SUSTAINABILITY REPORT

2018/2019 Sustainability Report

2018/2019 Summary

4 Introduction 30 Sustainability

About Research 6 Coruripe 46 and Innovation

Our Greenhouse 16 Business 48 Gases Our 22 People 4 2018/2019 Sustainability Report — Introduction

Introduction Message from the president 2018/2019 Sustainability Report — Introduction 5

Talking about sustainability in a firm in improving our team. In 2018, appro- company as Coruripe Facility with an ximately R$ 2.5 million were invested in important presence in the agricultural professional training with an average of 27 sector, more than an easy task, brings us a hours of training per person. lot of satisfaction. Since its foundation, the We preserve over 17,000 hectares of company has been growing, transforming, important stretches of the Brazilian adapting and innovating each year. And ecosystem in Alagoas and Minas Gerais. In these attitudes are based on respect for Porto Cajueiro, north region of Minas natural resources that increase the compe- Gerais, we reintroduced Bicudo, a friendly titiveness and profitability of the business. bird that was extinct in several Brazilian Our new Sustainability Report biomes. Our Private Reserves of Natural presents a set of results that reinvigorate Heritage (RPPNs) are places where nature our organizational culture, reinforcing is protected and develops every day. These other values such as respect for people, actions and our volunteering, which grow quality, ethics, safety, and customer every year, were also responsible for being satisfaction. included again in the Sustainability Guide In the production area, we obtained a of Revista Exame, something that gives us crushing of 13 million tons of sugarcane, great joy and recognizes our efforts for the which produced 18 million bags of sugar, environment. We are proud that our 472 million liters of ethanol and 642 generation is managing to maintain the thousand MWh of clean energy from the tradition at Coruripe of delivering an even biomass we generate. These results were better environment to what we have achieved with 62% of sugarcane from received for the next generation. suppliers, further contributing to job and Our results have been rewarding, but income generation in the regions where we know that it is necessary to continue we operate. Another highlight was the focusing on reducing costs, training our reduction of accidents with leave from 23 teams, diversity of people and ideas, and to 19 cases during the crop. This is a result developing activities to remain competiti- that makes us proud because it is a direct ve in the market and one of the sector reflection of our investments in training benchmarks in productivity, persistence, leadership and teams in the safety theme and good numbers. Good reading! and shows everyone’s commitment to the pursuit of safe work. Based on this, the Mario Lorencatto — President program Zero Acidente Sempre consolida- Mario Lorencatto President tes itself as a fundamental program for the welfare of everyone in the company and, consequently, greater productivity. In the area of people management, we remain 6 2018/2019 Sustainability Report — About Coruripe

About Coruripe A company made of energy

In this chapter

Entrepreneur History 7 Where We Are 8 Main Numbers 9 Responsible Care 10 Organizational Structure 12 Our Policies 13 2018/2019 Sustainability Report — About Coruripe 7

We are among the largest sugar and ethanol producers in Brazil; we are the largest sugar-energy company in Minas Gerais and the largest business group in the state of Alagoas. With a team of over 8,900 employees and 1,000 partners, we operate at every stage of the production chain: from sugarcane planting to the end product trade, always guided by ethics, safety, and sustainability.

History Entrepreneur

Production diversification Foundation in Expansion to (cogeneration of Alagoas Minas Gerais 1925 1994 2001 electricity)

Professional Expansion of the production 2013 management 2018 capacity 8 2018/2019 Sustainability Report — About Coruripe

Where We are

Office AL Maceió Coruripe Facility CI: 3.300 MMT

MG

SP Capacity

Limeira do Oeste to mill Facility CI: 1.500 MMT Iturama Facility Carneirinho CI: 3.700 MMT Facility Campo Florido Facility CI: 2.600 MMT CI: 3.800 MMT 15 million

Fernandópolis Terminal of sugarcane tons Legend CI: Capacity installed 9,118 employees attheend in thecompany 609 women work production of thisyear facilities 5 Numbers Main 308 908 traineesand professionals apprentices third-party railroad terminal 1 2018/2019 Sustainability Report —AboutCoruripe

Employees by age group 36-45 years 2,778 46-55 years 1,327 + 55years 369 up to 25years 1,360 26-35 years 3,284 9 10 2018/2019 Sustainability Report — About Coruripe

