TIM S A : ESG Annual Report – 2023 Highlights

ESG

Report

Highlights

2023

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ESG vision

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Creating positive and long-lasting value for society and our shareholders has always been at the core of our business strategy. We are continually challenging ourselves with targets and commitments that contribute to the construction of a fairer, and more inclusive and diverse society, whilst reducing our environmental impacts as we strive for a circular and low carbon economy.

The issues represented by ESG are at the heart of our business here at TIM, having become a principle that

increasingly forms a part of all the actions that are planned and implemented. By means of collective and customized initiatives, such as gatherings and forums, we are developing and training all of our employees, including our leaders, in this area.

We have been signatories to the UN's Global Compact since 2008, and to the UN Women organization since 2021. We also develop projects connected to the Sustainable Development Goals (SDGs), recognizing the rights to data privacy, a secure Internet, access to information, and freedom of expression as essential and non-negotiable.

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We believe that our business lays the path for positive impacts on people, society and the environment. We work so that everyone can respectfully and courageously evolve together, turning technology into freedom.

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Our material topics

TIM performed its most recent materiality in 2022, based upon comprehensive consultation with those publics identified as priority, and considering the impacts on the financial and socio-environmental aspects - what is referred to as 'double materiality'. This process was also conducted in line with the 2021 GRI Standards.

At the beginning of 2023, we assessed our materiality and came to the conclusion that the topics continue to remain up to date and pertinent, meaning that no modifications to either the topics themselves or the weight they carry were necessary.

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Digital inclusion	1
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and connectivity
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Innovation and technology

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Energy efficiency

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Service

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Transparency and	12
relations with	16
priority publics

Ethics, integrity and	16
compliance

quality

Health, wellbeing and safety

Privacy and data security

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Our transparency and ESG

commitments timeline

2000 - 2005

Obtains ISO 9001 certification (quality).

Start of the sustainability performance accountability process through the publication of annual reports.

	2011 - 2015
	We joined the Novo Mercado of B3.
1	We consolidated private social
	investment in Instituto TIM.

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2006 - 2010

We became part of the Corporate Sustainability Index (ISE) of B3 (the only company in the sector to have been in the index for so long).

We became signatories of the Global Compact, committing to advancing aligned with the SDGs.

We adopted the guidelines of the Global Reporting Initiative (GRI) in the ESG Report and disclosed our performance and management of greenhouse gas emissions (GHG) in the Brazilian GHG Protocol Program and in the CDP.

We obtained ISO 14001 certification (environmental).

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2016 - 2020

We became part of the List of Pro-Ethicscompany by the Comptroller General of the Union (the first telecommunications operator in this initiative).

We launch our ESG Plan, an initiative that is revised annually to define the targets and commitments concerning matters such as customer satisfaction, ethics and transparency, information security and data privacy.

We have incorporated SASB (Value Reporting

Foundation) indicators into the ESG Report.

We committed, along with the TIM Group, to the Science Based Targets initiative (SBTi) to establish greenhouse gas emissions reduction targets aligned with the ambition of the Paris Agreement and defined by scientific methods.

2021 - 2024

We obtained ISO 37001 certification (anti-bribery management).

We won the international GSMA's Diversity in Tech award.

Three consecutive years (2021 to 2023) as the world's most inclusive operator, according to the Refinitiv Diversity & Inclusion Index, achieving global leadership in telecom and fourth place worldwide in 2023.

We obtained ISO 27001 certification (information security management).

Validation of the TIM Group's greenhouse gas emissions reduction targets by the Science Based Targets initiative (SBTi).

Support for the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD).

Instituto TIM celebrates its 10th anniversary.

We joined the GPTW B3 Index.

We were recognized as the best company in Latin America and 7th globally in gender equity by Bloomberg.

For the second consecutive time, we were selected for Bloomberg's Gender Equality Index, being the most equal company in the sector and in Latin America.

For the third consecutive year, we are one of the most sustainable companies in the world, becoming a Sustainability Yearbook Member by S&P Global ESG.

We achieved an A rating in the CDP Climate Change questionnaire, joining the select group of companies considered global leaders in climate change management.

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ESG Plan

2024-26

TIM Group's commitment

SLB Sustainability-linked bond

New target

Pillar	Commitments	2023-25	Term	2023	2024-26	Term
		Plan		Result	ESG Plan

Environmental

Social

Governance

Net Zero¹ (Scopes 1, 2 and 3) tCO2e		≤0
Reduction of Scope 3 emissions1 (categories 1, 2 and 11)	-47%
Carbon neutral¹ (Scopes 1 and 2) tCO2e		≤0
Renewable electricity		100%
Eco-efficiency	in data traffic5 (bit/Joule)	SLB	+110%
Reuse and recycling of solid waste6		≥95%
Engagement7 (per year)		≥82%
Black employees8		>40%
Black employees in leadership positions8
Women in leadership positions		>35%
Employees trained in ESG skills (per year)		≥99%
Employees trained in digital skills		≥7,500
4G presence	SLB		100%

Connected hectares (in millions)

National Mobile Consumer NPS (Net Promoter Score)	≥50
Transparency and Anti-corruption practices and	Maintain
standards (e.g. ISO 37001, Pro-Ethics Seal)
Cybersecurity and Data Protection practices and	Maintain
standards (e.g. ISO 27001)
Placings in ESG indexes and ratings (e.g. ISE)	Maintain

