Sustainability

How does ESG relate to Kepler’s purpose?

Kepler is a company with ESG practices aligned with the UN’s sustainability goals. The company is committed to developing innovative post-harvest solutions, continuously improving its integrated management system, acting ethically, ensuring social, environmental, and economic sustainability, complying with legislation and other requirements applicable to the business, protecting the environment by providing safe and healthy working conditions, eliminating hazards, reducing risks, and ensuring participatory management by employees and stakeholders.

What is Kepler’s strategy for strengthening and expanding its ESG initiatives?

In September 2022, the Company completed its ESG maturity analysis, conducted by the consultancy firm Grant Thornton. Continuing this work, the People, Compliance and Sustainability Committee and the ESG Committee were structured in 2023, involving various departments, to define projects and implement actions based on a short-,
medium-, and long-term prioritization plan, monitored by the Company’s senior management and the CEO. At the start of the second half, the Company reassessed its Materiality to enhance management of ESG matters.

Sustainability Report 2022/2023

Environmental, Social and Governance

Since its foundation, our organization has carried a solid commitment to society by optimizing storage and reducing waste through efficient, sustainable, and honest work;
Waste generated in production and administrative processes mostly come from wood (Class II – Non-Hazardous), which undergoes screening for internal reuse, prior to sending for disposal/treatment by a supplier approved for this purpose;
Electricity used by Kepler is mostly associated with the production and the engineering processes, as well as the administrative areas. Resources acquired in the two units (Panambi and Campo Grande) come from renewable sources;
Kepler Weber is not an intensive emitter of Greenhouse Gases. However, it is inserted in the steel and agribusiness chains. For this reason, it is committed to acquiring materials from companies that comply with environmental laws and have control over their GHG emissions.

ESG Committee Structuring;
Setting of the six SDGs and eleven goals to be supported;
Establishment of the People, Compliance, and Sustainability Committee;
Diversity and inclusion support: in the last 2 years, women accounted for 24% of the total headcount;
Approval of overR$1.8 million to be allocated for 12 social projects.

Joining in B3’s Novo Mercado listing segment, reinforcing our commitment to high corporate governance standards;
Establishment of the Strategy, Investment, and Finance Committee;
Establishment of the Audit and Risk Committee;
Creation of the Compliance Program, approved by the Board of Directors (BoD), positively contributing to the dissemination and promotion of best management practices and measures. The initiative is the result of the Company’s commitment to preventing and fighting corruption.

Alguns dos principais avanços entre 2019 e 2021:

Remuneração executiva – Maior detalhamento sobre a remuneração e painel de metas de nossos executivos, além da inclusão de metas ESG na remuneração de longo prazo;

Risk and Maturity Assessment Process

Kepler Weber’s ESG strategy is in line with its growth strategy and reflects its continuous commitment to maturity and consistent actions. In 2022, the Company conducted a Risk and ESG Maturity Assessment, identifying the need for improving practices and controls to meet regulatory and market requirements. As part of this work, in 2023, the People, Compliance, and Sustainability Committee was formed, along with the ESG Committee, involving various departments of the company. These initiatives aim to define projects and implement actions based on a short-, medium- and long-term prioritization program monitored by senior management and the CEO. In the second half, the Company reassessed its Materiality process to enhance management of ESG matters. This process consisted of 4 stages, with the participation of over 600 stakeholders, including the community, associations, unions, clients, employees, suppliers, the press, financial institutions and/or insurers, senior management, the Board of Directors, and shareholders.

6 Sustainable Development Goals (SDGs)

Six SDGs and eleven goals were defined to compose the 2030 Agenda, being part of the action plan to eradicate poverty, protect the planet, and make sure that people will prosper and live in peace. As a result, prioritizing the SDGs aligns the company with a global agenda, facilitates an innovative environment, increases transparency, and improves disclosure of the impacts generated by its activities. Kepler Weber’s adherence to the United Nations (UN) Global Compact was formalized by signing in early 2024:

Recent Milestones

KW Max Dryer: To launch more sustainable products, the area developed the KW Max Dryer equipped with a new drying tower so as to ensure energy efficiency and quality grains, in addition to reducing environmental impacts. The dryer is the first Company product to be developed under the Lean methodology for the Development of New Products and Processes. The equipment may be automated and connected to the Sync platform, offering producers real-time drying performance data and process management through their smartphones, tablets, or computers.