Organizational Structure

Administrative Council

Vitor Montenegro Marcio Silvio Tércio Wanderley Neto Eduardo Bernini Wanderley Junior Wanderley de Paiva Shareholder External Shareholder Counselor Shareholder Counselor Counselor Advisor

Presidency

Mario Luiz Lorencatto CEO

Board of

Administrative Board and HR Trade Board Financial Board Fábio Moniz Francisco Vital Alves Souza Eduardo Assumpção Silva Machado Administrative Director and HR Trade Director CFO

Legal Board Industrial Board Agricultural Board José Correia Barreto Carlos Henrique Pereira Marques José Marcos Jorgi Legal Director Industrial Director Agricultural Director

Committees and Technical Groups

Safety Committee Women Committee Production Committee

Risk Committee Sustainability Committee Budget Committee

Water Technical Group Energy Technical Group Waste Technical Group 2018/2019 Sustainability Report — About Coruripe 11

Values Our values are the pillars that guide our business and our relationship Our with all employees, partners, suppliers, and society. Policies

Respect for Safety people Valuing life at all times is a philosophy that the company does not give up. Mission It is always a priority of the company, to Produce sugar, ethanol, and energy respect the human being in any situation. with safety and sustainability, generating value to shareholders, employees, partners, and society. Sustainability Ethics Vision Economic, environmental and social Acting with ethics and presenting good profitability is the basis of the company's character are commitments in the To be the benchmark in the sustainability. relationship with our various audiences. markets where we operate, always positioning ourselves as one of the most profitable companies in the industry. Quality Clients Ensuring the quality of our products throu- satisfaction gh advanced processes is everyone's commitment. Always keep customers happy with the quality of our products, fast delivery and excellence in service. 12 2018/2019 Sustainability Report — About Coruripe

Ethical Conduct

Our primary tool for guiding employees and partners is our Code of Ethics and Conduct. With it we establish rules, regulations, and behaviors to promote ethical conduct in our daily lives. 2018/2019 Sustainability Report — About Coruripe 13

Safety Policy Sustainability Policy

At the Coruripe Facility, the Human Being is a more important In its sugarcane planting and harvesting, and sugar, ethanol, value than the goals and objectives of the company. Nothing energy and by-products production, the Coruripe Facility should override the integrity of our employees and no emer- guarantees high quality standards, acting with socio-environ- gency or production situation should be considered as an mental responsibility, occupational safety and food safety. In argument to act without safety. addition, it has the following as commitments: The Company has the responsibility to make the resources Promote continuous improvement and sustainable develop- available so that all tasks are carried out safely. It is up to all of ment, enabling resources for all employees to work with us to comply with legal rules and internal rules to preserve prevention of environmental impacts, ensuring the protection people's lives and the work environment. of the environment, meeting and satisfying the expectations It is the Leader’s responsibility to ensure the safety of people of its clients and exercising citizenship. working in its area. It is the leader who shall always promote the Stimulate all Employees to work to ensure the products are safe behavior, within the established standards and rules, within the required levels of quality, food safety and producti- besides encouraging the participation of all to eliminate poten- vity. tial risks. Encourage the Leader to guide his team with a focus on The Workplace Safety Team will always act as a support in contributing to the pursuit of planned results, ensuring preventive guidance to employees and mainly as technical compliance with the laws, regulations, and standard support to leaders. established. Each Employee has the responsibility to act always prioritizing Satisfy the expectations of its customers, shareholders, and safety of themselves, colleagues, and other people in the work society through constant growth, competitiveness and environment. profitability with continuous revision of its objectives and Suppliers, Service Providers, and Third Parties shall comply goals, as long as technically and economically feasible. fully with safety standards and ensure that their work is perfor- Prevent adverse socio-economic impacts, as well as pollution, med under fully safe conditions. injury and disease. The Continuous Search for an accident-free environment shall Work with suppliers, service providers, and contractors to be the attitude of all people working in the Company, regar- practice sustainable development, comply with current dless of their position and function. In addition, safe behavior standards and laws and comply with the company’s require- shall be incorporated as a constant in everyone's life, no matter ments regarding nature and workplace safety conditions. where you are. Maintain an effective, responsible and open communication channel with its employees, customers, and partners. 14 2018/2019 Sustainability Report — About Coruripe Certifications

