Sequoia Logística e Transportes S A : Sustainability Report 2021

RELATÓRIOSUSTAINABILITYDE

SUSTENTABILIDADEREPORT

2021 SUSTAINABILITY REPORT

About this report

Letter from the CEO

Our group

Identity and culture

Governance and management

ESG strategy and agenda

Environmental efficiency

Promotion of sustainable urban mobility

A look inside our relations

Our performance in figures

GRI Summary

Annex

2

Contents

3	|	About this report
4	|	Letter from the CEO
6	|	Our group
		Our brand
14	|	Identity and culture
17	|	Governane and management
		Advances in innovation
		Our journey in sustainability
		Materiality process
33 |	ESG strategy and agenda
		Commitments to the sustainability of the business

39 |	Environmental efficiency
	The path towards carbon neutrality
	Management of waste and circularity
47 |	Promotion of sustainable urban mobility
50 |	A look inside our relations
	Our Team
	Creating a safer and healthier environment
	Local communities
	Hand in hand with the drivers and delivery workers
67 |	Performance in figures
69 |	GRI Summary
75 |	Annex

2021 SUSTAINABILITY REPORT

About this report

About this report

GRI 102-45,102-46,102-50,102-52,102-53,102-54

Letter from the CEO

Our group

Identity and culture

Governance and management

ESG strategy and agenda

Environmental efficiency

Promotion of sustainable urban mobility

A look inside our relations

Our performance in figures

GRI Summary

Annex

3

In this, our first report, we highlight the advances the company has made with its strategic agenda and ESG practices

This is the first edition of our Annual Sustainability Report, bringing together Sequoia's market, economic-financial, operational and socio-environmental information relating to the period between January 1 to December 31, 2021.

Developed in accordance with the directives of the Core Option of the Global Reporting Initiative (GRI), and the SASB Standards set forth by the Value Reporting Foundation (VRF), and validated by the Executive Board and the Board of Directors, this publication summarizes our results, advances and actions focused on the implementation of our vision for the future: to be the preferred logistics supplier, with integrated and innovative technologies, becoming the most extensive sustainable logistics ecosystem in the country.

As such, the integration of ESG practices into the business planning has been at the center of our activities over the last year, with a strategy that takes shape in the form of commitments and targets for the next four years relating to issues such as emis- sions, waste, mobility, and communities and drivers, in line with the United Nations'

Sustainable Development Goals (SDGs).

The report covers all of the company's business units, including the companies acquired during the last fiscal year, and the calculation of the financial indicators meets the international accounting standards approved by the Brazilian Securities Commission (CVM). The mapping of the GRI disclosures can be found throughout the text, in line with the materiality matrix, and there is a summary containing descriptions at the end of the report. The material topics that guide the report (read more on page 28) are: Emissions and Climate Change; Mobility and sustainable cities; Reduction of inequalities and Community relations; Impacts on drivers; Waste and circularity; and Health and Safety.

The full version of this report can be consulted at any time on our website, in the Investor Relations section (see morehere). To find out more about the content of the publication, please contact our staff at [e-mail].

We hope you enjoy the report!

2021 SUSTAINABILITY REPORT

Letter from the CEO GRI 102-14

About this report

Letter from the CEO

Our group

Identity and culture

Governance and management

ESG strategy and agenda

Environmental efficiency

Promotion of sustainable urban mobility

A look inside our relations

Our performance in figures

GRI Summary

Annex

4

The year 2021 required great resilience from all of us. As well as the Covid-19 pandemic, within a macroeconomic scenario, we had to deal with an extremely atypical inflationary situation, with high interest rates putting pressure on working capital, to an extent we have not seen for a long time. Internally, the acquisition of new companies has brought along important challenges in terms of the integration of processes and personnel, for the continued construction of a strong and consistent culture.

Despite the complex external and internal situation, our results proved to be extremely satisfactory, with our revenue reaching R$ 1.8 billion, a historical record. In the fourth quarter, a period that included 'Black Friday', we also hit important figures in terms of processed volume, clients served and deliveries - 18.6 million orders, a jump of 51.1% when compared to the same period in 2020. We closed the year with a growth in revenue of 53.3% and a 28.6% rise in the number of orders, compared to the previous year. Considering these figures, there can be no doubt that: 2021 was a positive year for the consolidation of Sequoia's activities, with gains in scale and a strengthening of our operations, factors that are extremely

important for the continuity of our growth and expansion plan.

