TCFD

The Task Force on Climate-Related Financial Disclosures (TCFD) is a worldwide initiative that establishes a set of standard recommendations for companies to measure and disclose their actions and financial risks linked to climate. Created by the Financial Stability Board (FSB), the task force, which has hundreds of supporters worldwide, proposes that companies adopt many measures to identify and mitigate climate risks and explore opportunities for four elements: governance, strategy, risk management and goals and metrics.

There is no fixed agenda at Even’s Board focused on climate change issues. Questions on this subject are addressed and approved promptly. The main reason for this is that most emissions from Even's operations are linked to manufacturers and not to construction sites.

Since 2015, we have sought to offset greenhouse gas emissions in our production processes fully. However, zero carbon is a difficult goal to achieve, as it must include emissions from the entire supply chain, including producing and transporting materials used on our construction sites.

We do not have a specific assessment of climate risks (physical and transitional) or an established development regarding the value chain of TCFD. However, as physical hazards represent direct and indirect impacts of severe weather conditions on worker safety, infrastructure, productivity, and an industry's operations, we are committed to specific projects such as construction certificates and carbon neutralization at construction works.

The main issue on this matter is the lack of auditing of the information provided by suppliers. As for transition risks, including reputational, political, legal and market transition risks, the company follows the best market practices.

Currently, we have specific actions in this area, mainly for the issue of operational gains or seasonal events, such as water shortages. Although the company has projects to reduce energy and water consumption or adopt changes to gain logistical efficiency, these actions aim at short-term results and are not necessarily linked to TCFD practices. For 2022, our goal is to include Climate Change Risks in Even’s corporate risk matrix.

Our current goal is to calculate the inventory annually and work to neutralize carbon emissions at works. The main parameters used for the metric are the indicators from Sinduscon/SP (Civil Construction Industry Union in the State of São Paulo) and the Green House Gas Protocol (Scope 1 and 2) — a tool used to understand and quantify and manage greenhouse gases emissions. Next year, we also intend to calibrate the inventory and neutralize emissions from the works and the Company’s central office.

TCFD

Governance

Strategy

Risk Management

Metrics and Goals