ISO 9001 Quality Management System Certificates the quality of our Responsible products Care ISO 14001 Environment Management Produce following the best System practices and environmental, Demonstrates that the safety, and economic criteria is part productive chain respects the of Coruripe responsible care. Work environment that is recognized by certificates and awards that attest to our OHSAS 18001 responsibility and add value to our Occupational Health and business. Workplace Safety Management System Acknowledges concern about the safety and health of the employee FSSC 22000 Food Safety Management System Ensures safety management in food production

BONSUCRO Production Standard Certificate Certifies that our production process is sustainable 2018/2019 Sustainability Report — About Coruripe 15 Awards and Acknowledgments

Época Negócios 360° Awarded twice as the Best of Agribusiness in Brazil by Revista Época Negócios. It was awarded at the scope of Future Vision this year. Você S/A Voted for the third time as one of the 150 Best Companies to Work in Brazil.

Guia Exame Sustentabilidade Selected for the second year for the group of 77 companies from the Sustainability Guide of Revista Exame and elected the most sustainable in the agribusiness sector.

Corporate Citizenship Recognized by Revista Gestão e RH as one of the best companies in corporate citizenship.

GPTW Placed in 39th position in the national ranking among large companies.

Globo Rural Champion in Sustainability among the best in Agribusiness.

Mastercana Champion in Environmental Control and Preservation Management and Occupational Health and Safety. 16 2018/2019 Sustainability Report — Our Business

Our Business Produce sustainable energy

In this chapter

Main products 17 2018/2019 Crop 19 Crop Indexes 21 2018/2019 Sustainability Report — Our Business 17

The sugar you put in your coffee, the vehicle fuel, the household electricity: is our energy moving the daily life of thousands of people.

Main Products

Sugar Ethanol Energy

We produce thousands of tons of Anhydrous and hydrous ethanol are Committed to the sustainable several sugar types: crystal, crushed, the only renewable fuels used development, we transform the waste demerara, and VHP; the latter is a raw worldwide. from our production into new sources sugar for export, which is used in the Clean energy obtained from sugar- of energy. By burning sugarcane international market as raw material cane - in the last crop we produced bagasse, we generate electricity for for various products. over 470 million liters that were expor- our own consumption and sell the In the domestic market, our sugar ted and also sold in various segments surplus to energy providers. goes for direct consumption and is also (fuel, petrochemical, food, cosmetics used as an ingredient in the production and others). of refined sweets and beverages. 18 2018/2019 Sustainability Report — Our Business

Where do our products go?

Sugar Ethanol Energy Others

Sugarcane: Exportation domestic consumption Exportation Petrochemical industry Molasses: ethanol distillation Domestic consumption Crystallized Candies Fuel and animal food Sales in the market Beverage production Food Industry Fusel oil: pharmaceutical and Direct consumption Cosmetics chemical industry Chemical Industry Yeast: animal food Vinasse: fertilizer 2018/2019 Sustainability Report — Our Business 19

Crop Production 17,984,038 642,355 2018/2019 bags of sugar produced MWh of energy produced 472,341,310 377,209 liters of ethanol produced MWh of exported energy

Milling process Milling process 2018/2019 Crop Expectation of Milling for 2019/2020 Crop 13,068,213.00 14,400,00.00 tons of milled sugarcane tons of milled sugarcane

235 days of milling

Distribution of sugarcane milling

38% Domestic sugarcane production 62% Supplier sugarcane production 20 2018/2019 Sustainability Report — Our Business

Income distribution R$ 706.7 millions 8,097,209.9 volume of milled sugarcane paid for the sugarcane supply 510 74.08 sugarcane suppliers average productivity

Revenues Total expenditures R$ 439.38 millions R$ 2,176 total expenditures R$ 315.9 R$ 42.6 R$ 80.8 million million million billion 2018/19 wages responsibilities benefits annual billing R$ 318.1 R$ 39.8 R$ 82.7

2017/18 million million million

Tons of sugarcane per hectare 86.09 70.42 71.37 (TCH) TCH Campo Florido Center TCH Iturama Center TCH Coruripe Center

Taxes R$ 129.05 R$ 104.15 R$ 74.29 million million million local federal state 2018/2019 Sustainability Report — Our Business 21