11% more efficient in energy consumption;
28% more efficient in thermal consumption;
28% reduction in CO2 emitted by the operations;
271 tons of CO2 no longer emitted by crop.

Powder Coating Line: In September 2023, Kepler Weber inaugurated the powder coating process at its Panambi plant, replacing the immersion liquid painting process. With this new process, Kepler will reduce environmental impacts by reducing the energy and raw material consumption, improving the quality of the end product, increasing its productivity, and using cutting-edge Industry 4.0 technology with integrated production processes to deliver the best to its customers. This technology ensures the best safety and ergonomic conditions, prioritizing employee well-being, in addition to:

reducing CO2 emissions by 40%, equivalent to 306 tons per year, by sending materials for external surface finishing;
reducing electricity consumption by 26%, to around 880,000 kW/h per year;
decreasing water consumption by 1,960 m³ per year, which is equivalent to 98% of effluent volume. As a result, industrial effluent will reduce by 54%, roughly 2,000 m³ per year;
reducing volatile organic compounds (VOCs) emitted by 99%, which is equivalent to 59 tons per year.

GPTW certification for the 3rd consecutive year: Kepler Weber was certified by the consultancy firm Great Place To Work (GPTW) for the third time as an Excellent Company to work for, and, for the second consecutive year, it was ranked among the 20 Best Companies to work for in the state of Rio Grande do Sul, in the large-sized category, securing the eleventh position in the ranking (6 positions ahead of the previous period). The company’s overall engagement index grew by 4% over the previous period.

In December 2023, Kepler Weber was ranked 46th in Brazil’s Ranking of the Best Industries to Work For (large category).

This is another achievement that reflects our growth journey, which is the result of continuous work focused on excellence, employee engagement, and business sustainability, strengthening the purpose of caring for life!

Social Initiatives

Taking care of lives is part of the Company’s purpose, which materializes through social initiatives. In December 2023, Kepler Webler approved the allocation of over R$1.8 million in funds for 12 social projects in 2024, by using the following resources: Culture Incentive Law, Child and Adolescent Fund, Sports Law, Senior Citizen Fund, and the National Oncology Care Support Program. The projects for the benefit of local communities focus on education, culture, sustainability, health, sports, social inclusion, and respect for life.

2023 Projects
Communities of the cities of Campo Grande (state of Mato Grosso do Sul) and Panambi (state of Rio Grande do Sul)

Semente Mágica: growing of vegetable patches in 3 Panambi schools, benefiting 150 children over the year. In 2024, the project will also hold presentations and lectures in Campo Grande.
Cinema Itinerante: the mobile cinema truck spent four days in each city and held 5 movie sessions a day. The movie sessions were attended by 1,670 participants in Panambi and by 1,810 in Campo Grande.
Turma da Ação VRUM, VRUM: 25 theater plays presented in each city, playfully addressing traffic education.

Community of the city of Panambi (state of Rio Grande do Sul)

Sapatilhas e Laços: over 90 children participated in the project over the year, receiving classical ballet and fashion ballet classes.
Pequeno Príncipe e A Bela e a Fera: musicals ideally aiming at meeting a need identified by the Panambi Department of Education, based on the understanding that some people learn a lot from others. The musicals were at capacity, i.e. 1,300 attendees, in both presentations.
Ativando Saberes: an initiative undertaken by Adolfo Kepler State Middle School, which was named after one of the Company’s founders, aims at fully renovating the school library to provide students with an innovative and creative environment, offering new book collections, fostering knowledge, and encouraging reading habits.
Sou do Sul: performing arts to reinforce cultural aspects.

Community of the city of Campo Grande (state of Mato Grosso do Sul)

Casinha de Chocolate: to celebrate Easter, Campo Grande welcomed this children’s theater play produced by Grupo Tholl, which was at capacity with 700 attendees.
Via Fundo da Infância e do Adolescente: the Company supported projects from the local institutions Cotolengo, Associação Tagarela, and Instituto Mirim, which contribute to offering social and professional development to underprivileged children, young people and adolescents with disabilities.

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