances and family care to Extended maternity leave and paternity leave the employees.

The benefits and compensation are part of the Company’s talking Life insurance, including coverage for disability and funeral assistance points with the two unions3 representing its professionals. All members of the staff are covered by collective bargaining agree- Partnerships with gyms ments signed with these unions. Negotiations with trade unions are usually concluded in January, coinciding with the base date of most categories. Additional private pension plan, with compensation from the Company PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

Profit sharing (PLR)

3 Portonave’s professionals are represented by the Trade Union of Employees of Sea and River Transportation, Employees on Land in Waterway Transportation Food in the Company’s cafeteria or meal voucher and Related Activities in the State of Santa Catarina (SIMETASC). Those hired by Iceport are affiliated to the Federation of Workers in the Movement of Goods in General and Storage Assistants in General, Similar and Related of the State of Santa Catarina (FETRAMMASC). Food voucher 31 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Satisfaction Monitored

The Organizational Environment Survey is a tool used by Portonave since 2009 to identify the perceptions of professionals on the work environment. From the statements, the Company establishes action plans to improve the policies and practices in people management. In 2018, the Research changed and started using a different tool (Puls- es). Each week, the employee is invited to answer to a short questionnaire. Consolidated, the answers are monitored in real time by the managers of each area, who can immediately develop corrective actions, whenever necessary. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S FREEDOM OF ASSOCIATION

Portonave’s Human Resources Policy ensures the right to freedom of association, collective bargaining and internal representation of professionals in collective bargaining agreements.

32 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

DIVERSITY [GRI 405-1] NUMBER OF PROFESSIONALS - FUNCTIONAL CATEGORY AND GENDER - 2018 indful that the plurality of thoughts, experi- Functional Category Men Women Total M ences and backgrounds fosters business solutions, while contributing to social inclusion, Portonave Board of Directors 3 0 3 strives to promote diversity in its workforce. Thus, gender, age group, ethnicity and religion are not rele- Executive Board - Superintendency 2 0 2 vant in the admission processes carried out by the Management 8 1 9 Company, as well as in the career development or the compensation set. Supervision 20 1 21

On gender equity, Portonave ensures equal com- Staff 770 143 913 pensation for men and women who work in the Interns 5 3 8 same position. Nevertheless, the Company shares a common challenge with other companies in the Apprentices 9 13 22 port industry: including more women in operation- PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S al and leadership positions. The male prevalence - men represented 83% of the total number of professionals in 2018 - is found in all functional categories of the Terminal.

In 2018, the Company employed 35 people with disabilities (PCD).

33 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Portonave is committed to promoting diversity and fighting against discrimination. Therefore, gender, age group, ethnicity and religion are not relevant in the Company’s admission processes. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

34 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

HEALTH AND SAFETY

ince it started operating, Portonave is extremely S careful with the physical integrity of all people in the Company’s premises, mindful of the inherent risks in the port activity, due to robust operations involving loads of several types, work at heights and heavy equipment, among other risks. In 2018, the commitment to safety was evidenced with the OHSAS 18001 certification, an international standard that establishes occupational health and safety requirements to be met by companies of different sizes and segments.

It’s been over five years since Portonave started to get ready to meet all these requirements, with the efforts intensifying in 2018 with actions that reinforced the safety culture internally. The actions REPORT SUSTAINABILITY 2018 PORTONAVE’S included adjustments in facilities and equipment, revision of operational procedures, specific training and implementation of new tools, all to mitigate risks and increase the awareness of professionals on the subject.

35 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Among the tools implemented, the following To receive the OHSAS 18001 certification, Portonave stand out: was evaluated by a specialized and independent organization, the Bureau Veritas Certification (BVC). ➝ Gold Rules of Safety: The auditors evaluated the management’s practices, “Non-negotiable” conditions to work at Por- structure and work routines of the Terminal to certi- tonave’s premises. They were widely spread fy the compliance with the standard’s requirements, among professionals through internal cam- considering the scope “Port Terminal Operation”. paigns and a printed booklet.

➝ Mandate of Intervention: Symbolic document, with explicit authoriza- tion for any professional to intervene in risky situations, even if this requires questioning or challenging a superior. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

➝ Card on Safety Observation: Registration form that makes it easier to warn on risk conditions, encouraging professionals to report situations lived or observed and suggest improvements.

36 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Accidents at work [GRI 403-1; 403-2] ACCIDENTS RECORDED IN 2018 The intense preventive work leads to the continuous improvement of With Leave Without Leave the Company’s health and safety indicators. One of the highlights of Profile of Absence of Absence Total 2018 was the lower frequency and severity rates compared to previous years. Throughout the year, there were 15 work accidents: five Usual work accidents 5 10 15 that required a leave of absence for the employee (for recovery) and Course accidents 11 0 11 11 course accidents, without leave.

To support the safety mechanisms, Portonave has an Internal Commis- ACCIDENTS RECORDED - GENDER sion for Accident Prevention (CIPA) and the Company’s Refrigerating Gender Usual Course Total Chamber (Iceport) also has its own CIPA. In all, there are 20 members, who represent the different operational and administrative areas. Women 0 3 3 Among other activities, CIPA actively participates in the investigation Men 15 8 23 of accidents and incidents, contributing to identify risk elements and, thus, improve preventive actions. It should be noted that the results of each investigation are reported to all parties involved and, when FREQUENCY AND SEVERITY RATE REPORT SUSTAINABILITY 2018 PORTONAVE’S relevant, the lessons learned in the case are shared through internal Frequency Rate (TF) 2.23 and external warnings. Severity Rate (TG) 0.85 In addition to safety actions, Portonave offers periodic trainings to its TF = Number of employees on accidents * 1,000,000) / man Emergency Brigade, including 60 professionals, all trained to act in hours of risk exposure cases of fire and other casualties. TG = Computed time * 1,000,000 / man hours of risk exposure

37 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

The OHSAS 18001 certification REPORT SUSTAINABILITY 2018 PORTONAVE’S recognizes Portonave’s concern with the safety of all professionals.

