102-7 | Scale of the organization

102-8 | Information on employees and other workers

At the end of 2018/2019, our team totaled 29,119 employees, 86% men and 14% women, the majority (93%) concentrated in the Southeast.¹.

1. Gender-related data are compiled by the HR area, which uses data taken from SAP as a basis.

102-9 | Supply chain

Supply chain

Our supply chain is composed of companies responsible for supplying equipment and materials, in addition to providing services, referring to all our processes—production and non-production. The relationship with this audience is mediated by the Procurement Department, and the main communication tool is our Supplier Portal.

In 2018/2019, more than BRL 3 billion was spent on suppliers of supplies, most of which is related to the purchase of materials. Most of this audience is located in São Paulo, but we have also established contracts with suppliers in Rio de Janeiro, Paraná and Minas Gerais, among other states.

Sugarcane suppliers

Our Agricultural Business team is responsible for contracts with sugarcane suppliers, and the Sustainable Development team is responsible for managing initiatives such as the ELO Program.

In 2018/2019, BRL 5.5 million were spent on this audience, located in São Paulo, Goiás, Minas Gerais, Mato Grosso do Sul and Paraná.

Carriers

The category refers to those responsible for collection and transfer (C&T) and fuel delivery operations. The public circulates in all regions of Brazil, with the largest concentration in the Southeastern and Southern regions.

We have a team focused on the relationship with carriers, which monitors, based on specific indicators, the performance of each contractor in relation to the goals established and the principles that we share.

More information about the supply chain can be found here.

102-11 | Precautionary Principle or approach

Through a structured sustainability governance process, the precautionary principle integrates strategic planning and risk management of our activities. Care for employees, with policies and tools to promote health, safety, and quality of life are among the aspects observed. We also have in place programs to ensure professional training and recognition of our team's performance. Promoting sustainability in our value chain includes actions with suppliers in order to stimulate the development of increasingly innovative products and solutions.

102-13 | Membership of associations

We participate in the following organizations: União da Indústria de Cana-de-Açúcar (UNICA); Associação Brasileira de Biotecnologia Industrial (ABBI); Associação da Indústria de Cogeração de Energia (COGEN); Fundação Getulio Vargas (FGV) – Business initiatives; Plural, former Sindicato Nacional das Empresas Distribuidoras de Combustíveis (SINDICOM); Associação Brasileira dos Terminais Portuários (ABTP); Bonsucro – organization responsible for the certification of sustainability aspects in the production of sugarcane; and Associação Brasileira do Agronegócio (ABAG).

102-40 | List of stakeholder groups

Press, fuel dealers, investors and investment analysts, employees, customers, business partners, communities, universities, public authorities, and trade associations.

102-41 | Collective bargaining agreements

All our employees are covered by collective bargaining agreements.

102-42 | The basis for identifying and selecting stakeholders with whom to engage

Through our Annual Report, Ombudsman's Office, Digital Social Networks and Customer Service (SAC), we map out stakeholders and their issues of concern.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

We have in place a series of institutionalized policies and procedures aimed at guaranteeing human rights throughout the production chain and in the vicinity of our operations:

• Code of Conduct
• Policy on Dialogue with the Public Administration
• Alcohol and Drug Policy
• Anti-Corruption Policy
• Social Performance Policy
• Sustainability Policy
• Institutional Relations Policy
• Ethics Channel, for reports of violations of the Code of Conduct. Learn more here.
• Legal and reputational analysis of the counterparty by the Trading area.
• Procedures for selecting, training and retraining suppliers of equipment, materials and services
• Adherence to the Federal Government's Young Apprentice Program for the insertion of young people in the labor market (initiative supported by the Learning Act – 10.097/2000)
• Programs ELO and Cultivar, which are important value platforms for sugarcane suppliers, with actions to provide adequate processes related to workers, storage and disposal of chemicals and packaging, handling of agrochemicals, among other procedures and in line with best practices.
• Certifications such as Bonsucro and International Sustainability and Carbon Certification (ISCC).
• Capitólio Tool and the Customer Service Department (SAC), in order to offer support to the External Relations area through information for a more efficient interaction with communities, public authorities and others strategic stakeholders. In 2018, a total of 310 grievances and complaints were recorded, 154 of which related to social topics and 156 relating to environmental aspects - all of them processed and resolved. The most recurrent complaints are: circulation of trucks; emissions and noise of the industrial park; and conditions of the lounge for drivers of finished products.

In addition, for the relationship with specific groups in communities, we have in place initiatives for education, professional qualification, culture, health, civism and sports. In addition, we support communities at critical moments, such as during the truck drivers' strike, when we supported hospitals in the regions where we operate through donation of fuel, ensuring access to health for the population.

Our objectives in the relationship with this audience include: to provide care to children, adolescents, youth and adults through the development of projects; to promote dialogue with communities; to generate jobs, income and professional qualification in the vicinity of our facilities; among others.

In 2018/2019, some of the procedures in our Operations Management System (SIGO - Sistema de Gestão da Operações) were updated in order to better analyze the impacts of our operations and the effectiveness of the initiatives undertaken.

Specifically in relation to water and effluent management, our abstraction is in line with legislation, and we have in place initiatives to reduce consumption and disposal in the production units - such as the ReduSa program, under which targets are established annually to encourage teams to make rational use of water resources, regularly rewarding those employees who stand out. In addition to recording the volumes of water abstracted, effluents and various water flows in the energy cycle, we keep strict quality control at all stages of the industrial process, including effluent treatment - there are more than 3,000 analytical results daily in all units, accessed by company Leaders for follow-up. We also have water management panels that share the good results and indicate opportunities for improvement, promoting a healthy competition among all.

This topic is managed by several areas in a multidisciplinary way, with emphasis on Sustainability, Social Responsibility and HSE.

Read more in Sustainable strategy, Responsible operation and Sustainability in relationships.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

We strive to ensure that our business growth is conducted in an ethical and sustainable manner. In this sense, quantitative and qualitative goals are defined in order to guide our economic performance. We also have different instances for monitoring and evaluating results, among which are: Risk Committee, with weekly meetings to analyze the behavior of the commodities markets and foreign exchange and to decide on hedging positions and the pricing strategy of exports or imports of products; Ethanol and Byproducts Committee, with monthly meetings to analyze the risks related to trading of ethanol and byproducts and evaluation of the adequacy to the limits defined in the risk policies; and the Compliance group, formed by executives responsible for preparing a compliance plan - with fronts to be implemented and monitored.

Our financial results are timely disclosed to investors in line with best practices in the financial market, and our guidelines regarding economic and market aspects are documented in the Information Security Policy, Disclosure Policy, Competitive Compliance Policy, Anti-Corruption Policy, and Sustainability Policy, and are disseminated through regular training.

It is a cross-cutting theme that is managed by several areas.

Read more in Sustainable strategy, Risk management, Governance structure, Ethics and Financial results.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

One of the guidelines of our Sustainability Policy is the regular monitoring of our GHG emissions - automatically quantified through systems, in order to avoid the handling of information and mitigate calculation errors. In addition, we voluntarily submit our emissions inventory to independent audits, which results in an analytical report on each of our emission sources. The goal is to ensure the energy efficiency of our processes, as well as to map risks and opportunities arising from climate change and that could impact our operations.

In addition, we operate in accordance with national energy policies, defined by relevant government agencies such as the Ministry of Mines and Energy (MME), the National Energy Policy Council (CNPE), the National Petroleum, Natural Gas and Biofuels Agency (ANP) the National Electric Energy Agency (ANEEL).

This topic is managed by several areas in a multidisciplinary way, with emphasis on the Energy Department.