Crop Reuse of vinasse Indexes 5,241,335 m of vinasse produced Reuse of filter cake 44.672 13.050 ha irrigated tons of fertilizer with vinasse chemicals replaced by vinasse 381,098 3,345 tons of filter cake tons of filter fertilizer produced chemicals replaced by filter cake Irrigation 98.20 95% t/ha productivity efficiency Residual drip irrigation water reuse 78.43 85% t/ha productivity efficiency 18,411,795 pivot irrigation m of residual water produced 9,743 ha 95% 66.87 75% irrigated with water de reutilização t/ha productivity efficiency of residual reuse conventional irrigation produced 22 2018/2019 Sustainability Report — Our People

Our People Respect for those who produce our energy

In this chapter

Women empowerment 23 Safety 24 Health 26 Development 28 2018/2019 Sustainability Report — Our People 23

We create a Women Committee in order to decide new ways to empower even more the women working at Coruripe Facility.

Women Empowerment

The company has made every effort to increase the role of women at the Coruripe Facility each year. In this sense, we have actions to combat harassment, programs to encourage professional development aimed at women, free preventive exams, six-month maternity leave, PMS campaign, holidays for couples and a women’s committee, which meets to decide new ways to empower women at the company. 24 2018/2019 Sustainability Report — Our People

Safety

With the strengthening of occupational safety initiatives and the constant involvement of leaders and employees in safety issues, we have seen a reduction in the number of accidents falling 95% since the Program Zero Acidente Sempre [Zero Accident Always] was implemented.

Accidents with sick leave 409

329

215 -95% reduction in the accidents with sick leave 86

24 23 19

2012 2013 2014 2015 2016 2017 2018

Economy projected since the implementation of the program Zero Acidente Sempre [Zero Accident Always]: 30 million of Reais. Base: results reached related to 2012. 2018/2019 Sustainability Report — Our People 25

Highlights The National Traffic Week in September reinforced Semana themes such as the importance of defensive driving, Nacional respect for traffic laws, traffic rules and mobile do Trânsito phone use in traffic. [National Traffic Week]

To generate awareness of increased risk perception Risk among employees, 10,000 booklets were distributed Perception that improved employees’ knowledge in this area Booklet and helped to reduce accident rates.

Program Zero Acidente Sempre completes five years

The company trained the leadership and other employees and was able to reduce the number of accidents with sick leave by 95%. 26 2018/2019 Sustainability Report — Our People

Health

Highlights

Team’s quality of life is a priority in the company. Throughout the year, we developed various campaigns and actions guiding our teams on health and wellness.

Safe Theater performances addressed the importance of enjoying carnival Carnival safely.

Green Accident prevention actions were April carried out at the units.

World Day The company reinforced with teams the importance of leading a of No Tobacco healthy life, which includes combating cigarette addiction.

Yellon The campaign drew team’s attention to the high rate of traffic May fatalities and injuries worldwide. 2018/2019 Sustainability Report — Our People 27

Vaccination Life Insurance

Employees receive free vaccines All Coruripe Facility employees against various diseases and keep have life insurance subsidized by the vaccination card updated. the company.

In September, on World Heart Day, the occupational Heart health team measured the blood pressure and heart Campaign rate of employees. The campaign purpose was to remember the importance of this organ.

In October, the units reinforced the importance of Pink breast cancer screening for women at the company. October

The company promoted lectures on male diseases, Blue raising awareness and emphasizing the importance November of prevention and early diagnosis of prostate cancer.

Orange November is a movement that aims at Novembro making people aware of ear problem increase at all Laranja ages. 28 2018/2019 Sustainability Report — Our People

Personal and professional development of our teams Development is one of our commitments to promote a fulfilling work environment that attracts and retains talents.