38 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

WELL-BEING ACTIVE CARE s well as ensuring safety, the Company strives In the context of prevention, Portonave regularly A to promote the physical and mental health promotes vaccination campaigns and encourag- Organized by both CIPAs, the Internal Week of professionals, understanding that this is key for es healthy habits, such as a balanced food intake of Accident Prevention (Sipat) was held from the well-being and, therefore, for productivity. In and regular physical activity. At the Company’s October 22 to 26, 2018, with the subject “Ac- this sense, the initiatives focus on the Balanced cafeteria, 700 meals are served daily, with the tive Care” as the highlight. The goals was to Health Program, inspired by a model developed menus prepared by nutritionists and including raise the professionals’ awareness on the im- by the World Health Organization (WHO), which foods with low sodium and fat content, as well as portance of taking caring about themselves is based on four pillars: physical work environment, fruits and vegetables. and their colleagues, intervening properly psychosocial work environment, personal resourc- whenever someone is at risk. es in the work environment and involvement with family and community. Theater plays on the use of Personal Protec- tive Equipment (EPIs), postural blitz, lectures The Terminal’s premises has an outpatient clinic that on ergonomics and comfort at work, as well carries out admission appointments, termination as discussions on course safety, were some appointments, periodic appointments and appoint-

of the highlights in the Week’s schedule. On REPORT SUSTAINABILITY 2018 PORTONAVE’S ments on the return to activities, all with a work doc- the side, around one thousand professionals - tor. Through the medical and dental plan granted among own and outsourced employees - took as benefit, the professionals count on an extensive part in the activities. service network including specialized health institutions and professionals.

39 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

A sedentary lifestyle is counteracted by actions that stimulate physical activity among professionals. In 2018, one of the highlights was Portonave’s Indoor Games, an integration event in which the professionals were split into teams to compete in four modalities: futsal, table tennis, beach volley- ball and chess. Family and friends cheered the ath- letes competing, reinforcing the bond between the Company and the community. Another traditional activity in this sense is Portonave’s Rustic Beach Race, which reached the 10th edition in 2018, with several professionals enrolled. The race is a way of encouraging preparatory training, promoting the regular practice of physical exercise. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

40 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

CORPORATE EDUCATION [GRI 404-1]

or Portonave, the continuous development of the professionals’ skills rep- F resents is key for the sustainability of the business. Therefore, the Company invests in corporate education. In 2018, 79,500 hours were dedicated to specific training, which required investments of around BRL 800,000, in addition to the Education Subsidy, which reached BRL 808,700, totaling BRL 1.6 million. In the year, the average of training hours per employee was of 81.51.

TRAINING HOURS - GENDER AND FUNCTIONAL CATEGORY PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S EXECUTIVE BOARD MANAGEMENT SUPERVISION STAFF INTERNS APPRENTICES 18 293 1,169 45,458 424 3 2 ,115

TOTAL: 79,477 HOURS

60,387 19,0 9 0 41 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

To encourage professional development, Portonave grants to its professionals scholarships for language courses, undergraduate and graduate courses, as well as technical courses. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

42 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

In addition to training, Portonave has several other development programs focusing on its professionals:

➝ Continuous Learning Program ➝ Operational Excellence Program Establishes subsidies to encourage profession- Has the goal to create a talent pool with qual- als to take technical, undergraduate, graduate ified professionals to fill future vacancies in and English courses. In 2018, subsidies totaled Equipment Operation. The program includes BRL 808,700. selective processes evaluating the professional background with psychological assessment and ➝ Port Worker Development training that can reach 1,160 hours. Program (PDP) Applied by the Brazilian Navy, the goal is to im- ➝ Programa Jovens Talentos prove the workforce in Brazilian port terminals The goal is to provide practical experience in and standardize operational procedures be- the labor market through two subprograms - the tween different ports. Implemented in Portonave Young Apprentice (focused on high school stu- in 2007, the Company has already trained 230 dents) and the Internship (for students of High- classes, which totaled 3,017 people approved er Education and Technical schools). For more

in several modules. The Program’s classes are information on these actions, click here. REPORT SUSTAINABILITY 2018 PORTONAVE’S taught by a group of 23 instructors, all professionals from different areas of the company and accredited by the Navy. The content complies with the prerequisites established by the Navy Office of Ports and Coasts (DPC).

43 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

FULLY INTEGRATED TO THE COMMUNITY

OF NAVEGANTES, PORTONAVE DIRECTS

EFFORTS AND RESOURCES TO CONTRIBUTE

IN AN INCREASINGLY EFFECTIVE WAY WITH

A SUSTAINABLE LOCAL DEVELOPMENT.

TO THIS END, THE COMPANY REMAINS

ENGAGED IN INITIATIVES OF COLLECTIVE

INTEREST, FOCUSING ON SOCIAL REPORT SUSTAINABILITY 2018 PORTONAVE’S PEACE AND CULTURAL INCLUSION.

PROMOTING PEACEFUL, FAIR AND INCLUSIVE SOCIETIES.

