Sustainability Report 2019 [English Version] by Tegra Incorporadora

REPORT

SUS TAIN ABI LITY

2019

MESSAGE FROM THE CEO

(GRI 102-14 | 102-15)

Sustainability as a building block

“we strive to become carbon neutral, qualify our suppliers, and achieve financial soundness, offering safe products built in worksites also focused on security”

The housing industry is guided by a challenge of relationship: with clients, communities, public authorities, regulatory agents, vendors and other players. Everything is long-term and requires multilateral negotiations and deals built upon a foundation of trust. Within this context,

To get a good foothold in our next steps, we rolled out

Tegra’s sustainability is closely linked to the continuity of

innovation processes to take our people and activities to

our business and its governance is tied to our core

the next level. Drafting this sustainability report for 2019 is

business: real estate development.

part of this initiative. Adopting the GRI indicators under sustainability management efforts also paves the way to

Our purpose is to meet housing and work needs in major cities, and we strive to achieve this goal guided by an

incremental and even disruptive innovation. Even though

ethical approach. We choose to deliver housing solutions

we are a private corporation, we have already released

in dense areas to improve the quality of life of the people

our financial statements to the public. This report sheds

who live in our ventures and everyone around them, not

light on how we manage other assets (environmental

just through legal obligations, but also through urban

cultural and relationship) in an integrated manner. And,

kindness and a vision of regional development.

more importantly, this reinforces our commitment towards transparency in our relationship with those that

Hence, people are at the core of what we do. The pillars of

matter the most: people.

our strategy (preserving the environment, valuing professionals, respecting stakeholders and promoting

Every decision made regarding Tegra’s stance amidst the

culture) were built around this principle. We have a

Covid-19 pandemic was guided by the purpose of saving

boutique business at scale, delivering products that make

lives. They were some of the hardest choices I have ever

people’s lives better, and we believe we can change the

made in my entire career, since there was no precedent or

world by setting an example.

references on which to base such decisions. Nonetheless, being able to rely on the team we’ve built over the past

That is why we strive to become carbon neutral, qualify

couple of years and a strong management focused on

our suppliers, and achieve financial soundness, offering

sustainability was crucial to remain confident that we will

safe products built in worksites and also focused on

come out of these troubled times even stronger than we

security. We also strive to deliver water- and energy-

were before.

autonomous ventures. And the only way to achieve these goals is through our employees, including our officers, establishing sustainability as a condition to contract suppliers. The year of 2018 was extremely challenging for the market in general and crucial to prepare for a more productive 2019. We reached a market value of BRL 2 billion – a very important milestone. In São Paulo, we reached 100% of our

Ubirajara Freitas CEO of TEGRA

corporate targets in new launches, land acquisitions, sales, delivery, quality, transfer and portfolio. In Rio de Janeiro, the local socio-political conditions were not as favorable. Although we reached 70% of our targets, we still firmly believe in the potential of this market and remain focused on its development.

SUSTAINABILITY REPORT 2019

TEGRA’S APPROACH TO THE COVID-19 PANDEMIC Tegra Incorporadora’s business activities have a long-term cycle of approximately five years between acquiring land to delivering the keys and providing technical support to customers. That explains our optimistic prospects regarding the management of the pandemic’s impacts in the company’s results. The macroeconomic scenario is different than what we have seen in other crises, but it is also more favorable. The system’s liquidity remained untouched and banks are operating regularly, while the demand for new properties remains at full throttle. The impact on sales was immediate, with 50% of planned sales for March and 35% in April, but we should see a recovery to baseline within two or three months of the “new” normal.

operations were maintained with absolute safety. Employer organizations (Sinduscon, Secovi and Seconci, Abrainc, and Sintracon) and workers’ associations were involved in the decision-making process and employees were able to participate directly. Tegra’s CEO hosted an online meeting open to all employees, featuring a two-hour presentation followed by a Q&A session. The meeting did not end until all questions were answered. All jobs were preserved, employee health measures were bolstered, third parties were included in 100% of preventive initiatives, suppliers were invited to adopt the same health measures, payments and obligations were maintained, and the shortterm strategic planning was adjusted based on the new scenario. Actions were outlined based on the company’s operating fronts (works, offices and sales), accompanied by a solid social initiative in response to the current context’s demand.

Based on this scenario, several actions were taken to get through the pandemic and mitigate immediate impacts, focusing primarily on saving lives. The Executive Board devised a protocol to address the unprecedented challenge posed by the pandemic. The company responded immediately and all

Worksite activities maintained

• Measuring the temperature of all employees and truck drivers making deliveries at the worksites. Individuals with temperature readings above 37.5° were immediately sent to a Basic Healthcare Unit;

Ordinance No. 64.864/2020 (Art. 2, Paragraph 1) and the Deliberation of the Covid-19 Extraordinary Administrative Committee, published on 03/24/2020 in the Brazilian Federal Register established that quarantine measures did not apply to civil construction activities. In addition to such official decision, Tegra’s Executive Board convened to discuss the company’s positioning in this scenario. The main premise was to put people’s health above all else. The decision to maintain our activities included the establishment of a protocol that could not only protect people, but also raise awareness to bolster preventive measures at the homes and communities of our dedicated and outsourced workers. In May, civil construction activities were regarded as essential. Most of the activities take place at worksites, mainly in open and well-ventilated areas. Nonetheless, several initiatives were adopted to prevent Covid-19 contagion:

• Rescheduling lunch time at cafeterias and distancing seats in tables to ensure there were fewer people having lunch together. In addition, meals started being delivered individually with disposable cutlery; • Only up to four people allowed in lifts at any given time, including the operator, and two people in regular elevators; • Control of the time and occupancy of shower rooms to ensure alternated use between shower booths; • Purchase of three thousand face shield masks for employees to wear during their commute (home/ worksite) and six thousand fabric masks for use during daily activities; • Expansion of dedicated medical care services; • Flu vaccination campaign.

• Mapping of the commute path of dedicated and outsourced workers, and hiring private transportation vans with capacity for 20 people, ferrying only 10 workers at a time; • Promoting carpooling among workers with their own vehicles; • Organizing entry and exit schedules; • Constant and severe sanitization of worksites, including by distributing hand sanitizer at the sites, gates, restrooms, locker rooms and office areas; • Sanitization of Personal Protective Equipment (PPE); • Daily awareness-raising efforts to ensure employees abide by the hygiene recommendations of the World Health Organization (WHO); • Production and development of a guide with several instructions and best practices, both at work and at home;

SUSTAINABILITY REPORT 2019

TEGRA’S APPROACH TO THE COVID-19 PANDEMIC

Administrative activities

By the end of April, 14 workers tested positive, 17 were suspected cases (untested), 5 people were hospitalized and 1 died.After the first severe case was reported in Campinas, the Construction board met with representatives of the workers in this site to determine whether employees would carry on work activities, and the consensus was to maintain all activities.

Incorporation All new launches scheduled for May and June were postponed and had yet to be rescheduled as of April.

All employees in administrative areas were assigned to work from home, with all of the technology and infrastructure required. Teams received materials with recommendations and precautions, such as manuals and best practices for remote work.

This meeting was attended by 27 third parties, 4 dedicated employees and 2 interns.

Philanthropy

• Creation of an information technology structure for remote work across the entire team;

• Promotion of solidarity between areas;

This critical moment led Tegra to directly donate to help fight Covid-19, upon approval of the Executive Board and the Board of Brookfield Asset Management.

• Remote psychological care for employees working from home;

- Approximately BRL 2 million were donated to projects directly servicing the population;

• Provision of new content on leadership, management, mental health care and other subjects at the Tegra University training platform;

- BRL 1.25 million was donated to the Solidary Food Program of the State of São Paulo, which donated basic food baskets to vulnerable populations;

• Cancellation of all air travel.

- BRL 200,000 were donated to purchase 60 hospital beds with mattresses at the Professor Edivaldo Orsi hospital complex, located in Campinas (SP);

• People engagement to promote productivity;

Sales

- BRL 100,000 were donated to purchase PPEs in hospitals in Presidente Prudente, Barretos and Uberlândia;

Tegra Sales was also included in the pandemic protocol. Approximately 30 of the company’s managers provided a line of credit to anticipate future commissions to their respective sales teams.

- BRL 400,000 to purchase PPEs and monitoring, care and surgery equipment for the Rio de Janeiro field hospital; - Donation of basic food baskets and cleaning product kits, including hand sanitizer, bleach, washing powder, bar soap, and other cleaning products for Tegra and outsourced workers.

- Distribution of fortnightly food baskets for salespeople during the period; - Closing of sales stands with service exclusively through individual and scheduled visits.

SUSTAINABILITY REPORT 2019

CONTENTS Chapter 1 AYLA STUDIOS

Chapter 6

HIGHLIGHTS .....................................................................................................................10 Chapter 2

INSTITUTIONAL .............................................................................................................. 12 • Tegra, innovation with 40 years of experience...............................................................................

• Business model .......................................................................................................................................

Chapter 3

CORPORATE GOVERNANCE .................................................................................... 18

ENVIRONMENTAL PERFORMANCE...................................................................

• Efficiency at the core of the business...........................................................................................

• Constructive premises........................................................................................................................

• Socioenvironmental construction panel...................................................................................

• Case QR Code: Technology boosts efficiency and reduces paper use.........................

• Materials..................................................................................................................................................

• Water........................................................................................................................................................

• Energy......................................................................................................................................................

• Emissions.................................................................................................................................................

• Waste........................................................................................................................................................

• Biodiversity............................................................................................................................................

Chapter 7

• Risk management..................................................................................................................................

• Compliance...............................................................................................................................................

•Corporate relations................................................................................................................................

SOCIAL PERFORMANCE..........................................................................................

• Valuing professionals......................................................................................................................... • Health and safety......................................................................................................................

Chapter 4

• Respect for stakeholders.......................................................................................................

– Customers – close and

proactive relationship.................................................................

– Tegra customer service...................................................................................................................

• Principles and practices.........................................................................................................................

• Engagement of audiences for material topics.................................................................................

– Relationship with brokers.............................................................................................................

• Sustainable development goals........................................................................................................

– Surround ing communities...............................................................................................................

– Online customer satisfaction tracking.....................................................................................

• Product liability........................................................................................................................... • Supply chain.................................................................................................................................

Chapter 5

• Procurement practice............................................................................................................... • Supplier evaluation.....................................................................................................................

ECONOMIC PERFORMANCE ......................................................................................

• Growth recovery ................................................................................................................................

29 30

• Operating results ................................................................................................................................

SUSTAINABILITY REPORT 2019

• Engagement and recognition of suppliers......................................................................

• Diversity........................................................................................................................................

SUSTAINABILITY CULTURE AND GOVERNANCE....................................................

• Promotion of culture............................................................................................................

GRI CONTENT INDEX.................................................................................................

SUSTAINABILITY REPORT 2019

CAMINHOS DA LAPA

AYLA MOEMA BROOKLIN BRICKS UNIVERSO TATUAPÉ - ESTRELA

2,630 Units 251,900sqm

TEG SACOMÃ

GIO

TEG VILA GULHERME

AYLA STUDIOS

AYLA MOEMA

ZAHLE

UNIVERSO - ASTRO

DSG

BROOKLIN BRICKS

New launches in 2019

UNIVERSO - ESTRELA

SOFI

D’OURO

2019 HIGHLIGHTS

UNIVERSO TATUAPÉ - ASTRO SOFI CAMPO BELO TEG VILA GUILHERME GIO & ALLE TEG SACOMÃ ZAHLE JARDINS D’ORU VILA NOVA CONCEIÇÃO

3,018 BRL

DSG ITAIM

1.95 VGV

billion

Net Revenue

partner brokers

934 ,000 invested in social projects and sponsorships

20%

sustainable construction premises throughout worksites and ventures

growth compared to 2018

388 Units 39,400 sqm

BRL 1 million

invested in sustainability projects

Awards

SUSTAINABILITY REPORT 2019

2,096

BRL

own employees and 3,000 subcontractors

1.27

customers

billion

735 BRL

82,000

housing units to be delivered by 2022, totaling 291,300 sqm in built-up area

LUME CAMPOS DOS AFONSOS RESIDENCIAL

SUSTAINABILITY REPORT 2019

INSTITUTIONAL

Tegra, innovation built upon 40 years of experience (GRI 102-1 / 102-3 / 102-3 / 102-5)

Tegra Incorporadora S.A. (GRI 102-1) was established in 2017, built upon 39 years of experience of Brookfield Incorporadora in the residential and business development industry, with 92,000 ventures built and delivered, covering over 22 million square meters. We follow a clear purpose: to pour our souls into our developments and make people’s lives better. Our ventures are conceived with passion, commitment, dedication and energy.

Photo - Casa Tegra

As a private business corporation based in São Paulo (GRI 102-3/ 102-5), Tegra develops medium- and high-standard residential real estate properties, including incorporation, construction and even sales of housing units. Our activities include purchasing land (active and passive prospecting), product development, approvals, construction, POS development, promotional campaigns, relationship with partner brokers, relationship with surrounding communities, transfer, customer relationship and technical support to owners and residents for five years. (GRI 102-2)

development of the regions where it operates. We see ourselves as one of the drivers of an urban reorganization trend needed to meet the demands arising from the growing populational density in cities. Around the world, this population density trend is boosted by the expansion in production activities, encouragement of innovation, use of technology, and many other factors. We seek to develop residential projects in areas that already have a basic service infrastructure, guided by the principle of intelligent use of urban space, and offering housing opportunities in strategic districts that make it easier for our customers to move around the city, either for work or leisure.

Photo - São Paulo

We launched 13 ventures in 2019, totaling 32 since the brand change. In the same year, we delivered 2,017 keys to new owners in São Paulo, Rio de Janeiro and Campinas. Our annual revenue in the period amounted to BRL 1.95 billion, up 20% compared to 2018. This was achieved through the hard work of 524 direct employees and approximately 3,000 outsourced workers in Tegra’s offices and worksites.

SUSTAINABILITY REPORT 2019

Our business is part of the portfolio of Brookfield Asset Management in Brazil, mainly operating in the states of São Paulo and Rio de Janeiro. As its reason for existing, Tegra cooperates with the socioeconomic

SUSTAINABILITY REPORT 2019

INSTITUTIONAL In 2019, we rolled out several improvements and changes in our processes based on the goal of innovating, raising awareness, training and ensuring complete engagement of senior management.

Urban development is part of our DNA. The Canadian Brookfield has been in Brazil since 1899, when it was established, and takes pride in being responsible for the first public transportation and electrical lighting projects developed in the cities of Rio de Janeiro and SĂŁo Paulo. The company currently operates in 20 Brazilian states, managing BRL 100 billion assets across structural sectors of the Brazilian economy, consolidated as one of the largest investment platforms in the country.

seen across our worksites, with major changes to construction methods and adoption of a carbon-neutral construction philosophy. The main efficiency indicators, which translate our consumption of water, energy, recycled materials, are presented not only to employees and future homeowners, but also to the entire surrounding community, featured in digital panels placed at the worksites.

