SUSTAINABILITY REPORT BSBIOS 2019 Be Sustainable is Our Mission! R E N E W A B L E E N E R G Y Passo Fundo/RS Passo Fundo Porto Alegre Passo Fundo/RS Unit Number of Employees: 291 employees Production Capacity: Biodiesel: 800 m³/day Soy Crush: 3.200 ton/day Estimated population (2019): Main products: 203.275 inhabitants Biodiesel; Soybean meal; Soybean hulls; Soy residue; Glycerin; Sludge and Degummed Soybean Oil. GDP per capita (2017): R$ 43.183,62 th 495 position in the country In 2017 BSBIOS was responsible for Human Development Index (IDH): 0,776 Accumulated GDP from 22,6 2005* to 2017: R$ 14,9 bilhões of Passo Fundo's GDP. Taxes in the 2005* to 2017 accumulated: R$ 754 milhões BSBIOS impacts on the economy: FIPE Source * Year of foundation of the Passo Fundo/RS unit. Municipal data: IBGE Source Marialva/PR Marialva Marialva/PR Unit Curitiba Number of Employees: 109 employees Production Capacity: Biodiesel: 1.150 * m³/day Main products: Estimated population (2019): Biodiesel; Glycerin and sludge. 35.496 inhabitants * January to July 2019: 800 m3 /day August to December 2019: 1,150 m3 /day GDP per capita (2017): R$ 41.387,70 th In 2017 BSBIOS 559 position in was responsible the country for Human Development Index (IDH): 0,735 34,7 Accumulated GDP from 2010* to 2017: R$ 2,47 bilhões of Marialva's GDP. Taxes in the 2010* to 2017 accumulated: R$ 399 milhões BSBIOS impacts on the economy: FIPE Source Municipal data: IBGE Source * Year of foundation of the Marialva/PR unit. Highlights Highlights 9 Implementation of B11. 27 Renovabio Certification. 20 Expansion in Marialva. 34 Audit Committee. 35 Integrity Program. 38 Visit by the President of Paraguay. 2019 39 Visit by the Mining and Energy Minister 41 Leaders Convention. 41 Launch of the Sustainability Report. 41 Commercial Meeting. 47 Great Place to Work. 77 Donation of Books to Schools. 52 Investment in the security area. 83 Sementinhas do Futuro. 2019 Sustainability Report BSBIOS Table of Contents Table of contents 6 Message from the Council President 7 Message from the President 8 Biodiesel 11 Report Profile 17 BSBIOS 30 BSBIOS Governance 42 Economic-Financial Management 46 Internal Public 56 Environment 75 Social Investment 84 Economic Impact 91 Glossary 94 GRI Content Index 97 Making of 98 Work Team 2019 Sustainability Report BSBIOS Message from the Presidents Message from the Council President 102-14, 102-15 Thais Murce Mendes da Silva President of the Board of Directors A company where everyone wants to work he permanent technological and corporate gover- logies to preserve and strengthen environmental issues nance updates, following worldwide movements and show, among other initiatives, its commitment to sustaina- T trends, mark BSBIOS 'trajectory for its growth and its bility. contribution to the construction of a low carbon economy, with socio-environmental responsibility and concrete, I dare say that BSBIOS is a company where everyone measurable results. would like to work, and it is the feeling of pride and belonging shown by its employees in research that highligh- In this context, the publication of the BSBIOS ted BSBIOS in the GPTW, which can be easily recognized in Sustainability Report is extremely important, as it not only the "sparkle of each person's eyes" , inspired to make a demonstrates facts and data of this evolution transparently, difference and determined to achieve the goals and targets but also acts as a source of inspiration for other companies together to fulfill their purpose of existing. to follow this path, fulfilling their social role. "The publication of the Well-structured and in an accessible language, it allows an assessment of the company, its vision of the future, its BSBIOS Sustainability Report is beliefs and the alignment with practices of world excellence, demonstrating its greatness and importance, its joviality extremely important, as it not only and, above all, its commitment to values and to constructi- demonstrates facts and data about on of citizenship. this evolution transparently, The implementation of an Integrity Program; the but also acts as a source of calculation of GHG emissions in the principles of GHG Protocol; the expansion of productive capacity; the new inspiration for other companies to physical refining unit in Passo Fundo; pro-activism in the follow this path, fulfilling their classification for the Cbios; reinforcement in the area of occupational health and safety; investments in newtechno- social role." 6 BSBIOS // Sustainability Report // 2019 Messages from the Presidents Message from the President 102-14, 102-15 Erasmo Carlos Battistella BSBIOS president A company with purpose ince beginning of BSBIOS, in April 2005, when we The transport sector is the main focus of BSBIOS, as it is had many ideas and willingness to work and learn, a from its flow that human needs are met, being fundamental S lot has evolved, starting with the