44 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

OUR COMMUNITY [GRI 413-1]

ocated on the left bank of the Itajaí-Açu River, L Navegantes experiences the economic dyna- mism brought by the operation of large companies, led by Portonave. In addition to contributing with 45% of the total taxes collected the City Hall, the Company became one of the main local em- ployers - generating around 1,000 direct jobs - and an appeal for other companies to settle in the region, taking advantage of the synergy with the Port Terminal. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

45 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

ISS COLLECTION OF THE CITY HALL OF NAVEGANTES The boost to the economy can be seen in the population increase. Ac- (In BRL million) cording to the latest estimate by the Brazilian Institute of Geography 30 and Statistics (IBGE - Instituto Brasileiro de Geografia e Estatística), the local population got close to 80,000 people in 2018, a 30% increase over the last official survey in 2010. The Human Develop- ment Index (HDI) has been following the evolution of the city, rising from 0.528 in 1991 to 0.736 in 2010 - a high level compared to the Brazilian average, placing Navegantes at 876th among the 5,565 cities in the country. 20

EVOLUTION OF THE HUMAN DEVELOPMENT INDEX (IDHM) OF NAVEGANTES

45% 0.736 49% 0.606 47% 42% 0.528 10 39% 47%

40% REPORT SUSTAINABILITY 2018 PORTONAVE’S

34% 30%

0 2010 2 011 2012 2013 2014 2015 2016 2017 2018 1991 2000 2010

TOTAL COLLECTED PORTONAVE’S CONTRIBUTION INCOME LONGEVITY EDUCATION

*ISS = Service Tax. Source: Atlas of Human Development in Brazil (PNUD - Atlas do Desenvolvimento Humano no Brasil) 46 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

SOCIAL RESPONSIBILITY [GRI 201-1; 413-1]

n 2018, Portonave moved forwards with its strat- ➝ 7th Music Festival of Navegantes; I egy to support the development of the local community through tax exemption mechanisms in force ➝ The Adventures of Santos Dumont; in Brazil, such as the Culture Incentive Law (Rouanet Law), the Fund for Children and Adolescents (FIA) ➝ Telling Stories - Theater in Schools; and the Municipal Elderly Fund, among others. These mechanisms allow us to reverse part of the ➝ Made Bent to Be Right; taxes paid by the Company in actions of social benefits - especially in the areas of health, educa- ➝ Music in Schools; tion, sports and culture. Thus, throughout the year, Portonave allocated about BRL 2.16 million of these ➝ A “Chorinho” for You; resources to several social projects. ➝ Eco Sailboat on TV; The Company chooses, whenever possible, to direct PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S these resources to local projects, directly benefit- ➝ 21st Music Festival of Itajaí; ing the community. In addition, to ensure maximum use of tax incentives, Portonave supports projects ➝ Street Soccer for Education; in other regions, all with a relevant social impact. Among the projects supported with these resources ➝ Training Center for High Performance Artistic in 2018, the following stand out: Gymnastics (Curitiba - PR).

47 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

The Company also allocated BRL 250,000 to the Navegantes Fund for Children and Adolescents (FIA), to be used in projects chosen by the Municipal Council for the Rights of Children and Adolescents. These projects include actions in education, health, social work, culture and sports. An additional BRL 250,000 was allocated to the project “Revitalize and Humanize”, of the Angelina Caron Hospital, Campina do Sul (PR), focused on improving the conditions of care for the elderly.

At the end of 2018, 27 social projects were approved and will be supported by the Company, with implementation in 2019. The se- lection was based on the following criteria: compatibility with the benefits foreseen in the incentive mechanisms; closeness to the area covered by the Company to monitor the implementation; goal of transforming the social environment; and suitability and transparency of results. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

48 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

PORTONAVE INSTITUTE [GRI 413-1]

ortonave Institute of Social Responsibility (Instituto Portonave de Responsabilidade Among the projects and programs developed by Instituto Portonave P Social) is a non-profit association with the purpose to develop and support pro- in 2018, the following stand out: grams and projects that contribute to citizenship and sustainability in Navegantes and the region. Encouraging volunteer work, sports, culture, environmental protection and ➝ Portonave Gallery education are the main lines of action of the Institute, which always pays attention to the Space created in the Terminal to foment the cultural production and community’s demands and also identifies other opportunities to support and contribute promote the works of regional artists. Opened in October 2017, to local development. this space received 11 exhibitions in 2018, including paintings, photographs, metal and ceramic sculptures. A partnership with the Navegantes Cultural Foundation allowed Portonave Gallery to be included in the cultural circuit of exhibitions promoted in the city. In addition to Portonave’s professionals and visitors, the community is welcome to the space and can schedule visits to the exhibitions. The initiative’s social impact was recognized in 2018, receiving the Citizen Company Award, granted by the Association of Sales and PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S Marketing Directors of Santa Catarina (ADVB/SC - Associação dos Dirigentes de Vendas e Marketing de Santa Catarina).

➝ Portonave Choir Created in 2015, the project promotes integration among the Company’s professionals, as well as interaction with the community through presentation at local events. Counting exclusively with professionals and guided by specialized teachers, the Choir follows a weekly routine of classes and rehearsals. 49 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

➝ Volunteer Work Program Santa Catarina Congress Against Child Labor in Chapecó; the To carry out social projects and actions, the program has volunteer Educational Congress of Dance in Joinville; the Visual Arts Sym- workers who make their affinities and talents available. Volunteers posium (FURB) in Blumenau; and the Santa Catarina Dance and take part in activities outside their working hours. They also meet Brazil Dance Festival in Florianópolis. monthly to follow-up on the actions of projects under development and to analyze the demands brought by the community. Portonave Institute also engages in initiatives led by other community organizations. In that sense, in 2018 the Institute participated of RIC ➝ Project Dancing Beyond the SKY, Decentralizing Group’s Toy Marathon, the Campaign for Multi-Vaccination against Culture Poliomyelitis, in partnership with the Rotary Club of Navegantes, and Focusing on children and adolescents from public schools in the APAE of Navegantes. Navegantes, the project promotes cultural presentations through choreographies, dance shows and integrated arts performances. Entitled “Include and Dance, Just Believe”, workshops stimulate students to be thinkers and creators of their own art - and the school uses the art as a pedagogical practice. In 2018, 40 students were part of the project, 12 of them had disabilities. In addition to the group directly involved in the workshops, other students, teachers and community members attended the concert “Childhood With- REPORT SUSTAINABILITY 2018 PORTONAVE’S out Truce the Art Transforms” - about 4,000 people. The project also provided dance classes for 30 women of the community, to value and motivate women’s participation in cultural and sports activities in the city of Navegantes. With the support of Portonave Institute and partnership with MSC, the project’s experiences were shared in four events held in other cities of Santa Catarina: the

