SUSTAINABILITY REPORT 2020 LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX SUMMARY FOREWORD CUSTOMERS ARE OUR PASSION MESSAGE FROM THE CEO ROAD SAFETY ABOUT THIS REPORT QUALITY AND INNOVATION ESG ASSESSMENT PERFORMANCE IN THE YEAR 2020 AT A GLANCE 102 MACRO-ECONOMIC CONDITIONS ABOUT LOCALIZA FINANCIAL PERFORMANCE OUR BUSINESSES SUSTAINABLE STRATEGY SOCIAL AND ENVIRONMENTAL LEGACY SOCIAL DEVELOPMENT ETHICS AND GOVERNANCE GREEN MINDSET GOVERNANCE STRUCTURE AND GRI CONTENT INDEX GUIDELINES CORPORATE INFORMATION RISK MANAGEMENT COMPLIANCE AND ETHICS PROGRAM TAKING CARE OF PEOPLE OUR PANDEMIC RESPONSE DIVERSITY, INCLUSION AND HUMAN RIGHTS PROFESSIONAL DEVELOPMENT LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX FOREWORD 33 LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX MESSAGE FROM THE CEO GRI 102-14 A STORY OF LEADERSHIP AND RESILIENCE 2020. A year that will inevitably leave an indelible mark mental-health support for them and their dependents. on each of us. In both our personal and professional lives, Protecting our customers was also top of mind in all and in our family and business lives, 2020 showed us the our processes, ensuring safe mobility with excellence remarkable ability that people have for transformational and superior care. We made sure each of our car rental change. The ability to quickly reinvent ourselves amid locations and Seminovos stores was well prepared or, 4 a global pandemic. Suddenly, the mobility we took for if necessary, temporarily closed to protect the health granted—walking the streets, planning our next trip, or and well-being of our customers and employees. We visiting our family—was reduced to a world of screens. strengthened our cash position while keeping our eye on At Localiza, a company that is helping to build the future the future and making further progress in innovation. We of mobility, our prompt response to the novel coronavirus also continued to fulfill our role as a corporate citizen, one pandemic was supported by a team of capable leaders and that I am especially proud of. a strongly customer-, people- and results-oriented culture. Localiza donated approximately R$ 16 million to several Localiza’s previous report, written with the COVID-19 initiatives, mostly toward mitigating the effects of the pandemic already in full swing, provided a transparent pandemic on the healthcare system, small and medium- account of our pandemic response. Under the leadership sized businesses, and vulnerable communities. These “Taking care of people is about of a quickly assembled crisis committee, we addressed contributions placed Localiza as one of the top 60 valuing them for who they are. It's five priority fronts: protecting our employees, taking corporate givers in Brazil in the year, as ranked by Forbes. care of our customers, ensuring business continuity, about learning from, respecting and maintaining our financial health, and making a positive To support our role in promoting social development, contribution to society. in 2020 we formally approved the creation of the embracing differences.” Localiza Institute, which will begin activities in 2021. We spared no effort to keep our more than 11,000 The Institute’s primary focus area will be providing employees safe and to provide needed physical and skills-building and entrepreneurship support for LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX We were successfully certified to ISO 37001, which attests to the quality of our anti-bribery efforts and our culture of integrity, transparency and compliance socially and economically vulnerable youth, equipping them with education as a tool for social mobility and transformation. On the environmental front, we continued to neutralize the emissions generated by our operations in 2019 (Scopes 1 Another significant milestone on the social front was the and 2), as reported in our emissions inventory in 2020, and launch of a robust Diversity and Inclusion Program that will we pledged support for the Climate Commitment Program, work on five main fronts: gender equity, LGBTI+, migrants an initiative that works to engage and inspire the private and refugees, race, and people with disabilities. Working sector to achieve climate responsibility. This has been a key collaboratively, these five affinity groups have more than focus of our ESG strategy, as we recognize the need for a 500 volunteer members. As one of the Program’s first collective effort to minimize climate impacts and risks for all initiatives, we became signatories of the Forum on Business of humanity. We also progressed on deploying solar power and LGBTI+ Rights. Taking care of people is about valuing in our operations, with 106 locations