Marcopolo S A : Sustainability Report 2021

Sustainability

Report 2021

SUSTAINABILITY REPORT 2021		MARCOPOLO.COM.BR

INDEX

Sustainability

Report 2021

1		About the Report		05
2		Marcopolo		11
3		Financial Performance		29
4		People Management		41
5		Relationship with Stakeholders		51
6		Environmental Management		59

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SUSTAINABILITY REPORT 2021		MARCOPOLO.COM.BR

1. ABOUT THE REPORT

WELCOME

TO MARCOPOLO'S SUSTAINABILITY REPORT

GRI 102-1,102-21,102-46,102-47,102-50,102-54,103-1,103-2,103-3

ESG

GOVERNANCE

SOCIAL

ENVIRONMENTAL

Sustainability is one of our Values, where we commit to keeping the company solid in the present, thinking about its future. This value is also reflected in the company's vision and is at the basis of the company's strategic planning such as ESG (Environmental, Social and Governance). The company has a Sustainability Committee, formed by representatives from various areas. Despite the global economic and social challenges brought mainly in the last two years by the COVID-19 pandemic, Marcopolo remains committed and focusing efforts on sustainable development.

In summary, our sustainability practices are represented in this figure:

In this report, we present to our stakeholders information on performance, learning, main initiatives of 2021 and goals for the coming years, involving the controlled units in Brazil. In some topics, we use the reference of three years of comparative data to facilitate understanding.

The report is based on the guidelines of the Global Reporting Initiative (GRI Standard) and the International Integrated Reporting Council (IIRC) for Integrated Reporting. The financial information is consolidated, including all units controlled in Brazil and abroad.

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SUSTAINABILITY REPORT 2021

MATERIALITY

MATRIX

GRI 102-1,102-21,102-46,102-47,102-50,102-54,103-1,103-2,103-3

Marcopolo's last Materiality Test was carried out	The review of the Materiality Matrix indicated as the
in early 2021, involving representatives of the	most relevant points those related to health and safety,
main stakeholders (suppliers, representatives and	economic and financial sustainability and waste disposal.
resellers, community, media and public authorities),	The indicators and management practices of these items
as well as the Company's employees and managers.	are informed in the corresponding chapters.

MANAGEMENT		18															Q
	17																	F
	16																R
HIGH	15														P
14					N
13				M
SENIOR
	12										O
	11																		L
	10									I
	MEDIUM
	9							D
	8											E
		7			C
		6								H
		5												J
		4													K
	LOW	3						G
		2		B
		1	A
			1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18
					LOW						MEDIUM						HIGH
															STAKEHOLDERS

MARCOPOLO.COM.BR

SOCIAL

1. Hiring local suppliers
2. Participation in the definition of public policies for the well-being of the population
3. Investment in local communities (actions focused on education, health, leisure)
4. Dtiversity and equal opportunities at work
5. Promoting the development of mobility in cities
6. Employee health and safety

ENVIRONMENTAL

1. Combating global warming
2. Use of recyclable materials

1. Reduction of energy consumption

1. Reduction of water consuption
2. Developing products that are not harmful to the environment
3. Proper disposal of wastwater and waste

GOVERNANCE

1. Business risk management
2. Value generation for shareholder
3. Clear strategy for the various levels of the company
4. Generation of value for the customer
5. Comply with integrity rules (compliance)
6. Economic and financial sustainability

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SUSTAINABILITY REPORT 2021

MARCOPOLO.COM.BR

MARCOPOLO

BOARD OF DIRECTORS

From left to right:

Mauro G. Bellini (President)

Paulo Cesar Nunes (Vice-President)

Denise Casagrande da Rocha (Counselor)

Dan Ioschpe (Counselor)

Mateus A. Bandeira (Counselor)

José Rubens de la Rosa (Counselor)

Henrique Bredda (Counselor)

MARCOPOLO

EXECUTIVE BOARD

Sitting, from left to right:

1. Lusuir Grochot (Manufacturing); 2. James E. Bellini (President-CEO);

3. José A. Valiati (Financial and Investor Relations); 4. Alberto R. Calcagnotto (Global Acquisition)

Standing, from left to right:

1. Alessandro J. Ferreira (People Management); 6. João P. Pohl Ledur (Strategy and Digital Transformation);

1. André V. Armaganijan (International Operations and External Market); 7. Luciano R. Resner (Engineering);
2. Ricardo Portolan (Internal Market and Marketing); 9. Pablo Freitas Motta (Controller)

MANAGEMENT

MESSAGE

GRI 102-14

The period from 2020 to 2021 went down in history as years of great challenges. For Marcopolo, in a business fundamentally linked to the movement of people, the last two years represented consecutive falls in demand and production, with the return of the bus body market to the 1998 volume level. Lockdowns and quarantines have shut down or profoundly reduced the market, with an impact on tourism, road lines, school charter and urban public transport.

In 2020, we were expecting a volume recovery that indicated a market scenario returning to normal, after the 2014-2017 crisis. The pandemic came and its advance required numerous extraordinary preventive measures to ensure the health and safety of our employees and family members at all plants in Brazil and abroad, including unit shutdowns for long periods.

In this process, we use all possible resources to minimize the economic impacts resulting from low demand in our segment, such as collective vacations, flexibility

and reduction of working hours, home office, lay off for

training and voluntary dismissal programs, aiming at the preservation of the largest possible number of jobs and the sustainability of the company.To face this challenging

scenario and the changes in people's behavior, which has

come to be called "new normal", the company quickly sought innovative alternatives such as the Biosafe line and new

products to meet the specific demands of the market. In

this context, we had the launch of Generation 8, the Attivi electric model, the new Volare Attack and also Prosper, the Marcopolo Rail model.

Additionally, throughout 2021, Marcopolo has invested in cultural and digital change programs, which included adjustments to its organizational structure, the optimization of its industrial plants in Brazil and abroad, the review of its strategic planning and the identification of its purpose.

At the end of 2021, businesses related to public passenger transport began to slowly show signs of recovery, following the evolution of vaccination campaigns around the world and consequent easing in the preventive measures imposed by governments. The prospects for the company's business in 2022 are favorable, both for the Brazilian market and for export and international units.

Marcopolo will continue to invest in actions aimed at the environmental, social and governance areas, considering its various audiences and its vision of being a protagonist in solutions for the transport of people in a sustainable way. Purpose and products make connections, and the bus responds promptly to contemporary society's aspirations: rational energy consumption, including alternative propulsion, and mobility for all, whether for work or leisure. Above all, we keep bringing people together as a purpose that moves us.

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