Sustainability

Beto Abreu Beto Abreu CEO

Sustainability is an inherent part of our operation and is already incorporated into our business strategy and decision-making processes. The rail modal, by itself, is linked to the decarbonization of the economy, emitting less Greenhouse Gases (GHG) than the road modal. As we grow, we further reduce our emissions by investing in more modern equipment, new technologies, and processes, always seeking to increase efficiency in our operations by using innovation such as the expansion of the Trip Optimizer in the locomotives and with 120- car trains that have 50% more capacity than the 80-car ones.

In order to increasingly link our operational and financial performance to ESG practices, in 2021 we became the first Brazilian company to issue a Sustainability-Linked Debenture (“SLD”), through which we raised R$ 1.5 billion conditioned to the goal of reducing GHG emissions by 15% per ton of useful kilometer (TKU) by 2023, compared to 2019. In addition, we have green bonds
raised in the amount of R$ 500 million, which must be invested in projects for greater efficiency and, consequently, reduction of greenhouse gas emissions, contributing to the transition to a low carbon economy.

During the year, we also invested in expanding our operations, taking our modal to more regions and structuring yards, railroads and warehouses. In this way, we increase the positive and structuring impact we generate on the economy of the regions where we are present.

The works in the Port of Santos, for example, aimed to increase its capacity, with interventions in Macuco, Paquetá and the suppression of the highway to build more railway lines, increasing the transport capacity and efficiency of the largest port complex in Latin America.

We started the activities of Malha Central, expanding the geographic diversity of our rail network and strengthening our operations in the region. In addition, we signed the contract for the construction of the first state railroad in the state of Mato Grosso, generating an important opportunity to expand and take our modal to the largest agricultural barn in the country, as well as infrastructure and development for the region.

From a financial point of view, we face the corn crop failure, in addition to inflation and interest rates, results of the post-pandemic period. However, our strategy focused on gaining market share allowed us to increase it in our operations, seeking additional volume in new geographies and further away from our terminals. We thus increased the volume transported in the year by 2.5%, the highest in our history.

We maintain our performance based on the 10 commitments for sustainable development, and in recognition of our sustainability actions, we were the only company in the logistics sector selected to compose the 2022 portfolio of the Corporate Sustainability Index (ISE).

In addition, we continue our efforts to positively impact the communities in which we are present. Through Instituto Rumo, we are focused on training young people to be protagonists and socio-productive inclusion.

I conclude by reinforcing our commitment to the Global Compact and the Sustainable Development Goals. We also highlight the performance of our goals, with the lowest accident rate in our history, the expansion of energy efficiency in rail transport and the mitigation of impacts linked to climate change.

Good reading!

Our 10 Commitments to Sustainable Development

For the sixth consecutive year we are disclosing our Sustainability Report, in order to confirm 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

Committed to Sustainability

For the sixth consecutive year, we have published our report, which materializes our commitment to transparency, compliance and accountability to our main stakeholders, who are strategic and relevant to our business: employees, business partners, suppliers, customers, institutions and public entities, communities, investors and the market in general.

Throughout this document, we present the main highlights of the year and how we generate value through our business. The reported data include the performance and results of the North, São Paulo, South, Central and West networks and Brado Logística, from January 1, 2021 to December 31, 2021.

The report was prepared following the the Global Reporting Initiative (GRI) standards, in the Core option, and of the Sustainability Accounting Standards Board (SASB). As signatories of the Global Compact, a United Nations (UN) initiative, we also report on how we comply with the 10 Universal Principles of the Global Compact and the 17 Sustainable Development Goals (SDGs).

This document was approved by the Executive Board, including the CEO, reporting to the Board of Directors. All content in this publication has been subjected to external verification by an independent third party.

How to read this Report: Throughout this document, we present the GRI Standards and SASB indicators. At the end of each paragraph, we point out the indicators reported using the acronyms GRI or SASB. In the attachments, on page 104, we present the GRI index and the SASB index, with an explanation of each indicator and the pages in which they were mentioned throughout the Report.

Approach to COVID-19 crisis

During 2021, we continued with several actions to fight Covid-19, with emphasis on the adjustments made in our units to promote the health of our employees. We have a daily supply of alcohol gel, cleaning of areas performed on demand and cleaning of common areas on a daily basis.

We maintained home office among employees in the administrative areas, while reinforcing the structure for the operation of collective spaces, such as cafeterias. In addition, we kept our outpatient area available 24 hours a day to answer questions and advise on the necessary care to avoid contagion.

During the year, we carried out 14,011 tests for Covid-19, with coverage of 88.67% of employees. In addition, we maintained continuous monitoring and mapping of cases, distribution of masks, Lives on the topic, Health Radar and the COVID Committee.

To face the impact of the pandemic outside the Company, we made donations in the amount of R$ 713 thousand to 16 institutions in the vicinity of our rail networks.

To know more about our initiatives, access the full version of our Sustainability Report.

Click here to download our Sustainability report for 2021
Last updated on June 22, 2022