now harnessing this 5 them for who they are. It's about learning from, respecting clean source of energy. and embracing differences. It’s about strengthening our commitment as a corporate citizen, and leading the changes In Governance, we celebrated another milestone as we will enhance our capabilities for developing new solutions we want in society. successfully obtained certification to ISO 37001, attesting that exceed customers’ expectations. In 2020 Localiza also to the quality of our anti-bribery efforts and our culture of announced the combination of our operations with Unidas, In 2020, even with many of our employees working from integrity, transparency and compliance. As part of these a transaction that can be transformational for the car rental home throughout most of the year, we amplified our internal efforts, 95% of our employees were trained on our Code of industry and create a lot of value for stakeholders. employee development efforts through the Localiza Ethics and Business Conduct in the year. University, reaching almost twice the average number of The deal is pending approval from the Brazilian antitrust training hours per person. Externally, we awarded education On the financial front, we were fortunate in our decision to authority, CADE, and other conditions precedent. grants for training in technology-related fields. This reinforce our cash position with new borrowings rather than connected the social benefits of education and employability accelerating the disposal of our decommissioned fleet at a Our activities in the year were orchestrated by and to our need for professionals in these fields. And even in time when car sales were depressed. We are now benefiting coordinated between our executive team and our green- such a challenging year, we made significant strides as an as surging prices on new cars are cascaded to used cars, blooded employees, and supported by Localiza’s robust organization from our employees’ perspective, reaching a resulting in lower depreciation. We continued to pursue our culture and the solid values we live by. We are navigating climate survey score 5 points higher than in the previous future-looking plans and to invest in important programs this globally turbulent period with daring, courage, year—which places us among the top 10% of companies for such as Localiza Meoo, a subscription mobility model; and leadership, passion, transformation, transparency, prudence, organizational climate results as ranked by Korn Ferry. Localiza Labs, a technology and innovation laboratory that innovation and lots of value creation! LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX Even with all the adverse impacts from the COVID-19 pandemic, for our company and for me personally, this year will be remembered for the collective effort and the transformational change that a highly talented team was able to achieve, both within the company and in our communities. In 2021 I stepped down as CEO with a I am very proud of what we have built so far, together. sense of mission accomplished and the confidence that Yes, together, as nothing of significance is achieved as a Bruno Lasansky, who succeeded me from his role as COO solo endeavor. I have been accompanied in this journey by on April 28, 2021, will build on the previous years’ legacy admirable professionals. People I have learned from, who 6 as part of a carefully planned transition, supported by a inspire me and whom I also seek to inspire on a daily basis. solid Corporate Governance structure. I have now been Much has been done, but we believe we are just beginning appointed as chairman of the Board, succeeding Oscar and that, by working together, Localiza will continue to be a Bernardes, who has been a great partner in this journey positive force for transformation. and has been named to the newly created role of Deputy Chairman. Here’s to a strong restart post-pandemic. Eugênio Mattar* CEO *After serving as Chief Executive Officer (CEO) of Localiza from 2013 through 2020, Eugênio Mattar stepped down on April 28, 2021 to take on the role of Chairman of the Board of Directors. The Board appointed Bruno Lasansky to succeed him as CEO. This information was communicated to the market through a Company Notice on February 25, 2021. LOCALIZA SUSTAINABILITY REPORT 2020 FOREWORD ABOUT LOCALIZA ETHICS AND GOVERNANCE TAKING CARE OF PEOPLE CUSTOMERS ARE OUR PASSION PERFORMANCE IN THE YEAR SOCIAL AND ENVIRONMENTAL LEGACY GRI CONTENT INDEX ABOUT THIS REPORT The 2020 Localiza Sustainability Report provides an account of our economic, environmental, social and governance performance from January 1 to December 31, 2020, in line with best practices in reporting and transparency.