In 2019, we rolled out several improvements and changes in our processes based on the goal of innovating, raising awareness, training and ensuring complete engagement of senior management, shifting our mindset, adopting innovation methods, digital transformation, and management of projects that stand out in the traditional real estate market. Tegra also structured its sustainability practices and strategies as a corporate policy, guiding the purpose of constantly developing, building and delivering modern, smart, sturdy and energy-efficient housing options, fully adapted to climate change, steered by socially and environmentally responsible practices.

(GRI 102-1 / 102-2 / 102-3 / 102-4 / 102-6 / 102-7 / 102-8 / 102-10 / 102-15)

Regarding the adoption of principles and practices focused on avoiding and mitigating negative impacts, while also boosting positive impacts, Tegraâ&#x20AC;&#x2122;s sustainability strategy is at the core of its business: real estate development. All ventures launched follow 35 sustainable constructive premises, starting as early as conception and design. Among our teams, sustainability is part of 18 annual performance targets, with clear indicators that serve as roadmaps for all activities.

Photo - HD Pinheiros

Our main challenge is to share this commitment with other market players, suppliers and especially with our clients, including future homeowners in our ventures or investors. This concern can be clearly

SUSTAINABILITY REPORT 2019

INSTITUTIONAL equipment and, in some cases, exceeding government demand.

management of waste generated by our activities — is directly linked to business continuity and the purpose of building better lives for people. The commitment with future generations starts in land prospecting and blueprinting processes. Each new venture is an opportunity to help develop the area where we are building.

Sofi sales stand

The commitment with future generations starts in land prospecting and blueprinting processes.

Business model

performance varies depending on macroeconomic conditions and household consumption. Amidst the sluggish rate of Brazil’s economy since 2015, the segment only started to show signs of recovery in 2019, recording a 2% growth and surpassing the GDP for the first time since 2013, interrupting a 5-year downward trend. This ultimately generated 117,000 new jobs, 13% of formal jobs created across Brazil, according to data from the Brazilian Chamber of the Construction Industry, which only attests to the importance of this segment as a job generator. The drop in interest rates to the historical level of 4.5% positively contributed to this sign of recovery, as a decisive factor in granting credit access to nearly 3 million Brazilian households, in addition to making real estate funds more attractive to investors, jumpstarting a virtuous cycle.

(GRI 102-15)

Tegra’s reason for existing is to seek good results, focused on meeting society’s housing and work needs in an ethical and exclusive manner. Our management principles include prioritizing excellence, quality and long-term commitment. The civil construction sector, in the real estate segment, is at any given time one of the most important economic sectors to boost employment and income, promoting an entire production chain of new projects, ranging from the construction material industry to the loan structure required to finance projects. In addition to production, Tegra’s purpose is to meet one of society's basic demands: housing.

The adoption of constructive methods guided by the principles of sustainability – via process efficiency, savings in energy, water, materials and other resources, in addition to adequate

It is important to consider that the real estate development industry’s

SUSTAINABILITY REPORT 2019

All 13 new launches last year follow this philosophy, located in districts with high housing demand and featuring services such as transportation and health equipment, education, leisure and community life, both public and private, ultimately enhancing the benefits of urban density. Ultimately, we want to bring our customers closer to their workplace and their routines, spending time on what really matters. Our portfolio features ventures with high-quality materials and finishes, and unique personality, prioritizing comfort, peace of mind and happiness for our customers. We invest in the Home Design concept, where style, exclusivity and location are paramount, as well as the Condominium Club format, where quality of life, safety and broad service coverage allow families to enjoy the best things in life from the comfort of their homes. The business cycle of Tegra’s ventures is approximately 10 years, between land acquisition, construction, marketing, occupation, and the five-year warranty period. But our commitment with our customers spans across decades. Our relationship with the city and its residents is also guided by our ability to strictly comply to applicable laws or even exceeding legal requirements, such as in the prediction of permeable areas, which in some projects is much larger than specified during land acquisition, or, in the case of mitigation obligations, investing in public high-quality

SUSTAINABILITY REPORT 2019

CORPORATE GOVERNANCE directly impact the remuneration of executives from the Construction board. The compensation strategy of other executives and employees is based on market data and specialized HR consulting services. This board is responsible for the sustainability strategy, which covers all operations horizontally. It is an element of decision-making across different areas, guiding specific strategies – including the development of venture projects.

(GRI 102-16 | 102-17 | 102-18 | 102-22 | 102-23 | 102-24 | 102-26 | 102-27 | 102-35 | 102-36 | 102-37)

Tegra Incorporadora’s Governance structure is built around the commitment of ensuring economic, social and environmental sustainability for the business. Our management practices are reflected in internal standards and policies endorsed and followed by all of our primary stakeholders, such as employees and business partners. The senior management structure includes the CEO, four executive boards and two area boards, reporting directly to the controller Brookfield Asset Management. Tegra’s management is supported by a range of different thematic committees. (GRI 102-17)

(GRI 102-28 / 102-33) The governance structure is also based on Tegra’s Code of Ethical Conduct, available at the company’s website, as well as a series of guiding policies with specific purposes, such as the policies of Procurement, Delegation and autonomy, New business, Credit Grant, Commercial, Portfolio Management, Donation, Anti-bribery and Anti-corruption for partners and suppliers, among others. (GRI 102-25 / 102-26)

Senior management meets monthly to report and review results, information cascaded by management to the teams as a practice of transparency and engagement. One of the main monthly follow-up points is sustainability performance, assessed through 18 targets that MANAGEMENT PRINCIPLE

COMPETENCIES

Reputation

Integrity

Excellence

Long-term vision focused on results

Long-term vision

Passion and commitment for work

Meritocracy Efficiency Client Approval Quality

Drive for efficiency Teamwork Open to learning Resilience Flexibility

Sales-oriented

Leadership

Governance structure (GRI 102-19 | 102-20) BIRA FREITAS CEO

Image merely illustrative

VANESSA PARREIRA Executive Assistant

SUSTAINABILITY REPORT 2019

SP BUSINESS UNIT THIAGO CASTRO MANAGING DIRECTOR

ETHICS AND COMPLIANCE COMMITTEE

RJ BUSINESS UNIT

CONSTRUCTION

FINANCIAL

CORPORATE

LEGAL

ALEXANDRE FONSECA MANAGING DIRECTOR

PATRICIA DOMINGUES MANAGING DIRECTOR

CARLOS CALHEIROS MANAGING DIRECTOR

PATRICIA CASEIRA DIRECTOR

DAN SUGUIO DIRECTOR

CORPORATE COMMITTEE

SUSTAINABILITY REPORT 2019

DGA COMMITTEE (BUDGET)

PEOPLE COMMITTEE (HR)

SUSTAINABILITY COMMITTEE

LAND COMMITTEE

PROJECT COMMITTEE

CORPORATE GOVERNANCE

Risk management

major trading partners; inflation of land costs; unfair competition; real estate bubble effect at a global scale; and rising default rates.

(GRI 102-15)

Tegra also considers social risks, among which are the occupational accident rate, requiring constant and strict management of practices to ensure superior safety standards. Among the environmental risks to which the company is subject are the risk of land contamination and others related to climate, such as the higher rate of extreme events, more intense rainfall and floods, among others. (GRI 201-2 / 102-30)

As a reference in quality and excellence in the incorporation sector, Tegra seeks to diagnose and outline strategies to better manage its economic, social and environmental risks, in order to permanently seek opportunities to stand out in the market and leverage its positive impacts across the various links of the value chain. (GRI 102-15) Proper risk management in the Construction sector may require changing traditional aspects of operations, anticipating external pressures, such as regulatory aspects and requirements of investors, customers, and even society.

Compliance (GRI 103-1 / 103-2 / 103-3 / 205-1 / 205-2 / 205-3)

Regarding the relevance of economic risks enhanced by a prolonged crisis scenario, the housing segment – and real estate in general – has become increasingly aware of its environmental and social risks, ultimately prompting a greater sense of responsibility, effectiveness and transparency in management efforts. As a developer operating in Brazil’s two largest cities, we pursue innovation not only for commercial gains, but also to develop the market in general, including the improvement of competitive practices, such as in project development, selection of raw materials with cleaner chains and the company's own management.

To ensure the development and strengthening of the compliance culture, the company created an area to ensure business compliance with Tegra’s laws and the Code of Ethical Conduct. This area reports directly to senior management and is responsible for coordinating and convening the Ethics Committee every two months. The area works alongside other department to safeguard the company’s reputation, promote a culture of integrity and transparency throughout the entire company, using education, training and communication resources to qualify employees to handle ethical issues and dilemmas.

Internal operational risks inherent to the activity, such as delayed works due to factors beyond the company’s controls, risks of project flaws that may impact the quality, cost and durability of products, as well as those related to reputational aspects, are identified, classified, mapped and managed through close and proactive interaction with the primary stakeholders, such as business partners and clients.

Tegra also has a Confidential Channel, accessible through the company's website, and through a toll-free phone number, also extensively promoted across all worksites to ensure safe (and optionally anonymous) reports of attitudes that violate Tegra’s Code of Ethical Conduct. Reports are processed by the Corporate Audit of Brookfield Asset Management (BAM), located in Canada and Brazil, ensuring independence and integrity throughout the process. Tegra did not receive any corruption reports in 2019. (GRI 205-3) Tegra biennially undergoes a corruption risk assessment process conducted by an independent consulting firm. The latest report was developed in 2019 by KPMG, based on information obtained in 2018. This assessment analyzes the Company’s macro scenario and the respective industry, without focusing specifically on the operations and developments themselves. Each assessment is conducted through interviews with executives and managers, development of a test plan and document revision. (GRI 205-1)

One of the compliance area’s highlights in this field is hiring dedicated employees to carry out approvals along with municipal, state and federal government agencies, in order to mitigate the risk of bribery, corruption and money laundering activities. The area’s targets are also linked to the targets of all employees. In 2019, 650 employees were trained.

The relevant economic risks of external origin include external economic shocks affecting the local scenario, such as market fluctuations stemming from China’s relationship with its

SUSTAINABILITY REPORT 2019

Business partners are trained on the the Compliance Program. When they are registered at Tegra through the Supplier Portal, they are required to watch compliance videos and sign off on the company’s policies. (GRI 205-2).

SUSTAINABILITY REPORT 2019

CORPORATE GOVERNANCE

i) Association with companies, through

(GRI 102-13 / 102-16 / 102-40)

business partnership (exchangers,

Tegra is a volunteer signatory of the 2030 Plaster Work Group established by the International Labor Organization (ILO) and abides by the principles of the Ethos Institute. The company joined the National Register of Companies Committed to Ethics and Integrity (Pro-Ethics Company) and the principles of the Sarbanes-Oxley Act (SOx), which sets a high standard of controls, security and transparency in business activities. The company strategically holds a seat on the governance board of the Brazilian Association of Real Estate Developers (Abrainc) and the Housing Trade Association (Secovi). (GRI 102-13)

developers and builders), with image and reputation of good standing; ii) Low commitment and sponsorship of senior executives with compliance; iii) Low level of commitment of the organization to the compliance theme, generating an environment that leads to/facilitates corruption and fraud; iv) Absence of investigation of identified cases of corruption/fraud;

All of Tegra’s relationships are guided by its management principle (GRI 102-16) detailed in Tegra's Ethical Code of Conduct, available on the company's website.

v) Cases of corruption/fraud known to company professionals, but not brought to

Master Imobiliário 2019 award

Corporate relations

MAIN COMPLIANCE RISKS IDENTIFIED:

IN 2019, TEGRA INCORPORADORA RECEIVED SEVERAL AWARDS (GRI 102-12):

the attention of internal investigation bodies; vi) Offer/receipt of bribes, either directly or by third parties, linked to public officials to obtain undue or unlawful advantages; vii) illegal donations or lack of transparency regarding such donations and sponsorships granted to companies/individuals with a

MASTER IMOBILIÁRIO AWARD

SECONCI AWARD

Category "Residential Venture" with the Authorial Project.

Environmental management of the surroundings of the Sartoria Taquaral project. Risk control at the Gabell Jardins construction site. Risk control at the Grand Guanabara construction site. Health control at the La Vie SwissPark construction site.

VITAE RIO AWARD

BEST PERFORMANCE AWARD (2019)

Health and safety (silver).

1st place (gold) in the category “Excellence in Online Customer/ Consumer Service”.

BEST PERFORMANCE AWARD (2019)

2nd place (silver) in the category "Face to face". Award given by CMS Best Performance.

3rd place (bronze) in the category "Technological innovations”.

XIX ABT AWARD - EXCELLENCE IN CUSTOMER RELATIONSHIP (2019)

MESC AWARD (BEST COMPANIES IN CUSTOMER SATISFACTION - 2019)

3rd place (bronze) in the category "Technological solutions and innovation”.

1st place in the category "Developers and Construction Companies”.

MESC AWARD (BEST COMPANIES IN CUSTOMER SATISFACTION - 2019)

CIC AWARD (INTERNATIONAL CONGRESS OF CLIENTS - 2019)

1st place in the category "Developers and Construction Companies”.

Category "Personality of the year”.

reputation for iniquity, arising from legal convictions, investigations or lawsuits, investigations or actions/activities generally frowned upon by society; viii) Sales outside the business standards of enterprise units to public officials in order to obtain undue or unlawful advantages.

SUSTAINABILITY REPORT 2019

SUSTAINABILITY CULTURE AND GOVERNANCE

Principles and practices

Sustainability Report. Tegra decided to undergo the process of inserting the Global Reporting Initiative (GRI) indicators to improve the company’s sustainability management process, considering the need to advance in all initiated programs in a consistent and organized manner.

(GRI 102-21 | 102-29 | 102-31 | 102-40 | 102-42 | 102-43 | 102-44 | 102-46)

Tegra's sustainability-focused mindset allowed the company to implement sustainability principles and practices at the heart of its business and bestowed this responsibility upon the Construction Board. In 2018, senior management established the company’s first Sustainability Policy and prioritized its stakeholders.

The recurring themes between stakeholders and sustainability policy were regarded as having high materiality; those that occurred only unilaterally were considered of medium materiality; and other emerging social subjects identified by sector-specific surveys were regarded as low materiality.

The stakeholders, in turn, were also prioritized to develop Tegra’s first Materiality Matrix, as well as the first

Sustainability policy (GRI-102-31) Tegra is structured around pillars that represent the organization’s commitments to SUSTAINABILITY, constantly seeking to influence its stakeholders in the same direction. The company’s culture, governance and strategy are both the foundation and guidelines of these commitments.

STRATEGIC COMMITMENT TO SUSTAINABILITY

Photo - Plantio clientes Tegra

Tegra begins the development of its sustainability strategy and its value proposition, in line with its business.

SUSTAINABILITY REPORT 2019

PRESERVING THE ENVIRONMENT

VALUING PROFESSIONALS

RESPECT FOR STAKEHOLDERS

PROMOTION OF CULTURE

Ensure management of environmental and climate change aspects, protect and respect all forms of life, preserve natural habitats and biodiversity, prevent pollution and encourage the sustainable use of resources.