50 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

Inaugurated in 2018, Portonave Gallery contributes with the promotion of re giona l a rtist s. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

51 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

OPPORTUNITY FOR YOUNG PEOPLE

ne of Portonave’s initiatives with the greatest social impact is re- ➝ Senai O lated to the preparation of young people for the labor market. With activities developed exclusively in Senai facilities, 30 young The Young Apprentice Program is focused on high school students of people enrolled in the course on “Industrial Learning in Main- public schools of Navegantes, who are between 16 and 18 years old tenance Electrician” participated in the Program in 2018. At the and have a per capita family-income lower than the minimum wage. end of the course, this group becomes part of Portonave’s talent Hired as apprentices, the young people stay for up to one year in pool, taking part in the selective processes for vacancies in its the Company and work in different areas of the Terminal, guided by training area. Portonave’s professionals. The practical experience go hand in hand with theoretical classes to prepare them for the work, which are car- Considering the different learning modalities, 179 young people have ried out by partner educational entities. already participated in the Program, with an hiring rate of 45%.

In 2018, three partners supported Portonave to implement the Learn- ing Program:

➝ Senac PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S Enrolled in the “Administrative Routines” course, 21 young people worked in Portonave during four days of the week and, in the other two days they attended classes in Senac’s premises.

➝ Generate (Gerar) Focused on young people with disabilities, the Administrative Occu- pations course includes four days of experience at Portonave and one of theoretical activities at the institution. In 2018, seven young people were hired for this modality of the Program. 52 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR COMMUNITY | SOCIAL RESPONSIBILITY | PORTONAVE INSTITUTE | OPPORTUNITY FOR YOUNG PEOPLE

Young people from the REPORT SUSTAINABILITY 2018 PORTONAVE’S community get the opportunity to work and learn in the Terminal.

53 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

AT PORTONAVE, RESPECT FOR THE

ENVIRONMENT IS A KEY COMMITMENT

TO LIFE AND FUTURE GENERATIONS.

MINDFUL THAT ENVIRONMENTAL

CONSERVATION REQUIRES A

COLLECTIVE EFFORT, WE SHARE THIS

COMMITMENT WITH OUR BUSINESS PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S PARTNERS AND OUR COMMUNITY. PLANET

PROTECTING THE NATURAL RESOURCES AND CLIMATE OF OUR PLANET FOR FUTURE GENERATIONS.

54 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

OUR ECOSYSTEM [GRI 102-11; 307-1]

nderstanding that we are part of the eco- U system in which we operate - a coastal area rich in biodiversity and, at the same time, quite an- thropized - Portonave works hard to minimize the impacts of its operations on the environment. The development of environmental programs is guided by the Company’s Integrated Environmental, Health and Safety Policy, resulting in the Environmental Management System, certified since 2010 under the requirements of ISO 14001. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

55 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

In 2018, investments in actions to prevent, monitor, manage and comply with legal obliga- tions related to the environment amounted to BRL 1.82 million. Committed to compliance, Por- tonave did not receive, in the period, fines or non- cash sanctions related to environmental issues. According to ISO 14001, the Company continu- ously monitors the environmental aspects and impacts. Some of these aspects are reported below, identified as relevant in the materiality process developed by Portonave.4 PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

4 The environmental indicators reported in this Sustainability Report, as well as those referring to previous years, refer only to the Port Terminal, excluding the cold chamber monitored (Iceport). 56 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

Monitoring environmental issues is part of Portonave’s routine. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

57 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

WATER [GRI 303-1] WATER CONSUMPTION ll water used in Portonave is provided by (thousands of m³) A the Sanitation Office of Navegantes (Sesan - Secretaria de Saneamento Básico de Naveg- 15.4 antes), supplied by the Municipal Service of Water Supply, Basic Sanitation and Infrastructure (Semasa QUALITY MONITORED - Serviço Municipal de Água, Saneamento Bási- co e Infraestrutura) of the city of Itajaí. The water Portonave has monthly analyzes of drinking is collected in the channel of Itajaí-Mirim River, in water for human consumption in the Ter- 10.9 11 . 5 7 Itajaí, without significant interference on the water minal, as set forth by the National Agency bodies of the region. In 2018, the Company’s wa- of Sanitary Surveillance (Anvisa - Agên- ter consumption totaled 15,403.46 m³ - up 33.1% cia Nacional de Vigilância Sanitária). For over 2016, mainly due to the container washing this, the environmental management team service that is now offered to clients, in addition to verifies the levels of chlorine in the water of an water leakage in the supply network of the every day. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S Terminal. The consumption is monitored daily by verifying the digital water meters and the Compa- ny encourages the rational use of water by professionals, through campaigns to raise awareness.

2015 2016 2018 58 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

SEWAGE CONTROL OF WATER DISPOSAL IN 2018 [GRI 306-1; 306-3] Volume of Water Disposal ortonave adopts several preventive procedures to mitigate any impacts on the water Disposal (m3) Profile Destination Controls table, especially in case of leaks of chemical products or petroleum products used P Volume treated by the Treatment in its activities. Thus, water quality is verified monthly in the Itajaí-Açu River and every Station (ETE) of Portonave, with 14,836.16 Planned Water Course quarter in the water table. 90% efficiency of organic charge removal.