More information is provided in sections Sustainable Strategy, Our Business and THAT INNOVATES AND LOOKS TO THE FUTURE.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

Our compliance policies and procedures cover the following topics: Anti-corruption, Competitive Practices, Dialogue with the Public Administration, Social Performance (donations, sponsorship, social investments), Relationship with Associations and Trade Unions and Intellectual Property, among others. The main dissemination tools are described here.

This topic is managed by our Compliance team. We also have the Internal Controls area and audits (internal and external), which assess the adherence of policies and procedures to business risks. Among other responsibilities, these departments are responsible for managing conflicts of interest, which are reported through internal tools and analyzed individually.

Regarding training, Raízen University was redesignedin 2018/2019, with schools that develop skills according to the development trail for each employee, with Ethics being one of the prerequisites for all. Training related to the topic is provided in three formats: classroom, online without interaction, and online with interaction {webinars}. Members of the governing bodies receive specific training (Directors and Officers). Business partners are informed about our compliance guidelines through contractual terms, depending on the operation in which they are involved.

Public commitments reinforce our position. We are signatories to the Business Pact for Integrity and Against Corruption of the Ethos Institute; and we support - through the Sugarcane Industry Union (UNICA), of which we are members - the program called Movimento Combustível Legal (Legal Fuel Movement), which aims to reinforce the importance of an ethical and fair environment in which all those involved pay their taxes correctly and thus stimulate fair competition.

Regarding donations and sponsorships, transparency is guaranteed by a specific policy on the subject and a flow of approvals - with purviews established in accordance with our Authorities Guide, with a double level of approval, in addition to the Compliance area.

Read more here.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

Our main commitments are linked to Our RAIZ a culture that is born from the inside and is revealed in our daily actions. Around it, we seek to engage a multiple team, committed to ethics, work safety, and our business goals.

In 2018/2019, we focused on promoting more gender equality. Among the advances, we highlight the implementation of a maternity leave for 180 days, as an improvement of the benefit provided by law; and rooms where women returning from leave collect and store milk with even more convenience, further encouraging breastfeeding.

In our pay, benefits and training practices, there is no difference regarding gender. Consequently, women are present at all hierarchical levels, and we are making a conscious effort to further increase this participation. In this sense, two years ago, the Diversity and Inclusion Committee was created, which seeks to address actions, policies and procedures that increase diversity in our staff.

We also hold attraction events focused on women; we promote discussion groups on respect in order to identify possible barriers that could be impacting women's careers; we offer vocational courses for surrounding communities with the participation of half the female audience; and we seek gender balance in programs such as Apprentice, Internship, Summer Internship, and Trainee; among other initiatives.

Publicly, we also joined the Women's Movement 360, a group with more than 50 large companies committed to diversity and the expansion of women's participation in the corporate environment.

This topic is managed by the Vice Presidency of Human and Organizational Development, which has eight departments and the Human Resources Department, and is guided by the Code of Conduct and by specific procedures, such as the Ethics Channel, for complaints.

Read more here.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

Relationship with suppliers, business partners and customers is guided by our Code of Conduct. We also have in place open dialogue channels (SAC and Ombudsman's Office) and targeted communication tools (Dealer Portal, Suppliers Portal and Agricultural Portal).

Regarding the supply chain, we have in place the Procurement Policy, which sets out the guidelines for the procurement process - which holds ISO 9001 (Quality Management) and FSSC 22000 (Food Safety Management) certifications. All eligible suppliers follow our terms and conditions and undergo evaluation during the registration phase. Furthermore, we perform monthly verification of the documents from contractors: Certificates of Good Standing (CNDs - Certidões Negativas de Débitos) of suppliers who represent high risk to our production process, National Register of Punished Companies (CNEP - Cadastro Nacional de Empresas Punidas) and National Register of Disreputable and Suspended Companies (CEIS - Cadastro Nacional de Empresas Inidôneas e Suspensas). In the case of irregularity, new contracts are blocked until the issue is cleared. Recidivism can lead to cancellation of contracts. Teams at the production units and terminals are trained to report cases of noncompliance, facilitating the development of action plans for both parties. In 2018/2019, we also initiated a pilot project to monitor compliance of critical service providers with labor obligations based on the verification of collections of social security charges (INSS) and employees severance fund (FGTS), and their adequacy to occupational safety practices. With this control, it will be possible to develop actions to mitigate risks related to the supply chain.

We also have in place specific practices for the establishment of contracts with other supply categories. Through a strict approval process of carriers, for example, we check items related to legal, environmental, safety, human and labor rights, as well as annual audits and informal inspections, in order to guarantee compliance of these partners with our criteria. The relationship with sugarcane suppliers is led by the Agricultural Business area, and all contracts must comply with our clauses and legal requirements. Producers are regularly evaluated under the ELO program.

In relation to business partners, the process of assigning our brand to a service station is preceded by a series of studies, both in terms of commercial feasibility and of compliance with environmental aspects. Approved dealers receive an operations manual for service stations that contains procedures and recommendations. They also gain access to consulting services and training courses in order to obtain financial benefits, marketing initiatives, employer safety and environmental responsibility.

The Evaluation of the management approach of this topic is monitored based on the performance of our operations, determined by the respective indicators (GRI 204-1, 308-1, 308-2, 407-1, 408-2, 409-1, 414-1, 414-2).

Management of this topic permeates several areas in a multidisciplinary way, with emphasis on Procurement, Agricultural Business and Sustainability.

Read more in Safety and Sustainability in relationships.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

This topic is managed by several areas in a multidisciplinary way, following the guidelines set out by the HSE and Occupational Health areas. Management of this topic is also guided by the HSE Policy and the Health, Safety and Environment Committee.

Health and safety indicators follow the standards set out by NBR 14.280 and OSHA 3.245 09R, as well as internal procedures: Element 7 of the Operations Management System (SIGO) and PMR Specification Shell. To record exposure and accidents, we have in place external systems (Work Accident Communication - CAT, NEXO System) and internal systems (Sustainability Indicators System - SIS, Emergency Response Center - CAE, and AlertaWeb).

Read more in Safety.

103-1 | Explanation of the material topic and its Boundary

See materiality matrix.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

To manage this topic, we have in place the Intellectual Property Policy.

Innovation is one of the pillars of our strategy, and not a responsibility of any specific area.

Further details are provided in the sections Sustainable Strategy e INNOVATES AND LOOKS TO THE FUTURE.

103-1 | Explanation of the material topic and its Boundary

Ver matriz de materialidade.

103-2 | Management approach and its components

103-3 | Evaluation of the management approach

We rely on the Sustainability Department, which is responsible for integrating environmental and social aspects into our strategy and to the management of our business, contributing to growth, competitiveness and business continuity. To manage this topic, we also have in place a Sustainability Policy, which encompasses our commitments and guidelines.

More information can be found here.

