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VC Integrated Report 2021

Integrated Report

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175 views115 pages

VC Integrated Report 2021

Integrated Report

Uploaded by

martinaradilla

We take content rights seriously. If you suspect this is your content, claim it here.

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Download as PDF, TXT or read online on Scribd

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INTEGRATED REPORT 2021

OUR VC WAY: CREATING CHANGES WHILE REMEMBERING OUR HISTORY

The cover of this Integrated Report illustrates two Our journey is one of courage, of moving and
moments in the history of Votorantim Cimentos. It supporting lives and careers. We renew our plans and
combines a photo from the 1930s of a cement kiln at commitments to people and the countries where we
the Santa Helena plant in Brazil with a modern kiln at are present on a daily basis. We are a team willing to
the Hasanoglan plant in Turkey. dream and fight for what we want to build.

This integration of past and present represents the Our realization begins with the transformation of the
development of our company over time. As part of this lives of our customers, our people and each one of us,
dynamic world, we, too, are constantly changing. We as we create a history based on character, respect and
change to last by reconnecting with our essence, while strength. Each day, we enhance our ability to win and
honoring the past, living the present and focusing on grow by delivering sustainable results.
the future we want to build. This is Our VC Way, which
We have a history that spans 88 years. Some of our
represents our journey of cultural evolution—our way
important milestones can be found in the timeline
of creating changes while remembering our history.
published in this report, which illustrates our journey of
We are a company made up of people who do, believe evolution, achievements and lessons that make us very
and build. Our Way of Being is ethical and respectful; proud of the company we are today—a company that
our Way of Doing is together, with excellence; and Our moves forward, with its strategy and culture united in
Way of Thriving is with courage to transform. Our VC Way.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

FIRST MAJOR
CONSTRUCTION
CONSTRUCTION OF THE PROJECT: VIADUTO CONCRETE BUSINESS: EXPANSION IN
FIRST PLANT IN SANTA DO CHÁ, IN SÃO ACQUISITION OF EUROPE, ASIA LAUNCH OF LAUNCH
HELENA, BRAZIL PAULO, BRAZIL ENGEMIX AND AFRICA JUNTOS SOMOS + OF VITER

19 3 3 19 36 19 38 200 1 2002 2007 20 12 20 17 20 18 20 19 2020 202 1

START OF OPERATIONS FIRST EXPANSION IN INAUGURATION LAUNCH OF START UP OF PECEM
IN SANTA HELENA, INTERNATIONAL SOUTH AMERICA OF PLANTS IN VERDERA AND II, ACQUISITION OF
BRAZIL EXPANSION BOLIVIA AND ACQUISITION BALBOA, SUPERIOR
(NORTH AMERICA) TURKEY OF UNITED AND VALLEY VIEW
MATERIALS AND ADDITION
OF MCINNIS
—
INDEX
—

01 02 03 04 05 06 07 08 09 10 11
ABOUT MESSAGE FROM VOTORANTIM 2021 OUR STRATEGY AND CORPORATE FINANCIAL CARING COMPETITIVENESS BUILDING A ANNEX
THE REPORT THE GLOBAL CIMENTOS HIGHLIGHTS CONNECTION WITH GOVERNANCE MANAGEMENT FOR PEOPLE & INNOVATION POSITIVE LEGACY
LEADERSHIP SUSTAINABILITY

O Transparency O Amessage O Abuilding O 2021 O Our VC Way O Boards

and O Global O Our O Innovation O Circular Economy: O External reader
from the CEO materials and Hightlights committees Results employees Verdera, Cementitious
O Materiality sustainable O Our strategy O Logistics and Viter O GCCA Charter
O Amessage solutions O Ethics
and O Safety,
health
O Our from the Board company O Sustainability compliance and well- O Customer O Energy efficiency
O KPIS GCCA
stakeholders and 2030 being focus
O Operations commitments O Risk O Sustainable supply
management O Diversity chain O GRI Content index
and activities
O Decarbonization
around the
world O Training
and O Environmental O SASB Content
O ESG Ratings development management Index
O External
commitments O Biodiversity
and O GRIand SASB
Water Resources Standards
Disclosures
O Social transformation

O Our impacts O Assurance Letter

O Monitoringour O Corporate
2030 targets information
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
5
–

EMPLOYEE IN OUR PLANT IN MOROCCO

—
TRANSPARENCY
—
|GRI 102-50, 102-52, 102-54, 102-56|

As part of our commitment to transparency in presenting strategies, Standards Board (SASB) standards for the Building Materials industry. The (CPC). The data includes the companies that are consolidated in our
impacts, risks and opportunities, since 2013 we have reported on report also includes the recommendations of the Task Force on Climate- results, which can be found on page 100.
our environmental, social and governance efforts, as well as on our Related Financial Disclosure (TCFD) regarding the disclosure of climate
Non-financial information relating to ESG (environmental, social
economic and financial performance, annually and independently. risks and opportunities. The GRI Standards and GCCA performance are
and governance) topics is based on corporate procedures and on
The information includes results and how we manage our most continuously monitored as part of our everyday management and are
environmental and quality standards and certifications. Information
critical issues from the point of view of our business and our key aligned with the principles of the United Nations (UN) Global Compact
relating to Argentina, where we do not have control over the operations,
stakeholders, so that they can more fully understand and monitor and Sustainable Development Goals (SDG) |102-54|.
is recognized in the financial statements as an equity accounted investee
our work closely. |GRI 102-52|
The financial information is presented in accordance with the International and is not included in social and environmental indicators.
We prepared this document based on the guidelines of the Financial Reporting Standards (IFRS) issued by the International Accounting
The report covers the period between January 1 and December 31, 2021;
International Integrated Reporting Council (IIRC), the GRI Sustainability Standards Board (IASB) and follows the interpretations of the International
the financial information was audited by PwC and the non-financial
Reporting Standards – Core option, the Global Cement and Concrete Financial Reporting Interpretations Committee (IFRIC). We also follow the
information (ESG) was assured by Bureau Veritas. |GRI 102-50, 102-52, 102-56|
Association (GCCA) guidelines and the Sustainability Accounting guidelines issued by the Brazilian Accounting Pronouncements Committee

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
6
–

—
MATERIALITY
—
|GRI 102-40, 102-43, 102-44, 102-46, 102-47, 103-1|

To identify our material topics, in our last cycle (2020),

we interviewed nine company leaders and six stakeholder
representatives (customers, investors, suppliers, non-profit
SUSTAINABLE
organizations and experts). We also administered an online DEVELOPMENT
questionnaire to employees, investors, customers, suppliers, NGO GOALS (SDG)
representatives, community members, university faculties and public
Votorantim Cimentos is
authorities. This questionnaire was made available in the six local
a signatory of the United
languages of the countries where we operate (Arabic, English,
Nations Global Compact.
French, Portuguese, Spanish and Turkish). In all, we heard 237
In addition, the material
people, of whom 165 were employees and 72 were representatives
topics we identified were
of external stakeholder groups. This diversity enabled us to include
connected to the Sustainable
points of view from different cultures and segments, thus ensuring
Development Goals (SDGs),
that the results accurately represented our stakeholders. |GRI 102-43|
a global agenda with 17
objectives and 169 targets
PHASES OF THE MATERIALITY PROCESS to be achieved by 2030.
The integration of the
SDGs into our activities
Identification Prioritization Analysis Validation aims to align our entire
operation with the current
O Identification of O Identification of the O Analysis of the O Discussion of the and future needs of society
internal documents perceptions of the results from the materiality matrix with while also creating shared
stakeholders through: previous phases the company leadership value, producing a positive
O Identification of industry
documents/ commitments 1 – Online questionnaire O Development of O Identification of risks impact on the value chain
Benchmarking with the
materiality matrix and opportunities and contributing to the
O 2 – Guided interviews
of material topics achievement of the SDGs.
main players in the sector
O Stakeholder mapping

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

MATERIAL TOPICS |GRI 102-44, 102-46, 102-47, 103-1|

The GRI Standards and AA1000 (2015) methodologies were the benchmarks for materiality and stakeholder engagement. The process, conducted by the consulting firm
Report Sustentabilidade, identified eight material topics that guided the creation of content for this report |GRI 102-46|. The topics are detailed below:

Stakeholder group Alignment with

Topic/Description Why it is material Boundaries Involvement that raised our 2030 Related SDG
to Votorantim Cimentos with impacts the topic Commitments and specific target

1.
Impact of climate change on the The cement sector is one of the world’s Impacts all O Leadership O Leadership Environmental
operations, greenhouse gases highest emitters of greenhouse gases (GHG) Votorantim Cimentos O Experts O Investors Footprint
Climate emissions, CO2 and climate risk | Competitiveness | Demands and pressures operations and the O Suppliers
change management strategy from customers and society | Environmental, whole society O Government
reputational and regulatory risks O Customers 13.2, 13.3

2.
Development of eco-efficient Competitiveness | Operational eco-efficiency Impacts all O Leadership O Suppliers Innovation Innovation
technologies, sustainable products, | Solutions for more affordable construction | Votorantim Cimentos O Experts O Experts Experts
Innovation investment in innovations Financial risk operations and, O Employees O Universities Universities
and directly or indirectly, O NGOs NGOs
technology the whole society O Government Government
9a, 9b, 9c, 9.4 11.c 17.16

3.
Community autonomy, open Solutions that improve the quality of life for Impacts, directly or O Leadership O Leadership Communities and
dialogue, local community families in vulnerable conditions | Increased indirectly, all our O Experts O Investors shared value
Responsible development, local community participation of local suppliers | Boost local operations and all O Employees O Suppliers
relationship involvement, impact and value businesses | Social engagement the communities O Community O Experts
with the creation where we operate O Universities
community and sell our O NGOs 1b 4b, 4c
products O Community
O Government
O Customers
O Employees

10.4, 10.2 11.a, 11.c

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

...
–
8
–
Stakeholder group Alignment with
Topic/Description Why it is material Boundaries Involvement that raised our 2030 Related SDG
to Votorantim Cimentos with impacts the topic Commitments and specific target

4.
Employee diversity and inclusion, Maintain qualified professionals to support Directly impacts O Leadership O Experts Diversity
employee development and business growth and efficiency | Organizational all our employees, O Experts O Universities
Employee engagement, talent retention, climate | Diversity and inclusion, expression of suppliers and O Employees O Leadership
development compensation, preservation of true self contractors O Suppliers O Employees
human rights
4b, 4.6 5c, 5.5 8.3, 8.5, 8.7, 8.8

5.
Integrity and compliance, ethical Ensuring high standards of compliance, ethics Directly impacts all O Leadership O Customers Ethics and
and transparent relationships, price and transparency is the path to excellence company employees O Experts O Experts integrity
Ethics, integrity and antitrust compliance, and operations, and O Employees O Universities
integrity and legal compliance and compliance all stakeholders O NGOs
transparency with standards of relationship with O Community
16b, 16.10 17.7, 17.17
competitors O Employees

6.
Solid waste management, Maintain competitiveness in the medium and Impacts all O Leadership O Leadership Circular economy
responsible use of fuels, raw long terms, generating value for shareholders, Votorantim Cimentos O Experts O Customers
Responsible materials and natural resources, employees and the whole society operations and,
use of product life cycle analysis, circular directly or indirectly,
materials, economy, reuse and recycling the whole society
11c 12.a, 12.3, 12.4,
waste and 12.5, 12.6 12.8
circular
economy

7.
Assessment and mitigation of Ensure a quick response whenever we identify Impacts, directly O Leadership O Leadership Ethics and
risks to which the business is a topic with a potential negative impact on the or indirectly, O Customers O Investors integrity
Risk and crisis exposed, assessment of market company’s performance all operations, O Investors
management risks, information management, employees,
confidentiality, crisis management customers and
16b, 16.10 17.7, 17.17
shareholders

8.
Healthy and safe working Safety comes first at VC | Industry is subject to Directly impacts O Leadership O Leadership Health, safety
conditions (for employees and high risk of occupational accidents all our employees, O Experts O Employees and well-being
Occupational contractors), ensuring the safety contractors and O Employees
health, well- of stakeholders who relate to the suppliers
being and company, safe operating processes 3.9 8.3, 8.5, 8.7, 8.8
safety

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
OUR STAKEHOLDERS Stakeholder Description Communication and engagement channels

— Shareholders Votorantim S.A. Board of Directors meetings, quarterly results conferences, conferences with investors focused on ESG, Integrated
Report, Compliance Day

