We Are Brazil in Motion
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We are Brazil in motion 2020 SUSTAINABILITY REPORT 2020 SUSTAINABILITY REPORT HIGHLIGHTS RELATIONSHIP OF THE YEAR WITH COMMUNITY MESSAGE FROM ALLIES IN FUTURE MANAGEMENT GENERATIONS ABOUT APPENDIX OF THIS REPORT GRI AND SASB INDICATORS VALUE ADDED TO GRI AND SASB ALL STAKEHOLDERS CONTENTS GROWING WITH CORPORATE THE COUNTRY INFORMATION/ CREDITS ETHICS LEADING BUSINESS BOOST TO INFRASTRUCTURE PORTO NACIONAL North Operation South Operation Ports Operation Economics/ and expansion financials RONDONÓPOLIS ANÁPOLIS COMPLETION OF THE DECREASE IN THE NUMBER Issue of the CONSTRUCTION work and start OF RAILWAY ACCIDENTS st of commissioning operations 1 GREEN BOND on the first stretch of the by 17% (MM Train/km) in the history of freight Central Network, FIVE MONTHS compared to 2019 railways in Latin America AHEAD OF SCHEDULE Start of operation THIRD CAPITAL DECREASE IN FUEL with 120-RAILCAR INCREASE: CONSUMPTION TRAINS in the North Operation R$ 6.4 by -5.3% (liters/GTK) BILLION raised in EXPANSION of the August 2020 SANTOS Rondonópolis Terminal (July 2020) 100 % PARANAGUÁ OF THE TRAINS in the st COMPANY IN BRAZIL North Operation running DELIVERIES OF 1 SÃO FRANCISCO to perform a Sustainability- with TRIP OPTIMIZER TRANSFORMATIONAL DO SUL Linked Debenture (SLD) TECHNOLOGY (semi- WORK in Santos: transaction in the local autonomous trains) densification of Macuco, market, supported by Paquetá’s third line, Law 12,431/11 remodeling of the export DECREASE IN THE NUMBER routes (June/21) OF PERSONAL ACCIDENTS by 40% EARLY RENEWAL (MM Accidents/HHT) of the Paulista Network compared to 2019 concession until 2058 RIO GRANDE 4 Suppliers Socioenvironmental and clients INCLUSION OF THE CORPORATE Remodeling of the volunteer Expansion of FEMALE PARTICIPATION CREATION OF “PARCERIA EM ESG GOAL for 2021, which program “TREM DO BEM”, at the various hierarchical levels: MOVIMENTO”, a supplier reflects in the variable with our financial contribution three female directors1 in our recognition program compensation of all employees Board, nine female executive managers, four female engineers and 12 female conductors ESG MONTHLY REPORT ADHESION TO THE including information GLOBAL COMPACT A 9.4% on emissions avoided REDUCTION IN of the United Nations (UN) STRUCTURING OF by transport with rail emissions per ton the Rumo Institute compared to other modes per revenue ton of transport and initiatives kilometer (RTK) compared to 2019 87% APPROVAL ADHESION to the Development of in the employee Brazilian Business CREATION of the PARTNERSHIPS WITH satisfaction survey Council on Sustainable Diversity & Inclusion CLIENTS to monitor the Development (CEBDS) Strategy and value chain and trace and the Brazil Coalition respective area to the transported product, deal with this topic CORPORATE ensuring sustainable SUSTAINABILITY POLICY soybeans under development ADHESION to the UN Women 1. Since March 2021 5 1. Message from Management GRI 102-14 Driven to build our DNA, we adhered to the UN’s Global Compact, besides advancing our target of reducing emissions OUR BUSINESS FACES A NUMBER OF CHALLENGES AND REQUIRES COMMITMENT AND FOCUS ON RESULTS. WE NEED TO TAKE A LOOK AT EVERYTHING WE HAVE BUILT SO FAR AND IDENTIFY LONG-TERM OPPORTUNITIES FROM THIS SOLID FOUNDATION. The Covid-19 pandemic has made us grow and learn Through the launch of the Rumo DNA, which guides all 30% considerably about adversity. We are an essential of our actions and our culture, we adhered to the UN financing company that moves the country’s economy, and we Global Compact in order to always be focused on our facilities through could not stop. In several initiatives we have supported sustainable development goals. Based on the emission more than 50 institutions in the fight against Covid-19. reduction target, we have raised 30% of the financing green and Among all the actions we also performed almost facilities through green and sustainable emissions, sustainable 31,000 tests on our employees and their families, and our goal is to reach up to 50%. In addition, we emissions donated food baskets, hand sanitizers, personal brought even more weight to the ESG goals tied to hygiene and cleaning products, hospital equipment, our employees’ variable compensation. and promoted awareness campaigns with the truck drivers who work at our terminals. As signatories of the Women’s Empowerment Principles of UN Women, we have consolidated yet Resilience was key for us to ensure that our trains another commitment that values women’s presence continue to cross the borders of Brazil. In addition in the labor market. We currently have three female to securing the jobs of our employees, our strong executives in our Board of Directors. We are still on performance in the Central Network, mainly evidenced a journey of evolution, and we have started to make by the construction of the new São Simão and Rio a difference by hiring women drivers and shunting 3 Verde Terminals, allowed us to hire more than 3,000 operators for our operations, who are increasingly Beto Abreu female direct and indirect jobs. This is how we honor our showing their differential when taking on these CEO of Rumo executives commitment to bring sustainable development, functions. We also agreed on the goal of making Rumo in our Board infrastructure, and job creation to the most diverse a reference in diversity and inclusion in the port-rail of Directors regions of the country. sector by 2025. 