ECONOMICS

201-1 | Direct economic value generated and distributed

RAÍZEN ENERGIA¹

Value-Added Statement, in BRL thousand

	2015/2016	2016/2017	2017/2018	2018/2019
Revenues - Gross sales of products and services	12,557,268	12,900,645	15,844,028	23,960,173
Revenues - Returns of sales, discounts and abatements	-10,198	-11,257	-31,266	-44,050
Revenues - Constitution of estimated loss for doubtful accounts, net	-5,025	-1,811	-182	-3,856
Revenues - Other operating revenue (expenses)	49,885	25,989	114,241	407,789
Revenues - Total	12,591,930	12,913,566	15,926,821	24,320,056
Inputs acquired from third parties - Cost of products sold and services provided	-5,981,389	-6,124,579	-8,521,465	-16,741,661
Inputs acquired from third parties - Materials, energy, services provided by third parties, and others	-769,049	-809,235	-973,690	-953,640
Inputs acquired from third parties – Gain arising from changes in fair value and realization of gains or losses on biological assets	637,937	304,621	-367,432	-261,158
Inputs acquired from third parties – Constitution (reversal) of estimated losses on investments, fixed and intangible assets, net	0	-156,200	14,263	136,692
Inputs acquired from third parties – Reversal (constitution) of estimated losses on inventory obsolescence	-377	-72,383	54,277	1,163
Inputs acquired from third parties - Total	-6,112,878	-6,857,776	-9,794,047	-17,818,604
Gross value added	6,479,052	6,055,790	6,132,774	6,501,452
Depreciation and amortization	-1,876,896	-1,818,791	-2,136,639	-2,108,939
Net value added produced	4,602,156	4,236,999	3,996,135	4,392,513
Value added received in transfers - Results of equity accounting	-73,260	-69,635	-21,423	30,985
Value added received in transfers - Financial revenues	664,798	665,347	646,169	570,141
Gain on exchange rate variations	195,862	2,706	29,585	115,778
Gains in operations with derivatives	668,922	736,068	148,816	195,495
Value added received in transfers - Total	1,456,322	1,334,486	803,147	912,399
Value added for distribution	6,058,478	5,571,485	4,799,282	5,304,912

Value added distribution, in BRL thousand

	2015/2016	2016/2017	2017/2018	2018/2019
Value added distribution Personnel - Direct remuneration	1,273,054	1,234,931	1,102,838	1,075,138
Value added distribution Personnel - Benefits	236,691	276,800	288,020	325,691
Value added distribution Personnel - FGTS (government severance fund)	117,679	117,464	118,351	120,969
Value added distribution Personnel - Total	1,627,424	1,629,195	1,509,209	1,521,798
Taxes, fees and contributions - Federal	374,844	576,159	773,247	1,024,186
Deferred federal taxes	387,202	121,858	-109,607	-140,987
Taxes, fees and contributions - State	460,644	463,286	551,613	655,597
Taxes, fees and contributions - Municipal	2,572	8,158	7,928	10,846
Taxes, fees and contributions - Total	1,225,262	1,169,461	1,223,181	1,549,642
Remuneration of third-party capital - Financial Expenses	969,697	868,270	875,762	996,675
Remuneration of third-party capital - Loss on exchange variation	637,387	70,870	52,721	186,413
Remuneration of third-party capital - Loss on derivative transactions	91,562	0	59,228	46,604
Remuneration of third-party capital - Rentals and leases	321,502	429,110	436,387	491,345
Remuneration of third-party capital - Total	2,020,148	1,368,250	1,424,098	1,721,037
Remuneration of own capital - Dividends and interest on own capital	9,865	211,636	0	44,334
Remuneration of own capital - Retained earnings	1,175,779	1,193,031	642,807	473,022
Remuneration of own capital - Share of non-controlling shareholders in retained earnings	0	-88	-13	-4,921
Remuneration of own capital - Total	1,185,644	1,404,579	642,794	512,435
Value added distributed	6,058,478	5,571,485	4,799,282	5,304,912

1 The amounts reported are in BRL 1,000, according to Financial Statements disclosed to the market and filed with the Brazilian Securities and Exchange Commission (CVM).

Raízen combustíveis ²

Value-Added Statement, in BRL thousand

	2017/2018	2018/2019
Revenues
Sales of goods and services	76,907,237	93,970,810
Gross revenue	77,739,353	95,388,153
Returns	-439,725	- 517,091
Other deductions	-392,391	- 900,252
Other operating revenue	219,864	272,949
Revenue associated with the construction of own assets	0	0
PDD - Reversal / (constitution)	-26,426	- 6,953
Revenues	77,100,675	94,236,806
Inputs acquired from third parties
Cost of goods sold	-70,543,533	- 84,602,920
Materials, energy, third-party services, and other	-1,112,048	- 1,437,187
Loss / recovery of assets	0	20,937
Other	16,827	0
Inputs acquired from third parties	-71,638,754	- 86,019,170
Gross value added	5,461,921	8,217,636
Depreciation, amortization, and depletion	-603,853	- 343,777
Depreciation and amortization	-206,898	- 343,777
Amortization of exclusive supply rights	-396,955	0
Net value added produced by the entity	4,858,068	7,873,859
Value received in transfer	687,942	1,641,562
Financial income	139,098	230,577
Fair value of financial instruments	40,026	0
Active exchange rate variation	98,999	279,263
Gain on derivatives	253,554	952,509
Equity accounting income	0	0
Other values received in transfer	156,265	179,213
Total value added for distribution	5,546,010	9,515,421

2 Since there was a change in the way the information was reported in the 2017/2018 harvest, we did not include data referring to previous harvests. To consult these data, visit: https://www.raizen.com.br/relatorioanual/pt/conteudo-da-gri.html

Value added distribution, in BRL thousand 

	2015/2016	2016/2017	2017/2018	2018/2019
People
Direct remuneration	272,222	272,357	301,200	374,641
Benefits	47,822	56,143	58,889	67,190
FGTS (Workers' Severance indemnity Fund)	15,518	15,973	16,808	18,035
Value added distribution Personnel - Total	335,562	344,473	376,897	459,866
Taxes, fees and contributions
Federal	550,350	723,661	1,138,670	3,403,160
State	1,390,859	1,342,207	1,504,122	2,015,799
Municipal	10,346	12,886	11,651	12,532
Other taxes and fees	0	9,215	2,508	7,289
Taxes, fees and contributions - Total	1,951,555	2,087,969	2,656,951	5,438,780
Remuneration of third-party capital
Financial expenses	120,047	180,277	222,014	488,832
Passive exchange rate variation	404,416	45,351	400,811	989,934
Losses in operations with financial instruments	564,227	1,022,426	171,263	209,094
Leases	55,063	54,260	49,854	65,398
Change in the fair value of financial instruments - Expenses	0	90,150	0	155,496
Remuneration of third-party capital - Total	1,143,753	1,392,464	843,942	1,908,754
Remuneration of own capital
Dividends and interest on capital	953,164	1,431,000	1,453,986	1,330,498
Retained earnings	62,812	167,815	153,099	323,768
Share of non-controlling shareholders in retained earnings	184,500	59,758	61,135	53,755
Remuneration of own capital - Total	1,200,476	1,658,573	1,668,220	1,708,021
Value added distributed	4,631,346	5,483,479	5,546,010	9,515,421

201-2 | Financial implications and other risks and opportunities due to climate change

In 2017/2018, we completed a study that mapped the main risks and opportunities arising from climate change in each business and in the long-term (up to 2040). The results were added to our risk management process and to strategic planning.

Regarding the risks, we recorded those referring to changes in water dynamics (increase of drought periods and consequent competition for a scarcer resource) and the higher incidence of extreme weather events. On the other hand, in the field of opportunities, there is space for differentiated public policies and lines of credit - with increasing incentives for production and marketing of low-carbon energy solutions such as biofuels and electricity from alternative sources, products that are part of our portfolio. In addition, sugarcane is a crop that potentially benefits from the increase in average temperatures.

The risks and opportunities mapped out are of either a physical, regulatory, reputational or market nature. The impacts associated with these risks would mainly result in reduced productivity or damage to our physical structures, while the opportunities would result in greater market share, easier access to low-cost credit and larger areas for sugarcane cultivation.

The potential financial implications were not quantified on a consolidated basis, but they would certainly be substantial. We do not monitor expenditures to manage such risks and opportunities, even though we understand that they occur constantly whenever we invest in the efficient use of agro-industrial resources as we reduce our carbon intensity.

202-1 | Proportion of senior management hired from the local community

We work to maintain attractive salary ranges compared to other companies in the market. In 2018/2019, the lowest salary paid to men and women was equivalent to 114% of the national minimum wage (BRL 998.00) and 102% of the minimum wage in the State of São Paulo (BRL 1,108.38). The State of São Paulo was considered, given its relevant location, where 24 of our 26 production units are located.