The stakeholder groups with whom Financial Institutions Banks, investors, multilateral lending agencies Financial reports (quarterly and annual), roadshows, investor briefings, Integrated Report
we engage were determined based
on the analysis of economic, social Communities Groups of people living in the 11 countries Public meetings and consultations, open door-programs, community councils, complaint mechanisms, Ethics Line,
where we are present Ombudsman, website, Integrated Report, social media
and environmental impacts, actual or
potential, that our businesses have on Customers/consumers Trade (wholesale and retail), construction Website, apps (VC Online, Obra Fácil, Engemix app VC Ajuda), social media, loyalty programs (such as Juntos
individuals, groups of individuals and/ companies, government and industry Somos+, in Brazil; Asmenty, in Morocco; and Mercim, in Tunisia), Customer Relationship Management System - CRM
or organizations. At the same time, (chat and phone), online customer portal, Integrated Report, satisfaction surveys, e-mail marketing
we assessed how these stakeholders
Employees, contractors Employees, contractors and unions Workplace, ComVC, Psiu Bulletin Board, Internal Town Halls, Nesri News (Tunisia), Construyendo contigo (Spain),
can affect our activities based on
and unions Joussour Attawassoul (Morocco), VC Türkiye’de Yasam (Turkey), Coffee with the CEO (Turkey and Spain), Tea with the
their demands and perceptions. This CEO (Tunisia and Morocco), Employee Assistance Programs (EAPs), KnowBe4 cybersecurity portal, discusssions with
assessment was updated during the the leadership, meetings, performance evaluations, climate surveys, union negotiations, positive dialogue agenda,
process of identifying our material topics Integrated Report, themed events, intranet, Ethics Line
(read more in Materiality, on page 6).
Suppliers and partners Material and service providers; startups Meetings, apps (drivers app, Mi Ruta), SAP Ariba procurement platform websites, Integrated Report, social media
|GRI 102-40, 102-42, 102-43|

Government agencies Governments (federal, state and municipal) of Meetings, public consultations, website, Integrated Report
the 11 countries where we are present

Regulatory bodies National Mining Agency (ANM), more than 50 Meetings, public consultations, regulatory filings, websites, Integrated Report
environmental agencies and bodies (federal,
state and municipal)

Industry association National and international cement and concrete Meetings, participation in governance bodies, websites, Integrated Report, social media
associations

Social organizations United Nations Global Compact, Habitat for Meetings, participation in governance bodies, websites, Integrated Report, social media, sponsorships and
Humanity outreach

Academia and Schools and institutions of higher learning in Meetings, websites, Integrated Report, social media
research institutes the countries where we maintain a presence.

Influencers/media Media and opinion leaders Meetings, press releases, websites, industry publications Integrated Report, social media, Diálogos VC podcast

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
A MESSAGE FROM THE CEO

A YEAR OF ACHIEVEMENTS
—
|GRI 102-14, 102-15|
—
The year 2021 was marked by volatility. In the first months,
we still faced the major challenges brought by the COVID-19
"WE HAD THE HIGHEST
pandemic. However, as time passed, we were able—thanks largely
to vaccination—to resume some of our in-person activities, in a
REVENUE IN OUR COMPANY’S
hybrid work model that tends to be the new reality. As we say
at Votorantim Cimentos, we always hope for the best, while we
HISTORY, REDUCED OUR
remain prepared for the worst.
FINANCIAL LEVERAGE AND
From a financial standpoint, our results were better than we
anticipated. We had the highest revenue in our company’s history, IMPROVED OUR CREDIT
reduced our financial leverage and improved our credit metrics.
We expanded our business by acquiring two operations in Spain METRICS. WE EXPANDED
(one is still subject to approval by antitrust authorities) and two
in North America, as well as completed the transaction for the OUR BUSINESS BY
McInnis plant, which is fully operational now. We also expanded
our footprint in the Northeast of Brazil. ADDING TWO OPERATIONS
Due to the COVID-19 pandemic, central banks and governments
of the world’s wealthiest countries increased the liquidity of
IN SPAIN AND
the global economy; this action, which was essential to avoid
unemployment, had an unwanted side effect in the form of high
THREE IN NORTH AMERICA"
inflation. Constraints in supply and logistics chains put pressure
on input costs worldwide. In addition, several countries are facing
—
problems with power supply. In Spain, for example, energy prices Marcelo Castelli,
have increased by a factor of five due to the increase in the price of Global CEO of Votorantim Cimentos

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

natural gas across Europe, while Brazil faced a water crisis that obligated to do. Internally, we promoted an important evolution —
also resulted in higher costs for families and businesses. in our cultural journey, named Our VC Way. We looked to our

High costs affected our raw materials, many of them traded

past for stories, traditions and values that have brought us here. "WE RELY ON THE PASSION,
Listening to our teams, we recognized what honors our present
as commodities, with globalized prices. This did not affect our
determination to continue working in accordance with best
and makes us better and, together, we identified ways to thrive FOCUS AND COMPETENCE OF THE
and build an increasingly sustainable future for the company.
practices, while looking forward, aligned with society in the
pursuit of more sustainable solutions. We remain committed to We believe that this simple and straightforward vision will be
ENTIRE VC TEAM.
accelerate the decarbonization of our operations toward the
goal of producing carbon neutral concrete by 2050.
able to further integrate our operations in the 10 countries
where we operate, in line with our 2030 Commitments,
WE WILL CONTINUE TO WORK
We improved our performance in the use of alternative fuels
published in 2020.
WITH DEDICATION AND
(AFR), thanks to the efforts of all regions to expand the use of As always, we invested in innovation and digitalization projects,
new energy sources with lower air emissions. Co-processing worked side-by-side with our customers and further refined our TEAM SPIRIT, ALWAYS DOING
enables us to incorporate solid waste into our kilns, reducing governance practices. In the financial market, we raised funds
our environmental impact and production costs while diverting linked to sustainability targets. And we continued our journey WHAT IS RIGHT, WITH
materials from landfills. Through waste management and our toward becoming an increasingly diverse company, enabling
approach focused on the circular economy, we are actively all regions to preserve their local characteristics, leverage their ETHICS AND RESPECT. THIS
working to expand co-processing licenses in our plants. uniqueness and drive their development.

In all regions, we saw improvements in occupational safety We rely on the passion, focus and competence of the entire
IS OUR WAY OF BEING,
indicators during the year. We worked hard to protect the
health of our employees, with special emphasis on a major
VC team. We will continue to work with dedication and team
spirit, always doing what is right, with ethics and respect. This
WORKING AND THRIVING."
global effort to promote mental health at a very difficult time,
as a consequence of the coronavirus pandemic. We invested
is Our Way of Being, Working and Thriving. It is in our DNA.
That is how we are going to outperform ourselves once again
—
in several prevention protocols, carried out campaigns and and deliver on our aspirations to achieve a positive and more
Marcelo Castelli,
encouraged everyone to get fully vaccinated, to help save lives sustainable future.
Global CEO of Votorantim Cimentos
which, we believe, is something corporate citizens should be

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
A MESSAGE FROM THE BOARD

ON THE RIGHT PATH

—
|GRI 102-14, 102-15|

The year 2021 will be marked as one of the best in the

history of Votorantim Cimentos. True to our values, we put
the safety of our employees first. Despite all the challenges
posed by the coronavirus pandemic, we were always
ready to meet market needs and expectations, increasing
our production with a focus on our relationships with our
customers and suppliers.

We were able to increase our internationalization with the

acquisition of a cement plant in Spain, in addition to the
announcement of another acquisition in the country that is
still subject to approval by the local antitrust bodies, and three
Luiz Antonio Fabio Ermírio Francisco Clarissa Lins Johann Markus José Roberto Sérgio Malacrida
acquisitions in North America. In Europe, Cementos Balboa will dos Santos Pretti de Moraes de Sá Neto Akermann Ermírio de Moraes
increase our installed production capacity and activity in the
South of Spain and in Portugal and will keep us on our path to
reducing carbon emissions. In the United States, we acquired
total control of Superior Materials (a joint venture we had been In April 2021, a
a part of since 2010), strengthening our concrete operations, new independent
and purchased the operational assets of Valley View Industries — board member,
located in Illinois, which produce aggregates, crushed stone, Clarissa Lins,
shale, aglime and road construction products in America’s "DESPITE ALL THE CHALLENGES POSED BY THE joined our Board
heartland. In Canada, we entered a business combination to of Directors,
incorporate McInnis Cement into our portfolio, which further CORONAVIRUS PANDEMIC, WE WERE ALWAYS which now has
strengthens our presence in the Great Lakes region, Eastern seven members.
Canada and the Northeastern Coast of the United States. In READY TO MEET MARKET NEEDS AND EXPECTATIONS."
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
13
–

Brazil, we completed the footprint expansion in the Northeast, are committed to generating shared value and improving
with equipment and teams aligned with the increasing the quality of life for people in the communities where we
need to produce cement and concrete with a lower carbon are present. This brings us recognition as an increasingly
footprint. sustainable company that generates value for all our
stakeholders.
As important as growing is the consolidation of new
businesses. The excellent results of our business units All of these achievements help us to renew our confidence in
Verdera (focused on the waste management through the co- the new year. We bought new businesses and are working
processing of alternative fuels in cement plants), Viter (aglime), diligently to integrate them into our culture and operations;
MOV-C (focused on logistic and distribution) and all other we improved processes and learned continuously, reflecting
businesses adjacent to cement, such as mortars, concrete our organizational culture. We are committed to open
and aggregates, also point to the success of our long-term dialogue, act with ownership and maintain a customer focus
strategy. to achieve lasting results and, most importantly, to leave a
positive legacy for new generations. More than ever, we
We are committed to sustainability and to intensify the
believe we are on the right path to build an ever-stronger
internal dialogue on this very important topic, in 2020 we
Votorantim Cimentos.
established a working group on Decarbonization and ESG
PRIMAVERA PLANT
(environmental, social and governance) within our Board Board of Directors IN PARÁ, BRAZIL
of Directors and approved our 2030 Commitments. In
2021, we continued to monitor our progress and approved
the alignment of our CO2 targets with the Science Based
Target initiative (SBTi), reinforcing our commitment to —
decarbonization.

Another important item in our strategy is the generation of

"WE REMAIN FOCUSED ON OUR VISION OF THE FUTURE,
clean energy, which gained momentum with our decision
to invest in solar and wind power plants, in different
BASED ON THE CONCEPT OF FLEXIBLE SOLIDITY: WE OPERATE
regions where we operate.
WITH EXCELLENCE, SAFETY, ETHICS AND INTEGRITY,
We remain focused on our vision of the future, based on
the concept of flexible solidity: we operate with excellence, AND ARE FLEXIBLE TO MODERNIZE AND ADAPT
safety, ethics and integrity, and are flexible to modernize
and adapt to increasingly faster changes in the world. We TO INCREASINGLY FASTER CHANGES IN THE WORLD".

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

03
A building
materials and
sustainable
solutions company

Operations and
activities around
the world

External
commitments

VOTORANTIM CIMENTOS
PECÉM PLANT IN CEARÁ, BRAZIL
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
15
–

· OOOO
—
A BUILDING MATERIALS AND SUSTAINABLE SOLUTIONS COMPANY
—

OUR WAY OF BEING, WORKING AND THRIVING

|GRI 102-1, 102-2, 102-3, 102-4, 102-5, 102-6|

We are Votorantim Cimentos S.A., an international building We work with the certainty that we must change to last; we
materials and sustainable solutions company, in operation since 1933. combine the strength of a mature, long-cycle company with the
With corporate headquarters based in São Paulo, we are present in all flexibility needed to modernize and adapt to the new demands of
regions of Brazil and in 10 other countries on four continents. Leaders society by leveraging technological evolutions to make better use
in the Brazilian market for 88 years, we believe in entrepreneurship of resources, evolve processes and positively impact people’s lives.
and honor our past to build an increasingly sustainable future. Therefore, we believe and invest in innovation, digital transformation
and the diversity of our people and product portfolio, always with
Our shares are 100% owned by Votorantim S.A., one of the largest
safety, ethics, respect for the environment and a commitment to
investment holding companies in Brazil, with businesses in several
doing things the right way–values that
are non-negotiable for us.
sectors, including metals, aluminum, energy, orange juice, finance
and real estate. Together, the eight portfolio companies have more We follow a business to business (B2B) model with strong
than 500 operating units worldwide, with more than 35,000 direct participation in retail, industry, infrastructure, construction
and 9,000 outsourced employees. and agribusiness. We are one of the most vertically integrated
companies in the industry, with a diverse portfolio that includes
cement, concrete, aggregates, mortars, grouts, finishing products,
plasticizers, aglime and waste management (co-processing).

—
OUR SHARES ARE 100% OWNED BY VOTORANTIM S.A.,
CORPORATE OFFICE IN SÃO PAULO, BRAZIL
ONE OF THE LARGEST INVESTMENT HOLDING COMPANIES IN BRAZIL
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
16
–

A year of expansions and modernizations

|GRI 102-10, 102-14, 102-15|

In line with our strategy of solidifying our presence in more mature

markets, in 2021 we increased our number of operating units with the
completion of the expansion of a cement plant in Brazil and the addition
of three businesses in the United States and two in Spain (one of which
was still in the process of being concluded at the time of this report’s
publication). In addition, we are investing US$ 40 million in Uruguay to
make the production of Cementos Artigas more efficient and sustainable,
to strengthen our competitive position and financial performance.