7 Still on the subject of people, our investments in We also updated our materiality matrix, in which we technology to ensure more safety and sustainability identified eight major themes that translated into in operations are noteworthy. One of these initiatives two more commitments to sustainable development, is the new traffic control and monitoring system: in addition to the nine commitments made in the PTC 2.0. Its architecture was built to eliminate previous report. The first focuses on encouraging the possibility of collisions between trains, acting our supply chain to promote sustainability in proactively in the braking of the compositions, their businesses, and the second is to promote avoiding possible human failures. sustainability actions together with clients through traceability, which aims to ensure that the cargo we With the Fuse project, which accelerates innovative transport does not come from regions impacted by initiatives across the railway and logistics sector, deforestation. Actions like these have allowed us to we are fostering actions to reduce collisions and reduce our specific CO2 emissions by 33% over the pedestrian crashes at our level crossings. As a past 6 years. And we still have a lot of work to do to result of the project, the Safety on Rails course was reduce this rate even more. created, promoted by Lastro to community leaders from Curitiba and city councilors from cities in the I close this message by emphasizing that we will interior of São Paulo. We also have other practical continue to focus on fulfilling another commitment we examples that involve our actions in partnership with made, which is to reduce CO2 emissions by 21% by city governments and state agencies. Still focusing 2030. It is a very audacious goal that encourages us on communities, we are investing more than R$1 even more to pursue it. And we will meet it. It is with billion in improvements and infrastructure works that this determination that we continue on our path, certain will reduce the impacts that we eventually generate that we are making a difference in Brazilian logistics, inside our operations. in people’s lives and, even more: acknowledging our responsibility with the social, environmental, and governance aspects of our operations. 8 2. About this Report This document was improved by including SASB indicators from analyses of ISE and DJSI questionnaires FOR THE FIFTH CONSECUTIVE YEAR WE ARE PUBLISHING OUR SUSTAINABILITY REPORT TO ENDORSE OUR COMMITMENT TO TRANSPARENCY, COMPLIANCE OF OPERATIONS AND ACCOUNTABILITY TO OUR MAIN STAKEHOLDERS: EMPLOYEES, BUSINESS PARTNERS, SUPPLIERS, CUSTOMERS, COMMUNITIES, INVESTORS AND THE MARKET IN GENERAL. GRI 102-40 This document, which was prepared in (DJSI), and interactions with organizations accordance with the Global Reporting working in ESG (Environmental, Social and Initiative (GRI), Standards, Core option, Governance) and interactions with ESG and for the first time includes indicators (Environmental, Social and Governance) from the Sustainability Accounting organizations, such as Sustainalytics, the Standards Board (SASB), addresses International Institute for Sustainability the performance and results of the (IIS) and MSCI (Morgan Stanley Capital operations of the North, Paulista, South, International). We have also started a Central and West networks and Brado study on the adequacy of reporting to the Logística between January 1 and Task Force on Climate-related Financial December 31, 2020. Disclosures (TCDF) and of our emissions GRI 102-40 | GRI 102-45 I 102-50 I 102-52 I 102-54 reduction target to Science Based Targets (SBTi). All the content gathered In relation to the previous report for the in this document was subject to external year 2019, published in July 2020, there verification, conducted by the company is no change in scope and boundaries, Ernst & Young. Over the course of the year, If you have any comments or nor any reformulation of information. we also held dialogues and captured the questions about this report, please However, its content, as well as the perceptions of internal departments and