We do not manage third-party remuneration; however, internal conferences are held to ensure that the amount paid is equal to or greater than the floor for the category in the region.

203-1 | Infrastructure investments and services supported

We consider community engagement programs, as well as education, civism, culture, sports, and industry projects carried out in the vicinity of our facilities (four offices, 26 production units, 68 terminals and 15 airport bases) that contribute to social transformation.

In 2018/2019, more than 1 million people benefited, directly and indirectly, through our educational, social and professional inclusion, cultural and sports projects, as well as initiatives undertaken by the Raízen Foundation and other industry and volunteering actions. The investment was over BRL 14 million. With these projects, we seek to promote social transformation and security and better quality of life in the surrounding communities.

The number of people benefited is measured in order to verify the effectiveness of the projects, conducted based on assessments of the community needs in certain locations where Raízen Foundation has centers.

Number of people benefiting from Raízen's social projects*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Educational projects	337,000	225,000	53,000	65,000
Social inclusion projects	615,000	274,000	800,000	410,000
Raízen Foundation projects	333,000	309,000	193,000	26,000
Cultural projects	-	-	-	165,000
Sector projects	-	-	-	191,000
Sports projects	-	-	-	2,500
Training and professional inclusion	21,000	5,000	4,000	2,200
Volunteerism and internal campaigns	171,000	196,000	201,000	318,000
Total	1,477,000	1,009,000	1,251,000	1,179,700

*We considered the number of direct and indirect beneficiaries; the number of indirect beneficiaries was estimated.

Raízen’s social investments, in BRL thousands

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Incentivized Projects1;	7,584	7,003	6,157	7,339
Raízen Foundation2;	4,848	5,098	5,604	5,815
Sponsorships3	-	-	-	1,070
Total	16,830	14,093	11,761	14,263

1 Social projects fostered through FUMCAD, PRONON, PRONAS, FMI, ROUANET, and PROAC. 2. Operation under the following pillars: professionalizing, social-educational, and education and citizenship projects in the community (at no cost). 3. Sponsorships focusing on culture, sports and industry events. Reporting of this information only started in 2018/2019.

204-1 | Proportion of spending on local suppliers

In 2018/2019, approximately BRL 3.8 billion was spent on suppliers, of which 9% refers to contracts with local suppliers, that is, from the same state where of our operations.

This indicator takes into account the ethanol, sugar and bioenergy production units given their size and relevance to our business.

Percentage of spending on local suppliers, by regional complex^*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Araçatuba Complex	22.9	21	19.9	17.3
Araraquara Complex	9.9	8.2	9	7.7
Assis Complex	6.9	7.5	5.8	1.8
Caarapó Complex	2.9	4.5	4.8	3.6
Jataí Complex	6.9	9.3	11.9	9.1
Jaú Complex	7.1	7.5	6.3	7.2
Piracicaba Complex	12	9.1	10.8	9.6

* Indices refer to SAP ECC (mills). As of 2017/2018, all purchases by the Procurement area are considered.

Percentage of Procurement spend on local suppliers, by State

	2015/2016 Harvest	2017/2018 Harvest	2018/2019 Harvest*
Amazônia (AM)	-	20.9	18.5
Ceará (CE)	35.9	14	27.4
Espírito Santo (ES)	48.4	22.6	25.2
Goiás (GO)	22.1	20.3	23.5
Minas Gerais (MG)	26.5	23.8	30.2
Paraná (PR)	62.8	41.7	52.6
Paraíba (PB)	20.5	15.2	-
Rio de Janeiro (RJ)	26.8	14.2	16.5
Rio Grande do Sul (RS)	34.2	26.2	31.4
Rondônia (RO)	-	-	17.6
Santa Catarina (SC)	-	-	26.2
São Paulo (SP)	90.7	87.3	85.3
Total geral	78.4	75.6	68.9

* Totals for the states of Rondônia and Santa Catarina in previous years are unavailable because they were reported under the "other states" category, with a percentage lower than 15%.

205-1 | Operations assessed for risks related to corruption

In 2018/2019, we submitted 100% of our operations to risk assessments related to corruption, with 114 undergoing reputational reviews for the Trading area.

The risks refer to negotiation with counterparts under administrative or judicial investigation, in Brazil or abroad; trade negotiations with PEPs (Politically Exposed People); and exposure of employees who interact with public agencies and autonomous public agencies, and quasi-public companies.

205-2 | Communication and training about anti-corruption policies and procedures

In 2018/2019, all members of Senior Management, in addition to 2,560 employees, were informed about anti-corruption policies and received training on this topic.

Training is provided whenever an employee joins our team and is refreshed every two years, except for employees with exposure to risks, who have a different frequency - possibly annual - and may require training from the Compliance area at any time about general topics or specific subjects.

More information can be found here e here.

205-3 | Confirmed incidents of corruption and actions taken

A total of 27 cases of corruption were confirmed, which were closed in the crop year. As a result of the investigations, 21 employees were dismissed and four contracts with commercial partners were terminated in the period. The increase in the number of reports reflects, in part, the restructuring of the Ethics Channel, which left the interface more practical and intuitive. See more here.

Confirmed cases of corruption and actions taken

	2017/2018 Harvest	2018/2019 Harvest
Total number of corruption reports	35	52
Total number of confirmed cases of corruption	9	27
Total number of confirmed cases in which employees were dismissed or punished for corruption	4	21
Total number of confirmed cases in which contracts with business partners were terminated or not renewed due to corruption-related violations	1	4
Percentage of operations in which there were reports of corruption	15%	9%

206-1 | Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

There were no pending legal actions for anti-competitive behavior, anti-trust, and monopoly practices There was, however, a new investigation concerning the operation called Margem Controlada (Controlled Margin) which is still under investigation and for which there was no indictment or accusation.

ENVIRONMENTAL

302-1 |Energy consumption within the organization

Our energy consumption was greater than 155 million GJ, of which 8,939,632.50 GJ were sold through government or spot market auctions.

302-2 | Energy consumption outside the organization

We map the energy consumed in transportation of our products. In 2018/2019, contracted carriers consumed 6,595,951.02 GJ in fuels.³

3 The conversion factor available in the 2017 Global Energy Balance was used for the calculation. The information is collected for calculating emissions using the methodology of the GHG Protocol and has been taken from the Report on Greenhouse Gas Emissions (GHG).

302-3 | Energy intensity

In the 2017/2018 crop year, our energy intensity was 2.75 GJ consumed per ton of sugarcane crushed from scopes 1 and 2 sources. The energy used to calculate this indicator included the energy consumed internally and the energy sold (from the burning of sugarcane bagasse).

* In the 2017/2018 harvest, only scope 1 sources were considered. For the other years, scopes 1 and 2 sources were considered.

303-1 | Water withdrawal by source

In the 2018/2019 harvest, we withdrew 61,122,970 m³ of surface waters and groundwater to be used in industrial and irrigation processes, among others. This is our most significant consumption. Thus, other activities were not considered in the calculation of this indicator.

Total volume of water withdrawn, in m³

Type of use	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Industrial Use (harvest)1,2	55,950,114	47,729,478	48,750,108	49,671,935
Use in Irrigation	6,519,367	5,530,768	5,199,711	6,443,113
Other uses3,4	13,271,159	2,954,984	2,853,191	5,007,923
TOTAL	75,740,640	56,215,230	58,023,538	61,122,970
Surface waters	63,445,313	39,077,636	53,255,049	56,491,864
Groundwater	12,295,327	17,137,593	4,768,489	4,631,106.27

1. Total withdrawn by December 31.
2. Industrial use (off season) will no longer be reported since it represents a low amount. The amount is being reported together with Industrial Use (harvest).
3. Total withdrawn from January 31 to March 31 of this year.
4. Withdrawal from surface and groundwater sources for other uses: human consumption, administrative area, automotive workshop, lodging, farms, fueling stations, off-season, fire system, etc.

