Climate Strategy

Our Climate Strategy drives our actions regarding climate governance, risk and opportunity management, emissions accounting, targets, and engagement with the value chain.

Task Force on Climate-Related Financial Disclosures (TCFD)

In 2021, we moved forward with the internalization of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), an initiative that seeks the development and implementation of recommendations for disclosure and analysis of risks and opportunities related to climate issues.

Recommendations are structured into four dimensions, which reflect the Company’s integrated management in relation to: Governance, Strategy, Risk management, and Metrics and goals.

Governance

» Board Supervision: The purpose of the Sustainability Committee is to advise the Board of Directors in the performance of its duties related to sustainability, which also covers topics related to climate change. In this sense, the Board is responsible for defining business strategies, taking into consideration, among other aspects, the impacts of our activities on society and the environment.

» Management Supervision: The Executive Director of People, Management and Performance, through the Sustainability Management, is responsible for preparing, executing and maintaining Cielo’s climate strategy. The Executive Director of People, Management and Performance reports to the Sustainability Committee on the Company’s Climate Strategy.

Strategy

Cielo conducts a specific study to assess climate change risks and opportunities based on the scenarios of the Intergovernmental Panel on Climate Change (IPCC). The study includes impact scenarios for the business and the probability of occurrence, according to the risks and opportunities identified.

The results obtained direct our efforts to mitigate risks arising from climate change. Since 2020, two climate risks have been included in Cielo’s corporate risk map, namely: Climate / transition risk, and Climate/physical risk.

Risk management

At Cielo, the identification, assessment, monitoring and reporting of risks related to climate change occurs in na integrated manner to the Company’s management process, as regulated by our Corporate Risk Management and Internal Controls Policy.

Metrics and targets

Cielo’s carbon footprint, including Scope 1, Scope 2 and Scope 3 greenhouse gas emissions, is available in “Eco-efficiency Indicators” section, and in our Integrated Annual Report. Our goals are presented in the “Target” section.