Maintain the commitment with the development of professionals (dedicated or outsourced), preserving life and dignity at work and through proactive management, and help mitigate the negative risks and impacts through a responsible management of the supply chain.

Reinforce ethics, integrity, responsibility and respect in business activities and in the relationship with stakeholders, focusing on the relationship with customers, transparency with investors and suppliers, as well as valuing the community.

Act as an agent of dissemination and promotion of culture in the regions of operation, either through music, art or events that encourage and promote art within society.

SUSTAINABILITY CULTURE AND GOVERNANCE

Tegra believes that the promotion of EDUCATION AND CULTURE is the main tool for continuous improvement, not only of its employees but also of society in general. It is also committed to raising awareness and training in sustainability practices, as a basis for the development, implementation and maintenance of management mechanisms.

SUSTAINABILITY REPORT 2019

SUSTAINABILITY CULTURE AND GOVERNANCE For customers, Tegra promoted the "sustainability week", which mobilized about 5,000 people with tree planting and vegetable garden activities, distribution of booklets and a workshop for building managers at Tegra House, in São Paulo, as well as lectures by experts on themes focused on effective management and good practices in condominiums.

(GRI 102-43)

People are at the heart of Tegra's business strategy. That is why the company has been engaging its primary audiences ever since the new brand was launched. In addition to the Market Intelligence area that applies customer satisfaction surveys and identification of their opinion in all stages of an enterprise, from the purchase of land to technical assistance, the company conducts relationship events with public representatives to address important issues for management, including sustainability.

For employees, the process began with the adoption of the Great Place To Work (GPTW methodology, required by the need to consolidate the organizational culture. In 2019, the work began by preparing senior management (executive board) to mid management through 9 meetings – four 4hour events and five 8-hour events. The process of engaging other employees was based on the connection of the everyday work routine with cultural practices proposed by the methodology: Inspire, Speak, Listen, Develop, Care, Appreciate, Contract, Celebrate, Share. (GRI 102-40 / 102-46)

Several events on sustainability were held in 2019 for employees, clients, building managers and suppliers. The reach of these opportunities was ultimately consolidated through interviews with the respective organizing leaders.

The issues of high materiality arising from this process were: (GRI 102-46) EMISSIONS, WATER, ENERGY AND WASTE (inside and outside Tegra) HUMAN RIGHTS (inside and outside Tegra) FINANCIAL CAPACITY (inside and outside Tegra) INTEGRITY (inside and outside Tegra) SAFETY IN CIVIL CONSTRUCTION (inside and outside Tegra)

MATERIALITY MATRIX (GRI 102-44 / 102-47)

STAKEHOLDERS

Engagement of audiences for material topics

DIVERSITY

EMISSIONS, WATER, ENERGY AND WASTE

INTEGRITY

HUMAN RIGHTS

TRAINING AND QUALIFICATION CONSTRUCTION SAFETY

MARKETING

High Materiality

FINANCIAL CAPACITY

PROMOTION OF CULTURE

Medium Materiality

Low Materiality

RELATIONSHIP WITH BROKERS URBAN KINDNESS VOLUNTEERING

COMPANY

Sustainable Development Goals During the engagement of the teams involved in the calculation of information for the Sustainability Report, Tegra also initiated the debate on the company's engagement with the Sustainable Development Goals (SDGs) and its role in supporting the achievement of targets in Brazil and worldwide. Throughout the process, the themes of the indicators were correlated to the SDGs, but a broader discussion was sparked on which SDG is actually related to the company's business. In 2020, Tegra is expected to join the Brazil Global Compact Network to formalize its intentions.

SUSTAINABILITY REPORT 2019

ECONOMIC PERFORMANCE

Growth recovery

In 2019, the company did not receive financial incentives from the government (GRI 201-4) and did not have any lawsuits filed for unfair competition. (GRI 206-1) Tegra Incorporadora is a privately held company with Brookfield Brasil Participações, which in turn is indirectly controlled by Brookfield Asset Management, a publicly traded company listed on the New York and Toronto stock exchanges under the symbol BAM, and on the NYSE Euronext under the BAMA ticker.

(GRI 103-1 / 103-2 / 103-3 / 201-4 / 206-1 )

The residential incorporation sector performed well in 2019, and has been increasingly recovering from the most challenging years since 2014. The positive fiscal outlook in Brazil stems from the approval of the pension reform and the possibility of passing new structural reforms, along with the recovery of consumer confidence, inflation control and reduction of the interest rate to historical minimum levels. These are factors that directly impact sales performance and growth in the sector.

The entities included in the financial statements are TG São Paulo Empreendimentos Imobiliários, TG Rio de Janeiro Empreendimentos Imobiliários, TG Centro Oeste Empreendimentos Imobiliários and Tamboré Urbanismo Ltda. (GRI 102-45)

This scenario positively influenced the business of Tegra Incorporadora S.A., which in 2019 contributed to the company approaching the value of BRL 2 billion in Total potential sales value (VGV). Tegra considers that the good performance of its business generates incremental value to society beyond its end-activity, which involves the provision of housing, job creation and regular payment of taxes.

BRL

Photo - Curitiba 381

With regard to the Onerous Grant of the Right to Build, a legal requirement to use the maximum building system of a land, a total of BRL 43.3 million was paid in 2019. In São Paulo, the funds raised by the payment of these grants are directed to FUN-DURB Special Urban Development Fund, which invests in the best implementation of urban and environmental programs and projects that are part of or arising from the city's Strategic Master Plan.

SUSTAINABILITY REPORT 2019

million

Solidarity quota

43.3

BRL

Tegra does not make political contributions, although it does make other contributions that support public initiatives, such as the payment of the Solidarity Quota, also in force in São Paulo, which raises funds for the production of Housing of Social Interest and public social equipment complementary to housing.

SUSTAINABILITY REPORT 2019

1.9

million

in onerous grants

ECONOMIC PERFORMANCE Tegra wants to take a step further and invest in what the company calls Urban Kindnesses, which are actions to mitigate disruptions from future developments or improvements that go beyond the venture itself (more on page 69).

(GRI 203-1 / 203-2)

Tegra understands that the impacts of its activities are very relevant in the context of cities and that local development is an integral part of the legacy for which it is responsible. (GRI 203-1)

Tegra's goal for 2020 is to develop an Urban Kindnesses policy as an underlying premise of private social investment from each venture launched, beyond mandatory compensation. (GRI 203-2)

In the case of obligations that require not only the payment of grants, but the execution of projects by Tegra, the local municipality monitors deliveries. As is the case of the delivery of tree seedlings (1,037 delivered in 2019) and the revitalization of the Progressive Union Square, in the city of SĂŁo Paulo. Tegra is aware of the indirect economic impacts generated by its activity, such as urban development in the areas where it operates, attracting investments in infrastructure and services, generating jobs and increasing the number of workers with a signed portfolio. Moreover, the companyâ&#x20AC;&#x2122;s operations help fuel economic activity within the civil construction chain, besides bolstering the professional qualification of employees and contractors. (GRI-103-1 / 103-2 / 103-3)

Note: consolidated (in thousands of Brazilian reais)

Possible negative impacts are offset by the provision of compensation demanded by public agencies, such as transposition of vegetation, adaptations in local traffic and, if necessary, construction of urban infrastructure. Tegra also seeks to mitigate neighborhood impacts arising from waste and debris, air pollution, noise pollution, temporary road and sidewalk blocks, as well as any physical damage to surrounding properties.

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

Efficiency at the core of the business

Tegra's goal is to contribute more and more to the positive transformation of cities where it operates, through a proactive posture of investing in sustainable enterprises. In the last year, we improved our practices, implementing actions for the entire business cycle, covering our employees, customers and suppliers.

(GRI 103-1 / 103-2 / 103-3)

At Tegra, sustainability starts with the relationship. Materializing premises aimed at saving natural resources, lower environmental impact and enhancing positive social impacts begins in each decision that the company's employees take together with their suppliers and business partners, and in the quality of the dialogue that we are able to maintain with the communities in which we are inserted. (GRI 103-1 / 103-2 / 103-3)

Since the brand was created in 2017, we have developed projects that favor the most efficient use of resources in all stages of an enterprise, adopting constructive methods that allow us to perform drier works and deliver not only solid and durable units, but also cost-saving when it comes to water and energy consumption throughout decades for our customers. To achieve this goal, we follow a list of 33 socioenvironmental responsibility premises applied to the activities in the worksites and characteristics inherently related to the product, such as the use of photovoltaic plates, water reuse system, reverse logistics in the work and structure for separation suitable for the recycling of waste for the use of condominiums, among others.

Our Sustainability Policy, published in 2018, brings the commitment that it is the mission of our business and indicator of good dewithout commitment "to ensure the management of aspects of the environment and climate change, protect and respect all forms of life, preserve natural habitats and biodiversity, prevent pollution and encourage the sustainable use of resourcesâ&#x20AC;?.

Photo - Obras Gabell

Foto - Obras

Concerns surrounding climate change are also part of our sustainability approach, which explains our efforts to become a carbon-neutral developer. Regarding the generation of greenhouse gas by our activities, we are structuring

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE our first inventory of emissions in 2020 and, based on accurate information, establish objective reeducation goals. Currently, we rely on conversion estimates to promote the commitment of emissions of all our works through the purchase of carbon credits.

Construction premises

As the idea of legacy for future generations is at the heart of our business, we also seek to engage our customers for the importance of them promoting the sustainable use of their properties over time, completing a cycle initiated by architects and engineers in the plant. Offering real estate with soul that is durable, has a high aesthetic standard and with lower maintenance cost is also providing the owners conditions so that they can share our purposes for sustainability.

Photovoltaic panels on the site

The changes in the construction methods of all the works were gradual, but systemic. In 2020, we are committed to becoming an AQUA Entrepreneur, a certification that attests to the adoption of international standards of sustainable construction, conferred in Brazil by the Vanzolini Foundation. To achieve certification, the projects must present, among others, 39% less energy consumption and 27% less water consumption. The developer works to have at least four approved projects, in the different phases of certification, which verifies 14 categories of environmental quality of the enterprises, ranging from economic and efficient practices in the use of resources to thermal and visual comfort and with its surroundings.

Worksite school

Socioenvironmental construction panel

Construction site Water consumption reduction systems and separate meters for common area Water reuse system Wheel wash Spout wash Waste Management Reverse Block Logistics

In 2019, we adopted the first electronic panel with socio-environmental indicators of the works, updated monthly and arranged in the sidings of all works in progress. Through this panel, we give transparency to the various control and practical mechanisms that monitor our socio-environmental indicators, in addition to the delivery time counter panel.

Reverse logistics of plaster and dry-wall Reverse logistics of sacks Reverse logistics of paint cans

Bicycle parking Visual communication on the siding on sustainability indicators Towel project Association with educational entities (e.g. Liceu)

Product Photovoltaic panels for supplying common areas

Water reuse systems (use of rainwater) Dual-flux system for toilets Taps with timers in common areas Led lighting in garages and common areas Presence sensors in garages and common areas Ventilated and natural-lit environments where green roofs are possible Green roofs Vertical green walls Environments for selective collection Place for disposal of cooking oil

TOTAL VENTURES UNDER CONSTRUCTION PER PERIOD:

Local for disposal of batteries Individual water meters in the units Individual gas meters in the units

2017: 19

Electric car outlet Bike rack

2018: 18

Wooden frames FSC Bicycles for sharing

2019: 18

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

Case QR Code: Technology boosts and reduces paper use

under development. The good results in reducing paper consumption, speed in project distribution and membership rate have boosted the development of a zero-role project from day one. In addition to plants, digital access to files via QR Code can avoid printing several other documents. The goal is to save about 450 kilos of paper per venture.

(GRI 103-1 / 103-2)

Tegra understands that the selection of materials to be used in the common areas and in the housing units of its real estate projects should take into account socio-environmentalfactors. In addition, however, the project decision-making and acquisition of supplies consider the more efficient use of such supplies, minimizing the volume of materials whenever possible. (GRI 301-1 / 301-2)

In Tegraâ&#x20AC;&#x2122;s construction sites, it is easier to distribute and monitor engineering projects, avoiding the printing and reprinting of the plants of the enterprises each time they need to be updated due to the necessary adjustments. The files can be accessed with a few clicks on an interactive digital table, which is available in some works. In 2019, another initiative, still a pilot, allowed access to engineering projects via the mobile phone application - just by pointing the device towards one of the QR Codes distributed on the various floors of the work.

by their sustainability practices across the entire value chain. As for the engagement of the teams, this is an essential factor to implement guidelines focused on replacing the use of traditional methods and materials with more sustainable alternatives, such as the goal of having zero wood in the works. Wood sidings, stairs and scaffolding have been replaced by metallic versions that have a much longer service life, and offer more safety. Wood is also no longer used in secondary protective trays. Floors are now protected by screens â&#x20AC;&#x201C; like those used on apartment windows and balconies to prevent falls. As the innovation was not yet standardized, it required Tegra to seek an approval process. With this achievement, the solution is available for the entire construction market. In addition to the environmental

The management of our impacts on the environment, in relation to the use of building materials, involves the control of the origin of strategic inputs and the engagement of teams for more responsible processes. In the planning of purchasing materials consumed in high volume, such as iron, steel and cement, which come from critical industries, we choose to be partners of companies recognized

The initiative was developed within the innovation cell of the Construction area, in partnership with a start up of the construction area (construtech) and implemented as a pilot project, lasting six months, across projects SUSTAINABILITY REPORT 2019

Materials

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

Water

benefit, the screens also provide a social benefit, since they enhance worker safety and boost overall productivity.

(GRI 303-1 / 303-3 / 306-1 / 306-5 / CRE2)

The company is also focusing on reducing the use and waste of plaster. We started using projected plaster instead of manual application, replacing its use in ceilings with drywall boards, which are eligible for reverse logistics and require less raw material in maintenance. For the next few years, we have identified the opportunity to achieve a significant increase in the consumption of recycled aggregate materials, such as the use in underground floors, land adjustments and drainage.

NON-RENEWABLE MATERIALS (GRI 301-1)

2019

Aggregates (sand, gravel, etc.) (m3)

26,466

Machined concrete (m )

62,701

Ceramic coating (m )

190,140

Ceramic coating (m )

11,372

Considering the challenges that our own generation and future generations will face, the issue of water is extremely important to Tegra. The developer carries out different actions related to conscious consumption across the worksites, such as monitoring the volume used during construction, based on specific targets, and implementing means to reduce water use, from dual-flush toilets to the treatment of greywater in ventures. The adoption of dry construction methods, such as the precast facade, allowed us to reduce water consumption by 49.47% between 2017 and 2019. Water use intensity in construction also dropped from 0.43 to 0.29 cubic meters per square meter built between 2017 and 2019. Tegra does not dispose of industrial effluents generated in work sites. (GRI 303-1 / 303-3 / 306-1 / CRE2) We set specific monthly targets at the worksites. They are defined based on the stage of each construction work and results are reviewed by senior management on an annual basis, during critical analysis meetings. There are water consumption reduction targets (m3/sqm) per stage, including ground floor concreting, structural completion, facade completion, and venture delivery. In 2019, the company reduced water consumption by 32.6% compared to 2018, despite virtually the same number of worksites: 19 live worksites in 2019 and 18 in 2018.