304-1 | Operational units owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

We have and operate industrial units, in addition to sugarcane cultivated areas leased from third parties in the States of São Paulo, Mato Grosso do Sul, Goiás and Paraná - totaling more than 800,000 hectares. One of the ways to ensure preservation of biodiversity is through the Bonsucro certification, which reached 21 units by the end of 2018/2019 crop year. This is because, among the criteria used for certification, is that there cannot be sugarcane cultivation in protected areas or in areas of high conservation value.

Biodiversity is one of the topics addressed in the Environmental Management Plan of the units certified by Bonsucro. The document points out local initiatives in the industrial and agricultural areas for the preservation and promotion of wildlife and flora, including: daily campaigns and dialogues aimed at raising employee awareness, commissioning of wildlife studies to identify and propose preservation measures, implementation of road signage to reduce road kills in areas of intense flow, training of staff to capture and release animals, and study of the regeneration stage of Permanent Preservation Areas (PPAs).

However, we do not have in place a methodology to estimate the value of biodiversity in the places where we operate.

304-2 | Significant impacts of activities, products, and services on biodiversity

Some impacts on biodiversity arising from our operations involve:

• The flow of trucks around production units and emissions of pollutants due to industrial activities can interfere with the dynamics of the region's wildlife, which we understand are the greatest potential impact of our activities on biodiversity.
• The use of substances to control pests and insects can have adverse impacts if not well managed. We therefore seek to use biological pest control and optimize the application of fertilizers and pesticides - we use only authorized products for sugarcane cultivation, and we control the dosage of the products and have in place the best technologies to ensure compliance with the required standards.
• Loss of riparian forest, minimized by mapping existing preservation areas on the properties under our management.
• Road kills, which is mitigated by initiatives such as training of employees and proper signage.

305-1 | Direct (Scope 1) GHG emissions⁴

305-2 | Indirect (Scope 2) GHG emissions

305-3 | Other indirect (Scope 3) GHG emissions⁵

4. The main sources of emissions in this scope are agricultural activities (use of field machinery, agricultural and industrial inputs) and biomass boilers that generate energy by burning sugarcane bagasse for the production of sugar and ethanol. Emissions from consumption of biomass are segmented between biogenic and non-biogenic. Biogenic emissions are considered neutral and accounted for separately, given the CO₂ absorbed from the atmosphere in the photosynthesis process.
5. Emissions relating to purchased goods and services, business travel, transportation and distribution, and transportation of employees were considered.

Information provided here. We include, in our inventory of emissions, 100% of the Brazilian operations over which we have control or influence, even when control is shared. Total biogenic emissions are calculated separately from gross direct emissions of Greenhouse Gases. In 2018, total biogenic emissions were 17,100,144.48 tCO₂eq in Scope 1 and 276,431.22 tCO₂eq in Scope 3. Gases considered in the calculation were: CO₂, Methane (CH₄), nitrous oxide (N₂O), sulfur hexafluoride (SF6), nitrogen trifluoride (NF3) and the families of hydrofluorocarbon (HFC) and perfluorocarbons (PFC) gases. Emissions from NF3 and PFC gases are not applicable to our activities.

We consider 2013 as the base year, since it better represents the scope of our activities. In that year, we incorporated into our inventory the emissions from vinasse and filter cake, which accounted for 14% and 18%, respectively, of total emissions from fertilizers. In 2017, emissions showed a significant increase in relation to historical emissions because of the inclusion of emissions from straw decomposition.

Calculation was done according to the specifications of the Brazilian GHG Protocol Program - developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) -, managed in Brazil by the Center for Sustainability Studies (GVces) of the Business Administration School of the Getulio Vargas Foundation; and standards NBR ABNT ISO 14.064-1 – guidance to quantify and report emissions and removal of Greenhouse Gases. Where applicable, the methodology also followed the determinations for calculations set out in the 2006 IPCC Guidelines for National GHG Inventories of the United Nations and in the reference report of the Second National Inventory. The main sources of the emission factors used were:

• IPCC, 2006;
• Ministry of Science and Technology (MCT);
• US EPA Solid Waste Management and Greenhouse Gases, 2006;
• 2017 Guidelines to Defra/DECC's GHG Conversion Factors for Company Reporting;
• Australian National Greenhouse Accounts NGA Factors;
• Greenhouse gas emissions in the production and use of ethanol from sugarcane in Brazil: The 2005/2006 average and a forecast for 2020;
• Calculation tool of the GHG Protocol Agriculture Guidance;
• Third Inventory of Brazilian Anthropic Emissions of Greenhouse Gases: Reference Reports of Nitrous Oxide Emissions from Agricultural Soils;
• Internal studies.

The global warming potential rates adopted as reference used the PAGs presented by the IPCC Fourth Assessment Report: Climate Change – Errata (2007) for a time span of 100 years.

305-4 | GHG emissions intensity

In 2018, the overall intensity index of our GHG emissions was 0.024 tCO2eq per ton of sugarcane crushed. This total was determined by adding scopes 1 and 2 emissions, divided by the total volume of sugarcane crushed.

The GHGs included in the emission calculations are those controlled by the Kyoto Protocol: CO₂, CH₄, N₂O, SF6, NF3 and the families of HFC and PFC gases. Emissions from NF3, NF6 and PFCs are not applicable to our activities.

306-3 | Significant spills

There were no significant spills for the purpose of our financial statements (over BRL 1 million). Nevertheless, we monitor all spills, in both contained and uncontained areas, regardless of whether or not they are significant. All events are recorded, their causes are investigated and actions are planned to mitigate impacts and prevent recurrences. Thus, in 2018/2019, four controllable leaks were recorded, three in contained areas and one in uncontained area.

307-1 | Non-compliance with environmental laws and regulations

In 2018/2019, we received 17 non-monetary sanctions - most of them related to contaminated areas, industrial effluents and fire-related incidents in sugarcane fields - that are being addressed at administrative and/or judicial levels. BRL 2.6 million in fines was also paid.

Non-compliance with environmental laws and regulations

	2017/2018 Harvest	2018/2019 Harvest
Total monetary value of significant fines* (BRL)	0.00	2,617,896.96
Total number of non-monetary sanctions	15	17

* Total greater than BRL 500,000.

308-1 | New suppliers that were screened using environmental criteria

100%.

308-2 | Negative social impacts in the supply chain and actions taken

Carriers

In 2018/2019, a total of 40 carriers were submitted to social and environmental impact assessments, one of which caused spillage in an uncontained area and five were involved in an accident with high controllable potential. We identified seven suppliers with potential impact, with whom improvements were agreed upon.

In the same period, an operational agreement was terminated (2.5% of the total) due to a performance level below required and potential for generating impacts. In addition, this supplier did not conform to the recommendations identified in inspections.

Supply chain

We consider potential negative social and environmental impacts: having contracts with companies that employ people under slave or compulsory labor or that do not collect taxes of their employees in a timely fashion; negotiating with suppliers involved in acts of corruption, suppliers that are not in good standings regarding taxes.

A total of 1,578 possible suppliers were evaluated and registered during the crop year, 54% of which (847) were blocked for purchases because they represented potential negative social and environmental impacts. Since these suppliers, when identified, are blocked in the system, no improvement plan is established, and only commercial relationships are prevented.

In addition, in the monitoring of performance (Supplier Training Index - IQF)—of which 141 suppliers participated—18 companies were blocked because they did not meet our minimum requirements for term and quality, and 134, with low performance, participated in meetings to define action plans.

Sugarcane suppliers

In 2018/2019, a total of 2,157 producers participated in the ELO Program, under which they were accompanied by a technical team and received action plans based on the evaluations to which they were submitted.

