Energy that mobilizes

Nearly 29,000 employees committed to operational excellence, workplace safety, and satisfaction of clients and partners.

Sales of BRL 79.2 billion, 5th largest group in Brazil in the private sector¹.

More than 13,000 students and 4 million people served by the initiatives conducted by the Raízen Foundation since 2012.

26 units producing ethanol, sugar, and bioenergy.

Capacidade instalada de processamento de 73 milhões de toneladas de cana-de-açúcar por ano (incluído duas unidades recém-adquiridas)

67 fuel distribution terminals (5 billion liters per month).

1 unit producing second-generation ethanol

16
production units with Bonsucro certification, which attests to the best practices in sustainability within our chain. ²

66 fuel bases at airports.

More than 6,000 service stations under the Shell brand.

More than 990
Shell Select convenience stores.

4 administration offices in Brazil and 4 abroad (United States, Switzerland, Singapore, and the Philippines).

¹According to the ranking prepared by the Exame magazine edition "Melhores & Maiores 2017". Ranking takes into account the annual net revenue.

²Source: https://www.bonsucro.com/en/

At the beginning of the 2016/2017 harvest, we strengthened the elements of our culture in order to expand the engagement of employees, partners, and clients with our purpose and our strategy. Throughout the harvest, we promoted adherence to our culture on the daily routine of people.

Ethics at all levels

|G4-DMA Fight against Corruption, G4-DMA Unfair Competition, G4-DMA Compliance, G4-DMA Environmental Grievance Mechanisms, G4-DMA Labor Practices Grievance Mechanisms, G4-DMA Human Rights Grievance Mechanisms, G4-DMA Grievance Mechanisms for Impacts on Society|

Our Code of Conduct guides employees and partners to ensure ethical behavior in all activities. We also have in place the Competition Compliance Policy, to protect healthy competition in the industry; and a Policy to Fight Bribery and Corruption , which, together with the Anti-corruption Manual, provides guidance on transparency in the relations with the trade and public administration agents. |G4-56|

This aspect also receives the attention of representatives of senior management from the areas of Internal Audit, Compliance, Legal, Corporate Controls, Communications, Human Resources, Shared Services Center, Sustainability and Business that integrate the Raízen Compliance Group, responsible for proposing and monitoring our Compliance Program, audited by the Audit Committee of the Board of Directors. In addition, we are signatories to the Corporate Pact for Integrity and Against Corruption, of the Ethos Institute, and we participate - through the National Union of Fuel and Lubricant Distribution Companies (SINDICOM) - of the Brazilian Institute on Competition Ethics (ETCO). |G4-15|

Understanding that people are the protagonists in advocating our culture of ethics, we have in place the Ethics Channel to receive claims and concerns associated with attitudes that potentially violate the Code of Conduct, our policies and the legislation in force. All contacts are registered by an independent company, examined by the Internal Audit and submitted to our Ethics Committee, in order to retain the confidentiality of the whistleblower.

Click here to see the information about the records examined in the 2016/2017 harvest. |G4-EN34, G4-LA16, G4-HR12, G4-SO3, G4-SO11|

Attentive to risks

We monitor political, social, environmental, competition, and economic aspects over which we cannot control in order to anticipate scenarios capable of impacting our results or our strategy. We also map aspects under our management, such as employer safety, availability of assets, and project feasibility. Based on this mapping, we put together a risk matrix for each operation taking into account the specificities of each of them. This preventive practice allows us to properly adjust strategic planning and improve internal processes for the continuity of the business. |G4-14|

Click here to evaluate the risk factors detailed in the Reference Form.

Our activities can be directly affected by the risks associated with external events, such as climate change, dynamics in the collection and use of water, and taxation of Greenhouse Gas (GHG) emissions.

Any public policy that involves GHG emissions represents risks or opportunities for the company. To this end, a deep understanding of our emissions is required. We have in place a solid mechanism to quantify and monitor emissions, which gives us a competitive advantage. Furthermore, the existence of an incentive mandate for biofuels as a form of achieving the Intended Nationally Determined Contributions (INDC) in the Paris agreement also reveals a promising scenario for the ethanol market.

Climate changes directly affect the dynamics of water availability - an important variable in sugarcane cultivation, especially considering that, in 22 of our 24 units, the sugarcane fields are not irrigated.

On the other hand, among the opportunities arising are: access to markets that value products with a low carbon footprint, creation of eventual mandates to incentivize production and trade of biofuels, and diversification of the Brazilian energy matrix towards the use of biomass.

The risks and opportunities are of various natures: physical, regulatory, and market. The impacts are mostly financial, given that they interfere in the productivity of the sugarcane fields, in the demand for products, and in the reputation of the brand.

Throughout the period for the development of this report, we initiated a study of Climate Risks and Opportunities in order to map these variables in terms of the likelihood of their occurrence and the magnitude of the financial impact. Once completed, the assessment will serve as a basis to define a risk matrix to guide our businesses in relation to this aspect.

We monitor critical and spot issues that guide the definition of audiences with whom we must strengthen our relationship. Among the channels used, we have in place the Customer Services Department (SAC), Ombudsman's office, e-mail, digital social media, and our website. The Corporate Communication department works together with each business line to develop action plans. The idea is to understand the demands of each audience, align expectations and mobilize people with our purpose. Among the stakeholders are:

Employees | Our results reflect the work of a team committed to quality and excellence in operations. With this audience, we established a relationship that seeks to promote a safe, inclusive, upright, and innovative work environment. Our principles are shared through the Code of Conduct and internal communications. Click here to learn more.

B2B clients and dealers | Our commercial fronts prioritize constant dialogue and the formation of quality partnerships in order to promote a joint search for solutions. Advertising and promotional campaigns are also carried out to showcase the excellence of our services and products.

Shareholders | Constant relationship that values the integrity of information pertaining to financial and operational results. For this audience, we have available the Investor Relations (IR) website, where we publish relevant facts, communications to the market, quarterly and annual results, among other information.

Partners | Continuous relationship through programs, guided communication materials, and specific portals. The objective is to create shared value, in line with our standards of integrity. For this reason we also disseminate our Code of Conduct and carry out training and engagement initiatives, such as the Truck Rodeo and the programs called ELO and Cultivar. Click here to learn more..

Government and trade associations | Relationship based on a process that involves monitoring actions at the Executive and Legislative level, with analysis of critical aspects and subsequent engagement with previously identified audiences. This process can be conducted independently or in coalitions with associations, trade unions, institutes, and other industry associations in which we participate. |G4-DMA Public Policies, G4-16|

In 2016/2017, nearly 550 aspects were monitored and 50 critical items were assessed. We also prepared the Government Relationship Policy, which entered into effect in 2017.

Communities and NGOs | Relationship guided by the Social Performance Policy to promote the debate between communities surrounding our facilities Click here to learn more.

Media | Constant relationship led by a press advisory team to ensure the correct communication of our positioning to the audience.

Universities | Constant relationship through partnerships established to promote the professional development and dissemination of information regarding academic research.