212

Cement (ton)

9,115

Steel (ton)

2,293,010

Concrete blocks (unit)

11,416

Sanitary ware (unit)

RENEWABLE MATERIALS

2019

(GRI 301-1)

3,332

Premade door (unit)

In the supply chain, 98% of the water used in the manufacturing process of all steel used by Tegra in 2019 comes from reuse (GRI-303-3). This showcases how we address water-related impacts among our primary stakeholders, such as employees, clients and suppliers. They receive information surrounding this subject through promotional initiatives and frequent visits to main suppliers throughout the year, during which we implement questionnaires to assess the level of commitment with sustainability. In 2019, we assessed the impact of our operations across the main water sources used in the state of São Paulo: the Cantareira, Guarapiranga and São Lourenço reservoirs. We found that the average representativeness is 0.007%. We consider a significant consumption criterion as 1% of the flow. This rate is obtained by dividing the average volume consumed by Tegra in 2017, 2018 and 2019 by the average volume of each dam in the same years. The annual average was calculated by the volume of the last day of each month in square meters. Water consumption in Tegra Customer Service’s offices and regional units was also taken into account. (GRI 306-5)

RECYCLED PERCENT AGE USED

RECYCLED MATERIAL USED (GRI 301-2)

Machined concrete (m3)

10%

Mortar (ton)

20%

Cement (ton)

40%

Steel (ton)

65%

Our experience and positive results throughout these three allowed us to help develop the first Water footprint calculation methodology guide for buildings – a SindusCon initiative to help the sector’s companies and reduce this resource’s consumption.

20%

Concrete blocks (unit) Aggregates (sand, gravel, etc.) (m ) 3

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

WATER CONSUMPTION TARGETS The consumption targets of the construction works are defined according to the phase of the work in m3/m2:

TOTAL WATER WITHDRAWAL BY SOURCE, IN M3 (GRI 303-1)

2019

2018

2017

Surface water, including water from ponds, rivers, lakes and oceans

Phase A: 0.33

Groundwater

Phase B: 0.25

Rainwater collected directly and stored by the organization

Waste water from another organization

46,239.80

68,645.31

90,571.29

Phase C: 0.33 Phase D: 0.45

The Civil Construction Ind ustry Union of the State of São Paulo (Sind usCon-SP) launched the Method ological Guid e for the Calculation of Water Footprint in Build ings in 2019, an instrument to assist market players to measure and monitor the indicator that supplies the volume of water used to manufacture inputs and in construction processes throughout

Municipal water supply or other public or private water utility services

0 0

Note: 1) The process does not include water consumption in offices, since the bill is pro-rated among condominiums and therefore, it is not possible to calculate the volume consumed by Tegra. Nonetheless, employees from the offices in Rio de Janeiro, São Paulo and Campinas are encouraged to reduce water waste in restrooms and kitchen areas. 2) At Tegra, the tire washing system for vehicles entering and exiting the worksite (wheel wash) is the only source of reuse. However, the amount of water reused in this process is not quantified. (GRI 303-3)

the life cycle of the product (i.e. real estate developments). The goal is for companies to have enough information to rationalize their water supply. The calculation of the water footprint in the chain provides technical support for the safe use of this natural resource by development and construction companies, and ultimately by the population that will use these properties. It is also essential to develop more sustainable projects, seeking alternative ways of using natural resources in order to preserve the environment and ensure the availability of water for future generations.

INTENSITY OF WATER CONSUMPTION IN CONSTRUCTION (GRI CRE-2)

2019

Total volume of water consumed in m3 or liters

46,239.80

Useful area (sqm) or number of people

146,399.95

Water intensity in construction (liters / person / year; or m3 / m2 / year).

Guide to Calculating the Water Footprint in Construction

SUSTAINABILITY REPORT 2019

0.32

68,645.31

149,849.45 0.46

2017 0

90,571.29

208,917.04 0.43

However, we do not have hydrometers to measure the outflow of all effluents (sewage and wastewater from production or groundwater lowering processes). (GRI 306-1)

In relation to the management of our effluents, it is important to emphasize that, in the activity of construction, much of the volume of water collected is incorporated into the final product, providing low volume of post-consumption water disposal. In São Paulo, effluents are disposed of in the utility company's sewage network. In Rio de Janeiro, in lands located in regions with no sewage system available, a small effluent treatment station is built for the temporary facilities, based on the technical standards and parameters established by the Company of Water and Sewage (CEDAE), which must approve the project. SUSTAINABILITY REPORT 2019

2018

ENVIRONMENTAL PERFORMANCE

Energy

Energy consumed (GJ) (GRI / 302-1)

ENERGY TARGETS

2019

Energy consumption reduction targets for 2020, in kWh/m

(GRI 302-1 / 302-4 / CRE1)

i. Electricity

A: 11.62

The adoption of energy efficiency measures, both in the constructive stage and in instruments related to the life cycle of the ventures, is a constant concern of Tegra. Between 2017 and 2019, we reduced our electricity consumption by almost 62% and energy intensity by 44% (ratio between annual energy consumption divided by the sum of the useful area). A large portion of these savings stems from the optimization of construction processes, such as the adoption of projected plaster, mortars in silos, renting more efficient equipment, such as cranes and racks, and the use of LED in the lighting of temporary installations. (GRI 302-1 / 302-4 / CRE 1)

2017

5,587,86 10,672.07 14,827.92

Note: Values related to consumption at worksites and offices in RJ, SP and Campinas.

B: 8.65 C: 9.01 D: 10.52

Total Energy Consumed (GJ) (GRI 302-1)

Fuel consumption from non-renewable sources (GJ) (GRI 302-1)

2019

2018

2017

Fuels from nonrenewable sources

1.849,30

Energy consumed

5.587,86 10,672.07 14,827.92

2019

Diesel Oil (Generator Sets)

1.848,77

Gasoline (Fleet Vehicles)

Diesel (Fleet Vehicles)

Ethanol (Fleet Vehicles)

LPG (Kitchen and showers)

In enterprises, energy efficiency needs to be a premise of product design for the savings to extend into the period of use throughout the life cycle of the real estate. For this, design decisions may include passive techniques that provide thermal comfort, such as crossventilation forecasting and solar orientation, spatial distribution, adoption of presence sensors, solar panels, LED lamps in common areas, leisure and landscaping, among others.

Kerosene (air travel)

Note: Report the standards, methodologies and assumptions adopted: PBQP-H - 201

0.53 1.849,30

Total Note:

1) Conversion factors adopted: 1 liter of diesel = 0.26 KWh 1 KWh = 0.0036 GJ 1 m3 of gas = 0.0915 KWh 2) The company was unable to calculate diesel consumption between 2017 and 2018 (values added to consumption in KWh). Starting in 2019, we implemented a control to keep track of consumption in liters at the worksites. 3) LPG and Oxyacetylene Gas: the company was unable to calculate consumption,

Our energy consumption indicators are monitored monthly by the works, whose management adopts goals of reduction of energy consumption by phase (kWh/m2), considering the stages of Start of work â&#x20AC;&#x201C; ground floor concreting process, completion of the structure, completion of the facade and delivery of the venture.

since the supplier is responsible for acquiring the material. 4) Diesel (Fleet Vehicles): the company was unable to calculate consumption, since the supplier is responsible for acquiring material for equipment (machinery). 5) In 2020, we will monitor the following indicators in corporate areas: Diesel Oil (Generator Sets), Gasoline (Fleet Vehicles), Diesel (Fleet Vehicles), Ethanol (Fleet Vehicles), LPG (Kitchen and Showers), Kerosene (Air Travel) 6) The diesel in generators is controlled through estimates in liters. Total purchased divided by number of generators. The generators were used in only five projects in 2019.

Perspectiva ilustrada fachada Ayla Moema

SUSTAINABILITY REPORT 2019

2018

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

Emissions

Number of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (GJ) (GRI 302-4)

(GRI 103-1 / 103-2 / 201-2 / 305-1)

2019

2018

5,084.21

4,155.85

Heating

Cooling

Steam

5,084.21

4,155.85

Electricity

Total

The impact of climate change on economic activities has been much stronger and faster than anticipated. Tegra operates under the premise that the impacts related to the climate crisis must be mitigated across the entire industry’s supply chain. To make this commitment public, we have shared this concern in our Sustainability Policy.

2019

2018

Fuel consumption from non-renewable sources

Fuels from renewable sources

Energy consumed

5,084.21

4,155.85

Total

5,084.21

4,155.85

Offsetting and equivalence

OFFSET

0.0353

0.0545

The area built in 2019 was about 30% smaller than in 2017, but the reduction in energy consumption was even greater in the same period, totaling 61%.

2017

TONS

OF CO2

0.0633

consumption in kWh / sum of the useful areal (m2)

In 2019, TEGRA offset about 37,000 tons of CO2 equivalent through the voluntary cancellation of carbon credits under the Clean Development Mechanism (CDM),

2017

3,670,747.97

linked to the United Nations Framework Convention on Climate Change (UNFCCC).

2018

2,267,730.47

This offset is carried out through the Climate Friendly environmental program. This

2019

1,436,780.21

Total consumption in progress(m 2)

Carbon Neutral Program

Total consumption in (kWh)

Note: the energy intensity of the building = sum of annual energy

SUSTAINABILITY REPORT 2019

37,000

ENERGY REDUCTION (CRE1)

Energy consumed (GJ) (GRI / 302-1)

Energy intensity |GJ/m2| (GRI CRE1)

ABOUT

EQUIVALENT TO 263,880 TREES

Base Year (according to PBQP-h)

2018

In 2020, Tegra intends to carry out its first greenhouse gas emission inventory to account for and manage its direct and indirect emissions under scopes I, II and II

In 2017, the company started estimating its greenhouse gas emissions (GHG) during the

Number of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives (GJ) (GRI 302-4)

2019

budget stage, converting by emission factor based on the type of materials used multiplied by the estimated volume of such materials. Since 2018, the company offsets emissions from all delivered buildings, as well as those related to development launch events, by acquiring carbon credits. In 2019, Tegra offset nearly 37,000 tons of CO2 related to all ten ventures delivered in that year. (GRI 103-1 / 103-2 / 305-1)

2017

208,917.04

2018

149,849.45

2019

146,399.95

volume of CO2 is equivalent to the planting of 263,880 trees and represents an investment of BRL 370,000.00. All offsets are traceable, ensuring full transparency to the process. We estimate for the works in progress a volume of 104,752 tCO2 to offset, equivalent to the planting of 747,932 trees.

SUSTAINABILITY REPORT 2019

ENVIRONMENTAL PERFORMANCE

Waste

portion of this volume to landfills through reverse logistics of some materials, such as blocks, which is a procedure applied in all of our worksites. The highlights in this area are the Reintegra and Riomix projects.

(GRI 306-2)

Avoiding waste generation has been one of the fronts adopted by Tegra to ensure optimal socioenvironmental indicator performance. In the last two years, we have managed to reduce by 4.56% the volume of disposal at worksites by switching construction methodologies, which goes beyond significantly avoiding waste. The reduction in the use of timber in the worksites and the new plaster application process – as previously stated – are some examples of initiatives that contributed to this rate. (GRI 306-2)

Riomix: circular economy

Reintegra encourages customers to return items not used their properties after customizations and finishing changes after receiving the apartment keys. In Riomix, mortar sacks are collected by the supplier and reintegrated into the formula of the mortar itself, in a closed cycle.

What about when the packaging becomes the raw material of the product itself and still supports a social responsibility action? This is the case with the brand of mortar used by Tegra in its construction processes. The remaining sacks of the total volume used in Tegra’s ventures are returned to the supplier, which turns them around as an additive of cellulose fibers in the production of Celumassa.

The collection and transport of nonhazardous waste is carried out with assistance from a specialized supplier to a transhipment and sorting area, where most of the materials are sorted and sent for recycling (class A and B), and about 4% of the volume (class C) that cannot be sorted is sent for landfills.

We are also focused on properly disposing of non-avoided waste, deviating a considerable

The innovative mortar was developed through multi-laboratory study in partnership with PUC-RJ to achieve the ideal composition of a sustainable and quality product, tested by mechanical and retraction tests. The result is a less polluting industrial and logistics process. The social impact is quite positive. For every 100 bags returned by our works, a new 50-kg Celumassa bag is donated to the Social Work Program, which promotes the cladding of homes of needy families. On average, for every 5,000 bags re-harvested in reverse packaging logistics, one house is fully covered. The supplier's innovative

was

recognized

with

Social Responsibility Award 2019.

RIOMIX casa depois

RIOMIX house befor

CBIC

initiative

Tegra coated two houses in 2019, adding up to 10,991 bags returned. SUSTAINABILITY REPORT 2019

SUSTAINABILITY REPORT 2019

the

ENVIRONMENTAL PERFORMANCE

Reintegra: shared responsibility WASTE GENERATION REDUCTION TARGETS IN M3/M2*: The concern with the reduction of waste generation and the destination of

Phase A (Start of work until the concreting of the ground floor): 0.06 m 3/m2

waste is shared with our customers, including throughout the use of Tegra

Phase B (Concreting from the ground floor to the end of the structure): 0.17 m 3/m2

ventures by residents. It is part of our key delivery process to present to

Phase C (End of structure to the end of faรงade mass): 0.24 m 3/m2

the customer the possibility of receiving back the standard materials, those

Phase D (Final mass of faรงade until the delivery of the enterprise): 0.24 m 3/m2

that condition the concession of Habite-se, if the customer decides to

* Targets according to PBQP-h 2018.

exchange them for others of his preference. Disposal of non-hazardous waste (em m3) (GRI 306-2) DESTINATION Recycling* Underground waste injection Landfill* On-site storage Others (Reverse logistics of concrete blocks) Total

Therefore, Tegra is responsible for giving the best possible destination to 2019

2018

2017

these materials, such as frames, doors, metals and toilets/sinks, which

47,801.00

48,472.20

50,334.90

are removed by the brands supplying these items. This prevents them

4.144,85

from being disposed of improperly and they can be used in other

1,929.35

3,034.50

2,006.00

222.00

49,952.35

51,506.70

53,340.90

Note: 1) Demolitions RJ and Stand RJ and SP. Information provided by the contracted company responsible for disposal of waste. 2) The indicators of non-hazardous waste presented obtained lower values than the previous year, because the area built in the respective years was reduced. When we transform the values into indices according to PBQH-b 2018, which is applicable to Tegra, we present the reverse path: in 2017 it is 0.19 m3, /m2, 2018 is 0.24 m3/m2 and 2019 is 0.22 m3/m.

properties, since they are new items. In return, the supplier, which can reuse or resell these baskets

materials,

donations

basic

food

social institutions. The entire process and tracking of this

return is provided by the ensuring

makes

Tegra

Customer

Service(Proactive

SAT),

transparency throughout the procedure.