CANADA | MCINNIS – On April 30, following approval by regulatory

authorities in Brazil, Canada and United States, we completed the
1
transaction to combine our St Marys Cement operations with McInnis
Cement, which was majority owned by Caisse de Dépôt et Placement du
Québec (CDPQ) in Canada. The new combined entity (St Marys) now has
an installed production capacity of 7.8 million tonnes of cementitious UNITED STATES | SUPERIOR MATERIALS – On July 31, we UNITED STATES | VALLEY VIEW – On August 9, we announced
material and includes plants in Canada (Bowmanville and St Marys, in acquired the remaining 50% of Superior Materials, located in the purchase of Valley View Industries operational assets located in
Ontario and McInnis Cement, in Quebec) and in United States (Detroit Detroit, Michigan from our partner. After the conclusion of this Illinois, an acquisition that was completed in August 31, reinforcing
and Charlevoix, in Michigan; Dixon, in Illinois; and Badger, in Wisconsin), transaction, the joint venture became a fully owned subsidiary our presence in the state. The assets, which were incorporated into
along with an extensive distribution network concentrated in the Great that is now consolidated by Votorantim Cimentos. As a result, we our Prairie Material business, operate in five locations and produces
Lakes region (on the border between the two countries), in the maritime expanded our concrete business and strengthened our presence aggregates, aglime, crushed stone, shale and road construction
provinces in Canada and on the Northeast Coast of the United States. in the Detroit metropolitan area. The company has 11 concrete products.
plants, two mobile concrete batch plants, a fleet of 170 trucks
and, most importantly, a team of 250 employees who are now BRAZIL | PECÉM – Our expansion of the Pecém plant, in the Brazilian
fully integrated into our VC team. “Our company was born in state of Ceará, started operating on July 11. The installation of a
— Brazil and has become increasingly internationalized, with VCNA second grinding line increased the unit’s cement production capacity
representing Votorantim Cimentos’ first major international from 200,000 tonnes to 1 million tonnes. In line with our sustainability
THE INTEGRATION OF MCINNIS expansion in 2001. As we refined our growth strategy, we strategy, the new unit uses state-of-the-art technologies to ensure
INCREASED OUR INSTALLED CEMENT CAPACITY explored ways that we could capitalize on market opportunities in more sustainable production, with less consumption of natural
our region, leading to the three major transactions we completed resources and an important reduction in CO2 emissions.
IN NORTH AMERICA BY 29% in 2021,” said Filiberto Ruiz, CEO of VCNA.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

SPAIN | CEMENTOS BALBOA – The purchase of Cementos Balboa, SPAIN | HEIDELBERGCEMENT – Finally, on November 10, we URUGUAY | ARTIGAS – Cementos Artigas, our subsidiary with
in Spain, was announced by VCEAA on June 29. The plant, located announced the acquisition of all HeidelbergCement operations in Cementos Molins, is consolidating its industrial activities in the city
in Alconera, in the Extremadura region, has an installed production the Andalusia region, Southern Spain, which include a modern of Minas, 100 kilometers from Montevideo. The project includes
capacity of 1.2 million tonnes of cement per year. This transaction is integrated cement plant, three aggregates mines and 11 concrete the installation of a new, state-of-the-art vertical mill and new
in line with our global growth strategy and represents an excellent plants. The cement plant is located in Malaga and has an installed cement silos with a 4,000 tonne capacity. This initiative, to be
opportunity to expand our presence in Southwest Spain and in production capacity of 1.4 million tonnes per year. Together with completed in 2022, provides greater efficiency and sustainability
Portugal. The deal was formally approved by Spanish regulatory Cementos Balboa, this new unit will enable us to further expand at the new facilities due to technologies that result in reduced
authorities on September 17 and officially closed on October 14. “In our presence in the Iberian Peninsula and leverage important energy consumption and the deactivation of the unit installed in
addition to increasing VC Spain’s installed production capacity to 4.3 synergies between existing assets in the country. This acquisition the urban center of Montevideo.
million tonnes of cement per year, an increase of more than 30%, is still subject to approval by Spanish antitrust bodies.
the new unit, which was inaugurated in 2005 and is very modern—
becoming the company’s newest in the country—will accelerate our
decarbonization program,” highlighted Jorge Alejandro Wagner, CEO
of VCEAA.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
X OPERATIONS AND ACTIVITIES AROUND THE WORLD
— Our facilities
|GRI 102-1, 102-2, 102-4, 102-6, 102-7| + 3 1 3 Pontevedra
✓ 2 5 22 11 2 Ontario
1 3 2 2 A Coruña
VOTORANTIM CIMENTOS
VCBR 148
INTERNATIONAL 6
1 1 1 2 Quebec 1 1 Ourense 61
(VCI5) VCEAA 75
✓ 1 4 2 Lugo
Canada Luxembourg VCNA 118
1 New Brunswick 3 1 Sevilla
1 Nova Scotia
Spain + BRANDS VCI VCLATAM 66 14
León ✓ 1
2
VOTORANTIM CIMENTOS 1 Maine
✓ 1 1 Córdoba Turkey 44 20
USA Cáceres 1 1 1 Málaga 1 3 Samsun
NORTH AMERICA
Badajoz 6 1
7
(VCNA1) 1 Rhode Island Huelva ✓ 1 1 Tunisia ✓ 1 Sivas 56

+ BRANDS VCNA 4 Ohio

4 1 2 New York
Morocco
✓ 1 1
Zaghouan 2 Kayseri 38
1
18 1
5
1 3 2 Kenitra 1 Nevsehir 10 2
✓ 1 1 11 1 Michigan 9 12 1
Wisconsin 1 4 Santa Cruz 16 2
10 9 4 1
2 Indiana de Tenerife ✓ 1 Yozgat 8 11 1
✓ 1 1 Temara

Cement griding
Distribuition Center

Lime and aglime

Mortar

Clinker facilities
Concrete plants

Aggregates

Cement (integrated)
1 Kırıkkale
1 7 23 3 1 Illinois
1 Bensliman
✓ 1 5 Ankara
4 1 Casablanca

VOTORANTIM CIMENTOS EUROPE,

ASIA AND AFRICA
Brazil (VCEAA1)
Installed cement capacity
+ BRANDS VCEAA in millions of tons

VOTORANTIM CIMENTOS 1 1 1 2
KEY
35.0 11.4 7.8 1.5
SOUTH AMERICA Bolivia3 VCBR VCEAA VCNA VCLATAM6
✓ Alternative Fuels
(VCLATAM1) Cement
9.5 South 4.3 Spain 4.2 Canada 0.9 Bolivia
1 1 1 6 11.1 Southeast 4.2 Turkey 3.6 USA 0.6 Uruguay
+ BRANDS VCLATAM
Griding 7.0 Northcentral 1.3 Morocco
Uruguay4 VOTORANTIM Clinker 7.4 Northeast 1.6 Tunisia
CIMENTOS BRAZIL Mortar
✓ 2 1 1 7 4 1
(VCBR1) Lime and Aglime
Argentina2
+ BRANDS VCBR Concrete
Aggregates
55.7 Global cement capacity total
Distribution Center 6
Numbers for Bolivia and Uruguay only, since Argentina’s operations are not consolidated.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

–

Distribution Center

Distribution Center
19

Alternative Fuels

Alternative Fuels
–

Lime & aglime

Aggregates

Aggregates
Subregion

Subregion
Concrete

Concrete
Cement

Cement
Griding

Griding
Clinker

Clinker
Mortar

Mortar
State

State
VOTORANTIM ALAGOAS (AL) Arapiraca 0 1 RONDÔNIA (RO) Porto Velho 1 0
Maceió 0 1 SANTA CATARINA (SC) Blumenau 0 1
CIMENTOS BRAZIL AMAPÁ (AP) Macapá 0 1 Campos Novos 0 1
AMAZONAS (AM) Manaus 0 1 Chapecó 0 1
(VCBR) BAHIA (BA) Camaçari 1 0 Criciúma 1 1
Feira de Santana 0 1 Florianópolis 1 1
Itabuna 0 1 Imbituba 1 0
Luis Eduardo Magalhães 0 1 Itajaí 1 0 1
Salvador 1 Joinville 1 1
CEARÁ (CE) Fortaleza 1 1 São José 1
AP Juazeiro do Norte 0 1 Vidal Ramos ✓ 1 0
1 Pecém 1 1 0 SÃO PAULO (SP) Americana 1
Sobral ✓ 1 0 Araçariguama 0 1
DISTRITO FEDERAL (DF) Brasília 1 Araçatuba ✓ 0 1
Sobradinho ✓ 1 1 1 0 Araraquara 1 1
GOIÁS (GO) Edealina ✓ 1 0 Assis 1
AM CE Goiânia 1 1 Atibaia 1
1 PA
MA 6 MARANHÃO (MA) Imperatriz 0 1 Barueri 1 0
4 2 São Luis 1 0 Bauru 0 1
MATO GROSSO (MT) Cuiabá ✓ 1 1 0 Botucatu 1
Nobres ✓ 1 1 0 Buri 0 1
PI
PE MATO GROSSO DO SUL Campo Grande 0 1 1 Cajamar 1 1 1
1 3 (MS) Corumbá ✓ 1 0 1 Campinas 1 1
AL
MINAS GERAIS (MG) Itaú de Minas ✓ 1 1 1 0 1 Cotia 1
RO
TO 2
Paracatu 1 0 Cubatão 0 1
1 3 SE
BA 1 Pratápolis 1 0 Diadema 0 1
MT 5 Três Corações 0 1 Embu das Artes 0 1
4 Uberaba 0 1 Guarulhos 1
Uberlândia 1 1 Itapecerica da Serra 0 1
DF PARÁ (PA) Belém 1 0 1 Itapetininga 1
4 Primavera ✓ 1 0 Itapeva 1 0 1
GO Santarém 0 1 Itu 1
3 MG PARANÁ (PR) Cascavel 0 1 Jundiaí 1
10 Curitiba 1 Limeira 1 1
MS Guarapuava 0 1 Lins 1
4 Londrina 1 1 Osasco 0 1
SP Maringá 1 1 Ourinhos 1 1
RJ
52 6 Ponta Grossa 0 1 Ponte Alta 1 0 1
Quatro Barras 0 1 Porto Ferreira 1
PR Rio Branco do Sul ✓ 1 1 1 0 1 Regente Feijó 0 1
13 PERNAMBUCO (PE) Caruaru 0 1 Ribeirão Preto 1 1
Paulista 1 0 Salto de Pirapora ✓ 1 0
SC Petrolina 0 1 Santa Isabel 0 1
14 PIAUÍ (PI) Teresina 0 1 Santo André 1
RIO DE JANEIRO (RJ) Cantagalo ✓ 1 0 São José do Rio Preto ✓ 1 1
RS Jacarepaguá 1 São José dos Campos 0 1
8 Rio de Janeiro 0 1 São Miguel Paulista 0 1
Santa Cruz 1 0 São Paulo 3
São Gonçalo 0 1 Sorocaba 1
Volta Redonda 0 1 Votorantim 1 0 1
RIO GRANDE DO SUL (RS) Canoas 1 SERGIPE (SE) Laranjeiras ✓ 1 0
Caxias do Sul 0 1 TOCANTINS (TO) Xambioá ✓ 1 1 0 1
Esteio 1 1 0 1
Passo Fundo 0 1
✓
Pinheiro Machado ✓ 1 0
✓
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS Sapucaia do Sul 1
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
20
–

—
EXTERNAL COMMITMENTS
—
|GRI 102-12, 102-13|

We recognize the importance of maintaining and solidifying partnerships. Therefore, we participate in different entities through the
endorsement of external initiatives and projects. Some of the initiatives we participate in through our global headquarters include:

BENCHMARK CLUB OF THE CARBON DISCLOSURE PROJECT BUSINESS AMBITION FOR 1.5°C: Urgent call to action from BUSINESS INITIATIVE FOR RACIAL EQUALITY: Initiative
(CDP): Organization that assesses how companies manage climate- a global coalition of United Nations (UN) agencies, business championed by companies and institutions that are committed
related risks and fight climate change and share this information with and industry leaders, in partnership with the Race to Zero to promoting racial inclusion and fighting racism.
investors to demonstrate these companies’ commitment to the issue. campaign, to encourage businesses to commit to setting
science-based targets aligned with the goal of limiting the
global temperature rise to 1.5°C above pre-industrial levels.
CORPORATE SOCIAL INCLUSION NETWORK: In 2021,
BRAZILIAN BUSINESS COUNCIL FOR SUSTAINABLE we signed a letter of commitment to the Pact for the
DEVELOPMENT (CEBDS): This organization represents the Inclusion of People with Disabilities, a document that
World Business Council for Sustainable Development (WBCSD) in BUSINESS FOR LGBTI+ CHARTER: Commitment signed with reaffirms our commitment to diversity and inclusion.
Brazil. It brings together at least 60 of the largest business groups the Forum of LGBTQIA+ Rights Companies to promote inclusion
in the country, which are responsible for approximately 70% of and fight discrimination against the LGBTQIA+ population.
the Brazilian GDP and for the creation of 1 million direct jobs.
GLOBAL CEMENT AND CONCRETE ASSOCIATION
(GCCA): As one of the founding members of this organization
BUSINESS FOR NATURE: Global coalition formed by influential created in 2018, we recognize its important role in uniting the
organizations and companies that have a sustainable vision for the cement and concrete sectors globally, fostering the evolution
future and are committed to establishing and disclosing biodiversity of sustainability practices in the construction chain.
BRAZILIAN COUNCIL FOR SUSTAINABLE
CONSTRUCTION (CBCS): Civil organization aimed at protection targets. The initiative includes NGOs, the International
generating and disseminating knowledge and good Chamber of Commerce, WWF, We Mean Business, the United Nations
practices in sustainability in civil construction in Brazil. Global Compact and 560 companies from more than 50 countries.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GLOBAL CEMENT AND CONCRETE RESEARCH RACE TO ZERO CAMPAIGN: Global campaign to rally leadership UN WOMEN’S EMPOWERMENT PRINCIPLES: Initiative of the
NETWORK: Known as Innovandi, this initiative was launched and support from businesses, cities, regions and investors for a UN Global Compact and UN Women that aims to unite, strengthen
by the GCCA in 2019 to manage innovation projects. healthy, resilient, zero carbon recovery that prevents future threats, and expand global efforts in defense of women’s rights.
creates decent jobs, and unlocks inclusive, sustainable growth.