The surface water, discarded directly into the estuary, is collected through a drainage Volume from the equipment washing channel of around 200 meters, leading to a rainwater collection system with around area, where rainwater and the 5,000 meters in length. The channel is waterproofed and has a gate that prevents the maintenance needs of machines significantly contribute to the External water stored from getting in contact with the river. This prevents contaminated water 278,180.00 Not planned demand for wastewater removal in Treatment from reaching the river in case a pollutant leaks in the yard. Lab tests at the launch point the area. The control is carried out are carried out monthly by Portonave, to keep the quality standards required by law. by Certificates of Final Destination (CDF) issued by the company hired to carry out the external treatment. The Terminal has a defense base including technicians ready to act preventively in the Company’s processes or quickly in emergency situations related to possible environ- Volume of water from the

maintenance of elevators, bypass REPORT SUSTAINABILITY 2018 PORTONAVE’S mental accidents. The most common occurrences are small oil leaks from vehicles and boxes, contribution of rainwater equipment, especially from third parties, as well as faults in containers that carry dan- and the side destination from External 1,083,190.00 Not planned the ETE, classified as sanitary gerous cargo. Leaks are recorded in technical reports and there were no relevant events Treatment wastewater. The control is done of this nature in 2018. through the CDFs issued by the company hired to carry out the external treatment

59 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

ENERGY [GRI 302-1]

he direct energy consumption, represented by ENERGY CONSUMPTION ENERGY INTENSITY T the sum of electric energy and fuels used, to- (in thousand GJ) (GJ/TEUs Handled) taled 124,000 Giga Joules (GJ) in 2018, down 35.27% over 2016, last year reported. Electrici- 264,446.02 0.36 ty corresponds to 99.9% of this total, contributing to the reduced consumption of fossil fuels, mainly diesel, electrification of the transtainers - cranes 191,636.10 that move the container from the truck to the ware- house yard and vice versa. With the Busbar System 0.21 (energy transportation dam) implemented since 124,045.07 2016, 18 transtainers of the Terminal are now pow- 0.16 ered with electricity, no longer with diesel genera- tors. The exchange of diesel by electricity reduced Portonave’s emission of pollutant gases from GTGs PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S by 98% and the diesel consumption by 62%.

2015 2016 2018 2015 2016 2018

60 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

The electrification of PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S transtainers reduced, on average, by 98% the emission of greenhouse gases (GHG) by the Terminal.

61 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

WASTE [GRI 306-2]

ortonave follows the rules of the National Pol- P icy on Solid Waste regarding the non-generation, reduction, reuse, recycling, treatment and due final disposal of its waste. In 2018, the Ter- minal generated around 2,000 tons: 335.21 tons of hazardous waste and 1,678.65 tons of non-hazardous waste. The significant decrease in waste generation over 2016, when around 8,000 tons were registered, is due to the conclusion of civ- il construction works in the Company’s premises and also to the improvement of the processes in REPORT SUSTAINABILITY 2018 PORTONAVE’S the Sewage Treatment Station (ETE), which reduced the disposal of wastewater through an outsourced company.

62 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

WASTE DESTINATION, BY CLASSIFICATION

HAZARDOUS WASTE (t)

Destination 2018

Recycling 24.71

Incineration (mass burning) 0.001 All Portonave’s facilities are covered by a selective collection system, with specific containers to sepa- Landfill 27.44 rate waste and then dispose it. Materials are usu- Coprocessing 4.88 ally collected daily and kept in Temporary Storage Centers in the Terminal. They are then collected by Other * (External treatment - Waster water) 278.18 outsourced companies specialize in disposing each Total 335.21 type of waste, which have the due authorizations and certify the compliance with legal requirements on their activities. NON-HAZARDOUS WASTE (t) The production and destination of Portonave’s Destination Volume waste are periodically registered and reported to REPORT SUSTAINABILITY 2018 PORTONAVE’S Recycling 314.66 the Environment Institute of Santa Catarina (IMA).

Landfill 280.79

Other * (External treatment - Waster water) 1,083.20

Total 1,678.65

63 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

CHANGING THE HABIT

To reduce the volume of waste generated at the Ter- minal facilities and encourage professionals to adopt sustainable habits, Portonave intensified the Ecocopo project in 2018. The proposal is simple: replacing all disposable cups used by professionals and third-parties for a permanent, more sustainable version. Since 2015, three thousand cups have been distributed for replacement. Thus, each employee has his/her own glass, with space to place their name. The project has an awareness campaign to stimulate the participation: posters on murals, messages on the Company’s corporate TV and intranet talking about the importance of reducing plastic consumption, one of today’s major

environmental challenges - the estimative is that Bra- REPORT SUSTAINABILITY 2018 PORTONAVE’S zil uses 720 million disposable cups per day, corre- sponding to 1,500 tons of waste per day, according to the Brazilian Association of Public Cleaning and Spe- cial Wastes (Abrelpe). Due to the initiative, 960,000 units of disposable cups were saved between 2017 and 2018 at Portonave.

64 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

EMISSIONS

ue to the intense circulation of vehicles and large D equipment, atmospheric emission levels are regular- DONATION OF ly monitored at the Terminal. Portonave’s inspection, by SEEDLINGS sampling, includes the smoke’s blackening level directly in the exhaust of the third-party trucks that access its facil- To celebrate the World En- ities. When limits are exceeded, owners are notified and vironment Week, Portonave advised to make mechanical adjustments. Every month, donated 1,100 seedlings of the Company’s internal fleet of machines and vehicles native trees to the communi- goes through the same inspections. ty of Navegantes. In all, 300 seedlings of species such as Ipê Amarelo, Ipê Roxo, Jabuticabeira, Pitangueira, Also monthly, Portonave’s teams verify the presence of in- Araçá, Ingá-beija, Bacupari, among others, were donated to the City Hall to be halable and suspended dust particles from air quality sam- distributed among residents. Another 800 seedlings were delivered to Portonave’s plings. When levels above the current law are identified, professionals. preventive and corrective actions are immediately taken. Only native plants were chosen, preferably fruit trees of the Atlantic Forest, with PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S In 2018, Portonave did not conduct its Greenhouse Gas the purpose of contributing to the recovery and balance of the region’s ecosystem, Emissions Inventory (GHG). Thus, the environmental man- besides encouraging the afforestation of residences. agement team guides the activities to always improve the indicators on this matter, based on the last Inventory, from The initiative is in line with the recovery and monitoring work at central beach of 2017, which includes direct and indirect emissions (scopes Navegantes, carried out by Portonave within the Nossa Praia Project, one of the 1, 2 and 3). Given the materiality of the subject, the inven- largest urban beach recovery projects in Brazil, covering 102 hectares. tory update is planned for the next few years.