Disposal of hazardous waste (in m3) (GRI 306-2) DESTINATION

2019

2018

2017

Incineration (mass burning)

599.38

45.00

125.00

Total

599.38

45.00

125.00

DELIVERY OF KEYS First contact with the Program through the invitation letter

Customer relations sends communication (e-mail) to everyone explaining ReinTegra and provides scheduling via Call Center (active contact occurs only with customers who have already signed the letter)

Note: 1) The disposal of hazardous waste is carried out by a contracted company. According to CADRI, hazardous waste is incinerated and used as fuel (Biomass) for power generation. 2) Regarding the data of disposal of hazardous waste, the great oscillation in the values occurs because, in 2018, there was only the removal of hazardous waste from two works. The others made the withdrawal in 2017 and 2019.

Donation is made in a single moment after 6 months of campaign (basic baskets)

Customer contacts requesting removal/donation

REINTEGRA

Transport of hazardous waste (in tons) (GRI 306-4) 2019 Transported

599.38

Treated

599.38

SUSTAINABILITY REPORT 2019

Third-party company carries out the removal from the unit

SUSTAINABILITY REPORT 2019

SAT receives the occurrence and schedules with the third-party company in charge

ENVIRONMENTAL PERFORMANCE

Biodiversity

Tegra focuses on developing projects that accommodate permeable areas that are larger than those found when acquiring urban properties. All of these processes are carried out along with the competent agencies.

(GRI 103-1 | 103-2 | 103-3 | 304-1 | CRE-5)

If a property where a Tegra venture is developed has a possibility of manifesting any kind of contamination due to prior use, preliminary and confirmatory studies are performed and, if necessary, a remediation plan is approved by competent agencies before initiating the project. The main objective is to identify possible foci of contamination not only of the soil, but also in groundwater. Proof of implementation of the plan and total rehabilitation of the area is a condition for the developmentâ&#x20AC;&#x2122;s certificate of occupancy (i.e. ensuring it is safe for future residents).

Almost all of the projects developed in the incorporation process by Tegra are located in urban areas that are already occupied, without any significant impact on the biodiversity of the regions in which the company operates. New developments cannot reduce the tree density previously existing on the land where a real estate development arises. In cases where there is vegetation cover on the land prospected and acquired by the company and cutting down trees during the project is necessary, whether they are native species or not, we follow the compensation procedures established by licensing and environmental laws. In this way, a new real estate project should have at least the same amount of trees as there were before incorporation.

Resolution 420 of the National Council of the Environment (CONAMA) establishes the procedures to define soil quality benchmarks in Brazilian states. Within its database, Tegra adopts the measurement of ton of decontaminated soil in acquired lands as the best practice to monitor and ensure the transparency of information. Land decontamination is made by sampling, and the same property may have multiple remediation scenarios. This includes specific intervention deadlines and methodologies for each soil section. (GRI 103-1 / 103-2 / 103-3 / CRE-5)

There are different ways to achieve environmental offsetting through tree management: planting trees in the property itself, external planting in sidewalks, parks or squares, financial obligations or donation of seedlings to the municipal nursery. New developments also need to maintain a minimum permeable area established by law and based on specific zoning in each location.

2019

2018

2017

3 trees

66 trees

132 trees

Planting

1,067 seedlings

573 seedlings

3,299 seedlings

Offsetting converted into payment

BRL 854,781.04

BRL 102,364.18

BRL 887,246.42

350 ton

663 ton

Plant suppression

Decontaminated soil (CRE-5)

Note: In Rio de Janeiro, compensation is made with the Municipal Department of Environment. In SĂŁo Paulo, to the Special Fund for the Environment and Sustainable Development.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Professional Appreciation (GRI 103-1 / 103-2 / 103-3 / 102-8 / 201-3 / 401-2)

and the use of assessment instruments that help assess candidates’ integrity resilience, compliance with the Tegra Culture’s behaviors and the position’s requirements.

Photo - Leaders Meeting

The construction business is both a driver and a reflection of Brazilian economy. Job creation in this sector is an important form of social insertion and the creation of a virtuous circle of income distribution for the most diverse audiences. The construction business cycle is complete and demands distinct profiles from professionals, from the most qualified to the most operational. The works contribute to the increase in the supply of local work, especially for unskilled professionals. On the other hand, the theme of occupational safety in civil construction is classic, recurrent and material for society. (GRI 103-1 / 103-2 / 103-3)

SUSTAINABILITY REPORT 2019

There is also an enormous focus on promoting a good work environment, closely and carefully monitoring the company’s organizational climate and engagement. All leaders are focused on building improvement action plans to foster an environment of confidence between leaders and subordinates, promoting comradery among people and ensuring everyone is proud of what they do. Tegra has improved significantly in the Great Place to Work survey ever since it joined, in 2017. The company grew 10 points, receiving the certificate of Best Companies to Work For the second consecutive year. The policy of conditions for a positive work environment ensures a respectful interaction between all employees, within an environment free of discrimination, violence and harassment, which is the basis of how Tegra employees should interact with all stakeholders.

Within this scenario, Tegra undertakes commitments to generate economic development, as well as safe and formal jobs, either at the company itself or throughout its chain of suppliers. Third parties account for approximately 80% of the workforce at Tegra’s construction sites. (GRI 102-8) The recruitment and selection process at Tegra aims to ensure transparency and neutrality across all evaluation and hiring activities. To this end, it adopts a collegiate process of interviews with the participation of the People area, managers SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE opportunity to visit one of our works to experience our product and production process. In addition, it trains engineers who have recently graduated and entered the two-year Young Talents program, with technical and behavioral content taught by internal and external professionals, so that they can assume coordination positions in our construction sites.

(GRI 103-1 / 103-2 / 103-3)

Leadership development is constant and intense. In 2019, 100% of this audience, from the CEO and his executive committee to coordinators, were trained in themes aligned with their management challenges, such as emotional intelligence, communication, coaching, productivity management, among others.

To ensure the performance of suppliers and third parties within appropriate legal structures, they all go through due diligence processes, with thorough verification that considers the risks of each type of service provided. Tegra also has access control at its works linked to the documentation and legal situation of each worker, ensuring access to those who are completely legalized to the construction sites. Third parties receive all benefits determined by law and, compared to Tegra employees, do not have access by benefits of Private Pension, Gympass and pharmacy assistance. (GRI 401- 2). About 31% of employees opt for investment in Private Pension. The minimum amount is BRL 49.58 and employees with salaries greater than BRL 4,957.89 can choose to invest between 1 and 7% of their salaries. The values are managed in two funds that do not have a liability. (GRI 201-3)

Tegra's perspective for 2020 is to create new job opportunities, as well as provide greater internal use, with a closer look at the collaborators in their career and development expectations. Tegra's concern to leverage real estate in the country and meet the demand of areas for skilled labor has spurred the creation of the Young Talents Program, which develops students from various areas to work in the works and offices, in a wide variety of positions. Extending over a period of two years, it includes more than 80 hours of training, semiannual performance evaluations, projects applications with mentors for advice and support during execution. The program is already a tradition at Tegra. The Young Talents program is responsible for a few generations of leaders in the construction works. We see this program as a way to prepare qualified future professionals who closely identify with our Culture.

Average hours of training that the organization's employees have undertaken (Total number of training hours provided to employees / Total number of employees) (GRI 404-1)

The training of professionals is a constant goal of the company, either for own operation, or for the market. That is why it promotes different training actions, such as the literacy of operational professionals, conducted by the SESI literacy program in schools on our construction sites. We also support the entry of young people into the job market by participating in the Young Apprentices Program. In addition, in partnership with The GetĂşlio Vargas School and Junior Achievement, we received students from the Technical Administration Course at Tegra for a forum with different areas of activity. The objective was to expand their knowledge in relations to the functions in a company, supporting them in the decision-making process of the undergraduate course. The young people also had the SUSTAINABILITY REPORT 2019

2019 By category

2017

Men

Women

Men

Women

Men

Women

Our employees (GRI 102-8)

Executives

26.04

26.50

14.17

9.25

18.42

21.50

Number of employees:

Construction managers

52.99

15.77

57.45

71.55

22.91

14.67

Administrative managers

31.96

32.91

23.99

28.86

35.97

30.10

Administrative

9.32

9.07

8.91

12.03

6.08

8.59

Operational

0.00

Interns

62.34

65.25

60.46

62.81

22.27

21.70

Young apprentices

12.20

10.35

5.89

9.39

10.10

6.00

194.86

159.84

170.87

193.88

115.75

102.56

Number of third parties:

735

3.037

TOTAL

2018

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE NUMBER OF EMPLOYEES BY TYPE OF EMPLOYMENT CONTRACT AND GENDER (GRI 102-8) Type of contract

2019

2018

2019

2017

Men

Women

Total

Men

Women

Total

Men

Women

Total

Indefinite time

447

288

735

503

288

791

579

304

Total

447

288

735

503

288

791

579

304

Specific length of time

2019 Indefinite Time

Hires

Dismissals

Hires

Dismissals

Men

119

196

175

883

Men

106

110

146

883

Total

225

306

321

Up to 30 years of age

129

146

158

31 to 50

141

156

Total

Indefinite Time

North Central Region

Northeast Region

225

300

310

Midwest Region

Southeast Region

Southern Region

Up to 30 years of age

57%

71%

48%

55%

49%

39%

Total

31 to 50

39%

24%

46%

41%

49%

48%

51 and over

12%

Southeast

100%

30%

36%

14%

37%

56%

Midwest

35%

17%

65%

79%

2017

51 and over

Total

Specific length of time

Indefinite Time

Total

752

803

735

791

883

2019

2018

Midwest

By age

By region

NUMBER OF JOBS BY TYPE OF EMPLOYMENT (GRI 102-8) 2017

Men

Women

Total

Men

Women

Total

Men

Women

Total

Full time

447

288

735

503

288

791

579

304

883

Part time

447

288

735

503

288

791

579

304

883

Total

By region Southeast

*The reduction in the number of employees in the Midwest region occurred by the closure of operations in the region.

Type of employment

By gender

By age group

2018 Specific length of time

2017

Dismissals

NUMBER OF JOBS BY TYPE OF WORK AND REGION (GRI 102-8)

Specific length of time

2018

Hires

The reduction in the number of employees between 2019 and 2018 is attributed to the termination of activities in the Midwest region.

Type of contract

NUMBER OF HIRES AND DISMISSALS (GRI 401-1)

1) Tegra does not monitor employee turnover. 2) Tegra chose not to release the employee hiring rate.

PARENTAL LEAVE (GRI 401-3)

a). Total number of employees entitled to parental leave *

Proportion of basic salary and remuneration of women and men for each employee category (GRI 405-2)

PERCENTAGE DIFFERENCE BETWEEN MEN AND WOMEN*

CATEGORIES

b). Total number of employees who took parental leave * (2019)

2019

2018

2017

Board of Directors (with CEO)

10%

18%

23%

Management

-5%

Leadership/coordination

Sales force

Administrative

12%

13%

12%

Operational

12%

11%

Trainees

-11%

10%

*Note: The positive number means that men's wages are higher. The negative number means that the salary of women in the category is higherr.

SUSTAINABILITY REPORT 2019

c). Total number of employees who returned to work after taking parental leave (2019)

d). Total number of employees who returned to work after the end of parental leave and were still employed 12 months after returning to work, by gender

Note: Tegra does not manage third-party leave.

SUSTAINABILITY REPORT 2019

Men

100%

Women

100%

Total

100%

Men

Women

Total

Men

Women

Total

Men

Women

Total

SOCIAL PERFORMANCE responsible for this matter. We believe leaders play a key role in the accident prevention program, based on the following principles:

Health and safety

these professionals are monitored by mature processes, audits at suppliers to ensure compliance with all legal obligations, and best practices. This strategy also includes monitoring the financial and registry health of these suppliers, in order to ensure better predictability and longevity of service provisions, benefitting all stakeholders involved – especially the workers themselves.

Conducting Health & Safety matters by senior leadership:

(GRI 103-1 / 103-2 / 103-3 / CRE6 )

Ensuring the safety and well-being of Tegra’s employees and third parties is the basis to fulfill the company’s purpose of building unique and soulful ventures. Tegra not only recognizes the importance of applying this area’s standards, but also focuses on eliminating high-risk incidents across all of its activities. To achieve this goal, the company has an Occupational Health & Safety Management System structured around five pillars: Leadership, Monitoring, Risk Management, Control and Training. 100% of the company operates under this system. Health and safety experts involved in the application of these pillars, such as Occupational Safety Technical Experts and Engineers, Nursing Technicians and Physicians, are part of the Specialized Service in Occupational Medicine and Safety Engineering (SESMT), designed to cover 100% of our staff. (GRI 416-1)

• Preparation of teams • Specific training with all employees • Application of management tools on the work front

Another important aspect is access control at the worksites, which relies on identification turnstiles, focusing on the safety of everyone and in preventing accidents. The turnstile system is linked to each contractor’s document and the service agreement with Tegra, which must be in effect and full compliance. This ensures each employee’s status has been confirmed and allows tracking all worksite visitors. Another way to ensure compliance with labor rights is the monthly provision of timecard control, payroll and social security tax receipts. (GRI 103-1/103-2/103-3)

• Investment in new technologies • Focus on eliminating high risk Periodic medical exams and evaluations are carried out by a physician from Tegra or a qualified contractor to monitor the health of our employees. Contractor exams are carried out by a third-party company based on Tegra’s standardized framework for each position. In addition, Tegra has an annual calendar of health campaigns for all of its employees. These include exercising at work, flu shot campaigns, blood sugar exams, blood pressure exams, nutritional campaigns, among others. All work site activities use outsourced labor, some under intensive regime, such as concreting, masonry, general services, plaster, painting and installations. The activities of

The guidelines are detailed in the Occupational Health and Safety Policy, as well as internal procedures adopted across our worksites. The Policy is available on our portal and the procedures in autodoc. The company invests in training for all employees through an array of specific training courses based on each position. They all undergo induction training with general instructions, PPE use, equipment and tools, work at heights, daily occupational safety planning, safe work compliance and general safety inspection. At Tegra, not the only ones

“Safety first” is a value and the foundation of the commitments and results of Tegra’s leadership

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE TYPES AND RATES OF INJURIES, OCCUPATIONAL DISEASES, LOST DAYS, ABSENTEEISM AND NUMBER OF WORK-RELATED FATALITIES, BY REGION AND GENDER (GRI 403-9)

Our Commitment to Occupational Health and Safety: 1. Highlight the commitment of leadership to the OSH; 2. Identify and manage the high and medium risks associated with each activity;

2019

2018

Employees by gender

Men

Women

Total

Men

Women

Total

Men

Women

Total

Injury rate

2.04

0.00

2.04

1.88

0.00

1.88

5.23

0.00

5.23

Rate of accidents with leave

1.02

0.00

1.02

1.88

0.00

1.88

4.48

0.00

4.48

Rate of accidents without leave

1.02

0.00

1.02

0.00

0.75

0.00

0.75

Rate of occupational diseases

3. Raise awareness and require suppliers to respect OSH commitments;

Not monitored

Rate of lost days

Absenteeism rate

4. No emergency, production or results situations that could compromise OSH; 5. Meet OSH legal requirements.

Our health and safety behavior:

Not monitored

Number of deaths

Employees by gender

Men

Women

Total

Men

Women

Total

Men

Women

Total

Injury rate

8.60

0.00

8.60

7.00

0.00

7.00

7.06

0.00

7.06

Rate of accidents with leave

7.08

0.00

7.08

4.62

0.00

4.62

3.78

0.00

3.78

Rate of accidents without leave

1.52

0.00

1.52

2.38

0.00

2.38

3.28

0.00

3.28

Rate of lost days

128

Number of deaths

2019

1. Care for each other in the workplace and, when in doubt, stop and seek help; 2. Strengthen OSH culture with a focus on education, training and awareness; 3. Transparently communicate OSH information and performance; 4. Continuously implement OSH improvement.