SBE VC RBMA TECHNICAL PARTNERSHIP: Partnership

GREEN BUILDING COUNCIL BRAZIL: Global coalition to promote VANZOLINI FOUNDATION: Non-profit organization created
with the Brazilian Society of Speleology and the Atlantic Forest
the transformation of the construction industry toward sustainability. to improve the effectiveness of the sustainable development
Biosphere Reserve to develop and implement sustainable
process in Brazil. It provides access to a system that files our
management practices in the Atlantic Forest and in cave areas.
Environmental Product Declarations (EDP), which are documents
that are requested by customers seeking LEED certification.

LETTER OF COMMITMENT TO THE BUSINESS growth.

MOVEMENT FOR INTEGRITY, TRANSPARENCY AND
TASK FORCE ON CLIMATE-RELATED FINANCIAL
ANTI-CORRUPTION: By signing this document, we
DISCLOSURES (TCFD): Develops recommendations
reaffirmed our commitment to adopt practices to fight
corruption in business and public-private relationships.
for climate-related disclosures.
—
WE RECOGNIZE THE IMPORTANCE
NATIONAL LGBTI+ ALLIANCE (BRAZIL): Civil, multiparty and non- SCIENCE BASED TARGET INITIATIVE (SBTI): The SBTi drives OF MAINTAINING AND
profit organization aimed at promoting and ensuring the defense of ambitious climate action in the private sector by enabling
human rights and citizenship, in particular of the LGBTI+ community. companies to set science-based emissions reduction targets. SOLIDIFYING PARTNERSHIPS.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

04
O Highlights

2021 HIGHLIGHTS
EMPLOYEES IN THE CORUMBÁ PLANT, BRAZIL
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
23
–

—
2021 HIGHLIGHTS
—
Financial Capital Manufactured Capital Human Capital
OUR AGILITY in resuming production and TWO plants acquired in Spain: Cementos Balboa and OUR VC WAY
ensuring supply at a time of high demand globally HeidelbergCement (the latter still subject to approval)
and the rapid integration of the units acquired in INITIATIVES to promote mental
EXPANSION of the Pecém II cement
North America and Europe resulted in the best health and well-being globally
grinding facilities, in Brazil
financial performance in our history
BUSINESS COMBINATION of DEVELOPMENT and educational
R$ 22.3 BILLION McInnis Cement, in Canada programs: VCEAA AFR Core
net revenue Curriculum, VCBR Technical
ACQUISITION of operational assets of Valley View
Schools, VCNA University Calls
R$ 5.2 BILLION Industries in Illinois and remaining 50% of concrete supplier
Superior Materials, in the United States
Adjusted Ebitda DEVELOPMENT of diversity plans

R$ 1.6 MILLION 37.2 MILLION by region where we operate

tonnes of cement sold

net profit INCREASE in the percentagem

1.55 x 1.6 million 8.1 million 24.4 million of women hired

tonnes m³ of tonnes of
leverage 1st DISTRIBUTION center 100%
of mortar concrete aggregates
operated by women at VCBR
R$ 1.7 billion
R$  1.48 BILLION
raised through sustainability-linked financing
in Capex investments

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Intellectual Capital Social and NATURAL CAPITAL

CEMENT TECHNOLOGY RADAR Relationship Capital COMMITMENT to approve
decarbonization targets aligned with the
GLOBAL WORKING GROUP: AFR, Cementitious SUPPORT AND DONATIONS to communities
Science Based Target Initiative (SBTi)
and New Technologies where we operate during the coronavirus pandemic

HUBIC innovation platform PARTICIPATION in the Race to

SUPPORT FOR VACCINATION and for the
Zero campaign and the Business
construction of the COVID vaccine plant in Brazil
DEVELOPMENT of innovation territories Ambition for 1.5°C coalition

SOCIAL AND VOLUNTEER activities

PARTNERSHIPS for sustainable development: COMMITMENT to Net Zero
Permeable Concrete (VCLatam), Sustainable Concrete Concrete by 2050 (GCCA)
1st SOCIAL HACKATHON, an idea accelerator that
(VCNA), Predictive Analysis (VCBR)
uses gamification to develop impactful social solution

74.9 %
GLOBAL Cybersecurity Program

100 ideas analyzed by the Innovation Commission

365 social initiatives in all
regions where we operate
clinker/cement factor

17 projects under development

R$  12.7 million in social investment 22.4 % thermal substitution rate

R$  1.5 million to fight the pandemic

R$  71 million
in avoided costwith Spectrum, a mantainance asset
monitoring platform

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
AWARDS AND RECOGNITIONS
—
The company’s achievements were highlighted by awards and recognitions
received in 2021 in the different regions where it operates.

AGRO VISION AWARDS – Viter’s Itaú limestone received the 18th Excellence
in Quality award in the Limestone (soil corrector) category at one of the most
important events in the agribusiness industry in Brazil.

ANAMACO AWARDS – Votorantim Cimentos was the winner of the 30th

ANAMACO (National Association of Building Material Traders) Awards in the
following categories: Cement (Master Award), Adhesive Mortars (2nd place)
and Ceramic Grouts (2nd place).

ANEFHOP AWARD FOR OCCUPATIONAL RISK PREVENTION –

Prebetong Concreto, in Spain, received this award from the National
Association of Ready-Mix Concrete Manufacturers of Spain (ANEFHOP) for
initiatives to raise awareness of responsible health behaviors and attitudes
and for working conditions.

BEST HEALTHY AND SUSTAINABLE COMPANY IN THE PROMOTION

OF OCCUPATIONAL HEALTH – This award was granted to VC Spain by the
National Institute of Occupational Safety and Health (Ministry of Labor and
Social Economy).

BEST PLACE TO WORK BOLIVIA – We made the Great Place to Work

Institute’s ranking of the best companies to work for in Bolivia. We were also
recognized as a “Company that cares” due to our excellent talent management
and care for employees during the pandemic.

BOLIVIAN BUSINESS RANKING – We were recognized as the best cement

company in the ranking of brands prepared by the newspaper Bolivian
Business, for our performance in the areas of technological innovation, EMPLOYEES IN THE CORPORATE OFFICE IN SÃO PAULO, BRAZIL
product launches, talent protection and external communication.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

DERES RECOGNITION – The Network of Companies for Sustainable MODEL WORKER AWARD – One of our employees, Hamouda SENAI LOGISTIC PANEL AWARD – Our distribution center in
Development, in Uruguay, recognized VCLatam for its “Energy Miled, received the award granted by the Tunisian Minister of Social Juazeiro do Norte, in Ceará, operated 100% by women, received
Revolution” initiative to improve the energy efficiency of the cement Affairs on May 1, 2021. an award granted by the National Service for Industrial Training
production process, as well as for its activities during the pandemic. (SENAI), as an example of Diversity and Inclusion in the Top Logistics
NATIONAL MINING ASSOCIATION (NMA) SENTINELS OF
category.
ENERGY EFFICIENCY CERTIFICATE (CEE) – The Ministry of SAFETY AWARD – This award was presented to Prairie Material
Industry, Energy and Mining of Uruguay awarded companies that Aggregates Division for its work on the Ashkum site. SUSTAINABLE CONCRETE AWARD – St Marys Cement was
adopted energy efficiency measures to help reduce greenhouse recognized as the winner of the Slag Cement in Sustainable Concrete
NRMCA SAFETY EXCELLENCE – In 2021, 18 VCNA concrete plants
gas emissions in the country. In the case of Cementos Artigas, this Awards Program, presented by the Slag Cement Association, for
were recognized by the National Ready-Mix Concrete Association.
reduction was estimated at 15,874 tonnes of oil equivalent. providing 30% substitution of Portland Cement with Slag Cement in
In addition, Bill Youngers, an employee of United Materials, received
the Columbus Zoo Project.
EXCELLENCE IN MINING AND SAFETY – Four units of Prairie the NRMCA Driver of the Year award.
Material’s Aggregates division were recognized by the Indiana SUSTAINABLE DEVELOPMENT GOALS RECOGNITION – We
PROGRESSIVE REHABILITATION AWARDS – Four CBM
Mineral Aggregates Association in 2021. Kim Grose, a company were recognized by the Confederation of Private Entrepreneurs
Aggregates sites recognized for progressive rehabilitation by the
employee, received the award from the president of the association. of Bolivia (CEPB), a representative of the United Nations Global
Ontario Stone Sand and Gravel Association (OSSGA).
Compact, for our good practices to achieve the Sustainable
FIESP ENVIRONMENTAL MERIT AWARD – The Verdera team
RESILIENCE AWARDS – For the second consecutive year, Itacamba Development Goals (SDGs).
won the award for their work with refuse-derived fuel in Salto
Cemento S.A. received the Resilience award, given by the Bolivian
de Pirapora (SP), where we co-process urban waste and invest in THE BEST OF DINHEIRO AWARDS 2021 – We ranked first in the
National Chamber of Industries (CNI).
training for the city’s recycling cooperative. Construction Materials sector in the yearbook published by IstoÉ
REVENDA CONSTRUÇÃO TOP OF MIND – We placed 1st in the Dinheiro magazine based on results achieved in 2020. Five dimensions
INTERNATIONAL CONCRETE CONSTRUCTION EXCELLENCE
Cement category, 2nd in the Mortar category and 3rd in the Grout were considered: financial sustainability, corporate governance, human
AWARDS – Engemix, together with Nortis Incorporadora e
category in the most important top of mind awards competition in resources, social responsibility, and innovation and quality.
Construtora, PhD Engenharia and Avila Engenharia de Estruturas,
the Brazilian construction market.
received this award from the American Concrete Institute (ACI), for TURKEY SAFETY AWARD – The Cement Industry Employers
the results with the use of high-strength concrete in the construction SAFETY AND ENVIRONMENTAL EXCELLENCE AWARDS — Four Association (ÇEİS) presented the award to the Sivas cement plant for
of a residential project in São Paulo, Brazil. Prairie Materials Aggregates sites were recognized by the Illinois achieving the highest number of consecutive days with no lost-time
Association of Aggregate Producers. accidents in the history of the cement industry in the country.
MICHIGAN CONCRETE ASSOCIATION AWARDS – The Michigan
Concrete Association presented the award to Superior Materials’ SAP QUALITY AWARD 2021 – VCEAA was one of the companies VALOR INNOVATION AWARDS BRAZIL 2021 – We placed 3rd in
Detroit plant, and St Marys Cement products were used in eight to receive this award in the Business Transformation category, in the Construction and Finishing Materials category and 47th overall in
winning projects. recognition of the quality of the Central Finance project implemented one of the most important innovation rankings in Brazil, organized by
in the region. the consulting firm Strategy& and the Valor Econômico newspaper.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