Highlights Educational R$ 2.5 Programs

In addition to developing teams, our million educational programs contribute to retaining talent already aligned with our invested in Educational Programs organizational culture. We have projects that serve from literacy to higher educa- tion and postgraduate. R$ 1.3 million The Program Youth and Adult Educa- encourages literacy for people who Professional Training tion have not had the opportunity of attend thousand thousand school at the conventional age R$ 668 R$ 285 The Program of Qualification Scho- Program Jovem larship offers professional qualification Scholarships Aprendiz [Young courses in several areas lasting from two Apprentice] to five months, taught by teachers from thousand thousand Serviço Nacional de Aprendizagem Indus- R$ 212 R$ 14 trial (Senai) [National Industrial Learning Program Bolsa Qualificação Program Alfabetização Service]. [Training Scholarship] Solidária [Solidary Literacy] By completing the cycle, the program Scholarships, which was launched in 2014 and has already benefited more than hours of training 300 employees in all our units, offers the per employee 27 possibility of getting a college degree. 2018/2019 Sustainability Report — Our People 29

Atraction of talents

Our development platform of Usina de Talentos [Talent Factory] with internship and workforce training programs is a differential for attracting and retaining talent. Training and In partnership with Serviço Nacio- development nal de Aprendizagem Industrial (Senai) [National Industrial Apprenti- ceship Service], the training program Jovem Aprendiz [ Y o u n g Our pursuit of development continues in Apprentice] offers technical courses a continuous process of improvement. for young people who are in or have Programs such as Liderança completed high school. Over the past Transformadora [Transforming year, the initiative has benefited 214 Leadership], training to develop leadership students, 104 women and 110 men, and management skills help us in this training young apprentices in the journey, which has trained 90 leaders in all fields of electromechanics, mechani- units throughout the year. cal vehicle and agricultural machinery The Career and Position Plan guides maintenance. the teams and encourages the filling of In turn, the Internship Program vacancies internally, valuing our employees. attracts technical and higher educa- The Performance Assessment assists this tion students, who are trained and process by evaluating, using a committee developed in order to be used in format, all teams and highlighting the future opportunities in our company. strengths and opportunities for improvement of each Coruripe employee. Further reinforcing our commitment to the development of our teams, we maintain the project Biblioteca Compartilhada [Shared Library], which this year facilitated book loans and returns through our HR Website. 30 2018/2019 Sustainability Report — Sustainability

Sustainability

Economic, social, and environmental balance

In this chapter

Sustainability Management 31 Environmental Management 33 Social Management 40 Integrated Management 45 2018/2019 Sustainability Report — Sustainability 31

Producing and respecting the environment is one of the business Management of principles of Coruripe Facility. No wonder sustainability is one of its corporate values. And that is the reason why we also preserve nature Sustainability by consciously utilizing natural resources, while producing sugar, ethanol and electricity. Sustainability Management is committed to encouraging citizenship practices for employees, suppliers, service providers, and third parties. The recovery of degraded areas and preserving biodiversity, improving the socioeconomic and environmental profile in the surrounding areas where the company has influence is a constant focus. These are the principles of conduct that guide our management in pursuit of excellence in our activities.

Sustainability: economic, social, and environmental DEVELOPMENT CITIZENSHIP PRESERVATION balance 32 2018/2019 Sustainability Report — Sustainability

Focus in the customer Goals and achievements In order to anticipate the demands and needs of our customers, aiming at improving the decision making process, streamline existing business and identify opportunities for business sustainability, we conduct a satisfac- 2018/19 Goals for tion survey that targets 90% of satisfied Achievements 2019/2020 customers annually. Thus we understood and improved our processes and products. We Water consumption less analyzed the quality of the purchased Water 1.50 m³ per tons of milled than or equal to 1.38 m³ per product; compliance with the delivery deadli- consumption sugarcane* tons of milled sugarcane ne; and especially the service provided by the commercial and fiscal sectors to customers.

Energy consumption less Energy 20.54 KW/h per tons of than or equal to 19.90 KW/h consumption milled sugarcane* per tons of milled sugarcane 93,18% index reached Class 1 Reduction of 5% in Class 1 Reduction of 2% in Class 1 waste waste generation* waste generation generation

Recording zero accidents Accidents with 19 accidents with sick with withdrawal sick leave leave

Perform 3 volunteer campaigns, 90% meta reaching an adherence of 37% of 3 campaigns performed Volunteer volunteers and benefiting over with 37% of adherence Programs 2000 people

* Note: Due to a crop with less milled sugarcane and the index is linked to sugarcane milling, there was an increase in the results of these indexes. survey satisfaction Customer 2018/2019 Sustainability Report — Sustainability 33