Employees by region

2018 Midwest

Southeast

Midwest

Southeast

Midwest

Injury rate

2.31

0.00

1.96

0.00

4.92

8.24

Rate of accidents with leave

1.15

0.00

1.96

0.00

4.1

8.24

Rate of accidents without leave

1.15

0.00

0.82

0.00

107

Rate of occupational diseases

Not monitored

Rate of lost days

Not monitored

Number of deaths

Southeast

Midwest

Southeast

Midwest

Southeast

Midwest

Injury rate

8.84

3.59

7.42

1.83

7.06

6.90

Rate of accidents with leave

7.25

3.59

5.00

0.00

3.85

2.76

Rate of accidents without leave

1.59

0.00

2.42

1.83

3.21

4.14

123.50

215.63

95.61

0.00

74.94

59.00

0.00

Third parties by region

Seek Zero High-Risk Incidents in all our work sites.

2017

Southeast

Absenteeism rate

Our Ambition

2017

Rate of lost days Number of deaths

Note: 1) Data on occupational diseases and absenteeism are not measured in the company, but rather in outsourced companies responsible for hiring third parties. 2) No injuries were recorded in the Southern, Northern and Northeastern regions.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE based on processes of internal diagnosis, discussion groups, qualification and awareness through lectures and training courses.

Diversity

(GRI 103-1 / 103-2 / 103-3 / 407-1 / CRE6)

In 2017, we began the process of focusing on the Safety Culture, and one of the highlights of 2019 was our investment in new technologies. We implemented a presence sensor in the crane loading plan at the Gabell Jardins worksite, in São Paulo, and a new construction method titled “Shield Protection” at the Grand Guanabara worksite, in Campinas. In addition, we revised the Incident Investigation Program. As of 2019, all accidents are reported and investigated regardless of their level of risk, identifying the main causes, recommendations and effective actions to avoid similar events. High-risk incidents are thoroughly assessed and investigated by an independent team. Unions have free access to Tegra’s worksites to interact and meet with employees. All Tegra employees are covered by their respective categories’ collective bargaining agreements. Moreover, Tegra did not identify any supplier at risk of curtailing freedom of association. (GRI 102-41 / 407-1)

(GRI 103-1 / 103-2 / 103-3 / 405-1 / 406-1 / 408-1 / 409-1)

Although we have not kept track of Tegra’s diversity numbers until now, we have been monitoring our progress on this front by applying the annual Great Place to Work survey since 2017. The survey’s questions help us keep track of this subject, and we have been reaching good results since then. (GRI 405-1)

Knowing that diversity is a broad theme, we can mention the desire to improve our performance with regard to hiring professionals with special needs. From a gender point of view, we are pleased to share that the rate of hiring women has improved every year (in 2017, 39% of our hires were women; in 2018, 41%; in 2019, 44%).

Tegra did not record any incidents of discrimination (GRI 406-1)or incidents of child, forced or slave labor (GRI 408-1). in 2019. Tegra joined the work group of the International Labor Organization (ILO) to advance and overcome challenges in the promotion of decent work throughout the plaster production chain. In addition, we have an exclusive team dedicated to controlling labor at the worksites, checking employee documents and registering 100% of the workforce in a digital management system, conducting registry due diligence procedures and renewal of the supplier registries and their contracts include the commitment of not employing or enabling child or slave labor under any circumstance. (GRI 409-1)

The aforementioned Positive Workplace policy, launched in 2019, addresses this issue by proposing the Diversity, Respect and Harmony triad. The goal is to promote an inclusive environment that conveys the values of our Code of Ethical Conduct, in order to foster a healthier and more respectful corporate environment for all of our employees.

Another initiative was a Safety Culture Survey to assess the safety culture in operations and risk tolerance among employees. Tegra also standardized collective and common-area protection elements to ensure the identity of all construction works.

We want to continue to focus our efforts around this theme. In 2020, we plan to establish a partnership with an institution specialized in this matter, to further improve women’s participation in our business,

In 2020, Tegra is committed to intensifying safety culture initiatives as a corporate value, raising employee awareness of safety precautions not only at work, but also at home. The company currently monitors its targets through reports of events, such as accidents, incidents and inspections, as well as to issue the occupational safety evaluation. Evaluations are carried out by safety experts and the results are discussed in a Committee Meeting with senior management. The Rate of Workplace Accidents with Leave (TFCA) and Safety Evaluation target is monitored by worksite and through a corporate approach, based on a regional and corporate outlook. This target is associated to bonuses granted to executives and worksite personnel.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Respect for stakeholders

communities surrounding our projects, always working under the highest standards. Whenever a new real estate development project is launched, part of the development process is to investigate if basic service networks, such as water, sewage, power and drainage, can support the demand during construction activities and after the arrival of hundreds of new residents If any of these services require reinforcement, the developer is responsible for installing a new network, based on the required standards, which will be inspected and donated to the respective utility company.

(GRI 103-1 / 103-2 / 103-3 / 203-2 / 413-1 |413-2 / 414-1 / 416-1)

The dialog with society in general begins with the decision of developing projects that are increasingly integrated to the city, ensuring satisfaction not only among future homeowners and residents, but also among the venture’s neighboring communities. This goal is achieved by key decisions ranging from designing wider sidewalks, distributing benches, better lighting, to landscaping, selecting suppliers, and regulatory studies – all efforts to promote harmony among everyone involved in the process. It all starts with strictly complying with state and municipal laws, in order to avoid negatively impacting

GPTW SURVEY RESULTS (TEGRA SCORE)

Area view

Company view

Information regarding Tegra’s developments are also underlined in all sales and marketing materials. They abide by all legal requirements to ensure the transparency of products delivered.

Average

2019

2018

2019

2018

2019

People here are treated well regardless of their age

People here are treated well regardless of their color or ethnicity

People here are treated well regardless of their gender

People here are treated well regardless of their sexual orientation

Cotoxó Street Staircase

2018

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Customers – close and proactive relationship

Tegra customer service

Approximately 82,000 customers have entrusted Tegra with the acquisition of their properties, delivered or under construction, since 2017. We maintain a close relationship, through the realization of events and periodic proactive communications, by email and mobile, in addition to the channels available to this public, such as WhatsApp, Customer Space on the website and telephone call center. In order to comply with the General Data Protection Act, we have developed a plan to strengthen the security of information for customers, employees and services.

To account for this service with quality and efficiency, we keep several other channels open and available to customers, such as telephone, email, website and face-to-face support. We maintain, in all projects under guarantee, a service outpost, where a technician of our team is on weekly duty at the disposal of our customers.

During the five-year warranty of its properties, proactive contact with our customers is a standard procedure in the developer, through Tegra Customer Service (SAT). Thus, owners and residents can request repairs, ask questions and, if necessary, address complaints that need to be remedied. In 2019, we carried out 12,895 services, originating from a universe of 35,887 properties under warranty. This model of relationship, service and also of transmission and listening to complaints follows goals such as service deadline, cost control, level of customer satisfaction, and, in 2019, all were overcome.

In addition to the Market Intelligence area that applies customer satisfaction surveys and identification of their opinion in all stages of an enterprise, from the purchase of land to technical assistance, the company conducts relationship events with public representatives to address important issues for management, including sustainability.

This process aims not only at convenience and customer satisfaction, but also to generate benefits such as reducing service time of the calls, guidance from customers on the correct use and maintenance of systems, clarification of general doubts and agility in the correction of pathologies (eventual problems encountered).

SAT 12,895 calls Call Center

For this audience, Tegra promoted the Sustainability Week, mobilizing approximately 5,000 people to plant trees and gardens across 20 ventures in both states. During this event booklets were distributed with information on the sustainable use of the units. For the building managers, who must always be ready to answer resident’s questions, the company hosted a meeting at Tegra House, in São Paulo, to clarify Tegra’s sustainability actions and strategy, in addition to featuring lectures with experts in building management.

Site Duty

SUSTAINABILITY REPORT 2019

Customer service outpost

The presentation booths of the projects with decorated apartments, in addition to the sales channel, are a point of construction of this important relationship. During the shifts, open six months before the start of the works, customers can take advantage of leisure equipment, recycling and social responsibility actions, free Wi-Fi, among other activities.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Relationship with Realtors

Online customer satisfaction tracking

Brokers are a strategic stakeholder for Tegra, as they make essential contact between the company and its clients and potential clients. In 2019, this group comprised a universe of 1,115 professionals in São Paulo and 981 in Rio de Janeiro. In addition to acting in the commercialization, brokers are also responsible for presenting to clients the sustainability attributes of the enterprises, especially their eco-efficiency characteristics, showing that their advantages go beyond the reduction of maintenance costs.

(GRI 103-1 / 103-2 / 103-3 / 418-1)

With respect to the transparency necessary in Regarding the transparency needed in our relationship with customers, we have been keeping track of complaints on the Reclame Aqui website since 2017. This monitoring process is part of the entire company’s targets. Tegra receives around 24 contacts a month through this channel, and all reports are forwarded to the area in charge, which reviews and classifies each case. Valid reports undergo a resolution process. The customer service area then contacts the client and provides all information and execution deadlines, if applicable.

2,096 Registered brokers

For the best performance of these professionals and their development, on-site training, endomarketing actions, campaigns and awards for products and prize drawings are held. They are also guided by Tegra’s Code of Ethics and Conduct. A high point of broker engagement are also the events of launching the enterprise. For 2020, the developer intends to intensify training, endomarketing actions and communication of commercial strategies and goals.

This constant monitoring and immediate response to reports helped significantly improve the company’s ranking on the website, rising four positions in two years. Tegra’s current customer relationship score at Reclame Aqui is considered “Good” and the target for 2020 is to ensure the company reaches the “Great” score – the highest score in the ranking.

Relationship channels e-mail Broker portal Corporate TV Mural Suggestion urn

Encontro de corretores Tegra 2019

In 2019, Tegra did not receive any complaint regarding customer privacy in any of the company’s relationship channels. TEgra is aware of the importance and its duty in this regard, which is why it established a policy available at https:// www.tegraincorporadora.com.br/ politicaprivacidade/

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE periodic meetings with the construction team for questions about the project. The goal is to establish a commitment to ensure that this public receives information from the emblematic phases of Tegra's activities in that location. In the years 2018 and 2019, this relationship with the neighbors was forged in 13 different locations. In addition, service to the neighborhood of the enterprises is carried out permanently through official channels of communication and Urban Kindness actions, with special focus on the adoption of squares, revitalization of walls and sidewalks, guided tours of the work, among others.

Surrounding communities (GRI 103-1 / 103-2 / 103-3 / 203-2 / 413-1 / 413-2)

The practice of establishing a good relationship with the future business environment begins before the works. Because we understand that there may be impacts and disruptions during the construction period, we maintain a relationship program with the neighborhood, which begins with the mapping of stake-holders of interest in the neighborhood as soon as there is the confirmation of the acqui-sition and legalization of the land. (GRI 203-2 / 413-1

As a relationship management practice, Tegra is also attentive to the vulnerable groups identified in the vicinity of where we develop our projects, such as the incidence of the homeless population. When identified, the groups are observed for the management of any interaction that is necessary.

This program maintains three main steps. The first is a survey that identifies public leaders (subprefectures, police stations, equipment such as hospitals, NGOs, Conseg leaders, neighbor-hood associations). The second is a door-to-door action, when the Tegra team introduces itself to the neighborhood and the first contacts are established as a way to open a direct dialogue channel. This step is personally fulfilled by the company's external communi-cation manager and, on many of these occasions, it is already possible to establish a direct and personal initial contact. The third stage consists of an agenda of

The population increase in the neighborhood and the increase in vehicle traffic in areas of urban density can generate negative impacts on neighborhoods if municipal legislation and some care is not observed. With regard to the ventures in the cities in which we operate, when the project foresees more than 200 housing units, or has more than 500

studies presented by the developer and each municipality’s needs regarding the development of a master plan. Since Tegra’s main business is associated to major cities, the company considers the same risks and impacts for all developments. (GRI 413-2)

Urban kindness A series of practices adopted around the construction sites, which go beyond the mandatory licensing considerations of the projects, are inspiring Tegra to create, in 2020, a Policy of Urban Kindnesses that includes a social investment action for each project launched. These initiatives, carried out since 2017, focus on improving the surroundings, such as the adoption of squares, parks or equipment that are expensive for the neighborhoods. (GRI 203-2)

Muro revitalizado na Rua Glicério - São Paulo

SUSTAINABILITY REPORT 2019

parking spaces, offsetting measures must be implemented, which may include reinforcing road infrastructure, based on the standard required by the municipal transit department, or other mitigation efforts, as determined by public agencies, according to

Examples include the revitalization of the wall of the João Dias State School, in Tatuapé, North Zone of São Paulo. Tegra performed aesthetic improvement in two walls and access gates of the unit, as a way to avoid degradation and contribute to the self-esteem and well-being of about 800 students. Another initiative is the adoption of Praça Décio Cinelli square, in Campo Belo (South Zone of São Paulo), with a janitorial project that provides for landscaping, maintenance of green areas and curbs, as well as weekly cleaning of the site. In theLapa neighborhood, also in the capitalof SãoPaulo, we established the project of construction of thefirst public road by Tegra, Rua Jardim de SãoPaulo, with 1,180 linear metersflanked by tree species native to the Atlantic Forest, and provided with bicycle paths and bicycle lanes, and furniture.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Product liability

For Tegra, it is not enough to deliver projects on time, it is necessary to maintain the quality standard in the long term. We adopt measures associated with the health and safety of our customers in the use of 100% of the projects delivered

(GRI 103-1 / 103-2 / 103-3 / 416-1)

As the cycle of each enterprise, from the prospection of the land to the end of the guarantee provided to customers, lasts a period of about 10 years, depending on the size, the quality management procedures help to strengthen the relationships between all stakeholders involved in this process. Starting at the construction site, Tegra adopts a program of revalidation of the main stages of works, called Quality Assurance. These stages were identified and separated after analyzing the main occurrences pointed out in the history of the development of their enterprises. (GRI 416-1)

wasting water and electricity, for example, in order to ensure the rational use of these resources. In the first two years, these visits are carried out every six months, and subsequently once a year, until reaching the fifth year of property use. Among the benefits of this process is preventive action, preventing systems from excessively wearing out, generating additional costs and damages. We can also assure customers the guarantees of supply within the deadlines, provide better guidance to condominiums on the correct use and maintenance of systems, prolonging their useful life.

