Action plans to combat water scarcity

The company's Climate Change Adaptation Plan highlighted the risk of water scarcity as the main potential threat to the company's operations and remains the basis for mitigating impacts and initiating action plans. The water risk affects 04 Basins where we operate, Rio de Janeiro, Bahia, Alagoas and São Paulo (Cubatão and Paulínea). For each of these Basins, a specific risk study was carried out and an internal price of water was calculated based on the DEVESE methodology from FGVces. This information gave rise to Action Plans that led to the development of studies of alternative sources of water for the basins at risk in order to neutralize them. In 2018, it is expected to make decisions about which alternative sources will be used, so that we can start the processes to, in the short / medium term, have the alternatives in operation, neutralizing risks / impacts. For inclusion in the strategy, there is a macro objective in the company's strategy focused on Water, and with a Sponsor, vice-president, who periodically monitors and validates the planned and/or ongoing actions.