Trends • MRV&CO’s vision of the future

Trends: MRV&CO’s gaze into the future

To make a difference, now and always.

To overcome the biggest sustainability challenges in the construction industry, MRV&CO seeks the best solutions: more efficient management and more innovative processes that can mitigate negative impacts and enhance positive ones.

As market leaders and a reference in building, these are paths we often blaze, giving us the opportunity to drive and boost genuine and robust change. More than just identifying trends, we anticipate, whenever possible, what will really make a difference. As we prepared this report, we were able to clearly identify

four trends that inspire

our movements to address

the various challenges of our business – and to keep MRV&CO, whenever possible, at the forefront of transformation, with initiatives always guided by longevity and the desire to build a real legacy to the world and to all the people we may reach.

Innovation in construction processes and business models

Our responsibility is greater than just building: we are aware of our role in giving meaning to community life.

In an industry so typically traditional as construction, which has changed relatively little over time and adopts processes that have been used for decades in the same way, there are certainly many opportunities to evolve. MRV&CO seeks to occupy the open spaces for innovation with an efficient performance that proves to be determinant to promoting welcome and necessary changes.

We believe that old-fashioned construction processes with intense environmental impact and extensive use of natural resources can and must be redesigned.

A notable example of this is offsite construction. Through this method, the development is built in modules, away from the construction site, reducing the use of materials, especially concrete and cement – which are some of the most environmentally harmful raw materials. A more sustainable alternative, the technology has existed for some time but has gained ground only recently. AHS has invested heavily in developing this method in its US operations, and the process has also been implemented in Brazil.

Approaches like this one should be strengthened; however, at the same time, we should not get too comfortable. MRV&CO has continued to study new alternatives and search and create new ways of doing things.

By developing and implementing new production processes, not only do we mobilize our supply chain to become more sustainable, but we positively impact the entire industry by inspiring the whole ecosystem of builders and developers. By investing in innovation and research, we can identify processes and materials to reduce construction costs while minimizing environmental impact and improving health and safety for customers.

We know we can add value across MRV&CO’s production chain by tenaciously pursuing more modern, intelligent, and sustainable production models.

This issue directly concerns the notion of circular economy in the construction industry. By new

construction processes, we refer to alternatives encouraging the reduction in the intensive use of resources and supplies. These include MRV&CO’s energy management, initiatives by encouraging the use of photovoltaic systems, and the streamlining of water resources – even in already completed buildings.

However, we know we must go even further by scaling up successful initiatives to reach as many people as possible.

Too often, we see economic factors at the forefront of decision-making – and this often leads businesses to neglect the ESG agenda. Still, our projects and developments have shown that sustainability can be a savings factor: practices that reduce energy and water costs, for example, are very tangible solutions for our customers and, added to the financial benefits, can reduce impacts on the environment as well.

Just as improving production processes is extremely relevant, the constant reevaluation of our business models is also vital to our ESG agenda. It is

important to see opportunities that open up from this perspective. Servitization has stood out as an alternative to replace consumption-intensive models. With this in mind, MRV&CO has diversified its portfolio through the creation of Luggo and the acquisition of AHS. These companies deliver collaborative economy solutions based on renting and sharing services business model that meets the expectations and demands of customers with a lower environmental footprint and a high degree of satisfaction. We foster sustainability and quality of life that successfully fit into the logic of the circular economy – in which we also count on technology as an ally – by employing housing community software and applications aimed at the collaborative and regional economy.

All these elements contribute to business models that make MRV&CO a genuinely disruptive corporate

group. A true housing platform that offers solutions for customers, with products designed to go beyond housing units. Now and always, the idea is to create and apply state-of-the-art structures, approaches, processes, and technologies – in addition to valuing and training people – to create sustainable communities.

A long-lasting neighbor relationship

The relationship between the residents of developments and the surrounding communities is a central issue in housing.

The quality of these developments, the fulfillment of market demands, the alignment with clients’ expectations, and compliance with the legislation. All this is just the beginning. Each resident is building his or her life there: everything and everyone around them is part of it. Engagement and relationship processes must happen at all stages and across the value chain – from the acquisition of land to building and the occupation of the units – and continue afterward when these homes come to life through the presence of residents and the elements of the surrounding environment.