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WE ARE PART OF THE WHOLE | EXTERNAL INITIATIVES | 2030 AGENDA

ENGAGED WITH THE PURPOSE OF THE

SUSTAINABLE DEVELOPMENT GOALS,

PORTONAVE STRIVES TO INTEGRATE

WITH MOVEMENTS AND ORGANIZATIONS

DEDICATED TO PROMOTING AND

IMPLEMENTING 2030 AGENDA.

AT THE SAME TIME, THE COMPANY

STRENGTHENS ITS INSTITUTIONAL RELATIONS PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S TO POSITIVELY INFLUENCE ITS NETWORK OF PARTNERSHIPS STAKEHOLDERS TOWARDS SUSTAINABILITY.

IMPLEMENTING THE 2030 AGENDA THROUGH SOLID GLOBAL PARTNERSHIPS.

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WE ARE PART OF THE WHOLE | EXTERNAL INITIATIVES | 2030 AGENDA

WE ARE PART OF THE WHOLE

n addition to the audiences already addressed I in this report - professionals, clients, suppliers and communities - Portonave has relationships with several other stakeholders. Carriers and drivers working in the Terminal, entities representing the port industry, universities, representatives of the government in all its spheres, the press and non-profit organizations, among others, are part of the comprehensive stakeholder map of our business. With all, the Company strives to establish a friendly and productive dialogue, based on ethics and cooperation. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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WE ARE PART OF THE WHOLE | EXTERNAL INITIATIVES | 2030 AGENDA

EXTERNAL INITIATIVES [GRI 102-13]

The Company’s participation in bodies, forums and committees, led or promoted by governmental and non-governmental organizations, is an important engagement tool. Portonave is part of the following initiatives and organizations:

➝ Brazilian Association of the Refrigerated Storage Industry (Abiaf - Associação Brasileira da Indústria de Armazenagem Frigorificada) ➝ Brazilian Association of Infrastructure and Basic Industries (Abdib - Associação Brasileira da Infraestrutura e Indústrias de Base) ➝ Brazilian Association of Asset Maintenance and Management (Abraman - Associação Brasileira de Manutenção e Gestão de Ativos) ➝ Brazilian Association of Animal Protein (ABPA - Associação Brasileira de Proteína Animal) ➝ Brazilian Association of Human Resources (ABRH - Associação Brasileira de Recursos Humanos) Coastal Region - Itajaí Regional ➝ Brazilian Association of Training and Development (ABTD - Associação Brasileira de Treinamento e Desenvolvimento) ➝ Brazilian Association of Port Terminals (ABTP - Associação Brasileira dos Terminais Portuários) ➝ Brazilian Association of Foreign Trade (AEB - Associação de Comércio Exterior do Brasil) ➝ Association of Sales and Marketing Directors of Santa Catarina (ADVB/SC - Associação dos Dirigentes de Vendas e Marketing de Santa Catarina) ➝ Business Association of Itajaí (ACII - Associação Empresarial de Itajaí) ➝ Business Association of Navegantes (ACIN - Associação Empresarial de Navegantes)

➝ Association of Private Port Terminals (ATP - Associação de Terminais Portuários Privados) REPORT SUSTAINABILITY 2018 PORTONAVE’S ➝ State Committee of Public Security in Ports, Terminals and Waterways in Santa Catarina (Cesportos/SC - Comissão Estadual de Segurança Pública nos Portos, Terminais e Vias Navegáveis em Santa Catarina) ➝ Federation of Business Associations of Santa Catarina (Facisc - Federação das Associações Empresariais de Santa Catarina) ➝ Federation of Industries of the State of Santa Catarina (Fiesc - Federação das Indústrias do Estado de Santa Catarina) ➝ Federation of Workers in the Movement of Goods in General of Santa Catarina (Fetrammasc - Federação dos Trabalhadores na Movimentação de Mercadorias em Geral de Santa Catarina) ➝ SDG Movement Santa Catarina ➝ Trade Union of Employees of Sea and River Transportation, Employees on Land in Waterway Transportation and Related Activities in the State of Santa Catarina (Simetasc - Sindicato dos Trabalhadores Marítimos, Fluviais e Empregados Terrestres em Transportes Aquaviários e Atividades Afins no Estado de Santa Catarina). 68 PRESENTATION PROSPERITY PEOPLE PEACE PLANET PARTNERSHIPS GRI EXHIBIT

WE ARE PART OF THE WHOLE | EXTERNAL INITIATIVES | 2030 AGENDA

2030 AGENDA [GRI 102-12; 102-13]

t the end of 2018, Portonave became part of the “SDG Movement Santa Cata- A rina”, including nonpartisan, plural and ecumenical volunteers with the purpose of helping improve the quality of life of the society of Santa Catarina. After working for the Millennium Goals between 2000 and 2015, the Movement today is focused SDG 14, of which Portonave became an ambassador in 2018, on promoting the 2030 Agenda and proposing strategies to be implemented by provides for the “conservation and sustainable use of oceans, public and private organizations to achieve the Sustainable Development Goals. seas and marine resources for a sustainable development”. The Company has thus become an ambassador for SDG 14, which provides for the Thus, seven targets and three sub-targets have been estab- conservation and sustainable use of oceans, seas and marine resources. lished, all to help achieve this Goal.

