Movida Participações S A : Climate Change Policy

Climate Change Policy

1. Introduction
   This Policy represents Movida commitment to actions to mitigate, compensate and adapt to the Climate Change scenario, including the topic in its decisions and business strategies, serving as a reference for the management of the Company in line with its Culture, values, beliefs and purposes.
   The topic is considered a priority. Due to the burning of fossil fuels, the transport sector is of great relevance to the Climate Change issue. Movida, in line with society's growing demand for more sustainable products and services, has performed in its way of creating and sharing value with its stakeholders.
   Within this premise, the Company and its companies undertake to contribute with solutions to mitigate the warming of the average global temperature, having as a reference the main treaties and institutions on the subject: Paris Agreement, Science Based Targets Initiative (SBTi), United Nations Global Compact, Brazilian GHG Protocol Program and Intergovernmental Panel on Climate Change (IPCC).
2. Goals
3. 1. Define the guidelines and principles for combating Climate Change, that are understood as a reference for Movida performance;
   2. Ensure that the Climate Change issue is included in the decision-making process with impacts on society, biodiversity and its businesses;
   3. Educate employees, third parties, suppliers, customers, communities, among other stakeholders, ensuring the alignment of the Company's actions and business decisions with the Principles of the Global Compact and the UN Sustainable Development Goals (SDGs), especially regarding Goal 13 of Action to Combat Global Climate Change.
4. Scope

Movida Climate Change Policy applies to all employees of the Company and its subsidiaries, as well as most of its stakeholders, including subcontractors who provide services to the company, who must also comply with the provisions of this Policy.

4. Audiences

This document must reach all Company's employees, customers, suppliers, shareholders, financial agents, surrounding communities, manufacturers, implementers, investors, assemblers, accredited workshops and subcontracted service providers.

5. Reference documents

This policy follows the guidelines of the Movida Sustainability Policy and considers the guidelines of the documents below:

• Risk Management Policy;
• Principles of the Global Compact and the UN Sustainable Development Goals (SDGs);
• Recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD).

6. Priorities

We are paving the way for the decarbonization of the sector based on technologies with lower greenhouse gas emissions, reduction projects and establishing medium and long-term public goals and commitments. For this, part of our approach is as follows:

1. 1. Monitoring: quantification of emissions;
   2. Verification: assessment of reported information to ensure reliability;
   3. Reporting: presentation and transmission of data, measurements and associated analysis through the Integrated Annual Report and Public Emissions Registry;
   4. Management: through monitored and verified data, manage climate risks and opportunities, defining commitments and goals;
   5. Prioritize the reduction of emissions, building a strategy for mitigation, compensation and adaptation to the climate change scenario;
   6. Act so that practices to combat climate change bring benefits to biodiversity and local and indigenous communities, as well as prioritize actions and relationships that curb illegal deforestation.

   7. Guidelines

   1. Governance for climate action
2. Participate in the main and most relevant forums and discussion meetings on Climate Change to promote and disseminate information on the likely impacts of this phenomenon on the economy, society and natural resources in Brazil and worldwide;
3. Prioritize the relationship with stakeholders who share the same values and priorities as Movida;
4. Maintain a strategy to combat Climate Change in order to improve the Company's performance in short, medium and long-term scenarios;
5. Integrate and disseminate knowledge on the topic of Climate Change in the different areas and sectors of the Company;
6. Promote the enhancement and continuous improvement of operations to reduce greenhouse gas emissions by monitoring specific indicators and action plans in our operations, including customers;
7. Promote and encourage the use of alternative renewable energies, energy efficiency, proper waste management and conscious use of natural resources;

7.1.7 Work with the value chain to fulfill commitments.

7.2 Climate Commitment

7.2.1. Define strategy and commitment for the Climate considering short, medium and long- term scenarios of mitigation, compensation and adaptation actions;

1. Maintain a positive relationship with biodiversity and local communities where we operate and/or places evaluated as strategic;
2. Annually maintain the GHG inventory of scopes 1, 2 and 3, including all categories considered relevant to the business, as well as audit and make it public for all stakeholders;

7.2.4 Periodically monitor and identify possible proximity to an area of impact on biodiversity, ensuring compliance with current environmental legislation.

1. 7.3 Management and monitoring of climate-related risks and opportunities

2. Identify, assess and manage climate-related risks in an integrated manner with the Company's general risk management, using future climate scenarios in the identification process;
3. Follow the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD) for the disclosure and analysis of risks and opportunities related to climate issues;
4. Apply a preventive approach to minimize the impacts of the Company's new infrastructure on biodiversity, mapping the locations of stores and operations in relation to priority areas for biodiversity, making the study available together with this policy;
5. Update, validate and approve the climate risk matrix by the Audit Committee whenever a new risk or opportunity is mapped;

For the construction of the climate risk and opportunity matrix, the following process should be considered, in accordance with the Company's Risk Management Policy:

1. Identification: self-assessment and mapping of climate risks and opportunities by the sustainability area in the short (up to 2 years), medium (between 2 and 10 years) and long term (from 10 years), using the risk report as a reference from the World Economic Forum (WEF), Task Force on Climate Related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB). Generating a comprehensive list of Transition and Physical risks that could threaten the achievement of the Company's objectives.
2. Risk analysis: the Sustainability area must carry out a verification of the causes and consequences of the risks and their probability of materializing the consequences.
3. Risk assessment: considering the financial consequences, adaptation costs or other nature related to climate risks. Build the probability matrix that will calculate the inherent risk as well as the financial impact.

After carrying out the above items, the matrix must be submitted to the Sustainability Committee for consultation and, later, to the Audit Committee and the Board of Directors.

1. Treatment of risks: after its evaluation, the treatment that will be given to the risks is defined and how they will be monitored and communicated to the parties involved.
2. Monitoring of risks: ensuring the effectiveness and adequacy of the internal controls established and obtaining information that provides improvements in the risk management process, through continuous and impartial assessments.
3. Information and communication: communicate, in a clear and objective way to all interested parties, the results of all stages of the management process.

1. Responsibilities
2. • Sustainability area: develop and propose best management practices in Climate
     Change.
   • Sustainability Committee: propose goals, best practices, monitor and follow up on the implementation of the policy.
   • Audit Committee: monitoring and controlling the quality of risk management, evaluating the effectiveness and progress of actions proposed as a way of mitigating or eliminating risks.
   • Board of Directors: approve and supervise the execution of actions and programs to reduce greenhouse gases.
3. Reviews and approvals

This policy will be reviewed and updated whenever there are significant changes in the aspects of the Company's climate change strategy. This Policy is submitted for analysis and recommendations by the Sustainability Committee and submitted for analysis and approval by the Board of Directors.

• 10. Glossary

• Climate Change: long-term changes in temperature and climate patterns. These changes can be natural, such as through variations in the solar cycle. But human activities have been the main driver of climate change, mainly due to the burning of fossil fuels like coal, oil and gas.
• Biodiversity: species richness of an ecosystem.
• Short term: period of up to 2 years.
• Medium term: period between 2 and 10 years.
• Long term: period over 10 years.
• GHG: Greenhouse Gases are gaseous substances naturally present in the atmosphere and that absorb part of the infrared radiation emitted by the Sun and reflected by the Earth's surface, making it difficult for this radiation (heat) to escape into space.