Fras-le (FRAS3) ESG Update summary

ESG strategy and commitments

• Celebrating 75 years, ESG is deeply integrated into purpose and operations, with a focus on long-term sustainability and stakeholder engagement.

• Public commitments include reducing greenhouse gas emissions by 40% by 2030, zero landfill waste and 100% effluent reuse by 2025, and doubling women in leadership by 2025.

• Double materiality assessment now guides ESG planning, focusing on planet, people, and business pillars.

• Participation in global forums like the World Economic Forum and COP events highlights commitment to international ESG standards.

• ESG risk reporting aligned with IFRS will be implemented by 2026, with ongoing internal development.

Environmental initiatives

• Only 16% of waste is currently sent to landfills, with a target of zero by end of next year through technological projects.

• 52% progress toward 100% reuse of treated effluents, with infrastructure upgrades underway.

• Achieved 11% reduction in greenhouse gas emission intensity since 2020, aiming for 40% by 2030.

• Solar and biomass energy projects are being implemented, with significant emissions reductions expected.

• Scope 3 emissions mapping is nearly complete, with 93% of emissions linked to suppliers and logistics.

Social responsibility and diversity

• Safety initiatives led to a 21.3% reduction in high-risk incidents in 2023, targeting over 40% reduction in 2024 with BRL 71 million invested.

• Women now represent 19% of leadership, up from 11% in 2024, with a goal of 22% by end of 2025.

• Affinity groups support diversity, with 1,033 migrants and 600 people with disabilities included.

• Instituto Elisabetha Randon invested BRL 8.2 million in social projects, supporting youth education and professional development.

• Extensive support provided during the Rio Grande do Sul climate crisis, including financial, psychological, and logistical aid to affected employees and communities.