2040

2030

2030

2025

2025

2025

2025

2025

2025

2023

2025

2023

2025

2025

2025

2025

226,1722,3	Net Zero
226,1722	-42%
03	Carbon neutral
100%4	100%
+160%	+110%
96%	≥95%
86%	≥82%
41.4%	-
NA	≥25%
36.2%	>36%
99%	-
6,040	≥7,500
100%	-
NA	32
50	-
Maintained	Maintain
Maintained	Maintain
Maintained	Maintain

2040

2030

2030

2025

2025

2026

2025

-

2025

2025

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2025

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2026

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2026

2026

2026

1. The Group's targets with the base year 2019 in the 2023-25 Plan were changed to the base year 2023 in the 2024-26 ESG Plan, in line with the TIM Group.
2. Results in absolute emissions. The percentage progress compared to the base year 2019 was not reported, as in 2023 a new, different, and more accurate Group scope 3 calculation methodology was adopted, which is not comparable

6 to the one used in 2019. Scope 2 emissions (which are part of the "net zero" target) were calculated using the Market-Based methodology. The scope 3 reduction target was reformulated to -42% due to the change in the baseline to 2023 and in accordance with the SBTi's indications regarding the expected annual reduction until 2030.

1. The results consider the purchase of carbon credits (scope 1) and IRECs (scope 2, using a market-based approach).
2. The result considers the purchase of I-RECs (scope 2) and does not include the natural gas and biogas plants of GD, as they are accounted for as fuels in scope 1.
3. Base year 2019.
4. Does not consider organic and construction waste from classes C and D.
5. Measured through the favorability index of the Mercer Climate and Engagement Survey.
6. Self-declaredmixed race and black employees are considered.

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25 years of operations in Brazil

61.2 million cell phone customers

33.6 million prepaid customers

27.6 million postpaid customers

100% 4G cover in Brazilian

municipalities

Pioneers in the implementation of 5G in the country, present in 209 cities (an increase of 674.1% p/a)

Financial results

Net revenue of R$ 23.8 billion

(+10.7% p/a)

Growth of 14.2% in normalized

EBITDA

48.9% in normalized EBITDA margin (+1.5 p.p. p/a)

Business

STRATEGIC BUSINESS PILLARS

MOBILE	B2B	BROADBAND	EFFICIENCY
Preferred	Shaping a	Profitable growth	Intrinsic to the
operator	new market		business

PEOPLE, SOCIETY AND THE ENVIRONMENT

B2B customers

Agribusiness: 16 million hectares with 4G cover and 34 million+ hectares with NB-IoT

1.3 million+ people impacted in rural areas

Logistics: 47,000 km+ of highways with TIM connectivity

Public services: +150,000+ intelligent lighting devices contracted

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Environment

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Energy

100% of the energy we consume is drawn from renewable sources (through acquisition of I-RECs)

160% increase in energy efficiency in data trafficking

PUE: 1.46²

Sustainability in structures

1,858 active biosites

Emissions

'A' classification in the CDP

(climate leader)

80% reduction of Scopes 1 and

2 emissions in 2023, compared to 2019¹

Digital billing: we have avoided the use of 3,800 tons of paper, meaning savings of R$ 426 million, and made emissions reductions equivalent to 5,038 tCO2e in Scope 3

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Waste and the Circular Economy

96% of waste is recycled³

1,636 kg of electronic goods collected, with 98% being sent for recycling

TIM Smart Exchange: 7,600 cell phones collected, with roughly 91% in condition to be reused

1. Considering the purchase of I-REC, without offsetting via carbon credits.
2. Power Usage Effectiveness.

• Does not include civil construction or organic waste, classes C and D.

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People

9,630 employees

We have joined the GPTW B3 Index

We have been awarded the

Top Employers Brasil

seal for the 3rd consecutive year Employee favorability index of 86%

Diversity

The only operator in the telecommunications sector to form part of the IDIVERSA B3

Recognized as the most diverse and inclusive operator in the world by the Refinitiv

Diversity & Inclusion Index for the 3rd year

running

Named Best company in Latin America

and 7th globally in gender equity by Bloomberg

First Brazilian operator to receive the GSMA's Diversity in Tech international award

36.2% women in leadership positions

• recognized amongst B3 companies as having the highest ratio of women in senior management

41.4% Black people making up the

Social

Instituto TIM

Foundation in operation for 10 years: 700,000+ benefiting in roughly

500 towns, in every Brazilian state

Partnership with the Gerando Falcões organization:

R$ 1 million directed to 10 organizations selected under the 'Fortalecendo Redes' public notice - R$ 100,000 each

Digital inclusion

Favela 5G: a partnership with the Gerando Falcões organization to make the Favela Marte (SP) the first fully connected 5G community in Brazil

100% of municipalities covered by

TIM 4G

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workforce

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Governance

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Telecommunications company with the longest time spent as a member of the

B3's Corporate Sustainability Index Portfolio (ISE-B3)

In 2011, we voluntarily joined the Novo Mercado, the Brazilian stock exchange's highest level of corporate governance

The first Brazilian operator to be classified

as a Pro-Ethics company by the

Comptroller General of the Union (CGU)

Considered to be one of the world's

most sustainable companies by

S&P Global and, for the 3rd year running,

included in the Sustainability

Yearbook 2024, a publication that selects those companies from around the world with the best sustainability practices

Certifications

ISO 27001 - Information Security

ISO 37001 - Anti-bribery

ISO 14001 - Environmental Management

System

ISO 9001 - Quality

Ethics and compliance

99% of employees trained in the Code of Ethics and Conduct

99% trained under the Integrity Program

99% trained on the issue of Anti- corruption 100% of the members of the governance bodies receive training

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