05
Our VC Way

Our strategy

Sustainability
and 2030
commitments

Decarbonization

ESG Ratings

OUR STRATEGY AND THE CONNECTION WITH SUSTAINABILITY

XAMBIART SOCIAL INITIATIVE IN XAMBIOÁ, BRAZIL
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
28
–

—
OUR VC WAY
—
|GRI 102-16|

In 2021, we dedicated ourselves to advancing our journey

of cultural evolution, recognizing that culture is the basis
for building and executing our strategy. We embarked on
a culture update project that took more than a year and
involved approximately 400 people from various areas of the
company, who worked with dedication, passion and, most
importantly, simplicity. We call it an “evolution” because this
work did not start from scratch—to the contrary, this project
included the strengths of our long-held values and beliefs.
Today, we are even more confident that Votorantim Cimentos
has a rich and expressive business essence, which was not
only maintained, but reimagined, simplified and modernized,
in a way that:

Honors our past

Values our present
Helps us build our future
With the purpose of creating positive changes while building
on our history, we named our organizational culture Our
VC Way and organized it around three main axes: Our Way
of Being, Our Way of Working and Our Way of Thriving.
Each has three dimensions, which include the nine general EMPLOYEES IN THE ITAÚ DE MINAS PLANT, BRAZIL
principles that are highlighted on the next page.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Our way of being is ethical and respectful. Our way of working is together, with excellence. OUR WAY OF THRIVING: WITH COURAGE TO TRANSFORM.
Safety and health are non-negotiable: they come before results For us, having customer focus means being close to each of our Learn and evolve: we know that uncertainty is part of the business,
and must guide our behavior inside and outside the company. We customers and knowing their real needs to guide our processes and and mistakes are part of the innovation process. We need initiative
strive for zero accidents; we value the mental health and well-being of decisions. We understand that we only succeed when our customers to propose improvements and courage to innovate, without fear of
our employees; and we set an example by complying with rules and succeed, which drives us to work together, with transparency and failing or sharing lessons learned.
procedures. flexibility.
We want to build lasting results that are always in line with our
Ethics and diversity are essential, since respecting and truly Simplicity and trust are the way to cultivate relationships and long-term vision and entrepreneurial essence. We know that our
including people is the way to evolve and learn from differences. create agile and uncomplicated solutions. We strive to reduce ethical behavior ensures our solidity. We encourage and invest in
Therefore, we always choose the right thing, even when the path is unnecessary bureaucracy and to reinforce connections between teams innovative initiatives to execute and adapt.
longer, and we encourage people to be who they are, since they are and areas to ensure that our initiatives are carried out on time and
All this translates into a sustainable legacy: each of us must
our greatest asset. with excellence.
contribute to the development of people, the environment and
Likewise, we believe in open dialogue. Sincerity and kindness We believe that acting with ownership (with responsibility and the communities where we operate. Our results are delivered with
strengthen our relationships and create space for individual and leadership, regardless of roles and positions) is the best way to achieve environmental and social responsibility.
collective growth. Being open to different opinions, with courage our goals. We all must understand that our individual work impacts
and generosity to listen and say what you think, without fear of the whole organization; therefore, we must participate, express our
retaliation—this is the culture that we want. opinions, make decisions and fulfill what has been agreed upon.

—
“THIS NEW ARTICULATION OF OUR CULTURE USES SIMPLER AND MORE DIRECT
LANGUAGE THAT VALUES THE ESSENCE THAT HAS GOTTEN VOTORANTIM
CIMENTOS UP TO THIS POINT, WHILE ALSO MODERNIZING AND UPDATING THE
PRINCIPLES ACCORDING TO THE NEW CHALLENGES THAT LIE AHEAD”
—
Cristiano Brasil, global director of People, Management, Communications and IT.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
OUR STRATEGY
—

We are a building materials and

sustainable solutions company.
We seek sustainable growth and continuous competitiveness through solutions and initiatives
that generate a positive impact on the company and on the society.
Our 2030 strategy is represented by a house, a symbol of construction. Our foundations are strong and represent the values we do not compromise: health
and safety; compliance and risk management; Our Way of Being, Working and Thriving; low indebtedness; shareholder return; and investment grade.
Our value agenda is made up of five strategic pillars that support our house and guide our efforts and
our long-term aspirations, with specific short-, medium- and long-term initiatives:

GROWTH & POSITIONING FINANCIAL PERFORMANCE COMPETITIVENESS BUSINESS TRANSFORMATION SUSTAINABILITY

Balance presence between Generate an attractive return on Ensure relevant market share Innovate, create new solutions Generate positive impact on the
mature and emerging countries, invested capital. and cost leadership. and strenghen our business, company and on the society.
OUR ASPIRATIONS
diversifying risks and ensuring getting closer to consumers.
sustainable growth.

WHAT WE WON'T HEALTH COMPLIANCE AND RISK OUR LOW SHAREHOLDER INVESTMENT
COMPROMISE AND SAFETY MANAGEMENT CULTURE INDEBTEDNESS REMUNERATION GRADE

THROUGHOUT THE YEAR, WE PROMOTED OUR STRATEGY TO ALL TEAMS GLOBALLY AND DEVELOPED SPECIFIC INITIATIVES FOR EACH OF OUR REGIONS AND AREAS OF ACTIVITY.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

— Based on our 2030 strategy, our business model captures, creates and distributes long-term value among all our stakeholders, thereby
BUSINESS MODEL reinforcing that we are a building materials and sustainable solutions company with the ambition of pursuing sustainable growth and
continuous competitiveness through solutions and initiatives that generate a positive impact for the company and society.
—
VALUE CAPTURE (INPUT) SHARED VALUE (OUTPUTS AND RESULTS)
Aglime sales/distribution
Financial capital Financial capital
• Own resources, from our operating • R$ 1.6 million net profit
cash generation, external funding • R$ 22.3 billion net revenue
and debt management • R$ 1.48 billion invested in Capex
• R$ 4.15 billion paid in taxes
Mineral exploration Mining Griding
• Increase in company value and more
+ + + attractive financing lines

Natural capital Natural capital

• Raw materials (calcium carbonate, Aggregates sales/distribution • Aglime and co-processing
silica, aluminum and iron ore) • Circular economy and waste
• Energy sources for the production process disposal for co-generation
(petroleum coke, biomass waste) • Decarbonization roadmap

Human capital Human capital

• We employ 12,466 people directly and • 683 new jobs created
diversity is part of our strategy Waste disposal for • Employee benefits and diversity
Cement griding Clinker production energy generation • Safety, health and well-being
+ + (Verdera) • Our VC Way
VALUE VALUE
Manufactured capital CREATION CREATED Manufactured capital
• Mining sites • Concrete, cement, aggregates, mortars, aglime
• Production lines • Transport and logistics: MOV-C
• Administrative buildings Logistics • Sustainable concrete infrastructure (wind
• Logistics structure towers, hydroelectric dams, decent homes,
+ subways, etc.)
Distribution Cement
centers
Social and relationship capital Sales and distribution Social and relationship capital
• We are present in 11 countries + • R$ 8.5 billion paid to suppliers
on four continents, with cultural, • 56.3% spent with local suppliers
economic and social diversity Concrete Concrete • R$ 12.7 million invested in communities
• Customer focus and supply chain • Community development and
encouragement of local purchases
Intellectual capital
• Brand value and reputation Intellectual capital
• Cybersecurity Mortar Mortar • Development of innovation territories
• Partnerships with startups, • Inova VC and Spectra
universities, research centers • Cement Technological Radar
• Development of industry 4.0 and
artificial intelligence
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
32
–

—
SUSTAINABILITY AND 2030 COMMITMENTS
—
As leaders in the building materials industry in Brazil, and with 1. We operate with integrity and transparency
major operations around the world, we grow, innovate and increase
our operational efficiency using sustainability as a strategic driver.
We have a long history in this constant pursuit of more advanced 2. Safety, health and well-being are fundamental values
technologies to reduce emissions, improve energy efficiency and
ensure the health, safety and well-being of our employees, to
reduce our environmental footprint and promote the social and
3. Innovation: we co-create sustainable solutions
environmental development of the communities where we operate.

Our vision of the future is built around the concept of “flexible 4. A diverse and inclusive environment
solidity”: we are an established company that operates with
excellence, safety, ethics and integrity, and, at the same time, has
the flexibility needed to modernize and adapt to the fast changes
5. Reducing our environmental footprint
happening in the world and with regard to people’s needs.
Everything we do is geared toward generating a positive and long- 6. Promoting a more circular business environment
term impact, as an increasingly sustainable company that creates
long-term value for all stakeholders by aligning our operations with
current and future demands of society. 7. Generating shared value in our communities
Sustainability is one of our strategic drivers and our strategy is in
line with the Sustainable Development Goals (SDGs). Integrating the
SDGs into our activities helps us to ensure the future success of our These commitments are in line with Our Way of Being and
business. megatrends in the construction sector, which consider the impacts
of factors such as demographic changes; globalization and future
In 2021, we continued in our ESG jorney, putting in practice our
markets; climate change challenges; and innovation and technology
2030 Commitments, which were approved by our Board of Directors
dynamics. More information on our commitments, targets and
in 2020 and published in our last report. The document includes
progress in 2021 can be found on page 85.
goals and targets related to seven pillars:
PRIMAVERA PLANT IN PARÁ, BRAZIL

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
DECARBONIZATION
—
|GRI 103-2, 103-3: 305, EM-CM-110a.2|

Climate change is at the core of our strategy and guides every step of
our present and future investments and innovation efforts. Like any
large-scale industrial activity, the cement industry also produces CO2,
primarily due to the nature of its production processes, accounting
for approximately 7% of total global emissions, according to the
International Energy Agency (IEA).

The fact that we are experiencing a climate emergency is a consensus.

Climate change is already manifesting in the form of droughts, fires,
floods, resource scarcity and loss of species, among other impacts. In
2021, the planet’s average temperature increased 1.1°C compared
to pre-industrial levels, according to the Intergovernmental Panel on
Climate Change (IPCC), and is on the path to increasing by more than
4°C if we fail as a society to transform our lifestyles and bring climate
action to the center of political and business decisions. We understand
our role and are implementing a number of initiatives to align our
emissions reduction targets with the ambition of the Paris Agreement
signed in 2015: to limit global warming to well below 2°C compared to
pre-industrial levels, making every possible effort to limit the increase in
global temperature to 1.5°C.

Even in countries where regulation on carbon emissions has not yet

been approved, we consider an internal carbon price to assess the
attractiveness of projects. In other words, our profitability analysis
is done as if carbon were already priced. This helps us to align new
investments with the decarbonization trajectory of our business—even
more so now that the GCCA, the main industry association, has set a SOBRADINHO PLANT IN DISTRITO FEDERAL, BRAZIL
more ambitious emissions reduction target (read more on page 34).

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

The fact that the European Union is one of the major leaders in In addition, we joined UN’s Race to Zero campaign, which rallies Net Zero Concrete
the decarbonization process is a great learning opportunity for our and encourages companies, governments, and financial and higher In 2021, we joined forces with the world’s leading cement and
company. “This will reach other countries and we will have the education institutions to work for a healthier planet with zero carbon concrete manufacturers to accelerate the shift to greener concrete
experience of our plants in Europe. Even though we are not the emissions. “We have a global ambition and know that this journey by pledging to cut CO2 emissions by an additional 25% by 2030,
largest cement company, we have to assume the same high level of will be challenging, but we are fully aligned with the best industry thus taking a decisive step in the race to net zero concrete by 2050.
commitment–hence the importance of maintaining ourselves as an practices, and we will work together to build a legacy that we are This move by the members of the Global Cement and Concrete
industry leader,” said Jorge Alejandro Wagner, CEO of VCEAA. proud of and that will impact present and future generations,” said Association (GCCA) marks the biggest global commitment to net
Alvaro Lorenz, global director of Sustainability, Institutional Relations, zero by any industry.
In 2021, with approval from the Board of Directors, we joined the
Product Development and Engineering, who represented Votorantim
Business Ambition for 1.5°C Call to Action, committing ourselves The GCCA has published a detailed roadmap that sets out the
Cimentos at the Climate Week in New York, in September, when we
to advancing toward a low-carbon economy; and in line with our path that the industry will follow to fully decarbonize by 2050. The
reaffirmed our commitments for the future.
2030 Strategy and Commitments, we will align our CO2 emissions actions between now and 2030 will prevent almost 5 billion tonnes
reduction targets with the Science Based Targets Initiative (SBTi). “The COVID-19 pandemic has been a very hard experience for humanity, of carbon from entering the atmosphere compared to a business-
Created by four partner organizations (CDP, United Nations Global but it has showed us that we have to and can work together, just as we as-usual scenario. The roadmap includes ambitious yet achievable
Compact, WRI and WWF), this initiative calls on companies to reduce must with regard to climate change. We know that there are differences actions to reduce the amount of CO2-intensive clinker in cement,
their greenhouse gas (GHG) emissions and drive the transition in technical specifications and legal challenges in different countries, but to significantly reduce the use of fossil fuels in manufacturing,
toward a low-carbon economy by setting targets according to what we are focused on creating a more sustainable future, and technology and to accelerate innovation in products, process efficiency and
current climate science indicates is necessary to reach the goals of and innovation are enablers of and our allies in this process,” said Bill breakthrough technologies, including carbon capture.
the Paris Agreement. Asselstine, VCNA’s director of Sustainability.