SOCIAL

401-1 | New employee hires and employee turnover

The highest turnover rates were recorded in the months of April 2018, with a large number of hires, and February 2019 (with a large number of terminations) - a result of the beginning and end of the harvest, respectively. May 2018 was the month with the largest number of employees (active and on leave)

In the comparison between 2018/2019 and previous harvests, there is a difference between the numbers due to the hiring of harvest workers in April 2019, which will be accounted for only in the next harvest.

Total number of employees hired who left the company, by gender

	2016/2017 Harvest		2017/2018 Harvest		2018/2019 Harvest
Gender	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers
Men	5	3	1,709	606	1	1
Women	0	0	150	103	2	2

Total number of employees hired who left the company, by age group

	2016/2017 Harvest		2017/2018 Harvest		2018/2019 Harvest
Age group	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers
Under 20	0	0	116	54	0	0
Between 21 and 30	4	3	631	220	1	1
Between 31 and 40	0	0	643	267	1	1
Between 41 and 50	1	0	342	122	1	1
Between 51 and 60	0	0	125	45	0	0
Over 60	0	0	2	1	0	0

Total number of employees hired who left the company, by region

	2016/2017 Harvest		2017/2018 Harvest		2018/2019 Harvest
Region	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers	Including harvest workers	Not including harvest workers
South	0	0	0	0	0	0
Southeast	5	3	2	2	3	3
Midwest	0	0	1	1	0	0
Northeast	0	0	0	0	0	0
North	0	0	0	0	0	0

401-3 | Parental leave

Parental leave

	2017/2018 Harvest		2018/2019 Harvest
	Men	Women	Men	Women
Employees entitled to take the leave	782	218	708	222
Employees who took the leave	782	218	708	222
Returned to work at the end of the leave	781	162	705	171
Returned to work and remained employed after 12 months	538	115	655	139
Rate of return to work	87%	81%	89%	83%
Retention rate of employees who took leave	78%	65%	93%	81%

403-1 | Workers representation in formal health and safety committees

All our employees are represented in formal health and safety committees. Several employment levels are involved in each business unit, as described below:

Ethanol, Sugar, and Bioenergy (EAB):

• Corporate HSE Committee: President, Vice Presidents, Directors, Managers and other representatives of HSE and of the operational areas;
• Production Meeting: Vice President of EAB, Chief Operating Officers, Corporate Officers, and Managers of complex⁶
• Meeting about Total Quality Raízen (QTR - Qualidade Total Raízen): Unit Administrative Coordinator, Operational Managers, at least one member of the Specialized Service in Safety Engineering and Occupational Medicine (SESMT) and other representatives of the areas according to the agenda of the meeting; and
• Internal commissionsby unit: Unit Industrial Manager, representatives of the employees and representatives of the employer.

6 Responsible for taking the information to Unit managers and supervisors.

Logistics, Distribution, and Trading (LD&T):

• Corporate HSE Committee: President, Vice Presidents, Directors, Managers and other representatives of HSE and of the operational areas;
• HSE Committee Operations: HSE Manager Operations, Operations Managers, HSE Advisors, Operations Director, Operations Support Group and other representativesas needed;
• HSE Committee Transportation: Logistics Director, Transportation Manager, Transportation Advisors, HSE Transportation Coordinator and Advisors and other representativesas needed; and
• Internal commissionsby terminal: Manager, superintendent, employees, and terminal contractors.

Commercial:

• Corporate HSE Committee: President, Vice Presidents, Directors, Managers and other representatives of HSE and operational areas;
• Commercial HSE Committee (MTC): Commercial VP, HSE Directors, Sales, Retail, BB, Engineering, Finance and Aviation;
• Operational Committee of Commercial HSE : HSE Directors, HR and other appointed directors, HSE Manager; and
• Light Fleet Committee: Representatives of administration (directors).

403-2 | Types and rates of injuries, occupational illness, lost days, absenteeism and number of work-related fatalities

Minor injuries (first aid) are not considered in the Lost Time Injury Frequency (LTIF) or Total Recordable Case Frequency (TRCF) indices, but are monitored and tracked. Harvest results are presented per business unit.

Ethanol, Sugar, and Bioenergy (EAB)::

In 2018/2019, there was a reorganization of the Ethanol, Sugar and Bioenergy (EAB) regions, in a way that the Midwest region is no longer reported, and the Brotas, Jataí and Junqueira regions were included. |GRI 102-48|

Main results for occupational health and safety for EAB

	2014/2015 Harvest	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Lost time injury frequency for company employees and contractors - LTIF/TF	0.40	0.28	0.18	0.14	0.12
Total Recordable Case Frequency (with and without lost time, except first aid) for company employees and contractors - TRCF/TAR	2.55	1.73	1.34	0.98	1.07

Lost time injury frequency for company employees and contractors*, by gender** (LTIF/TF)

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	-	-	-	0,00
Male	-	-	-	0,12

* To calculate the rates the total number of hours was considered, without segregation by gender.
**The information started to be reported by gender in 2018/2019 and, as such, it is not available for previous years.

Lost time injury frequency for company employees and contractors, by region (LTIF/TF)

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Araçatuba	0.18	0.05	0.00	0.00
Araraquara	0.28	0.50	0.45	0.08
Assis	0.83	0.09	0.00	0.20
Brotas*	-	-	-	0.14
Jataí*	-	-	-	0.27
Jaú	0.21	0.25	0.19	0.22
Junqueira*	-	-	-	0.00
Piracicaba	0.13	0.00	0.00	0.11
Corporativo	0.00	0.00	0.00	0.00

* For these regions, the information started to be reported in 2018/2019 and, as such, it is not available for previous years.

Total Recordable Case Frequency for company employees and contractors*, by gender** (TRCF/TAR)

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	-	-	-	0.02
Male	-	-	-	1.02

* To calculate the rates the total number of hours was considered, without segregation by gender.
**The information started to be reported by gender in 2018/2019 and, as such, it is not available for previous years.

Total Recordable Case Frequency for company employees and contractors, by region (TRCF/TAR)

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Araçatuba	1.57	1.43	1.07	0.75
Araraquara	1.99	1.66	1.58	1.10
Assis	2.50	0.98	1.02	1.84
Brotas*	-	-	-	0.42
Jataí*	-	-	-	0.81
Jaú	1.83	1.71	0.63	0.88
Junqueira*	-	-	-	1.47
Piracicaba	1.22	1.04	0.80	1.26
Corporativo	0.29	0.25	0.00	0.00

* For these regions, the information started to be reported in 2018/2019 and, as such, it is not available for previous years.

Number of fatalities of company employees and contractors*, by gender**

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	-	-	-	0
Male	-	-	-	1

* To calculate the rates the total number of hours was considered, without segregation by gender.
**The information started to be reported by gender in 2018/2019 and, as such, it is not available for previous years.

Number of fatalities of company employees and contractors, by region

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Araçatuba	0	0	0	0
Araraquara	1	0	0	0
Assis	0	0	0	0
Brotas*	-	-	-	0
Jataí*	-	-	-	0
Jaú	1	1	0	0
Junqueira*	-	-	-	0
Piracicaba	0	0	0	1
Corporate	0	0	0	0

* For these regions, the information started to be reported in 2018/2019 and, as such, it is not available for previous years.

Logistics, Distribution, and Trading (LD&T)

In 2018/2019, lost time injury frequency (LTIF/TF) and Total Recordable Case Frequency for LD&T were reported by gender and business.

Main results for occupational health and safety for LD&T

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Lost time injury frequency for company employees and contractors - LTIF/TF	0.06	0.06	0.00	0.05
Total Recordable Case Frequency (with and without lost time, except first aid) for company employees and contractors - TRCF/TAR	0.13	0.33	0.05	0.10

Lost time injury frequency for company employees and contractors, by region (LTIF/TF)*

	2018/2019 Harvest
Female	0.00
Male	0.05

* To calculate the rates the total number of hours was considered, without segregation by gender.

