Energy management

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MRV&CO works to build a legacy for its stakeholders. Therefore, Energy Management also stands out among our strategic pillars of sustainability.

This issue converges with climate change concerns and goals; after all, energy consumption is a major factor in emissions. MRV&CO’s strategy is very consistent: we aim at developing actions and

solutions involving the use of photovoltaic energy.

The initiatives and investments in energy efficiency are linked to our Sustainability Policy and our Climate Change Policy. Currently, energy management is conducted by CLIMAS (ESG integrated information management system) and is connected to the SAP. Every consumption invoice issued by the concessionaires of the group’s operational sites is integrated into CLIMAS in monetary figures. Then, energy consumption is estimated in megawatts, gigajoules, and carbon.

Throughout 2021, we prepared ourselves to replace the strategy of estimating the valuation of energy consumed. In 2022, it will give way to a process that will generate actual consumption data. The

integration with CLIMAS will be maintained, but we will be able to gauge the exact consumption in energy metrics through Business Intelligence programs. The new process applies to all group companies except AHS.

Strategic Energy Management Renewable Energy Use

MRV acts primarily on four fronts of strategic energy management

By 2030, we plan that all our developments will have some self-generation energy alternative, such as photovoltaic systems installed on rooftops, partnerships with companies that offer rebates, or solar farms. 1. Purchase of energy in the Free Market to supply the MRV headquarters;

2. MRV solar farms to supply the company’s offices, stores, and construction sites;

• Uberaba Photovoltaic Plant, built to meet the demand of units in MG » A UFV Uberaba gera 1.125 MWh/ano, o que representa uma economia de R$ 800 mil/ano;

• Bahia Photovoltaic Plant in Lapão launched in April 2022 » UFV Lapão generates 489 MWh/year, which amounts to 300,000 BRL in savings per year:

• Other plants around Brazil are now under consideration

3. Photovoltaic systems in our developments to meet the energy demand of the condominiums’ common areas;

4. Partnerships with companies specializing in photovoltaic energy to serve customers, offering discounts and rebates on the energy used in their homes. Using renewable energy and offering discounts on the utilities bill is made possible via Mundo Casa, MRV’s marketplace with home products and services, at the customer’s own initiative. Currently, there are 651 active contracts:

• 379 contracts (MG) • 184 contracts (MG and some cities in SP and RJ) • 88 contracts (GO, Federal District, and Southern Brazil, except for the cities of Viamão and Porto Alegre)

In practical terms, this amounts to average monthly savings of 11,500 BRL* – a figure that tends to grow as partnerships expand throughout Brazil.

* Data referring only to contracts valid in Minas Gerais.

Monitoring

An integrated, real-time process for monitoring photovoltaic systems in completed and future

developments has been implemented, featuring the collection of periodic technical info and reports about energy generation and consumption that will help building managers run their condominiums.

Variations in Consumption

Data referring to MRV

In 2021, the biggest variations in energy consumption were the reduction of fuel consumption, both from non-renewable and renewable sources. As for the period covered, there was a 62.4% reduction in the use of renewable fuels and a 30.4% reduction in the use of non-renewable fuels, highlighting the decrease in the use of Diesel (-12.7% 2021/2018) and Jet Fuel (-49.3% 2021/2018

Energy intensity, calculated through consumption over unit output, also decreased, thus showing greater energy efficiency. The main factor impacting this indicator was a 19.2% drop in energy consumption outside the organization compared to 2018.

Energy Consumption in the organization (in thousand GJ) 2018 2019 2020 2021 Variation (%) (2021/2018) Variation (%) (2021/2020)

Renewable 3,2 4,7 0,1 1,2 -62,4% +953,9%

Non-Renewable

Electrical 56 67 51 39 -30,4% -23,5%

82 83 74 79 -4,3% +5,9%

Energy Consumption (in thousand GJ)

Inside the company

Outside the company

Total

Energy Intensity (GJ/UP)

By company

* UO: Unit Output

2018 2019 2020 2021 Variation (%) (2021/2018) Variation (%) (2021/2020)

142 155 125 119 -18,0% -5,1%

3.100 2.900 2.100 2.506 -19,2% +19,3%

3.300 3.100 2.200 2.625 -20,4% +19,3%

2018 2019 2020 2021 Variation (%) (2021/2018) Variation (%) (2021/2020)

88 79 64 69 -21,6% +7,8%