Through the SDG Movement, Portonave is a signatory of the Global Compact, an initia- The first target is, by 2025, preventing and significantly reduc- tive led by the United Nations (UN) to mobilize the international business community to ing marine pollution of all kinds, especially from land-based adopt key values in human rights, labor relations, the environment and the fight against activities, including marine debris and nutrient pollution. The corruption. In all, there are over 12,000 signatory organizations articulated by about other targets are focused on protecting marine and coastal eco- 150 networks around the world. systems, fighting against the acidification of oceans, promoting a sustainable fishery and achieving a scientific and technolog- REPORT SUSTAINABILITY 2018 PORTONAVE’S To learn more and join the SDG Movement Santa Catarina, go to: ical development to overcome challenges on the subject. https://sc.movimentoods.org.br/

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THE REPORT | TABLE OF CONTENTS

THE REPORT [GRI 102-45; 102-49; 102-50; 102-52; 102-54]

REPORT’S PROFILE [GRI 102-51; 102-52]

he report on the economic, environmental and social performance is part of Portonave’s corporate practice since its first years of T TRANSPARENCY operation. In line with the Company’s commitments to transparency, this is Portonave’s ninth Sustainability Report using the guidelines [GRI 102-51; 102-53] proposed by the Global Reporting Initiative (GRI), an international network dedicated to guiding reports from public and private orga- The latest issue of Portonave’s Sustain- nizations around the world. ability Report was launched in 2017, referring to 2016. Its online version is Based on the Standard version of the GRI guidelines, in its Essential available on the Company’s website. REPORT SUSTAINABILITY 2018 PORTONAVE’S modality, this edition includes information on the Company’s man- Questions and suggestions on the re- agement and on its operational, environmental, social and economic ports’ content can be sent to Por- performance, for the period from January 1 to December 31, 2018. tonave’s Communication team by e-mail The economic and financial indicators in this Report are based on the Financial Statements published in April 2019, which were audited by [email protected]. an independent third-party (to see the statements, click here).

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THE REPORT | TABLE OF CONTENTS

ESTABLISHING THE RELEVANCE STAKEHOLDERS’ ENGAGEMENT [GRI 102-46; 102-49] [GRI 102-42; 102-43]

In compliance with GRI recommendations, Portonave strives to report Portonave’s 2018 Sustainability Report was prepared with the par- sustainability indicators that reflect the real impacts and their actual ticipation of a multidisciplinary team, directly involving around 30 of management. Thus, the Company’s social and environmental perfor- the Company’s professionals. In addition, the company talked to the mance was included in a broad context, to find common aspects and main stakeholders to identify the information demands from people impacts in the port segment and also in its geographic region. and institutions with which the Company interacts.

Thus, the indicators in this Report were chosen based on the follow- Using the criteria adopted by GRI, as base to establish the subjects ing procedures: to be addressed in the Report, stakeholders were asked about the sustainability issues that was most interesting to them. The survey was a) Review of subjects in previous Portonave’s reports, by evaluat- carried out through an electronic questionnaire, sent by Portonave to ing the report’s relevance, considering current management and representatives of each audience. practices, the positioning of companies in the segment and the availability of information and the influence on the stakeholder’s The questionnaire asked the respondent to point out, among subjects decision-making process; pre-defined by Portonave, those that deserve greater prominence in PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S the 2018 Report. In all, 74 people answered the questionnaire. b) Speak with representatives of different stakeholders, evaluating the relevance of the pre-selected aspects; c) Discuss about and later approve the 2019 Relevance Matrix with Portonave’s top management.

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RESPONDENTS’ PROFILE DEFINITION OF MATERIAL SUBJECTS [GRI 102-40] [GRI 102-46]

Public sector For the subjects reported in this Report to represent a compre- 1% Community Carriers / Drivers hensive vision of corporate sustainability, Portonave added to 1% 1% the stakeholders’ responses the analysis of aspects that are con- Press Other sidered as priorities, both externally and internally. In the exter- 3% 1% nal context, this analysis was guided by the 2030 Agenda of Suppliers or Service Providers Sustainable Development Goals, proposed by the United 5% Nations, with 17 Sustainable Development Goals (SDGs). Industry Companies 8% Complementing the external environment’s evaluation, the Com- Professionals pany assessed its own priorities regarding the business sustain- 65% ability, based on its corporate policies and the top management’s Clients 15% strategic vision. This process involved weighing the signifi- cance of economic, environmental and social impacts of each aspect, as well as its influence on stakeholders’ evaluations PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S and decisions.

In this sense, the Company considered relevant impacts, both Due to the significant participation of Portonave’s professionals (65% inside and outside Portonave, in relation to all the organization’s of respondents), the Company had to apply proportionality rules when activities, products, services and social interactions. Based on consolidating the data to avoid deviations that implied the predomi- this analysis, the material indicators for the 2018 Report were nance of this audience’s interests in relation to the others. pre-defined.

