Environmental Criteria and Legal Service

Legal Assistance and Environmental Criteria

307-01; 308-01; 308-02 IF-HB-160a.4

We are pleased to say that in 2021, MRV&CO received no monetary or non-monetary penalties caused by environmental incidents.

This is the result of extensive work grounded on Environmental Aspects and Impacts

(LAIA), which maps the environmental risks of all activities and processes, establishing routines for operational controls to avoid or reduce environmental impacts. and production activities on construction sites. This resource adheres to the requirements of standards such as ISO 14001 and ISO 45001, which supervise the quality of processes through internal and external audit cycles.

Among the recent advances in environmental compliance, we can highlight:

• Monitoring of all our environmental notices and notifications;

• Structuring of computer-aided and integrated control of compliance with environmental terms and commitments (permits, authorizations, grants, etc.);

• Monitoring of critical activities, such as

Sewage Treatment Plants, Artesian Wells, and

Concrete Plants, supported by our corporate environmental department;

• Procedural improvements for the authorization and execution of vegetal suppression and counterpart works;

• Implementation of the corporate monitoring of all non-conformities and their handling.

MRV&CO also maintains a Health, Safety, and Environment Management System

encompassing several indicators, data, and information, including administrative We also count on a conscious and responsible

supply chain that decisively impacts our activities. Our contribution begins in the evaluation and approval stage and unfolds into risk monitoring and partner qualification actions. The Procurement department is in charge of examining the supply chain in terms of quality, health and safety, environment, social impact, and compliance through a qualitative and annual process consisting of the completion of a 50-question questionnaire. Finally, we evaluate adherence to the current legislation through a Legal Requirements Chart.

Our raw materials and inputs are also

rigorously evaluated from the moment they are delivered at the construction sites, in terms of their adherence to technical norms and safety and quality standards, according to the procedures and reports established by ABNT NBR 15575, which deals with the requirements for the performance of buildings throughout their useful life.

CASE

Sustainable Management of Energy and Water

In 2016, MRV&CO decided that all of its developments would switch to photovoltaic power as a clean and renewable energy source. However, the legislation on distributed energy came into effect that same year, and the industry was still adapting to the new possibilities.

Nevertheless, at that point, we implemented systems with photovoltaic modules installed on the roofs of the buildings in our new developments. Those were the first Developments with Multiple Consuming Units (EMUCs) in Brazil, a milestone in the country’s history of energy and power.

Four EMUCs are currently operating: Spazio Parthenon, in Contagem, MG (the first in Brazil, launched in 2018); Residencial Diversão and Forte Bittencourt, in Fortaleza, CE; and Parque Chapada da Costa, in Cuiabá, MT. All of them feature guaranteed energy for common areas and a discount on individual electricity bills. However, we have run into technical issues to continue implementing EMUCs. As developments become more verticalized, the area available for mounting solar cells is limited, and so is the capacity to meet the condominiums’ total demand. The challenge here is to balance the equation between the value of the development, the intensity of occupation, and the actual benefit for owners.

The current strategy is a little different from the one we designed at the first moment: the generation of

photovoltaic energy inside the

developments only serves the common areas, significantly reducing the electricity bill – and the condo fees, which is a relevant issue for owners. In addition to this alternative, the goal is to equip condominiums with other renewable energy options through partnerships or MRV’s own solar farms

To provide owners with access to clean, renewable energy – and discounts on their electricity bills – we have partnerships with solar farm companies, such as Solatio, Flora, and Stella. The discount can also be extended to the neighborhood through the Good Neighbor project.

We also began to invest in our own photovoltaic plants designed for remote consumption at our construction sites and sales offices. The plant currently operating in Uberaba serves MRV&CO’s construction sites and offices across the state of Minas Gerais. New plants are in the feasibility phase in several Brazilian states, and the Lapão plant was launched in March 2022 in the state of Bahia.

According to the logic of reducing and resignifying the use of a valuable asset, we have created the Water Reuse System for MRV&CO’s new developments.

Facing the goal of delivering 500,000 new housing units by 2030 (which will generate the equivalent of 3,000+ Olympic-sized pools of effluents into the sewage systems, every year), our challenge is to develop a business model for the large-scale reuse of domestic effluents that is viable and brings real savings to our clients.

The project was created to be presented at INOVA 2030 – an acceleration program helping young innovative professionals to develop projects to solve business challenges and contribute to the achievement of the Sustainable Development Goals – and was ranked in the top three. As a result, the program was presented at a UN conference, which attests to the great relevance of this initiative. The project is now in the feasibility phase and should be completed in 2022.

Generating sustainability and conscious water and energy consumption for operations and customers has been a great challenge from the very beginning and still is. We create, adapt, and modify business models – and we shall move forward in this never-ending process – until they become viable, good, and profitable for everyone.

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