2021 Integrated Report highlights SLC Agrícola’s investments and actions

Investment in research and equipment, adoption of best practices and technological innovations, initiatives to preserve biodiversity and actions with a positive social impact make up SLC Agrícola's agenda, with regard to responsibility towards people and the environment.

Investment in research and the adoption of best practices in the cultivation of commodities Agricultural activities enabled the optimization of the consumption of natural resources, minimizing the environmental footprint of businesses. In the 2020/2021 harvest, the use of precision agriculture techniques avoided the consumption of 24,8 million liters of water, 96 tons of inputs, such as fertilizers, herbicides and insecticides and 34,3 tons of plastic packaging. Of the 23 farms in operation by SLC Agrícola (one of which is leased to a third party), only three use water as a direct resource for the production of soybeans, corn and cotton. In 98% of the crops grown in the 2020/2021 harvest, SLC adopts rainfed agriculture, in which only rainwater is used. These actions for the rational use of natural resources are fundamental to achieving the commitment made in 2019 to reduce the carbon footprint by 25% by 2030.

The evolution of precision agriculture accompanies investments in the automation of equipment in crops. The installation of 4G signal antennas, which in 2021 reached 16 farms, expands internet signal coverage, accelerating the adoption of new technologies that improve productivity, the ability to remotely monitor crops and the sustainable use of resources. Currently, 515 thousand hectares of crops (considering first and second harvest plantings) are covered with 4G internet signal.

Actions to mitigate environmental impacts also include projects to reduce greenhouse gas emissions, by maintaining carbon in the soil and conserving it. The Forest Enrichment project, which aims to intensify carbon sequestration by planting native trees in vegetation areas maintained by farms, as a Legal Reserve and permanent preservation, in 2021 enabled the reforestation of 53 hectares on 12 farms, with another 80 hectares will be reforested this year. The goal is to reach 320 hectares restored in the coming years, contributing to the sequestration of approximately 6% of the company's total greenhouse gas emissions.

Another important advance in 2021 was the approval of the Zero Deforestation Policy, which formalizes SLC Agrícola's commitment not to convert areas with native vegetation for agricultural use, even those eligible in the respective environmental licensing processes. The document establishes the rules for the rational use of land, aiming to maintain the integrity of natural systems. This strategic definition marks an important moment in the company’s trajectory. “One of the main points of attention regarding environmental management is the impacts caused by climate change. Extreme weather events have great potential to impact our business, our response is on two fronts. In consolidating a diversified portfolio of lands in different regions and taking advantage of regional potential, and in mitigating impacts, with investment in actions to reduce emissions and maintain carbon in the soil”, explains Aurélio Pavinato, CEO of SLC Agrícola.

Investment in innovation and record revenue

SLC Agrícola's pioneering spirit in incorporating innovations, new technologies and processes resulted in it being included in the “100 Open Startups” ranking, which selects the leading companies in open innovation (open innovation) with startups. In addition to entering the ranking, the company was elected one of the five best in the agribusiness sector.

The business acceleration strategy and innovative solutions to challenges faced by agribusiness includes the connection program with startups, AgroX, Ideias e Resultados and SLC Ventures. Through SLC Ventures, in 2021 the company made its first investment in a startup, participating in Aegro's third round of fundraising. The company, created in 2014, developed an agricultural management system already used on more than 4 thousand farms in 20 different states in the country.

In terms of people and positive social impact, SLC continually invests in professional training and qualifications. In 2021, there were more than 146 thousand hours of training for employees, resulting in an average of 52,4 hours per professional. The use of the 16 Digital Inclusion Spaces, installed on farms to expand access to technology, exceeded 2,4 hours in 2021. The classrooms dedicated to Youth and Adult Education (EJA), which offer Elementary Education and In-person and online high school, 251 students were served. In 2021, the company created the Agricultural Technical Improvement School, with the aim of promoting the continued education of employees. The quality of the company's human capital management processes has been continually recognized in recent years, with awards and certifications that have a positive impact on its brand and reputation, such as the Incredible Places to Work, Great Place To Work RS and GPTW Agro awards. , 100 Most Inspiring HRs, South American Human Resources Meeting and Top Human Being.

Details of actions, challenges, results throughout 2021 and strategic plans for achieving goals are in the 2021 Integrated Report, which is part of SLC Agrícola's commitment to transparency and accountability for all audiences with which it interacts. . Prepared in accordance with the standards of the Global Reporting Initiative (GRI), the document follows the structure and principles of Integrated Report (IR), a framework used in more than 75 countries for the disclosure of ESG information and economic management. financial. This edition brings a new materiality matrix and is the first to be subjected to independent external verification.

The Integrated Report also presents the financial results that in 2021 reached a new record, with net revenue of R＄4,4 billion. Driven by a scenario of increased demand and prices for commodities agricultural products, the result also reflects the strategy of investment in technology and innovation to increase productivity and efficiency in the operation.

To access the 2021 Integrated Report, click here.