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RELEVANCE MATRIX Material Aspects Extension of SDG [GRI 102-44; 102-47; 102-49] Relevant Subjects (GRI) the Impact Indicators Related Energy D/F 302-1 Based on the criteria described, Relevance Matrix of Portonave’s Water D/F 303-1 6, 7, 12, 13, 14 2018 Sustainability Report has 10 major subjects, outlined in mate- Environmental management GHG Emissions D/F 305-1, 305-2, 305 and 15 rial aspects, topics and disclosures/indicators. Wastewater and residues D/F 306-1, 306-2, 306-3

2018 Relevant Subjects Ethics and integrity D/F 205-3 Ethics and integrity 16 Fight against corruption D/F 102-17 1. Environmental management - water, energy, waste and emissions 2. Ethics and integrity Work D/F 405-1 Health and Safety 3. Health and safety at work D/F 403-1, 403-2 Labor practices At work 3, 5, 8, 10, 16 4. Economic and operational performance Diversity and equal 5. Relationship with the local community D 401-1, 401-2 opportunities 6. Training and education of professionals Economic and operational Economic performance D/F 201-1 8, 9, 11 7. Relationship with clients performance 8. Diversity and equal opportunities Relationship with suppliers Procurement practices D/F 204-1 9. Relationship with suppliers REPORT SUSTAINABILITY 2018 PORTONAVE’S Relationship with clients - D/F 103-1 17 10. Human rights Relationship with the 3, 4, 5, 10, 12 Local communities D/F 413-1 community and 16 In the table below, the relevant subjects are addressed according to the GRI related aspects, showing the extent of their impacts and the Human rights No discrimination D/F 412-2 8, 10, 16 disclosures (indicators) selected for the 2018 Report. In addition, the Sustainable Development Goals (SDGs) related to each subject are The details on indicators reported can be found below in the pointed out. GRI Table of Contents.

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GRI TABLE OF CONTENTS [GRI 102-55]

GENERAL SUBJECT Organizational Profile Strategy GRI Standard Disclosure Page Omission GRI Standard Disclosure Page Omission 102-1 10 102-14 2 GRI 102: General 102-2 10 All subjects covered by the disclosure Subjects 102-15 19 102-3 10 were not reported. 102-4 10 102-5 10, 17 Ethics and Integrity 102-6 10, 23 GRI Standard Disclosure Page Omission 102-7 10, 23 GRI 102: General 102-16 10, 21 GRI 102: General The distribution of professionals was Subjects 102-17 21 Subjects 102-8 23, 27 not disclosed for all categories, as suggested by GRI. Governance The supply chain was not described 102-9 23, 25 in detail, since the Company does not GRI Standard Disclosure Page Omission PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S have all the required information yet. 102-18 17 102-10 17 102-19 17 102-11 55 102-20 17 GRI 102: General 102-12 69 102-22 17 Subjects 102-13 68 102-23 17 102-25 17 102-26 17

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THE REPORT | TABLE OF CONTENTS

Engagement with Stakeholders Economic Performance GRI Standard Disclosure Page Omission GRI Standard Disclosure Page Omission 102-40 72 103-1 10 GRI 103: Management 102-41 31 103-2 10 Approach 102-42 71 103-3 10 GRI 102: General 102-43 71 GRI 201: Economic Subjects 201-1 25 The subjects listed by each group of performance 102-44 73 stakeholders, in isolation, were not identified. Relationship with suppliers GRI Standard Disclosure Page Omission Reporting Practice 103-1 25 GRI Standard Disclosure Page Omission GRI 103: Management 103-2 25 102-45 70 Approach 103-3 25 102-46 71, 72 GRI 204: Procurement 204-1 25 102-47 73 practices 102-48 17 GRI 205: Fight against 205-3 21 102-49 71, 73 corruption

102-50 70 REPORT SUSTAINABILITY 2018 PORTONAVE’S GRI 102: General Subjects 102-51 70 102-52 70 102-53 70 102-54 70 102-55 74 The Report was not verified by an 102-56 independent third party.

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Environmental management Valuing the human capital and promoting diversity GRI Standard Disclosure Page Omission GRI Standard Disclosure Page Omission 58; 59; 60; 27; 33; 35; 103-1 103-1 62; 65 41 GRI 103: Management 58; 59; 60; GRI 103: Management 27; 33; 35; 103-2 103-2 Approach 62; 65 Approach 41 58; 59; 60; 27; 33; 35; 103-3 103-3 62; 65 41 302-1 60 401-1 30 GRI 401: Work 303-1 58 401-2 31 Indicator not available in 2018, as GRI 403: Health and 403-1 37 305-1 the Company did not carry out the safety at work 403-2 37 Emissions Inventory for the period. GRI 404: Training and 404-1 41 GRI 301: Material Indicator not available in 2018, as education 305-2 the Company did not carry out the GRI 302: Energy GRI 405: Diversity and Emissions Inventory for the period. 405-1 33 GRI 303: Water equal opportunities GRI 305: Emissions Indicator not available in 2018, as GRI 306: Waste 305-3 the Company did not carry out the Emissions Inventory for the period. PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S 306-1 59 306-2 62 306-3 59 307-1 55

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Human Rights GRI Standard Disclosure Page Omission 103-1 21 GRI 103: Management 103-2 21 Approach 103-3 21 No specific training related to the GRI 412: 412-2 subject was recorded in the reporting Human Rights period.

Relationship with the communities GRI Standard Disclosure Page Omission 103-1 45 GRI 103: Management 103-2 45 Approach 103-3 45 GRI 413: Local 413-1 45, 47, 49 communities PORTONAVE’S 2018 SUSTAINABILITY REPORT SUSTAINABILITY 2018 PORTONAVE’S

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Acknowledgement MASTHEAD 2018 SUSTAINABILITY REPORT Portonave thanks all those involved in preparing this Sustainability Report, BROUGHT TO YOU BY especially the teams who helped record the PORTONAVE - Communication and Marketing Area indicators and report the information. Juliano Perin - Commercial Manager

COORDINATED BY Melissa Aragão de Souza Sílvia Mendes

REVIEWED BY Cristiane Inácio Ellen Garcia

PRODUCED BY We Sustentabilidade (Relata)

DIRECTION: Débora Horn

GRI, TEXTS AND EDITION CONSULTING: Débora Horn, Vanessa Colla and Fabrício Silva

PROJECT MANAGEMENT: Márcio Hangai

DESIGN: Thiago Soares

ART EDITING: João Henrique Moço

TRANSLATE: MZ Group

IMAGES: Acervo Portonave, Guilherme Pupo.