Management Environmental

Preserving natural resources has always been part Bicudo bird, which of the company corporate culture. The demonstra- tion of this fact is that all industrial units have valid was extinct in several environmental licenses and always take into account the risks of operations throughout the production Brazilian biomes, chain. found in the In addition, we highlight the conservation projects of nature reserves in Alagoas and Minas Gerais. In the environmental city of Januária located at northern of Minas Gerais, reserve of Porto Bicudo bird (Sporophila maximiliani), which was extinct in several Brazilian biomes, found a safe place Cajueiro, a safe to live and reproduce in the Porto Cajueiro environ- mental reserve. In addition to releasing and monito- place to live and ring the species, actions are being taken with the reproduce. community to sensitize people about the importance of maintaining biodiversity in the region. 34 2018/2019 Sustainability Report — Sustainability

Alagoas Greener

The Greener Alagoas project was created in 2015 with the objective of restoring degraded areas throu- ghout the state. More than 600,000 native seedlings have been planted in 80 cities. About 50,000 students from public schools participated in the planting and three seedling nurseries were already built. The Coruripe Facility is the project largest partner, and is also responsible for producing most of the seedlings used.

Highlights Environmental Education

seedlings 73,000 produced Aiming at strengthening environmen- tal awareness, the Coruripe Facility maintains a space for environmental 58,000 15,000 education aimed at students and resear- chers. The place offers a structure with a seedlings seedlings produced classroom, library, and multimedia equip- produced in Alagoas in Minas Gerais ment, where visitors may learn about the company environmental programs for the benefit of nature preservation. 10 hectares The space also has the production of 20 reflorestados em Alagoas native seedlings which produced (Mata Atlântica) 58,000,000 seedlings in 2018 that hectares reforested helped to reforest 10 hectares of area in (Atlantic Forest Alagoas, besides supplying government and Cerrado) hectares 10 programs and partner institution. reforested in Minas Gerais (Cerrado) 2018/2019 Sustainability Report — Sustainability 35

Environmental Aiming at preserving and protecting the natural Reserves resources of the Atlantic Forest and the Cerrado, the Coruripe Facility maintains over 17,000 hectares of environmental reserves, part of which are Private Reserve of Natural Heritage (RPPNs). In Alagoas, the reserves RPPN Pereira, RPPN hectares of Lula Lobo (Feliz Deserto, AL) and RPPN Riacho Seco farmlands (Coruripe, AL), along with Sítio do Pau-brasil (Coruri- reserved pe, AL) conserve the biodiversity of the Atlantic 17.000 Forest, and the latter is recognized by UNESCO as an Outpost of the Atlantic Forest Biosphere Reserve (RBMA). In Minas Gerais, RPPN Porto Cajueiro (Januária, Private Reserve Outpost MG) preserves the Cerrado and Caatinga fauna Reserves of of the Atlantic and flora, as well as being strategic for the Minas Natural Forest Biosphere Gerais firefighting system. 4 Heritage 1

Riacho Francisco Alves, Coruripe, AL 36 2018/2019 Sustainability Report — Sustenaibility

Mammals monitoring

Mammalian monitoring is an action develo- ped by the Sustainability area of the Coruri- pe Facility to assist in the development of strategies and actions for the protection, conservation and management of species, and is fundamental for decision-making in the management of natural areas.

Ocelot Nasua Nine-banded armadillo Agouti 2018/2019 Sustainability Report — Sustainability 37

Wastes Selective Collection

Waste management is a company priority. In this sense, we take effective and systematic actions during all stages of the production process. The goal is to ensure the best possib- le use of the wastes and give an appropriate destination to which may not be reused. Thus the company avoids damage to the environment, waste and reduces costs, contri- buting to business sustainability. Energy reuse of waste Part of the Class 1 waste is Wastes produced by tons used as fuel in cement kilns of sugarcane (kg) through co-processing, Sustainability 0.059 0.062 ensuring the completion of indexes 752,803 0.056 the environmental passive kg of class 1 production. waste produced While the bagasse produced 0.043 in our industrial facilities is 0.059 -5% 0.037 used for the production of kg of waste reduction of wastes electricity, which makes us produced per produced in 2017 2014 2015 2016 2017 2018 self-sufficient during the tons of sugarcane to 2018 crop period