—
“THIS WILL REACH OTHER COUNTRIES AND WE WILL HAVE THE EXPERIENCE OF OUR
PLANTS IN EUROPE. EVEN THOUGH WE ARE NOT THE LARGEST CEMENT COMPANY,
WE HAVE TO ASSUME THE SAME HIGH LEVEL OF COMMITMENT–HENCE THE
IMPORTANCE OF MAINTAINING OURSELVES AS AN INDUSTRY LEADER”
—
Jorge Alejandro Wagner, CEO of VCEAA

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Concrete is the most used human-made material on the planet, O Reduce thermal energy-related emissions O Reduce CO2 emissions through the use of new
with 14 billion m3 produced every year for use in everything from by maximizing the co-processing of waste from other technologies and the development of carbon capture.
roads to bridges, tunnels to homes, and hydropower facilities industries or processes to replace the use of fossil fuels.
O Reduce the amount of clinker in cement and concrete
to flood defense structures. Concrete is an essential element Our goal is to achieve 53% thermal substitution by 2030.
and use concrete more efficiently in buildings and infrastructure
for construction, with no other material equaling its resilience, Our energy efficiency initiatives include the modernization
projects. Our goal is for our clinker factor to reach 68% by
strength and wide availability. of equipment and the use of alternative energy sources.
2030—which means that 32% of the final product will be
We are committed to producing carbon neutral concrete by O Eliminate indirect energy emissions by using made of alternative raw materials with lower CO2 emissions.
2050. To achieve this goal, we have created an internal roadmap renewable sources of electricity. We have our own Efficiency in the production and recycling of concrete are
and continue to work on several fronts in all countries where we hydroelectric plants and are making large investments alternatives to avoid emissions by preventing raw material waste.
operate. The five initiatives that will lead us to the decarbonization in solar and wind energy, aiming to reach 45% of self-
O Reprocess and recycle demolition concrete,
of the industry are: production using renewable energy sources by 2030.
making this chain more circular and maximizing
CO2 absorption through recarbonation.

CO2 EMISSIONS
SPECIFIC CO2 EMISSIONS
In 2021, our CO2 emissions were 597 and clinker factor. Our plan already must continue to increase our thermal (Kg CO2/t cementitious) |GRI 305-1|
kgCO2/tonne of cementitous, an increase includes investments and initiatives to substitution rates in all our regions.
of 3.6% compared to 2020. This is advance decarbonization in these new
primarily the result of two factors: acquisitions.
Despite our 2021 results, we reaffirm our 591 576 597
commitment to mitigate climate change
In line with our strategy to balance As a result of the pandemic, which in line with our decarbonization strategy
our presence in mature and emerging affected the availability of waste, and of and we are committed to approving a
countries, in 2021 we acquired two new an increase in production volumes, we CO2 reduction target aligned with the
cement operations (McInnis and Balboa). were not able to reach a volume of Science Based Target initiative (SBTi).
These units add a significant volume co-processed waste to maintain the level We continue to invest in technologies to
of cement to our portfolio and are not of thermal substitution reached in 2020. increase thermal substitution, improve
yet at the same level of maturity as our In any case, we have several investments energy efficiency and reduce the clinker
other sites with regard to co-processing planned for the coming years and we factor in all our operations. 2019 2020 2021

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
ESG RATINGS
—
Our ability to address environmental, social and governance (ESG)
risks is evaluated by rating agencies specializing in non-financial
topics, as well as by the CDP, an organization that gathers, analyzes
and publicizes information on air emissions, climate and water.

CDP MSCI ESG1 Moody’s ESG Solution² Sustainalytics3

In 2021, we were recognized by In 2021, we received a BBB rating in In 2021, we received a 50/100 In 2021, we received an ESG Risk
the CDP, for the fourth consecutive the MSCI ESG Ratings assessment. score in the Moody’s ESG Solutions Rating of 21.1 and was assessed by
year, as one of the best companies Assessment. This grade is considered Sustainalytics to be at medium-risk
evaluated in the Climate Change a robust level by Moody’s ESG of experiencing material financial
Program. With a score of A-, we Solutions methodology. impacts from ESG factors.
were the best rated cement company
in Brazil and among the top 10
companies in the industry in the
world.

https://www.cdp.net/en/ https://www.msci.com/ https://esg.moodys.io/ https://www.sustainalytics.com/

¹ The use of any data from MSCI ESG research LLC or its affiliates (“MSCi”) by Votorantim 3
Copyright ©2021 Sustainalytics. All rights reserved. This [publication/ article/
Cimentos, and the use of MSCI logos, trademarks, service marks or index names herein, section] contains information developed by Sustainalytics (www.sustainalytics.com).
do not constitute a sponsorship, endorsement, recommendation, or promotion of Such information and data are proprietary of Sustainalytics and/or its third-party
Votorantim Cimentos by MSCI. MSCI services and data are the property of MSCI or its suppliers (Third Party Data) and are provided for informational purposes only. They
information providers, and are provided “as-is” and without warranty. MSCI names and do not constitute an endorsement of any product or project, nor an investment
logos are trademarks or service marks of MSCI. advice and are not warranted to be complete, timely, accurate or suitable for a
particular purpose. Their use is subject to conditions available at https://www.
² This ESG Assessment was originally conducted by V.E, which is now part of Moody’s EMPLOYEES IN ONE OF OUR PLANTS IN VCEAA
sustainalytics.com/legal-disclaimers.
ESG Solutions.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

06
Boards and
committees

Ethics and
compliance

Risk management

CORPORATE GOVERNANCE
EMPLOYEE IN ONE OF OUR PLANTS IN VCEAA
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
38
–

— —
CORPORATE GOVERNANCE BOARDS AND COMMITTEES Board of directors
— — Votorantim Cimentos

GRI 102-18, 102-20, 102-22, 102-23, 102-26, 102-28, 102-31|

Governance, Risk
We are fully committed to ethical conduct as well as to legal and Board of Directors and Compliance Global CEO
regulatory compliance in our operations. Therefore, to ensure the Our highest governance body has seven members, four of whom (GRC) and Global
Internal Audit1
creation of an ethical and transparent environment, since 2014, our are independent (including the Chairman of the Board). Its members
global governance system has followed the standards adopted by serve two-year terms and none of them hold an executive position
publicly traded companies, thus strengthening our culture of ethics in the company. Its main responsibilities are to develop and validate
and integrity, and making us competitive when attracting investors. the strategy to ensure agility and efficiency in decision making. The Corporate Areas2
We have a structure dedicated to Corporate Governance that also Board of Directors is advised by three committees: Audit Committee
advises the Board of Directors, aiming to implement best practices in (with three members, two of whom are independent), Finance
all areas within the company. Our complete corporate structure can Committee (with four members, two of whom are independent)
be found on our Investor Relations website. and Compensation and People Committee (with three independent
members). Their responsibilities are described in internal bylaws that Votorantim Cimentos
Brazil
have been approved by the Board. Some Board members are also International (VCI)
part of these committees.

AUDIT COMMITTEE – Responsible for advising the Board on the

appropriate monitoring of issues related to the continuity of the
— business, the effectiveness and integrity of internal controls, risk
Europe, Asia
identification and management, the quality and integrity of financial North America Latin America
WE ARE FULLY COMMITTED reports, including financial statements and the work performed by
and Africa

by external auditors.
TO ETHICAL CONDUCT AS Governance, Risks and Compliance (GRC) and Global Internal Audit report to the
1

FINANCE COMMITTEE – Responsible for advising the Board Audit Committee of Votorantim Cimentos and administratively, to the CEO.
WELL AS TO LEGAL AND in the evaluation and monitoring of issues in the finance sphere Global areas: Finance, People & Management, Legal and Sustainability
2

involving the analysis of the macroeconomic scenario that

REGULATORY COMPLIANCE IN may affect the company, financial guidelines, such as cash
management and liquidity guidelines and the monitoring and
OUR OPERATIONS evaluation of alternatives to mitigate risk factors.
More information about our governance bodies
can be found on our Investor Relations website.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
ETHICS AND COMPLIANCE
ORGANIZATION, COMPENSATION AND PEOPLE Board of Executive Officers
COMMITTEE – Responsible for advising the Board of Directors Statutory body of VCSA responsible for the management and —
on the appropriate monitoring of issues related to compensation representation of the company. Together with the Board of |GRI 103-2, 103-3: 205, 206, 307, 415, 406, 419; GRI 102-16, 102-17|
models, nomination of management candidates, succession plan, Directors, it develops the long-term strategy, as well as the
and the corporate culture. company’s mission, vision and values, which guide its short-
Our Way of Being is ethical and respectful, and we are committed
and long-term strategic objectives. It is composed of the Global
to working with integrity and transparency. For us, as important
Board Performance and Meetings CEO, Global CFO, COO and Global General Counsel. The Board
as achieving results is how we get there. We believe that
of Executive Officers is advised technically and strategically by
compliance is a requirement to ensure business perpetuity—
The performance of the Board is independently evaluated by two committees:
and that is the only way we operate at Votorantim Cimentos.
a specialized consultant every two years. To carry out in-depth
Brazilian Leadership Team (BLT) – Composed of the Therefore, we expect our employees, at all levels, to follow
discussions and detailed analysis of specific topics, the Board members
executive and non-executive Officers of the company in Brazil. the guidelines of our Code of Conduct and comply with laws,
are organized into four working groups (WG): Decarbonization
Assists in the development and monitoring of the general regulations and policies in all countries where we operate.
and ESG; Merger and Acquisitions (M&A) Brazil; Global M&A; and
business guidelines in the country, and follows up on reports on
Innovation. As per the bylaws, Board meetings are held every other To support the organization on this journey, we rely on a
internal, management, operational and business matters.
month (and extraordinarily, when necessary). In 2021, the Board met Corporate Governance, Risk and Compliance & Internal Audit
10 times; two of the meetings focused on Decarbonization and ESG Global Executive Team (GET) – Composed of the Executive global department (GRC & IA). Based on best practices and to
topics, demonstrating the commitment of the governance bodies to Officers and CEOs of the four regions (VCBR, VCNA, VCEAA, preserve its independency, this department reports directly to the
environmental, social and governance issues. During the year, one of and VCLatam), in addition to all non-executive global officers. Chairman of the Board of Directors and the Audit Committee.
the most important agenda items, in line with our decarbonization Assists the monitoring and analysis of industry scenarios and
Our Compliance Program is based on our Code of Conduct
strategy, was our decision to join the SBTi, as detailed on page 33. the development of general global business guidelines. Each
and Our VC Way, and its execution is part of every employee’s
CEO reports on internal, management, operational and business
responsibility. As a support department for all business areas,
matters in his/her region, in addition to informing, discussing
Compliance works side by side with Legal, Risk Management,
and providing opinions to the Board of Executive Officers on
Internal Controls, People Management, Internal Audit and
strategic issues, including competitiveness, new markets, new
— businesses, products, innovation and sustainability. Each CEO
the Business Ethics Office. The department establishes clear
rules and guidelines to our employees, review processes and
can also form commissions to assist in the management of
THE BOARD IS COMMITED WITH specific issues.
recommends improvements, organizes continued education
programs through communication campaigns and training,
ENVIRONMENTAL, SOCIAL monitors proper compliance with these obligations, and takes
the necessary measures to identify and resolve any suspected
AND GOVERNANCE ISSUES. violations of the standards.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Engagement
“Our compliance model is based on the engagement and participation evaluations incorporated into the company’s daily processes (for
of all levels of the company, according to their responsibilities, since example, integrity assessments of partners in M&A transactions or critical
we believe that misconduct, whether by action or omission, is harmful third parties, as well as risk assessments for new business models),
not only to Votorantim Cimentos, but also to society as a whole,” said Votorantim Cimentos conducted a specific anticorruption assessment in
Adjarbas Guerra Neto, global director of GRC & IA. 2021. This complete map of interactions with the public sector enabled
us to evaluate them, assess our level of control over them and identify
In addition to everyday Compliance activities and responsibilities,
our company representatives involved in these interactions to receive
2021 highlights included:
training in anticorruption issues.
O Requirement that all new employees sign the Competition INTERNAL AUDIT PRACTICES
Guide, which details the main issues related to the company’s
activities. Policies
During the pandemic, we adapted the Internal
Anticorruption and unfair competition have specific chapters in our
O Training on issues related to competition for our leadership, Audit’s work model to a hybrid format (on-site
Code of Conduct, as well as policies and guides to support our employees.
management and other teams that maintain regular contact and remote assessments), to ensure that the
In addition to being legal obligations, these issues are pillars of our
with customers and competitors. safety of the professionals would be preserved
Compliance Program. Through a risk-based approach, the most relevant
O Review of the Third-Party Integrity Assessment Policy, which was and that the processes and controls would be
and potentially exposed areas and positions regularly participate in virtual
approved in 2019. evaluated and improved independently and
training (via an e-learning platform) and specific workshops held by the
O Approval of an Associations Policy to establish criteria for the thoroughly, according to international Internal
Compliance and Legal departments.
participation of Votorantim Cimentos in associations and the Audit standards and guidelines. In 2021,
conduct expected from our representatives. In addition to our Anticorruption and Antitrust policies, our Compliance our specialized employees carried out audits
O Review, together with the Environment and Safety areas, of Program also includes other global policies derived from our Code of in the different regions where we operate,
processes related to the management of licenses and permits, Conduct: Gifts and Entertainment; Conflict of Interest; Donations and while also sharing best practices among the
resulting in a monthly report to monitor critical points and Sponsorships; Government Relations (with specific manuals for VCBR, units and expanding the implementation
develop action plans. VCNA and VCEAA) and the Third-Party Integrity Assessment. of comprehensive action plans. In addition,
our audit processes were assessed by an
O Reinforcement of compliance evaluations for strategic projects/ Finally, we are signatories to the Letter of Commitment to the Business
independent international audit firm, which
business models and top management decisions. Movement for Integrity, Transparency and Anti-corruption,
resulted in the implementation of a global
underscoring our commitment to adopt practical measures to fight
Although our core activities are not related to commercial quality review program for the work performed
corruption in the business environment and in public-private relationships.
transactions with governments, interactions with the public sector by Internal Audit, accelerating the evolution of
are part of Votorantim Cimentos’ regular business, like with Both our Code of Conduct and our Compliance Program guide, which the level of maturity of the area.
any other legal entity. Therefore, in addition to the compliance was last revised in 2020, are available on our websites.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Complaints and Ethics Line