To understand how we arrived at this result, we need to look at our sector and the path taken through until now. The transportation and logistics market in Brazil is relatively large, accounting for almost 11% of the GDP, when considering all transportation and logistics activities, and 3% when calculating just general highway cargo transport. Different to the scenario in other countries, Brazil's main transport option is the highway system, responsible for more than 60% of the transportation of all inputs, raw materials and finished products.

The scenario since 2020 has, however, been extremely challenging: increases in the prices of fuels and supplies in general, a drop in the volume of physical retail, a reduction in industrial manufacturing, and a restriction of electronic components, amongst other factors, have led to a reduction in market volume. At the same time, we have seen enormous growth in the electronic commerce sector, which is closely aligned with our activities, with the result that we have managed to transform challenges into op- portunities. As a result of this balance, in

We are certain that ESG practices will transform our businesses over the coming decade

2021 we were able to speed up our operations through the acquisition of four new companies, which contributed to our closing the year with 53.1 million orders delivered.

Within this context, one specific issue has always been and always will be of utmost importance: the health and safety of our employees, drivers and delivery personnel. Considering that our activities were classified as 'essential', we did not stop working during the pandemic, although we did have to establish reduction measures for the amount of staff frequenting our offices and control center, with the adoption of a series of pro- tocols. The result was that our management of these measures was very successful. We kept our operations up and running, ensuring that our work environment experienced

2021 SUSTAINABILITY REPORT

About this report

Letter from the CEO

Our group

Identity and culture

Governance and management

ESG strategy and agenda

Environmental efficiency

Promotion of sustainable urban mobility

A look inside our relations

Our performance in figures

GRI Summary

Annex

5

low levels of contamination and that our staff were all kept safe.

2021 was also extremely important for Sequoia from the perspective of ESG prac- tices, in line with our long-term strategic plan. The second quarter of the year was particularly intense and interesting, since it was during this period that we reformulated our strategy, tying it to and aligning it with our environmental, social and corporate governance objectives, and prioritizing initiatives and projects on these fronts.

Also in the area of ESG, we undertook a number of significant projects. We began activities involving our electric fleet, with the acquisition of ten vehicles that will start operating in 2022, intensified the use of bicycles in the 'last mile', and invested in 'Drops', a company that was founded as part of the concept of a shared economy (read more on page 24), involving small, local businesses as reverse logistics centers and final distribution points. As well as generating business flow and revenue for these establishments, the network has reduced the environmental impact of our operations, since deliveries and collections in the final leg of the operation can be performed by electric motorcycles, bi- cycles, or even on foot. We also ramped up our 'Sementes Sequoia' program, focused on young people with potential living in the communities located in the regions where we operate, offering training in logistics support.

We ended the year with an ecosystem that was even more complete than it had been,

offering solutions for the B2C and B2B mar- kets, as well as services being offered within each segment, based upon the client's individual perspective. We offer a wide range of services, including long-distance, urgent de- liveries, fast deliveries, reverse logistics, and collections, amongst others. All these services are connected to a network of digital plat- forms. We believe that by using technology and by integrating physical and digital ser- vices, we can facilitate a logistics service that is that much more efficient and sustainable, with a lower environmental impact and positive social contributions, whilst providing small and medium-sized retailers with the same level of service available to large businesses.

In relation to the future, we believe that the macroeconomic scenario will continue to follow an extremely complex course, creating a challenging environment that will require a more integrated long-term per- spective. Specifically in the logistics sector, we envision a more dynamic context, with an increase in electronic commerce, the adoption of new technologies, and a rise in disruptive products and services, which will require a high-level ability to adapt.

To successfully face these challenges and seize the opportunities that exist, we rely on a diverse, committed and motivated team of more than 9,000 employees, passionately working together to provide more than a simple delivery. We are certain that ESG practices will transform our businesses over the coming decade and believe in the choices we have made so far.

Aiming to achieve sustainability, in the broadest sense of the term, has always been an integral part of our growth, and when, in 2021, we included environmen- tal, social and governance aspects into our strategies, the company's business perspective was brought that much more into focus. For 2022, we are committed to continuing along this path towards greater consistency, thus ensuring the longevity and success of Sequoia in the most integrated way possible.

Armando Marchesan Neto

CEO