Residue Class 1 Waste Organic and non-recyclable waste Bagasse Plastic, glass, ◥ Co-processing ◥ Co-production of electricity ◥ Production metal, and paper destination ◥ Class 1 landfill ◥ Used as fertilizer in the sugarcane of electricity ◥ Recycling ◥ Autoclave plantation ◥ Re-refining ◥ Sanitary landfill

Final Waste Disposal ◥ Vehicle Batteries: reverse logistics ◥ Filter cake, boiler ash, and sediments: soil fertilization ◥ Light Bulbs: treatment ◥ Paper, plastic and tires: recycling ◥ Pesticide Packaging: recycling ◥ Lubricant oil used: re-refining ◥ Health Wastes: incineration, autoclave, decontamination ◥ Contaminated Waste: sanitary landfill, co-processing ◥ Ferrous Scrap: sale/recycling ◥ Electronic Scrap: sanitary landfill ◥ Cells and Batteries: class 1 sanitary landfill 38 2018/2019 Sustainability Report — Sustainability

Energy Sustainability Indexes Energy Consumed The company produces electricity from biomass or i.e. using per Tons of Sugarcane (MWh) the burning of sugarcane bagasse to generate steam and operate the generators. This production guarantees quality 642,355 20.54 energy for the self-sufficiency of industrial facilities during the 20.48 20.60 MWh of energy produced 19.90 crop and sells the surplus to energy providers in Alagoas and 19.04 Minas Gerais. Importantly, the total energy produced would be enough to supply a city of 524 thousand people. 20.54 kw/h of energy consumed 2014 2015 2016 2017 2018 per tons of sugarcane

We produced enough electricity to supply monthly a city of about 524 thousand people 2018/2019 Sustainability Report — Sustainability 39

Water Sustainability indexes Water consumed per sugarcane tons (m³) Water is one of the most important resources in the company, which constantly invests in research and 1.48 1.50 studies on the subject. In industrial facilities, water is 1.45 used in a closed circuit to be reused in its entirety after specific treatment. We also invest in the 1.50 1.38 preservation, conservation, and restoration of m³ of water consumed springs and water bodies. This precious liquid is still per sugarcane tons 1.32 stored during the rainy season to be used for irrigation and maintenance of fish farming projects, 2014 2015 2016 2017 2018 which generates food and income for riverside communities. 40 2018/2019 Sustainability Report — Sustainability

Social Management

We seek to transform the communities around us through social action, which includes social projects that contribute to income generation and projects related to education, culture, sports, children’s and adolescent’s rights as well as volunteer programs. These projects are supported by Idese, a public interest civil society organization supported by several companies, including the Coruripe Facility.

Highlights R$ 500 thousand invested in social projects 4,400 20 People benefited social projects with the projects supported 2018/2019 Sustainability Report — Sustainability 41

Idese

Created 13 years ago, Instituto para o Desenvolvi- mento Social e Ecológico (Idese) [Institute for Social and Ecological Development] aims at promoting the preservation of nature, associated to the develop- ment of the community where it is inserted. By implementing educational actions, volunteer programs and leisure activities, the project awakens and strengthens environmental awareness in the population. 42 2018/2019 Sustainability Report — Sustainability

Citizen Handicraft using Basketball Cattail Straw Serves about 150 children PETI Community Cattail straw handicraft in and adolescents in Vitor Wanderley garden the city of Feliz Deserto, Maceió, AL Nursery Serve 200 children in the Alagoas, with the participa- Located at village of city of Coruripe. Serves 30 children at tion of 26 artisans. Pontes, Feliz Deserto and village Pontes, Feliz serves six families in the Deserto. region.

Social Projects 2018/2019 Sustainability Report — Sustainability 43

Flourish Beekeeping Project Project It serves about 150 Supplementary Ouricuri Located at Pontes village, children and Handicraft Feliz Deserto, all honey adolescents in Feeding Craft Paper production is intended for The association has 32 Campo Florido, Food supplement Workshop rural employees. artisans that use Ouricuri MG. produced and distributed Based in Pontes Village, Feliz straw handicraft. It is located to the day care center and Deserto, AL and Campo Florido, at Pontal de Coruripe schools of Feliz Deserto. MG, 18 artisans transform sugarcane bagasse and empty cement bags in a beautiful handicraft using totally ecological raw material. 44 2018/2019 Sustainability Report — Sustainability