We know that the best way to solve problems is through open
dialogue. Therefore, we always encourage our employees to express
their concerns directly to their leaders or to the appropriate areas,
such as People Management, Legal or Compliance. However,
there are situations where an individual may not feel comfortable
contacting internal people.

It is for these situations that we have the VC Ethics Line. Available

24 hours a day, seven days a week, by phone or via website (except
in Morocco, where it can only be accessed via internet), the Ethics
Line offers the option of anonymity. Not only our employees, but also
partners, contractors and anyone who interacts with our operations
Compliance Day
may report suspected misconduct or irregularities (such as acts of
For the fifth consecutive year, Compliance Day was held in all regions
EMPLOYEES IN THE CORPORATE OFFICES IN SÃO PAULO, BRAZIL corruption, bribery, discrimination, harassment, etc.). The channel can
where we operate. Mixing educational and practical activities, the
also be contacted for questions about our Code of Conduct.
event enabled important reflections and reinforced how compliance
Individuals can track the status of cases and add new information, is part of the daily lives and activities of our employees. We are
if they so choose. The VC Ethics Line call center is operated by a aware that in a complex and dynamic environment, unforeseen

TECHNOLOGY AT THE SERVICE OF ETHICS third party and does not use caller ID. All information is stored on
an external server to ensure that issues are dealt with confidentiality
compliance dilemmas may arise from time to time. Therefore, in
2021, the central theme of our events was Critical Thinking as an
and impartiality. Retaliation against people who file complaints is important tool to ensure ethical conduct, since what is right goes
We must always work preventatively to identify
not tolerated and all reports are investigated in accordance with beyond what is written.
vulnerabilities and faults that may lead to losses
our internal policies and applicable law. Cases related to fraud,
and fraud within our organization–and given the To protect the health and physical well-being of our employees,
conflicts of interest and embezzlement of resources are referred for
geographic dispersion of our operations, the use once again the events were held remotely and broadcast live via the
investigation by Internal Audit. Corruption and unfair competition
of technology is essential. In 2021, we invested in company’s internal social media and communications channels; they
are investigated by the Legal department.
digitalization as a way to improve the maturity level included messages from the Chairman, the coordinator of the Audit
of our compliance process and controls. We promoted Twice a year, the Global Business Ethics Office reports the Ethics Line Committee, the Global CEO, the regional CEOs and other company
courses, used forensic intelligence and tools, and statistics to the Audit Committee, the Board of Directors and the leaders, as well as guest speakers. In Brazil, we chose to organize
partnered with security experts to strengthen the Fraud Global Business Ethics Commission, formed by the global CEO, the an entire month of events and activities designed to put compliance
and Loss Prevention pillar of our Compliance Program. global Legal director, the global director of GRC & IA and the global in practice. One of the main initiatives was a competition on “What
director of People and Management. inspires me to be ethical and respectful in my everyday life.”

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
RISK MANAGEMENT
—
|GRI 102-15|

Our risk management model is based on the principles and guidelines of the Climate Change
ISO 31000/18 standard and on the recommendations of the Committee of Climate change continues to be perceived as the gravest threat to
Sponsoring Organizations of the Treadway Commission (COSO), with a focus on humanity. Due to the nature of our business, one area that receives
three main risk components: identification, assessment and response. significant attention is the management of climate risks, linked to
greenhouse gas emissions and the consequent increase in costs in
Risk identification of potential events that could affect the company’s strategic
countries where more restrictive legislation in this area already exists,
and operational goals is carried out through a bottom-up and top-down
such as Canada and Spain. This also includes technological risks
approach that involves analyses of indicators, administration of technical
due to a potential dependence of the industry on CO2 capture and
questionnaires, interviews with operational and corporate areas and discussions
sequestration technologies.
with the leadership team. Risks are analyzed and classified according to their
likelihood and impact (financial, legal, social, environmental, safety, image At the same time, the transition to a low-carbon economy offers
and reputation, stakeholders and internal climate). After classification, the risk business opportunities to our cement and concrete operations, as
response is determined, and the responsible areas develop detailed action plans their products are characterized by durability, resilience and versatility
to prevent the materialization of risks and mitigate their potential impacts. for their use in the construction of low-carbon energy generation,
buildings and transportation infrastructure.
Risks and action plans are monitored and periodically reported to the
Global GRC & IA department and to the leadership team, according to their
classification. Annually and when requested, the risk management process,
from a global perspective, is reported to the Audit Committee and to the —
Board of Directors.

The risk management process is fundamental in the implementation of our strategy;

"THE OBJECTIVE WAS TO BETTER
through the risk appetite we determine the level of risk we are willing to accept in
pursuit of value. In 2021, we revised our risk appetite to better guide discussions
DETAIL AND CLASSIFY THE RISK
and ensure that the leadership team and the Audit Committee are aware of the
risks that are critical to the organization. “The objective was to better detail and
IMPACT IN EACH INSTANCE"
classify the risk impact in each instance to enable the company and its governance
bodies to focus on what is truly critical,” said Adjarbas Guerra Neto.
—
Adjarbas Guerra Neto, global director of GRC & IA

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

TCFD TCFD DIMENSIONS

Since 2020, we have voluntarily complied with the recommendations
of the Task Force on Climate-Related Financial Disclosure (TCFD), Governance Strategy Risk Management Metrics and Targets
which are structured around four dimensions: Governance, Strategy,
The organization’s governance The actual and potential impacts The processes used by the The metrics and targets used to
Risk Management, and Metrics and Targets. Based on information
around climate-related risks and of climate-related risks and organization to identify, assess and assess and manage relevant climate-
disclosed by companies, the market can price the impact of climate
opportunities opportunities on the organization’s manage climate-related risks related risks and opportunities
change on business more accurately, increasing the efficiency of businesses, strategy and financial
processes and the stability of the global economy. In 2021, we planning
became formal supporters of the initiative.
Board oversight Risks and opportunities Climate-related risk CO2 targets report
Read more in Corporate Governance Read more in Sustainability and identification, management Read more in Monitoring Our 2030
Crisis Management 2030 Commitments and monitoring Targets
The role of management Read more in Risk Management Read more in Risk Management
An organization’s exposure to risk is increasingly complex,
Read more in A Message from the Read more in Decarbonization Read more in Circular Economy Details of scopes
demanding a high level of risk management work, continuous Board Read more in Sustainability and 1, 2 and 3
assessment and rapid response to potential crisis situations. We Financial and business impact 2030 Commitments Read more in Circular Economy
have a structure dedicated to the crisis management process that Read more in Global Results Read more in Monitoring Our 2030
coordinates the execution of initiatives to mitigate possible short-, General risk integration Targets
medium- and long-term impacts on our assets, businesses, people, Scenarios Read more in Risk Management
image and reputation. Read more in Global Results Climate-related targets
Read more in Sustainability and Read more in Monitoring Our 2030
The coronavirus pandemic forced us to be very active in this area 2030 Commitments Targets
throughout 2020, with daily meetings. In 2021, thanks to the
availability of vaccines and increased control over the activities Integrated Report: pages 12-13, 38- Integrated Report: pages 32, 33-35, Integrated Report: pages 32, 42-43, Integrated Report: pages 68-72, 85-
needed to mitigate the effects caused by the virus, these meetings 39 42-43, 45-47 68-72, 86
CDP: items C1.1, C1.2, C1.3 CDP: items C2.1, C2.2, C2.3, C2.4, CDP: items C2.1, C2.2, C2.3 CDP: items C4.1, C4.2, C4.3, C5.1,
were spaced out, becoming weekly and then monthly, with frequent
C3.1 C6.1, C6.2
tracking of the prevalence of new cases in different regions where we
operate. The pandemic has taught us very important lessons, which
will guide us in reviewing the area’s operating strategy in the coming —
years. We monitor, in real time, any new issues that may trigger a crisis
situation. In 2021, for example, we closely followed the threats of a SINCE 2020, WE HAVE VOLUNTARILY COMPLIED WITH
truck driver strike in Brazil and macroeconomic volatility in Turkey. In
2022, we will continue investing to improve this process. THE RECOMMENDATIONS OF THE TCFD
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
07
Global Results

FINANCIAL MANAGEMENT
EMPLOYEE IN OUR JBEL OUST PLANT, TUNISIA
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
45
–

—
GLOBAL RESULTS
— —
Not even in our most optimistic forecasts could we have imagined 2020) and our adjusted EBITDA followed the same trend, ending the “IN 2021, WE HAD A REMARKABLE
that 2021 would end as the best year in our history in terms of year at R$ 2.4 billion, a 58% growth compared to the previous year.
financial performance. We grew strongly in virtually all indicators YEAR, WITH RECORD RESULTS,
In North America, net revenue increased from R$5.4 billion to R$7.1
compared to 2020. Our sales volumes grew 15%, to 37.2 million
tonnes of cement, resulting in R$ 22.3 billion in net revenue (33%
billion. Adjusted EBITDA, which had been R$1.5 billion in 2020, INCREASED OPERATIONAL LEVERAGE
grew to R$1.8 billion. In 2021, VCNA’s numbers were very close
higher than the previous year). Consolidated adjusted EBITDA
(earnings before interest, taxes, depreciation and amortization)
to VCBR’s, as seen in the graphs below, in line with our strategy of AND IMPROVED FINANCIAL METRICS."
was R$ 5.2 billion, an increase of 37% compared to 2020, with an
balancing our presence between mature and emerging markets. “In
—
EBITDA margin of 24%. Osvaldo Ayres Filho, Global CFO

“In 2021, we had a remarkable year, with record results, increased

operational leverage and improved financial metrics. We increased
our capex allocation focused on competitiveness and executed NET REVENUE ADJUSTED EBITDA

¹Other's net revenue is mainly due
important strategic steps, strengthening and diversifying our (R$ million) |GRI 102-7| (R$ million) |GRI 102-7|
to Votorantim Cimentos Trading.
footprint,” said Osvaldo Ayres Filho, Global CFO. 22,296 960 5,247 165
Other's adjusted Ebitda is mainly due
to dividends received and others non-
237 recurring items.
We were able to take advantage of this situation and expand our 978
2,915 562
²The company revised the disclosure
operations: we acquired a cement plant in Spain, with another 16,740 453 3,837 1,839 of adjusted EBITDA in the financial
7,129 178 statements for the year ended on
pending required approvals, and, in North America, we added a 825 199 December 31, 2021, and also adjusted
major cement operation, an aggregates business and assumed 13,027 (0.8) 2,129 453 the comparative balances for the year
658 5,429 2,675 (13) 1,463 ended on December 31, 2020. The
full control of a concrete operation, in which we were already a 2,124 131 explanatory note related to this review
3,805 10,314 438 2,444 details the requirements of CPC 22/IFRS
partner. We also concluded the expansion of another cement plant 8 – Information by segment, to update
1,060
in Brazil (read more about these operations in About VC, on page 7,904 readers regarding the information in
6,440 1,544 which the company’s Chief Operating
16). Decision Maker (CODM) based this
1,059 decision. As a result, the numbers
presented in the financial statements
for the year ended on December 31,
Growth in all Regions 2019 2020 2021 2019 2 2020 2021
2019 are not directly comparable with
those related to most recent years.
In Brazil, despite the macroeconomic crisis, with high inflation
and lower-than-expected gross domestic product (GDP) growth, VCBR VCEAA VCNA VCLatam Others¹
our net revenue was R$ 10.3 billion (compared to R$ 7.9 billion in

