Arezzo Indústria e Comercio S A : Sustainability and Annual Report 2021

ANNUAL REPORT 2021

CONTENTS

05 HEALTHY ENVIRONMENT . . . . . . . . . . . 67

01

02

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 03

About the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Message from the Management . . . . . . . . . . . . . . . . . . . 06

ABOUT AREZZO&CO . . . . . . . . . . . . . . . . . . 08

About us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Financial Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Value Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

03 CORPORATE GOVERNANCE . . . . . . . . 43

Governance Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

04 RESPONSIBLE PRODUCTION . . . . . . . 52

Sustainability in Value Chain . . . . . . . . . . . . . . . . . . . . . . 53

06

Responsible Raw Materials . . . . . . . . . . . . . . . . . . . . . . . 68

Eco-efficient Operation . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Fight Against Climate Change . . . . . . . . . . . . . . . . . . . . 79

EMPOWERED PEOPLE . . . . . . . . . . . . . . . . 85

Talent: the raw material of our success . . . . . . . . . . . . . 86

Diversity and Inclusiveness . . . . . . . . . . . . . . . . . . . . . . . 98

People Development and Advancement . . . . . . . . . . . 103

07 ATTACHMENTS

. . . . . . . . . . . . . . . . . . . . . . . . . 107

GRI Content Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

SASB Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

Capitals Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

SDG Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . 118

Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

2

1

INTRODUCTION

RELATED CAPITALS

Our Report complies with the Integrated Reporting guidelines . At each chapter opening we will present which capitals are addressed in it . Learn more on a page 05 and page 115 .

Our path is marked by the adaptability strength and openness to the new, and this path has also led us to undertake commitments for a good sustainability management in our brands, businesses, and operations

ABOUT THE REPORT

GRI 2-4

This story is told throughout this report, released for the 4th year in a row, highlighting our commit-ment to transparent management, presenting in-formation about the year' s milestones, our busi-ness model, our culture, and the key results from January 1st to December 31st, 2021.

Have a nice reading!

KEEP IN MIND!

Whenever we use the terms "Arezzo&Co" or "Company" throughout the content, we refer to all of our brands and businesses .

When we use "Reserva Group" we are referring to the Reserva, Reser-va Go, Reserva Mini, Eva, Oficina and Ink brands . References to AR&Co include all Reserva Group brands and Baw .

In 2021, we initiated the AR&Co management integration process in our base, so some data regarding this business will not yet be reported in a consolidated manner in this report, as well as the data from the most recent acquisition (Carol Bassi), will not yet be reported . Learn more about our brands' scope on page 13 .

READING TOOLS

GRI 2-3

ABOUT THE GUIDELINES

Questions about the Report?

Our report was compiled based on the main international guidelines for sustainability reporting and management.

You can get in touch with us, to talk about questions or suggestions regarding this publication:[e-mail]

INTEGRATED REPORTING

(CAPITALS)

The capitals map on page 115 reports on which pages you can find the content corresponding to each of the Integrated Reporting capitals .

At the beginning of each chapter, we also signal which capitals are addressed there, with the following icons:

Natural

Social and

Relationship

Intellectual

Manufactured

Human

Financial

GLOBAL REPORTING

INITIATIVE (GRI)

Along the report, the symbol

GRI XXX-X appears next to the titles or subtitles of the chapters in which the indicator is reported . You can also find a full index of indicators in the GRI Content Index on page 108, describing each indicator and referring to the page on which it is reported .

SUSTAINABILITY ACCOUNTING STANDARDS

BOARD (SASB)

For the first time, our report also complies with the guidelines of the Sustainability Accounting Standards Board (SASB), a voluntary standard for sector sustainability reporting, including indicators targeted at the retail and accessories, apparel and footwear sectors . The index is available on page 114, and the corresponding content is signaled, through the SASB acronym with the HC-BP-XX indicators, throughout the publication .

SUSTAINABLE DEVELOPMENT GOALS

(SDG)

We also strengthened the Company's commitment to the United Nations' Sustainable Development

Goals . To explain the relationship between them and our business in a simple way, at the beginning of the chapters we indicate the SDGs that are related to the content . And on page 116 you will find the SDG map, informing the content pages corresponding to the priority

SDGs for our business .