Lost time injury frequency for company employees and contractors, by business (LTIF/TF)

	2018/2019 Harvest
Distribution/Operations	0.00
Engineering	0.00
Offices	0.00
Logistics	0.10

Total Recordable Case Frequency (with and without lost time, except first aid) for company employees and contractors, by gender (TRCF/TAR)*

	2018/2019 Harvest
Female	0.00
Male	0.10

* To calculate the rates the total number of hours was considered, without segregation by gender.

Total Recordable Case Frequency (with and without lost time, except first aid) for company employees and contractors, by business (TRCF/TAR)

	2018/2019 Harvest
Distribution/Operations	0.00
Engineering	0.46
Offices	0,00
Logistics	0.10

There were no fatalities in the period.

Commercial

Main results for occupational health and safety for the Commercial area

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Lost time injury frequency for company employees and contractors - LTIF/TF	0.00	0.00	0.00	0.00
Total Recordable Case Frequency (with and without lost time. except first aid) for company employees and contractors - TRCF/TAR	1.09	0.00	0.38	0.00

There were no fatalities in the period.

Health management

Calculation of the rate of occupational diseases took into account company employees in EAB, LD&T and offices. For calculation of the other indicators, only employees in EAB and offices were considered. We do not monitor health management indicators in third-party providers.

Health management indicators

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest1		2018/2019 Harvest
			Men	Women	Men	Women
Rate of occupational diseases for company employees2	6.46	6.62	0.04	0.13	0.67	0.00
Total number of lost days for company employees3	2,125	2,442	2,360	158	1,241	150
Absenteeism rate for company employees4	0.96	0.83	0.78	1.70	0.71	1.45

1. The calculation methodology was modified in 2017/2018. 2. Calculation method: (number of lost days) / (MHW) *1,000,000 3. Considering lost days due to work-related accidents. 4. Calculation method (where MHA is the number of man-hours absent on medical leave - typical and commuting accidents and diseases less days on leave paid for by social security - INSS): (MHA) / (MHA + MHW) *100

Rate of occupational diseases for company employees, by gender*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	0.00	0.00	16.12	0.00
Male	6.62	7.51	1.11	0.67

*Calculation method: (number of lost days) / (MHW) *1,000,000

Rate of occupational diseases for company employees, by region*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
South	0.00	0.00	0.00	72.89
Southeast	6.62	6.97	3.09	0.00
Midwest	0.00	0.00	0.00	0.00
Northeast	0.00	0.00	0.00	0.00
North	0.00	0.00	0.00	0.00

*Calculation method: (number of lost days) / (MHW) *1,000,000

Total number of lost days for company employees, by gender*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	214	89	158	150
Male	1,713	2,353	2,360	1,241

*Considering lost days due to work-related accidents.

Total number of lost days for company employees, by region*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
South	0	0	0	0
Southeast	1.796	2.426	2.518	1.390
Midwest	131	16	0	1
Northeast	0	0	0	0
North	0	0	0	0

*Considering lost days due to work-related accidents.

Absenteeism rate for company employees, by gender*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Female	0.21	1.62	1.70	1.45
Male	0.69	0.73	0.78	0.71

* Calculation method (where MHA is the number of man-hours absent on medical leave - typical and commuting accidents and diseases less days on leave paid for by social security - INSS): (MHA) / (MHA + MHW) *100.

Absenteeism rate for company employees, by region*

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Sul	0.00	0.00	0.00	0.00
Southeast	0.81	0.80	0.86	0.78
Midwest	0.08	1.37	1.44	1.33
Northeast	0.00	0.00	0.00	0.00
North	0.00	0.00	0.00	0.00

*Calculation method (where MHA is the number of man-hours absent on medical leave - typical and commuting accidents and diseases less days on leave paid for by social security - INSS): (MHA) / (MHA + MHW) *100.

403-4 | Health and safety topics covered in formal agreements with trade unions

All agreements or collective bargaining agreements contain clauses referring to health and safety, reinforcing what is already provided for in labor laws.

404-1 | Average number of training hours per year by employee

In the 2018/2019 harvest, over 720 training hours were provided to 12,265 groups in 14,236 classroom and online training, totaling an average of 26.4 hours for men and 12.9 hours for women. Also, more than BRL 520,000 were invested in scholarships and courses for the professional development of employees.

Average number of training hours, by gender

	2014/2015 Harvest	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Men	23.3	28.8	26.7	29.1	26.38
Women	12.4	13.1	12.0	14.1	12.94

Average number of training hours, by employment category

	2014/2015 Harvest	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Apprentice	0.8	0.0	0.7	1.9	0.0
Operation	7.0	2.6	4.2	4.3	5.3
Production	23.7	29.6	27.9	30.8	28.0
Administration	9.7	9.8	8.5	11.4	10.6
Coordination/Supervision	10.3	19.2	11.1	13.2	14.3
Management	7.7	14.4	8.6	7.3	16.3
Directors	2.3	0.8	4.1	2.3	37.9
Vice Presidency	0.5	0.0	0.0	0.3	2.4
Presidency	0.0	0.0	0.0	0.0	0.0

In addition, employees working in logistics and distribution operations received specific training, with a further 29,552 classroom hours and 6,339 hours online - the unit does not monitor training for third parties. In the Commercial unit, there were 4,872 classroom hours and 1,118 hours online, totaling 5,990 hours of specific training for these employees. For third parties in this area⁷, there were 25,304 classroom hours and 74,961 hours online.

7 Most of these participants are fuel station dealers, convenience store franchisees and their teams.

Other results of Raízen's learning programs

	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest*
Number of professionals served by the Leadership Academy	179	381	-	155
Number of training courses taught through the Skills Cycle	23	15	26	0
Number of employees served by scholarships and courses for professional development	153	1.007	101	82
Total number of classroom training hours offered to all employees	964,624	808,683	849,806	727,739

* Due to a restructuring in the Programs, the Skill Cycle was not held in 2018/2019.

404-3 | Percentage of employees receiving regular performance and career development reviews

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In 2018/2019, 17% of the male employees and 33% of the female employees received performance and career development reviews.

Percentage of employees receiving performance review, by gender

	2014/2015 Harvest	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Men	8	9	10	15	17
Women	16	22	27	46	33

Percentage of employees receiving performance review, by employment category

	2014/2015 Harvest	2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Apprentice	0	0	0	0	0
Operation	96	88	89	89	88
Production	0	0	0	0	7
Administration	53	62	61	59	61
Coordination/Supervision	100	100	99	100	100
Management	100	100	100	100	100
Directors	100	100	100	100	100
Vice Presidency	9	100	100	100	100
Presidency	100	100	100	100	100

405-1 | Diversity of governance bodies and employees

Percentage of employees by employment category, age group and gender, in the 2018/2019 harvest

Percentage of employees by employment category, age group and gender, in the 2018/2019 harvest