This program has seven stages - function, structure, facades, glass, installations, ventilation of the gas system, automaton units - which generate evaluation reports to be presented and discussed by the teams in a committee composed of representatives and the areas of Projects, Supplies, Quality, Works and Construction. In this committee, all the requirements of overall quality and safety of the systems are investigated, with reports and validations of designers and qualified consultants, with the purpose of analyzing test results, reports, compliance with standards, among others.

products are applied definitively in our works, such as doors, decks and pergolas and are 100% certified by the FSC, which guarantees origin from legal and reforestation areas. To maintain the best relationship with these suppliers, Tegra uses the Kraljic matrix, a purchasing management tool that reduces supply vulnerability. The 180 groups of categories are evaluated, whether in the form of negotiation, in the hiring model, in the management and control of performance, in the exchange of technology and strategies, or even in the transfer of knowledge.

(GRI 102-9 / 414-1)

The construction industry’s supply chain is extremely complex and critical. At Tegra, the chain consists of approximately 2,500 suppliers across 180 categories. This involves a range of different businesses, from major multinationals and companies with high service sophistication, material manufacturers, to small labor suppliers. (GRI 102-9 / 414-1)

We also monitor our suppliers through bimonthly environmental audits carried out on the construction sites.

Strategic suppliers of essential materials, such as steel, concrete, elevators and mortars, are selected based on best market practices, built around solid sustainability programs and policies applied extensively. All timber

The health and safety of customers are a top priority in Tegra’s products. All developments are closely monitored, starting with the land acquisition feasibility assessment, which covers remediation as one of its stages, compliance with technical civil construction standards, such as ISO 9001 and the Brazilian Habitat Productivity and Quality Program (PBQP-H), including a standard after-sales technical support process to ensure optimal product use. This constant monitoring and evaluation allow us to constantly improve and innovate. In 2020, Tegra began the process of complying with the AQUA certification of Fundação Vanzolini.

This process continues after delivery. For Tegra, it is simply not enough to deliver ventures on the deadline. It is imperative to maintain the quality standard in the long run. All of the company’s products and services undergo assessment regarding potential health and safety impacts. These include the Proactive Checklist, a predefined schedule of preventive inspections, carried out by our internal team along with specialized consultants and suppliers. These inspections are carried out proactively to assess the performance of different systems over time and identify any alterations. This allows us to assess the risk of

SUSTAINABILITY REPORT 2019

Supply chain

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Purchasing practices (GRI 103-1 / 103-2 / 103-3)

The supply area is responsible for the entire hiring process, from the supplier's entry to the company to the completion of the services. Every competition process consists of at least three suppliers, which ensures impartiality and equal competition for all. This management involves the following steps: Registration: along with the Compliance area, the criteria were updated so that a provider can register with Tegra. These criteria vary with the type of service to be provided and all suppliers need to adhere to anti-bribery and anticorruption practices. Highlights of 2019 include the implementation of the supplier registration portal, ensuring greater speed and assertiveness in the due diligence process.

It is important to highlight that, for the liberation of this retention, all documentation of the supplier (required during the work) is analyzed, in addition to the verification of the existence or not of labor actions.

Supplier evaluation.

All approved suppliers, when marketing products and services, need to commit to our internal policies, including the Code of Ethical Conduct; Purchasing Policy, Anti-Bribery and Anti-Corruption, Compliance Policy, Delegation and Autonomy, Policy on Transactions with Related Parties and Conflicts of Interest and the document Know Your Third Parties.

(GRI 308-1 | 414-1)

The targets adopted in 2020 include: - Negotiate, with suppliers, the expansion of reverse logistics practices for other materials in 100% of the construction sites, such as the existing project with blocks; - Implement the Reintegra program in 100% of high-standard projects; - Include outsourced employees in the Construction Site School Program; - Maintain meetings with suppliers every six months

Evaluation: every supplier hired is evaluated monthly by the client area in the criteria of documentation, safety, quality, attention and compliance schedule. These evaluations are consolidated by the procurement area that promotes supplier evaluation committees bimonthly, whose objective is to address critical cases, be it the creation of action plans or possible disqualification decisions.

In order to fully meet these objectives, we have identified as a challenge the turnover of third parties and the direct management of these employees, which is given by the companies providing service that we need to engage. All the goals mentioned will be monitored and make up the individual performance dashboard of the employees and, consequently, the bonus. (GRI 103-1 / 103-2 / 103-3)

Closure: the supply area, together with the works, prepares the term of closing of contracts, which releases the retention (security) and officially terminates the contract in question.

to slavery and child labor. These consultations are carried out by the Compliance area and fulfill the Brookfield Brazil Group methodology. In addition, in all contracts signed, whether for the acquisition of materials or the provision of services, the suppliers must adhere to our clauses and socio-environmental conformity, which ensure compliance with all labor legislation in force, the non-use of slave labor or analogous to slavery, the non-exploitation of child labor and respect for the Code of Ethics of Tegra, in working relationships.

In 2019, nearly 50% of all new suppliers were contracted based on socioenvironmental criteria, representing approximately 25% of total procurement costs. We have mapped all supply categories deemed critical from a socioenvironmental standpoint, and specific adopted due diligence measures to better manager potential risks in supplier relationships. (GRI 308-1 | 414-1)

Along with the process of monitoring the performance of our partners throughout the entire contract, Tegra has also implemented a supplier relationship program consisting of visits to the facilities of suppliers with the most impact and influence in the business. The goal is to better understand and inspect their safety programs, socioenvironmental practices and policies.

Prior to the hiring process, consultations are made to restrictive lists of possible condemnations and citations in the criminal, environmental and serious labor spheres, with a main focus on incurrence in work analogous

New suppliers contracted based on social criteria (GRI 414-1)

NEW SUPPLIERS CONTRACTED BASED ON SOCIAL CRITERIA

2019

Total new suppliers that were considered for hiring

905

Total new suppliers hired based on social criteria

443

Percentage of new suppliers hired based on social criteria (%)

48.95%

SUPPLIERS (GRI 204-1) % of expenses with local suppliers in operational sites

79%

% Local suppliers of the total suppliers contracted by state Midwest (SAT)

54%

Rio de Janeiro:

60%

SĂŁo Paulo:

94%

% Critical suppliers (biomass/cutting biomass, sand, gravel, gravel, wood, environmental analysis laboratory, hazardous product transport [FOB], construction companies and well drillers) of the total number of contracted suppliers

*Tegra considers Brazilian suppliers and those operating in Brazil as local.

SUSTAINABILITY REPORT 2019

SOCIAL PERFORMANCE

Promotion of culture

Engagement and recognition of suppliers

2019

Provide housing, generate jobs, stimulate the economy and improve the communities where we operate. These are the foundations of Tegra Incorporadora’s purpose. However, we believe our work is never done. That is why we constantly invest in promoting education, art and culture to help develop our society. The construction industry has historically employed workers with generally lower schooling rates. According to the 2015 National Household Survey (PNAD), performed by the Brazilian Institute of Geography and Statistics (IBGE), the level of schooling of workers in this industry in Rio de Janeiro and São Paulo is seven years, on average (i.e. incomplete Elementary School). Therefore the company embraced this challenge to improve these numbers.

(GRI 414-1)

Twice a year editions of the Tegra Suppliers Meeting are held, which have been taking place since 2017. The first event of 2019 brought together about 200 participants, representing 60 companies, and, in the second, 220 people, representing 65 companies, engaged in issues important to the company, including compliance policies, safety and sustainability. To participate in the meetings, the partners are selected within our supply chain in relation to the level of environmental and environmental criticality and the strategic relevance to our business. At the events, relevant information is shared, such as the developer's investment plans, future launches, work dates that will begin and discussion of expected performance.

Clube Paulistano Soccer Tournament

BRL 30,000.00

Men's Tennis Championships

BRL 15,000.00

Women's Tennis Championships

BRL 20,000.00

5 Hours Bike Sporting Event

BRL 25,000.00

Footvolley event in Maresias

BRL 40,000.00

Swiss Park Children's Day

BRL 1,000.00

2 tennis championships in São Paulo and Campinas

BRL 14,000.00

Heliopolis Orchestra

BRL 25,000.00

Pinheirão Tennis Tournament

BRL 140,000.00

Public Administration management developmentproject: Sustainable Development Goals

BRL 230,000.00

Santa Cruz College Sports Party

BRL 15,000.00

Mostra Design Week

BRL 55,000.00

SEO RosRace Volunteer Actions (Junior Achievement) Oscip Masters of the Work Actions

2019

18 BRL

Projects supported

933,556.02 Invested

SUSTAINABILITY REPORT 2019

BRL 40,000.00

International Tennis Championships in Campinas

Among the initiatives supported by Tegra are the schooling and book exchange initiatives at the worksite, art and education projects and sponsorships, activities with public school students and sponsoring the Heliopolis Orchestra.

In 2019, all suppliers in the production chain were encouraged to participate in an award, presenting projects and practical methods in sustainability, work safety, innovation and productivity. More than 20 projects were received in the various themes and eight suppliers were recognized that presented cases considered adherent to Tegra's work philosophy. These initiatives and best practices were shared in a recognition event with the other suppliers present.

Corrida Lua

SUSTAINABILITY REPORT 2019

BRL 50,000.0-0 BRL 9,418.40 BRL 114,240.00 BRL 89,897.53 BRL 933,556.02

SOCIAL PERFORMANCE

2020/21 Initiatives Commitments, projects being structured and underway, with a focus on sustainability:

SUSTAINABILITY GOVERNANCE 1. Adherence to the Brazil Global Compact Network 2. Structure engagement actions under the Sustainable Development Goals ENVIRONMENTAL 1. Establish clear goals for employees, directors and suppliers to develop enterprises with water and energy autonomy. 2. Carry out the first inventory of greenhouse gas emissions in scopes I, II and III and establish objective reduction targets. 3. Carry out the necessary actions to make Tegra an AQUA Developer – certification that attests to the adoption of international sustainable construction standards. 4. Monitor consumption indicators by corporate areas, including Diesel Oil (Generator Sets), Gasoline (Fleet Vehicles), Diesel (Fleet Vehicles); Ethanol (Fleet Vehicles); LPG (Kitchen and showers); Kerosene (Air Travel), in order to identify mitigation opportunities. 5. Expansion of reverse logistics practices for other materials in 100% of the construction sites. 6. Implement the Reintegra program in enterprises where the program is applicable. 7. Reduce the use of wood in the works (Pilot metal construction site). 8. Replace the traditional version of aggregated materials with recycled ones, such as underground floors, terrain adjustments and drainage. 9.Prepare annual calendar of actions related to the Environment.

TEGRA HOUSE

10. Conduct study on consumption in delivered enterprises (common areas).

PEOPLE 1. Maintain the use of internal public in new vacancies that are opened.

Inaugurated in 2018 at Oscar Freire street, in São Paulo, Casa Tegra is a

2. Study pilot for elementary school in the job sites.

public space designed to promote culture, share ideas, and host events

3. Intensify the culture of safety as a value for employees, during their activities at work, but also in their home.

across a wide range of different areas, such as architecture, urbanism,

4. Expand among employees the promotion of the theme Conduct and Ethics for a healthier, more straightforward and respectful corporate environment.

technology, innovation, mobility, sustainability, art, and design. The area was designed based on an open-square concept, with lots of green, cozy spots and pet-friendly, in order to promote integration with society and bring some comfort to the urban setting.

5. Establish a partnership with an institution specialized in Diversity and gender promotion, to improve women's participation in our business. 6. Conduct an internal diagnosis of opportunities, promote discussion groups, training and awareness about Diversity through lectures and training. 7. Improve the Reclame Aqui score, maintaining the “Good” score. 8. Intensify training, endomarketing actions and communication of trading strategies and goals for brokers. 9. Achieve zero High Risk accidents with contact.

RELATIONSHIP 1. Develop the Policy of Urban Kindnesses to guide private social investment actions, in addition to the mandatory compensation.

SUSTAINABILITY REPORT 2019

GRI CONTENT INDEX (GRI 102-55) Governance

General Disclosures Organizational Profile

GRI Standard

Disclosure

Page/URL

102-1 Name of the organization

GRI 102: General Disclosures 2016

GRI Standard Omission

102-2 Activities, brands, products and services

13. 14

102-3 Location of headquarters

13. 14

Disclosure

Page/URL

102-18 Governance structure

102-19 Delegating authority

102-20 Executive-level responsibility for economic, environmental, and social topics

102-4 Location of operations

102-21 Consulting stakeholders on economic, environmental, and social topics

102-5 Ownership and legal form

102-22 Composition of the highest governance body and its committees

102-6 Markets served

102-23 Chair of the highest governance body

102-7 Scale of the organization

102-24 Nominating and selecting the highest governance body and its committees

102-25 Conflicts of interest

102-26 Role of highest governance body in setting purpose, values, and strategy

102-27 Collective knowledge of highest governance body

102 -28 Evaluating the highest governance body’s performance

102-29 Identifying and managing economic, environmental, and social impacts

102 -30 Effectiveness of risk management processes

102 -31 Review of economic, environmental, and social topics

102 -32 Highest governance body’s role in sustainability reporting

102-33 Communicating critical concerns

102-8 Information on employees and other workers

14, 53, 54, 56

102-9 Supply chain

102-10 Significant changes to the organization and its supply chain

102-11 Precautionary Principle of approach

GRI 102: General Disclosures 2016

Tegra does not adopt the Precautionary Principle

102-12 External initiatives

102-13 Membership of associations

Strategy

GRI Standard

Disclosure

GRI 102: General Disclosures 2016

102-14 Statement from senior decision-maker

Page/URL 14

102-15 Key impacts, risks, and opportunities

14, 16, 20

102-35 Remuneration policies

102-36 Process for determining remuneration

102-37 Stakeholders’ involvement in remuneration

Stakeholder engagement

Ethics and integrity

GRI Standard

Disclosure

GRI 102: General Disclosures 2016

102-16 Values, principles, standards and norms of behavior

Page/URL

Omission

GRI Standard

19, 23

102-17 Mechanisms for advice and concerns about ethics

No critical concerns were reported in 2019

102 -34 Nature and total number of critical concerns

Omission

GRI 102: General Disclosures 2016

Disclosure

Page/URL

102 -40 List of stakeholder groups

22, 25 and 26

102-41 Collective bargaining agreements

102 -42 Identifying and selecting stakeholders

102 -43 Approach to stakeholder engagement

25 and 26

102 -44 Key topics and concerns raised

SUSTAINABILITY REPORT 2019

Omission

SUSTAINABILITY REPORT 2019

Omission

GRI CONTENT INDEX

(GRI 102-55)