installations, to displacing people, goods and goods and making professionalization of management, the National Policy for production feasible. Our drive is to take biodiesel for the Production and Use of Biodiesel, which was early, transportation. consolidating today on the Renovabio program. In the future, BSBIOS legacy will be that of a biofuels 2019 was marked by the growth of the company, company helping the construction of a low carbon expansion of industrial capacity, evolution of management, economy, sought effective and coherent solutions to with the structuring of the areas of compliance, health and contemporary socio-environmental problems, replacing the safety, the sustainability committee, recognition by use of fossil fuels, generating value, investing in the certifications, inclusion in the Great Place To Work - GPTW community and taking care of people. and the evolution of placement in the national business rankings. "The background shows that The background shows that the company's DNA is the the company's DNA is the protagonist, which makes it a pioneer, valuing entrepreneurship, innovation, the desire to do something protagonist, which makes it a different, a provocative DNA of wanting to see new things happening, based on the company's values that are pioneer, valuing entrepreneurship, disseminated among its employees. innovation, the desire to do BSBIOS reaches 15 years old starting a new cycle, at a something different, a provocative time when the world is becoming aware that it is necessary to change consumption habits, as it is no longer possible to DNA of wanting to see new things continue consuming according to the standards of the last happening, based on the decades. company's values that are And, I think that BSBIOS fits into this new business disseminated among its employees. vision, contributing to the change in the energy matrix and decarbonization, which are in line with the new demands. We are a company with purpose." BSBIOS // Sustainability Report // 2019 7 1 Biodiesel Renewable energy 8 2019 Sustainability Report BSBIOS Biodiesel – Renewable energy Starting point ith more than 15 years of history, since the In other words, it came to provide a financial incentive for implementation of the National Program for the the expansion of the product, which has a better environ- W Production and Use of Biodiesel - PNPB, laun- mental performance and a reduction in carbon emissions. ched in December 2004, Its next steps will be certification based on biofuel plant whose initial purpose was the introduction of biodiesel in projects, including analysis of the carbon life cycle, sustaina- the Brazilian energy matrix, we have advanced. bility requirements and the issuance of fully commercial We have already experienced 10 years of the mandatory decarbonization credits (CBios). mixture of biodiesel in diesel (2018), also counting on its It should be noted that in 2019, the program has 06 gradual insertion, until it reaches 15% in 2023 - B15, as national biofuel producers authorized by the National required by law. Agency of Petroleum, Natural Gas and Biofuels (ANP) to issue Aiming not only to reach goal B15, but to further expand decarbonization credits (CBios). the production of national biodiesel, in 2016 the national Another 204 plants are requesting certification from the biofuel policy - RENOVABIO, established by Law no. 13,576 / agency, 85 of which are in the final stages. 2017, based on predictability, environmental, economic and Thus, the decarbonization program of the fuel sector is social sustainability in a manner compatible with market going to its last stage, awaiting its entry into the financial growth. market. It brought a new strategic look to the sector, improving The RenovaBio program represents a major step towards economic mechanisms for the formation of a market for implementing Brazil's commitment at COP 21 in Paris, decarbonization credits, assigning carbon intensity ratings to putting in place the right set of measures to scale sustainable individual producers, in which such decarbonization credits fuels and promote low carbon solutions for the transport (CBIO) can be freely negotiated. sector. Evolution of the percentage of Biodiesel blending in Brazil: B2 From 2005 to 2007 B3 B4 B5 B6 B7 authoritative use As of 2008 mandatory use B3: Jul/2008 B4: Jul/2009 B5: Jan/2010 B6: Jul/2014 B7: Nov/2014 2005/2006 2007 2008 2009 2010 2011 2012 2013 2014 B8 B10 B11 B12 B13 B14 B15 B8: Mar/2017 B10: Mar/2018 B11: Sep/2019 B12: Mar/2020 B13: Mar/2021 B14: Mar/2022 B15: Mar/2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Source: National Agency of Petroleum, Natural Gas and Biofuels (ANP). How did we get here? Brazil ranks second in the world as the largest producer and consumer of biodiesel in the world, behind only the United States, where it is possible to find up to B20 (diesel with 20% biodiesel) at the gas stations.