volunteer 3 programs Volunteer

Our value creation is also expressed in our volunteer initiatives, which demonstrate the 2,200 engagement and solidarity of our toys collected in the Campaigns employees and contribute to social Doe Imaginações [Donate development. Imagination] and Natal Solidário On May 1st, Coruripe held the [Solidary Christmas] third edition of Dia do Trabalhador Solidário, [Solidary Workers’ Day], an event aimed at collecting food tons and donating to charitable entities of food in Alagoas and Minas Gerais. About collected 1300 people participated and 1.5 5 tons of food were collected. The company donated the same amount, totaling 3 tons of food. In October, the campaign Doe Imaginações [Donate Imaginations] to celebrate Children’s Day collected 1800 toys donated by employees and delivered to 12 needy institutions. And in December, the campaign Natal Solidário [Solidary Christmas] was held in all units of the group with collection of 2 tons of food and 400 toys, which were donated to needy institutions. 2018/2019 Sustainability Report — Sustainabilityt 45

The sustainable growth of our company is provided Integrated by the management of excellence that we maintain at all stages of our business as attested by Bonsucro Management Certification and consolidated practices in our organizational culture, such as Program 5S.

Bonsucro Certification

The Coruripe Facility has the Bonsucro certification, which certifies that the producer has sustainable production, respecting the environment and communities as well as freedom of association, environmental regulations and carbon emission limits, human rights and labor standards.

Program 5S

Program 5S of Coruripe Facility is a quality management methodology applied in any work environment, using simple and practical concepts based on the sense of use, organization, cleanliness, health and discipline. 46 2018/2019 Sustainability Report — Research and Innovation

Research and Innovation Performing now and preparing for the future 2018/2019 Sustainability Report — Research and Innovation 47

We invest in solutions because we believe in innovation as the key to Research expanding our business and increasing our competitiveness. With this focus, we adopt the use of drones that help monitor agricultural and and industrial areas, increasing the accuracy of results in the company and also deploy the HR website, an intuitive and modern system that allows innovation employees access to facilities and information.

Drones HR Website The use of drone in agricultural and industrial areas The Human Resources department of Coruripe has brought great results. The equipment is used to Facilty now has a special facilitator: the HR Website. perform remote sensing - an imaging methodology - to The new system is intuitive and modern and may be measure the volume of sugarcane bagasse to check accessed by employees themselves from anywhere, crop failures and to generate quick and automatic either from their computer or via mobile devices. solutions and to be used for road design more The platform offers various services to accurately. employees, such as access to the payroll history, the Previously, it took 36 hours to perform these visualization of the time bank, the registration procedures in remote sensing. With the drone, the time update, and the date of the periodic examination, has been reduced to 3 hours, being more accurate, fast, and one of the project objectives is allowing better thus optimizing all the work. autonomy and independence to employees. 48 2018/2019 Sustainability Report — Greenhouse Gases

Greenhouse Gases Inventory of GEE emissions 2018/2019 Sustainability Report — Greenhouse Gases 49

Emissions of GEE

Greenhouse gas emissions produced by Coruripe occur due to sugarcane milling, biofuel burning (ethanol) and biomass burning (sugarcane bagasse). Biofuel and biomass are renewable sources of energy which emissions have less impact on climate change compared to emissions from non-renewable sources, such as burning fossil fuels (petroleum derivati- ves). Among all Coruripe emissions, 92.76% comes from renewable energy sources, i.e. of low impact on the environment.

92,76% of our emissions are of low impact on the environment 50 2018/2019 Sustainability Report — Greenhouse Gases

3,572,940 GEE Emission per ton of milled sugarcane

0.0185

3,067,510 tCOe 0.0094 tCOe Emissions of GEE in million of tons of COI 13,858,926 t/cana 12,945,026 t/cana

2017 2018

Emissions of company sources

Emissions of electricity consumption

Emissions of renewable fuel 233,821 Emissions of 129,723 120,288 agricultural sources 10,252 - - 5,492 402.51 Emissions of soil use change 2017 2018

NOTE: In 2017, no agricultural emissions or soil use change were recorded. As a result, there was an increase in emissions in 2018. 2018/2019 Sustainability Report — Greenhouse Gases 51 www.usinacoruripe.com.br