		Under 20	Between 21 and 30	Between 31 and 40	Between 41 and 50	Between 51 and 60	Over 60	Total
Administration	Men	0.03	3.20	3.05	0.87	0.49	0.14	7.77
	Women	0.07	2.85	2.25	0.48	0.11	0.02	5.79
Apprentice	Men	0.41	0.02	0.00	0.00	0.00	0.00	0.42
	Women	0.05	0.00	0.00	0.00	0.00	0.00	0.05
Coordination/Supervision	Men	0.00	0.42	1.24	0.52	0.18	0.02	2.38
	Women	0.00	0.10	0.46	0.11	0.01	0.01	0.68
Directors	Men	0.00	0.00	0.02	0.07	0.02	0.00	0.11
	Women	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Management	Men	0.00	0.01	0.34	0.30	0.13	0.01	0.79
	Women	0.00	0.00	0.09	0.05	0.00	0.00	0.14
Operation	Men	0.01	0.49	1.00	0.61	0.21	0.02	2.35
	Women	0.00	0.00	0.00	0.01	0.00	0.00	0.01
Presidency	Men	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	Women	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Production	Men	0.74	15.08	22.93	17.65	11.64	3.64	71.69
	Women	0.11	1.92	2.39	1.85	1.09	0.42	7.79
Vice Presidency	Men	0.00	0.00	0.00	0.01	0.01	0.00	0.03
	Women	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total	Men	1.19	19.21	28.58	20.04	12.68	3.84	85.54
	Women	0.23	4.87	5.20	2.50	1.22	0.45	14.46
	Total	1.42	24.08	33.78	22.54	13.90	4.28	100.00

Percentage of employees by employment category, gender and ethnicity, in the 2018/2019 harvest

		Asian	White	Indigenous	Black	Pardos	Total
Administration	Men	0.04	6.33	0.01	0.22	1.18	7.77
	Women	0.02	4.89	0.00	0.13	0.75	5.79
Apprentice	Men	0.00	0.21	0.00	0.04	0.17	0.42
	Women	0.00	0.02	0.00	0.01	0.01	0.05
Coordenação/Supervisão	Men	0.02	2.03	0.00	0.03	0.29	2.38
	Women	0.01	0.60	0.00	0.01	0.06	0.68
Directors	Men	0.00	0.11	0.00	0.00	0.00	0.11
	Women	0.00	0.00	0.00	0.00	0.00	0.00
Management	Men	0.01	0.75	0.00	0.00	0.03	0.80
	Women	0.00	0.13	0.00	0.00	0.01	0.14
Operation	Men	0.01	1.28	0.00	0.24	0.82	2.35
	Women	0.00	0.01	0.00	0.00	0.01	0.01
Presidency	Men	0.00	0.00	0.00	0.00	0.00	0.00
	Women	0.00	0.00	0.00	0.00	0.00	0.00
Production	Men	0.06	41.27	0.01	5.15	25.19	71.68
	Women	0.00	4.48	0.00	0.55	2.75	7.78
Vice Presidency	Men	0.00	0.03	0.00	0.00	0.00	0.03
	Women	0.00	0.00	0.00	0.00	0.00	0.00
Total	Men	0.14	52.01	0.03	5.67	27.68	85.54
	Women	0.03	10.14	0.00	0.70	3.58	14.46
	Total	0.18	62.15	0.03	6.38	31.27	37.64

Percentage of People with Disabilities (PwD) by employment category and gender

		2015/2016 Harvest	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Administration	Men	1.60	2.80	4.40	3.58
	Women	1.40	2.20	1.40	3.18
Coordination/Supervision	Men	0.20	0.20	0.50	0.58
	Women	0.80	0.60	0.60	0.51
Directors	Men	0.00	0.00	0.00	0.00
	Women	0.00	0.00	0.00	0.00
Management	Men	0.40	0.40	0.40	0.87
	Women	0.00	0.00	0.00	0.00
Operation	Men	0.00	0.40	2.00	0.44
	Women	0.20	0.00	3.20	0.00
Presidency	Men	0.00	0.00	0.00	0.00
	Women	0.00	0.00	0.00	0.00
Production	Men	1.10	1.50	0.00	2.07
	Women	2.00	2.60	0.00	2.94
Vice Presidency	Men	0.00	0.00	0.00	0.00
	Women	0.00	0.00	0.00	0.00
Grand Total		2.00	1.70	2.10	2.22

406-1 | Incidents of discrimination and corrective actions taken

In all, 27 reports of discrimination were received in 2018/2019 - four through the Ethics Channel and 23 through the Legal area. The reports were investigated by the relevant teams and, depending on the origin, administrative measures were taken, such as verbal and written warning or even termination of the employee.

407-1 | Operations and suppliers where the right to freedom of association and collective bargaining may be at risk

None. Our managers are made aware of the role of Labor Unions, the dynamics of collective bargaining, and the labor legislation in effect. Furthermore, we train all managers and operation leaders in all business units.

408-1 | Operations and suppliers with significant risk of incidents of child labor

There is no significant risk of child labor occurring in the supply chain. This topic is managed under the ELO Program, which includes technical follow-up, document verification, visits to suppliers and definitions of improvement plans, among other actions.

In the supply chain, compliance checks are conducted on hired of firms, as described here.

409-1 | Operations and suppliers at significant risk of incidents of forced or compulsory labor

There is no significant risk of forced or compulsory labor occurring in the supply chain. This topic is managed under the ELO Program, which includes technical follow-up, document verification, visits to suppliers and definitions of improvement plans, among other actions.

In the supply chain, compliance checks are conducted on hired of firms, as described here.

411-1 | Cases of violations involving rights of indigenous peoples

None.

413-1 | Operations with local community engagement, impact assessments, and development programs

During the harvest, we implemented stakeholder engagement programs in 69% of our operations, as well as impact assessments and local development programs⁸, respectively, in 65% and 44% of the locations.

8 These programs mobilize financial resources and contribute to increasing employability in the vicinity of our facilities.

Percentage of operations with programs in the communities

	2017/2018 Harvest	2018/2019 Harvest
Community engagement programs	37	69
Impact assessment programs	37	65
Local development programs	21	44

Scope of programs developed, in percentage, by type of operation and program

	Offices	Production units	Distribution terminals	Airports
Projects originating from incentives acts	75	62	25	27
Professional training courses	0	27	0	0
Projects carried out with BNDES investments	0	0	1	0
Histórias que Ganham o Mundo (Stories that Gain the World)	0	54	7	0
Winter Clothes Drive	100	96	22	40
Christmas Campaign	100	100	28	20
Amigo Leal (Loyal Friend)	100	25	6	0
Volunteering	75	17	1	0
Child Hygiene	50	29	3	0
Second-hand Toys	75	8	4	0

413-2 | Operations with significant actual and potential negative impacts on local communities

Potential or actual negative impacts on communities surrounding the agricultural and industrial operations of our production units include:

• Dust, trepidation and noise generated by vehicles.
• Emissions and noise from the industrial park.
• Shutting down of a production unit in municipalities with small population, since the units are labor-intensive and layoffs can negatively impact the local economy.

414-1 | New suppliers that were screened using social criteria

100%.

414-2 | Negative social impacts in the supply chain and actions taken

See GRI 308-2.

419-1 | Non-compliance with laws and regulations in the social and economic area

In 2018/2019, we recorded only a notice of infraction, in the amount of BRL 1,000,000.00, for non-submission of the list of assets related to the port facility of the Port of São Luís - ruling is still pending. There were no non-monetary sanctions or proceedings brought by arbitration mechanism in the period. However, we are waiting for ANP's investigation of the official notifications received in previous years regarding ethanol sales not in compliance with specifications and for which our negotiations were addressed.

The legal areas of our business units evaluate nonconformities and fines received in order to identify causes and address the problems. The contingency related to significant fines, notices of infractions or sanctions drawn up by public agencies, object of administrative or legal proceedings, for alleged non-compliance with tax laws and regulations in the period, is duly reported in the Financial Statements of Raízen Energia S.A. and Raízen Combustíveis S.A., available on the Investor Relations website.

Non-compliance with social and economic laws and regulations*

	2016/2017 Harvest	2017/2018 Harvest	2018/2019 Harvest
Total number of nonconformities	5	3	0
Total value of nonconformities (in BRL)	R$404,000.00	R$380,100.00	RS1,000,000.00

* Considers, as significant, fines greater than BRL 500,000.00 or occurrences that represented relevant and non-standard official notifications received.