Indeed, as far as condo life goes, one of the biggest challenges we identified is the quality of neighbor relationships. The interactions among homeowners in developments and their surroundings can often go through conflicts and issues. MRV&CO is an important agent in this scenario – after all, we

want our developments to become more than neighborhoods: we want them to be the cornerstone of integrated, sustainable, and

mature communities. But what can we do to accomplish that?

This concept supports initiatives such as the Vizinho do Bem Program (learn more on the Social pillar section, on page 84) and projects such as the Escola de Síndicos 2.0 (learn more on page 82); and inspires the innovative business models

of Luggo and AHS, which feature property management by companies, or Urba, which, by building entire neighborhoods, also forms community associations to promote their development. Above all, this concept reinforces the notion of legacy – which is dear to us – and, therefore, must be present in all MRV&CO developments.

Creating value for residents means creating value not only for the products we deliver but for their entire micro-universe. It is paramount to listen to the neighboring communities; it is crucial to make that location a setting for real homes; it is indispensable to encourage virtuous bonds.

Education as a pillar of sustainability

To teach, to raise awareness, to drive the development and the evolution of people: MRV&CO has a high potential to impact education among our stakeholders in diverse ways.

We believe that it is a powerful and

lasting tool to drive transformation and build more conscious and responsible communities that value people and care

for their environment, creating everlasting value that feeds back in the long run as an increasingly sustainable society takes shape.

Today, our initiatives are based on three primary axes – the first two have been more assertive, whereas the third can (and needs to) be expanded and strengthened:

Formal Education

Projects implemented especially via the MRV Institute, in public educational institutions, and in partnership with civil society organizations. The Institute offers financing and mentoring in management to the selected entities, perpetuating practices and advances.

Professional Education

Promoted on several fronts to train and qualify our employees. An example is Escola Nota 10, which focuses on literacy and courses aimed at digital education and socio-environmental education, among other topics. The Human Development area also Offers training courses aimed at professional qualification and development among our employees.

Civil Education

Features strategies to raise awareness about sensitive issues to live a better personal and social life. Customers, families, local communities, and those living near MRV&CO developments often receive content via various community platforms on topics such as civic consciousness, maintenance, and sustainability, among others.

Consciousness and Sustainable Urbanization

By proposing to positively impact all of those living around our developments, MRV&CO takes on the role of leading transformation. It is a bold stance requiring courage, attitude, and arduous work. It also requires designing collaborative processes and engaging vigorously and transparently with all its stakeholders. This is real engagement with the power to legitimize our efforts towards sustainability. In particular, it is a stance that requires the ability to Making housing viable is not enough. We must also value everything that encompasses the notion of home.

prioritize what is most relevant about various

aspects. For us, in terms of our business strategy, reputation, deliverables, financial returns, and the legacy we aim to leave behind; and for the world – the communities, cities, and the planet; the new generations, and the whole future.

Transformation is a key part of our purpose – and it goes beyond the realm of mere aspiration to materialize through our efforts and investments – which amount to more than 1 billion BRL in recent years – to contribute to the communities where we build our developments by bringing quality of life and infrastructure to our customers and neighboring communities. Tools such as the Neighborhood Impact Studies (NIS) and constant dialogue help us to promote improvements tailored to the real needs of each location.

Purpose, ideas, solutions, and teamwork allows us to offer multiple ways to realize the dream of owning a home – and go further. More than

just condos, apartments, and developments, we

materialize forms of conscious and sustainable urbanization, which are intimately connected to our purposes.

After all, it is not possible to aspire for a legacy, with a lasting and beneficial relationship for all, without ensuring adequate urban infrastructure for people; and also ensuring that they can enjoy their benefits in the best way possible and for a long time, becoming capable of maintaining and expanding their sustainable environment and themselves as leaders of change.

That’s why we keep evolving.

We are moving forward in our ESG journey, keeping a watchful eye, and seeing far beyond our walls and operations.

And we are still certain that construction practices must have the potential to create, in addition to buildings, condominiums, and subdivisions, Sustainable Cities And Communities – as recommended by SDG 11.

The challenges of sustainable construction are many. But we can transform

our reality — together.