Rumo S A : Green Bond Resource Use

RUMO 2021 GREEN BOND REPORT

RESOURCE USE DISCLOSURE

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MESSAGE FROM

MANAGEMENT

ABOUT US

KEY PROJECTS

NEW YARDS AND

EXTENSIONS

MODERNIZATION

PROJECTS

ROLLING

STOCK

RESULTS	20	APPENDICES

RUMO 2021 GREEN BOND	MESSAGE FROM THE BOARD	ABOUT US	KEY PROJECTS	NEW YARDS AND EXTENSIONS	MODERNIZATION PROJECTS	ROLLING STOCK	RESULTS	APPENDICES
REPORT

Message from Management

We are pleased to release this report to the market, with transparent accountability for the use of the funds allocated from the first issuance of Green Bonds in the history of Latin American freight railroads. With funding of USD 500 million and a seven-year maturity, Rumo issued green bonds in June 2020 certified by the Climate Bonds Initiative (CBI), an international organization that works to mobilize the bond market for climate change solutions.

THE OPERATION, WHICH WAS INDEPENDENTLY ASSESSED BY THE SUSTAINALYTCS CONSULTING FIRM, REPRESENTS A MAJOR STEP IN THE COMPANY'S ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) AGENDA, WHICH HAS BEEN PROGRESSING SINCE 2015, WHEN WE PUBLISHED OUR FIRST SUSTAINABILITY REPORT.

The issuance of the Green Bonds reflects our efforts in commitments to sustainable development, which have culminated in the reduction of specific emissions over the past few years, reaching 15.8 grams of CO2 equivalent per Revenue Tonne Kilometre (gCO2 eq./RTK) in 2019, below the 21 gCO2 eq./RTK, the minimum threshold required for Green Bonds accreditation. It was challenging, since the railroad's business is based primarily on the use of diesel fuel, but with a lot of joint effort

throughout the company we were able to reach this milestone a year before the bonds were issued.

Reinforcing our performance focused on ESG, we launched Rumo DNA in 2020, with guidelines that orient all our actions and our culture, and joined the UN Global Compact to focus even more on our sustainable development goals. We also raised 35% of our financing lines in green bonds, and our proposal is to reach 50%.

This report presents the projects and initiatives financed with Green Bond funds in the period from July 2020 to June 2021, with the objective of contributing to increasing the capacity, efficiency, and safety of our railways by making the railroad modal even cleaner and more efficient.

We hope that this accountability and the projects presented here can provide a further basis for the decisions of our investors and other stakeholders. Thus, we believe we can contribute to making a difference in Brazilian logistics and in people's lives, assuming our responsibility with the social, environmental and governance aspects of our operations.

Beto Abreu CEO of Rumo

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		RUMO 2021 GREEN BOND	MESSAGE FROM THE BOARD	ABOUT US	KEY PROJECTS	NEW YARDS AND EXTENSIONS	MODERNIZATION PROJECTS	ROLLING STOCK	RESULTS	APPENDICES
		REPORT

About us

BRAZIL ON THE MOVE

The largest railway operator in the country, the company is the result of the merger between Rumo Logística and ALL - América Latina Logística, completed in 2015. We connect Brazil by means of railway transportation, also operating in ports and terminals. Our asset base puts us in a prominent position in providing transportation services to customers from various industrial segments and mainly for agricultural commodities, a sector of paramount importance to the development and growth of the country, considering that Brazil is one of the main producers and exporters of agricultural products worldwide.

13,600 kilometers of

We operate in the

railway lines, 1,500

MIDWEST, SOUTH,

locomotives, and 35,000

SOUTHEAST, AND

railcars.

NORTH REGIONS,

where four of the

most active ports

Distribution centers,

in the country are

located and through

facilities, and

which most of Brazil's

transshipment terminals

GRAIN PRODUCTION is

add up to a static

exported.

storage capacity of

approximately 900,000

tons.

We are listed on the

NOVO MERCADO

The RONDONÓPOLIS

segment of the national

stock exchange

(MT) logistics

(B3), committed

complex has a

to maintaining

monthly loading

high standards

capacity of more than

of CORPORATE

1 MILLION tons.

GOVERNANCE.

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