Reporting practice

GRI Standard

Disclosure

Page/URL

102-45 Entities included in the consolidated financial statements

GRI 102: General Disclosures 2016

Procurement practice

102-47 List of material topics

102-48 Restatements of information

102-49 Changes in reporting

102-50 Reporting period

102 -51 Date of most recent report

102-52 Reporting cycle

102 -53 Contact point for questions regarding the report

102-55 GRI Content Index 110-122

GRI Standard

29, 90

102 -46 Defining report content and topic Boundaries

102 -54 Claims for reporting in accordance with the GRI Standards

Omission

GRI 103: Management approach 2016

GRI 203: Procurement practices 2016

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

204-1 Proportion of spending on local

Omission

suppliers at significant locations of operation

Anti-corruption

The report was prepared in accordance with the GRI Standards: CORE

GRI Standard

80 to 90

102-56 External assurance

Disclosure

GRI 103: Management approach 2016

90 and 91

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

103-3 Evaluation of the management

approach GRI 205: Anti-corruption 2016

205-2 Communication and training about

20, 21

anti-corruption policies and procedures 205-3 Confirmed incidents of corruption and actions taken

Material topics

Omission

20, 21

Economic performance

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

201-1 Direct economic value generated and distributed

201-2 Financial implications and other risks GRI 201: Economic performance 2016

Omission

Anti-competitive behavior

GRI Standard

GRI 103: Management approach 2016

and opportunities due to climate change

Disclosure 103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach and application of the

201-3 Defined benefit plan obligations

material topic and its Boundaries

53 and 54

and other retirement plans

GRI 206: Anti-competitive behavior 2016

201-4 Financial assistance received from government

206-1 Legal actions for anti-competitive behavior, anti-trust and monopoly practices

Indirect economic impacts

GRI Standard

GRI 103: Management approach 2016 GRI 203: Indirect economic impacts 2016

Disclosure

Page/URL 31

103-2 The management approach and its components

103-3 Evaluation of the management approach

203-1 Infrastructure investments and

services supported

65, 70

203-2 Significant indirect economic impacts

Omission

Materiais

103-1 Explanation of the material topic and its Boundaries

SUSTAINABILITY REPORT 2019

Page/URL

Omission

GRI Standard

GRI 103: Management approach 2016

GRI 301: Materials 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

33, 37

103-2 The management approach and its components

33, 37

103-3 Evaluation of the management approach

301-1 Materials used by weight or volume

301-2 Recycled input materials used

SUSTAINABILITY REPORT 2019

37, 38

Omission

GRI CONTENT INDEX

(GRI 102-55)

Energy

GRI Standard

GRI 103: Management approach 2016

GRI 302: Energy

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Omission

GRI Standard

GRI 306: Effluents and waste 2016

42, 43, 44

302-1 Energy consumption within the organization

42, 43

302-4 Reduction of energy consumption G4 - Sector Disclosures Construction and Real Estate

Effluents and waste

GRI 306: Effluents and waste 2016

CRE1 - Building energy intensity 42

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

306-1 Water discharge by quality and destination

306-2 Waste by type and disposal method

Omission

46, 48 Not applicable

306-3 Significant spills 306-4 Transport of hazardous waste

306-5 Water bodies affected by water discharges and/or runoff

Water

GRI Standard

GRI 103: Management approach 2016

GRI 303: Water 2016 G4 - Sector Disclosures Construction and Real Estate

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

303-1 Water withdrawal by source

303-3 Water recycled and reused

Omission Environmental compliance

GRI Standard

GRI 103: Management approach 2016

CRE2 - Building water intensity GRI 307: Environmental compliance 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

307-1 Non-compliance with environmental laws and regulations

Omission

Biodiversity

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Omission GRI Standard

GRI 103: Management approach 2016

304-1 Operational sites owned, leased, managed in, GRI 304: Biodiversidade

or adjacent to, protected areas and areas of high biodiversity value outside

Land Degradation, Contamination and Remediation

protected areas

G4 - Sector Disclosures Construction and Real Estate

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Omission

CRE5 - Land remediated or in need of remediation 50

Emissions

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

33, 45

103-2 The management approach and its components

33, 45

103-3 Evaluation of the management approach

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

G4 - Sector Disclosures Construction and Real Estate

CRE3 - Emissions from buildings

Tegra does not carry out Emissions Inventory

CRE4 - Emissions from new construction and redevelopment activity

SUSTAINABILITY REPORT 2019

Supplier environmental assessment

33 45

G4 - Sector Disclosures Construction and Real Estate

Omission

Tegra does not carry out Emissions Inventory

GRI Standard

GRI 103: Management approach 2016

GRI 308: Environmental assessment of suppliers

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

308-1 New suppliers that were screened using environmental criteria

308-2 Negative environmental impacts in the supply chain and actions taken

SUSTAINABILITY REPORT 2019

Not applicable

Omission

GRI CONTENT INDEX

(GRI 102-55)

Employment

GRI Standard

Page/URL

Disclosure 103-1 Explanation of the material topic and its Boundaries

GRI 103: Management approach 2016

GRI 401: Employment 2016

Freedom of association and collective bargaining

Omission

GRI Standard

103-2 The management approach and its components

103-3 Evaluation of the management approach

401-1 New employee hires and employee turnover

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 401-3 Parental leave

GRI 103: Management approach 2016 GRI 407: Freedom of association and collective bargaining 2016

53, 54

Page/URL

Disclosure 103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Omission

407-1 Operations and suppliers in which the right to 62

freedom of association and collective bargaining may be at risk

Occupational health and safety

GRI Standard

GRI 103: Management approach 2016 GRI 403: Occupational health and safety 2016 G4 - Sector Disclosures Construction and Real Estate

Page/URL

Disclosure 103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Omission

GRI Standard

GRI 103: Management approach 2016

GRI 408: Child labor 2016

CRE6 - Percentage of the organization operating in verified compliance with an internationally recognized health and safety management system

Child labor

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

408-1 Operations and suppliers at significant risk

Omission

for the occurrence of child labor

Training and education

GRI Standard

GRI 103: Management approach 2016

Page/URL

Disclosure 103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Omission

GRI Standard GRI 103: Management approach 2016

404-1 Average hours of training per year per employee

GRI 404: Training and education

Forced or compulsory labor

55 GRI 409: Forced or compulsory labor 2016

Diversity and equal opportunities

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

Non-discrimination

GRI 103: Management approach 2016

GRI 406: Nondiscrimination 2016

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

406-1 Incidents of discrimination and corrective actions taken

SUSTAINABILITY REPORT 2019

103-2 The management approach and its components

103-3 Evaluation of the management approach

Local communities

GRI Standard

Page/URL

for incidents of forced or compulsory labor

GRI 103: Management approach 2016

Disclosure

103-1 Explanation of the material topic and its Boundaries

Omission

409-1 Operations and suppliers at significant risk

GRI Standard

Page/URL

Omission

405-2 Ratio of basic salary and remuneration of women and men

GRI 405: Diversity and equality of rights

Disclosure

Omission

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

413-1 Operations with local community engagement, GRI 413: Local communities 2016

65, 70

impact assessments, and development programs 413-2 Operations with significant actual and potential

65, 70

negative impacts on local communities G4 - Sector Disclosures Construction and Real Estate -

Not applicable

CRE7 - Number of persons voluntarily and involuntarily displaced and/or resettled by development

SUSTAINABILITY REPORT 2019

Omission

GRI CONTENT INDEX

(GRI 102-55)

Supplier social assessment

GRI Standard

Socioeconomic compliance

Disclosure

Page/URL

GRI 414: Supplier social assessment 2016

GRI Standard

103-1 Explanation of the material topic and its Boundaries GRI 103: Management approach 2016

Omission

103-2 The management approach and its components

103-3 Evaluation of the management approach

414-1 New suppliers that were screened using social criteria

GRI 103: Management approach 2016 GRI 419: Socioeconomic compliance 2016

65, 73, 75, 76

s414-2 Negative social impacts in the supply chain and actions taken

Not applicable

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

419-1 Non-compliance with laws and regulations in the social and economic area

Política pública

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

415-1 Political contributions

GRI 415: Public policy

Omission

Not applicable

Saúde e Segurança do consumidor

GRI Standard

GRI 103: Management approach 2016

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

416-1 Assessment of the health and safety impacts of product and

GRI 416: Customer health and safety 2016

58, 65, 67, 72

service categories 416-2 Incidents of non-compliance concerning the health and safety

Omission

Not applicable

impacts of products and services

Marketing e rotulagem

GRI Standard

GRI 103: Management approach 2016

GRI 417: Marketing and labelling

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

417-1 Requirements for product and service information and labelling

Not applicable

417-2 Incidents of non-compliance concerning product and service

Not applicable

Omission

information and labelling

G4 - Sector Construction and Real Estate

417-3 Incidents of non-compliance concerning marketing communications

Not applicable

CRE8 - Type and number of sustainability certification, rating and labeling

Not applicable

schemes for sustainability for new constructions, management, occupation and development

Privacidade do cliente

GRI Standard

GRI 103: Management approach 2016 GRI 418: Customer privacy

Disclosure

Page/URL

103-1 Explanation of the material topic and its Boundaries

103-2 The management approach and its components

103-3 Evaluation of the management approach

418-1 Substantiated complaints concerning breaches of customer

Omission

privacy and losses of customer data

SUSTAINABILITY REPORT 2019

Not applicable

Omission

ABOUT THE REPORT Independent Auditors’ Limited Assurance Report on the Tegra Incorporadora S/A’s - Tegra’s Annual Sustainability Report based on GRI – Standards (In accordance – “Core”)

(GRI 102-32 / 102-45 / 102-48 / 102-49 / 102-50 / 102-51 / 102-52 / 102-53 / 102-54 / 102-56)

To the Shareholder, Advisers and Directors of Tegra Incorporadora S/A São Paulo – SP

This is the first sustainability report published by Tegra Incorporadora, released only three years after the company’s establishment, based on a schedule of annual publication. Its

Introduction

main goal is to share with our direct and

We were engaged by Tegra Incorporadora S/A (“Company” or “Tegra”) management to present our limited assurance report on the information contained in the Annual Sustainability Report based on Global Reporting Initiative (“GRI”) – Standards for the twelve-month period ended December 31, 2019 (“Report”).

indirect audiences our insights regarding our trajectory and activities in the market, particularly regarding the sustainability of our

Management and governance responsibilities for the Report

operations, underlining our achievements and governance, economic, social and

Tegra´s management is responsible for preparing and presenting appropriately the information contained in Report in accordance with criteria, assumptions and requirements of the GRI guidelines (In accordance – “Core”), and for the internal controls as management determines is necessary to enable the preparation of information free from material misstatement, whether due to fraud or error.

environmental aspects.

Independent auditors’ responsibility

opportunities for improvement concerning

The report abides by the Global Reporting

Our responsibility is to express a conclusion on the Tegra’s Report information, based on the limited assurance work conducted in accordance with Technical Notice of Ibracon № 07/2012, approved by the Brazil’s National Association of State Boards of Accountancy (CFC) in light of NBC TO 3000 (Assurance Work Other Than Audit or Review), issued by the CFC, which is equivalent to international standard ISAE 3000, issued by the International Federation of Accountants, applicable to non-historical information. These standards call for compliance with ethic requirements, including independence and work carried out to obtain limited assurance that the Report is free of material misstatement.

Initiative (GRI) guidelines, under the Essential option, covering information pertaining to the year of 2019. Moreover, the company undertakes to regularly publish all related information as of this initial report.

A limited assurance work conducted in accordance with NBC TO 3000 (ISAE 3000) consists mainly of inquires of management and other professionals from Tegra who were involved in the preparation of the Report, as well as of the application of additional procedures deemed necessary to obtain evidence which enables us to conclude on the limited assurance on the Report. A limited assurance work also requires additional procedures, as the independent auditor becomes aware of matters that lead him to believe that the Report information may contain material misstatement.

Throughout the entire content approved by the Executive Board, including the CEO, we sought to demonstrate how the company addresses the aspects detailed

The selected procedures relied on our understanding of the aspects concerning the compilation and presentation of the Report information in accordance with criteria, assumptions and own methodologies from Tegra. The procedures comprised:

in the Materiality Matrix, identifying as material subjects ecoefficiency, emissions, water, energy and waste – human rights,

a) the planning of the work, considering the materiality, the volume of quantitative and qualitative information and the operating and internal control systems which supported the preparation of the Report; b) the understanding of the calculation methodology and the procedures for preparation and compilation of the Report through interviews with management in charge of preparing the information; c) the application of analytical procedures on quantitative information and sample verification of certain evidence supporting the data used for the preparation of the Report; d) comparison of the financial indicators with the financial statements and/or accounting records.

financial capacity, integrity and safety in civil construction. Tegra’s Sustainability Report was audited by EY.

The procedures applied in this limited assurance work also comprised compliance with the guidelines of the structure for development of the GRI applicable in the preparation of the information contained in the Tegras`s Report.

Channels for comments and questions regarding this report:

We believe that the evidence obtained in our work was sufficient and appropriate to provide a basis for our limited conclusion.

Website: www.tegraincorporadora.com.br Email: sustentabilidade@tegraincorporadora.com.br Phone: (11) 3127-9200

SUSTAINABILITY REPORT 2019

Scope and limitations The procedures applied in a limited assurance work are substantially less in scope than those applied in an assurance work aimed at issuing an opinion on the Report information. As a consequence, we are not in a position to obtain assurance that we are aware of all matters which would be identified in an assurance work aimed at issuing an opinion. Had we carried out a work to issue an opinion, we could have identified other matters or misstatements in the Report information. Accordingly, we did not express an opinion on this information. In addition, Tegra's internal controls were not part of our limited assurance scope. The non-financial data is subject to further inherent limitations than financial data, given the nature and diversity of methods used to determine, calculate or estimate such data. Qualitative interpretations of materiality, significance and accuracy of data are subject the individual assumptions and judgments. Also, we did not carry out any work on data reported for prior periods nor in relation to future projections and goals. Conclusion Based on the procedures performed and herein described, nothing came to our attention that makes us believe that the GRI KPIs presented on the Report, for the twelve-month period ended December 31, 2019, was not prepared, in all material respects, in accordance with criteria, assumptions and methodologies for the preparation of the KPI´s based on requirements of the Global Reporting Initiative – Standards (In accordance – “Core”). São Paulo (SP), September 11th, 2020. Ernst & Young Auditores Independentes S.S CRC-2SP015199/O-6

Leonardo Masseli Dutra Expert Group: Technical Reviewer

Camila M. Ribeiro Quality Review Partner – CRC 1RJ108039/O-6

SUSTAINABILITY REPORT 2019