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2022, there is a great expectation to maintain our growth,

especially considering the infrastructure package approved
by the US Congress in November,” said Filiberto Ruiz, CEO
— ESG-FOCUSED CONFERENCES
of VCNA. Additionally, we reinforced our position with the
completion of the McInnis transaction and the acquisition
"IN 2022, THERE IS A GREAT
In September 2021, we participated
of Valley View operational assets in Illinois, in the United
States, as well as by assuming 100% control of Superior
EXPECTATION TO MAINTAIN in a meeting with investors focused
on ESG, organized by a financial
Materials.
OUR GROWTH, ESPECIALLY institution to address the increasing
Likewise, the acquisition of two cement plants in Spain demand for information on
(Balboa, integrated since the end of October, and CONSIDERING THE INFRASTRUCTURE environmental, social and governance
HeidelbergCement, pending final regulatory approval) topics, which have always been
is reinforcing our presence in the Iberian Peninsula by PACKAGE APPROVED BY THE important issues for our operations.
expanding our business both in Spain and in Portugal. In
all VCEAA countries, after a challenging 2020 due to the US CONGRESS IN NOVEMBER" We used the opportunity to present
our evolution with regard to ESG-
pandemic, business resumed in force. Morocco continued
related issues and our projects in
to account for most of the region’s EBITDA. In Turkey,
greater depth, demonstrating that we
there was significant improvement in numbers, and in
are aligned with society’s concerns
Tunisia, as solid as our operations are, there is concern
for more transparency in the business
about political instability. The VCEAA region ended the
environment. We also presented our
year with net revenue of R$ 2.9 billion and adjusted
2030 Commitments and action plans
EBITDA of R$ 562 million.
to achieve our set targets.
“At VCLatam, the results were also above expectations,
At the event, we reaffirmed our
thanks to a faster than expected economic recovery and
understanding that ESG disclosure
strong cost focus to contain the impact of cost inflation,”
increases our credibility with investors
said Günther Smetana, CEO of VCLatam. We continued to
and other stakeholders, as we
invest in Latin America and ended the year with R$ 978
communicate the company’s strategy
million in net revenue and a 18.5% increase in adjusted
to manage the set of risks in this area
EBITDA, which totaled R$ 237 million, including the results
and pursue related opportunities.
from Uruguay and Bolivia.
Filiberto Ruiz,
CEO of VCNA

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

INVESTMENT GRADE, LEVERAGE ESG Financing Ratings

AND INDEBTEDNESS Since our first sustainability-linked financing, in 2019, we have The rating agency Moody’s upgraded our credit rating from Ba1 to
increased our use of this form of financial instrument. In February Baa3, with a stable outlook. S&P and Fitch maintained their BBB-
|GRI 102-7| 2021, we became the first company in the Brazilian construction rating and stable outlook, all of which reflect our strong and positive
market to issue an ESG debenture to fully prepay debt from our cash flow, a solid business position and strong liquidity. With that, in
To achieve these results in 2021, we increased our gross debt
subsidiary Votorantim Cimentos N/NE S.A. (VCNNE) maturing 2021, the three main credit rating agencies confirmed our investment
primarily to fund the purchase of Cementos Balboa and due to
in 2023, thereby extending our term to 2026. The indicators grade classification for our credit operations, a qualification that is
adjustments to McInnis’ balance sheet debt, which ended the year
(KPIs) that will be measured are CO2 emissions per tonne of part of our strategy for which we do not compromise. Votorantim
at R$ 13.8 billion (compared to R$ 12.2 billion at the end of our
cementitious and thermal substitution rate, two sustainability Cimentos is one of the few Brazilian companies to have an investment
fiscal year in 2020) and was also impacted by the devaluation of the
parameters that are relevant for the cement industry and align grade rating attributed by the three main rating agencies.
Brazilian currency. By the end of 2021, our leverage (net debt/EBITDA
with our 2030 Sustainability Commitments. By achieving targets
ratio) had been reduced to 1.55x, compared to 1.95x at the end of
set every year, we will benefit from improved debt prepayment CREDIT RISK CLASSIFICATION
2020 and 2.93x in 2019.
terms. Moody’s Fitch S&P
During the year, we borrowed a total of R$ 3.7 billion. Considering
During the year, we issued four other sustainability-linked Rating Baa3 BBB- BBB-
all transactions in 2021, the company reduced the 2023 maturity
financing instruments, including a R$500 million debenture Outlook Stable Stable Stable
by R$ 1.5 billion, increasing the debt amortization average maturity
with a seven-year term, also linked to thermal substitution and Date June 2021 May 2021 November 2021
with a competitive cost.
emissions reduction targets.

SUSTAINABILITY-LINKED FINANCING

CCF US$ 290 million EUR 85 million ESG debenture EUR 50 million EUR 40 million Global RCF ESG debenture
bilateral R$ 450 million bilateral bilateral US$ 250 million R$ 500 million

AUG 2 0 19 NOV 2 02 0 F E B 2 02 1 J U L 2 02 1 J U L 2 02 1 S E P T 2 02 1 OC T 2 02 1
KPI 1: Reduction in KPI 1: ESG Score KPI 1: Thermal substitution KPI 1: Thermal substitution KPI 1: Thermal substitution KPI 1: Reduction in KPI 1: Thermal substitution
net greenhouse gas KPI 2: Reduction in net greenhouse gas KPI 2: Reduction in
(GHG) emissions net greenhouse gas (GHG) emissions net greenhouse gas
KPI 2: Thermal substitution (GHG) emissions (GHG) emissions
KPI 3: Clinker to cement ratio
KPI 4: ESG Score

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

08
Our employees

Safety, health
and well-being

Diversity

Training and
development

CARING FOR PEOPLE

EMPLOYEES IN THE CORPORATE OFFICE IN SÃO PAULO, BRAZIL
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
49
–

—
OUR EMPLOYEES
— EMPLOYEES BY REGION
|GRI 103-2, 103-3: 401|

11,953 11,783 12,466

We are a company made up of people who believe, act and
394 393
build. Our journey is one of courage, of moving and supporting 390
1,404 1,396
lives and careers; we are one united team in all 11 countries 1,339
2,420 2,668
where we are present. We renew our plans and commitments 2,418
to people on a continual basis and we are a team willing to 7,735 7,636 8,009
dream and fight for what we want to build.

Our VC Way guides us in doing what is right, respecting

and including people as they are, valuing and learning from
differences and delivering results in an ethical and respectful 2019 2020 2021
way. We want our employees to identify and take advantage
VCBR VCNA VCEAA VCLATAM
of opportunities to simplify, test new possibilities, increase
inclusion and act with ownership. We know that achieving
our future business ambition will be challenging, but we are EMPLOYEES BY GENDER
convinced that we have the right people to thrive, with the
courage to provoke, transform and go beyond.

We ended 2021 with a total of 12,466 employees, 5.5%more

than in 2020 (11,783), as a result of the creation of 683 new 11,953 11,783 12,466
positions during the year, the integration of companies in 10,119 10,455
10,012
North America and Europe and the start of new operations
in Brazil. As in 2020, this year, our people management focus
included special attention to safety, health and well-being
(partially in connection with the COVID-19 pandemic that
continued during the year) and diversity, as a reflection of our 1,834 1,771 2,011
commitment to create an increasingly diverse and inclusive 2019 2020 2021
work environment. EMPLOYEES IN ONE OF OUR VCNA PLANTS
Male Female

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
SAFETY, HEALTH AND WELL-BEING
—
|GRI 103-2, 103-3: 403; GRI 403-1, 403-2, 403-7|
1. Observe and respect the law and regulatory requirements developed new online courses to facilitate refresher training, including
relating to occupational health and safety. modules on safety standards such as NR 33 (work in confined spaces), NR 10
2. Incorporate illness and accident prevention in all processes (work with electricity) and NR 35 (work at heights).
We believe that excellence and competitive performance are not
possible if we do not have safety, health and well-being as our involving our employees and contractors. The SafeStart Program, to encourage safe behavior and reduce accidents,
foremost values. Therefore, these values are non-negotiable for us. 3. Strictly comply with our Critical Risk Protocols and Life-Saving which has been implemented at VCBR since 2018, is expected to be
People are our most valuable asset, and we set ambitious goals to Rules; full compliance is a condition of employment. extended to other units and businesses in 2022. Other initiatives worth
prevent injuries, eliminate fatalities and promote a safe and healthy 4. Provide training on occupational health and safety as part of mentioning are the Safety Recognition Program and the creation of Safety
work environment throughout the entire production chain. the professional development of our employees. Committees in all businesses.
5. Audit and evaluate the effectiveness of preventive measures Due to the COVID-19 pandemic, for the second consecutive year, our
We have a Global Health and Safety Policy and Life-Saving Rules.
against accidents at work. Internal Work-Related Accident Prevention Week (SIPAT) was held 100%
We manage safety globally and maintain local teams responsible
for participating in the development of and reinforcing these 6. Seek continuous improvements, aiming at zero accidents and online in Brazil. The entire event, organized and managed by the corporate
principles and for promoting training with the goal of creating illnesses at work. Safety area and the operational and medical teams, was recorded and
an environment of zero harm to people. “Safety, health and well- 7. Implement and monitor proactive indicators with a focus on distributed to all plants, increasing the engagement of the teams. In addition
being are part of Our Way of Being. In our operating strategy, safe behavior. to our in-house team of professionals, we invited experts to reinforce the
these principles come first and must guide our behaviors inside importance of maintaining safe behavior in the workplace.
and outside the organization,” said Dirlane Albino, Safety and Best Practices In carrying out routine activities, Daily and Weekly Safety Talks are tools used
Environment manager. |GRI 403-4, 403-5| to reinforce safety concepts and raise awareness of everyday risks. Also,
We rely on specialized professionals and hire external consultants Our employees are trained in specific safety procedures required preliminary risk analyses (PRA) help the company assess the factors that may
to assist in risk assessments, including those considered long term. by law in each country, according to the type of task they perform. increase the risk of a task to identify the necessary control measures.
We work to increase efficiency, improve productivity and reduce Employees hired as contractors have the same training requirements Since 2019, we have included the Occupational Hazard and Risk
turnover and absenteeism through the implementation of a culture as company employees, since we follow and comply with the Identification and Assessment Matrix as one of our auditable items, as a
of well-being. “We want our employees to make positive decisions Contractor Management Manual, a document that formalizes and way to ensure that the tool is up to date with regard to control activities and
for their health, and we believe that promoting quality of life makes ensures that the best safety practices will also be adopted by our measures.
the company more and more human,” said Cristiano Brasil, global service providers.
We use tools such as pre-use checklists prior to the operation of equipment,
director of People, Management, Communications and IT.
In 2021, we launched the Practical Cement Safety Guide in Brazil. vehicles and tools. We also reinforce the Right to Refuse, which guarantees
As per our Global Occupational Health and Safety Policy, we are Created through collaboration between the Safety and Operation our workers the right not to perform a certain activity when they believe the
committed to: areas, it includes a list of specific rules for each area. In parallel, we control measures may be insufficient or faulty.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Safety Indicators
We strive to have zero fatalities in our operations. Incident frequency GLOBAL FREQUENCY RATE 1, 2
rates are broken down by region and the challenge is always to
ensure that the lessons learned are shared and the preventive
measures adopted actually contribute to reduce the occurrence of 1.83
accidents. In the midst of a pandemic, this was another significant
1.17 1.3
1.30
challenge we faced with determination. At VCNA, seven businesses
extended their safety records of working more than a year with no
lost-time injuries, three of which have gone more than a decade. 1.11
0.93
Worldwide, we ended 2021 with no fatalities, which is a major 0.6
0.60
achievement.
2019 2020 2021
In Brazil, despite our efforts, we had an increase in the number of lost-
time injuries. Approximately one third of these accidents were caused Employees Contractors
by falls in the workplace. Our operational and safety teams have been
working together to implement initiatives to reduce these numbers.
NUMBER OF FATALITIES 2
The frequency rate and the number of fatalities in the last three years EMPLOYEE IN THE SALTO DE PIRAPORA PLANT, BRAZIL
can be seen in the graphs to the right.
1 1

0 0

SAFETY RECOGNITION PROGRAM 2019 2020 2021

Employees Contractors
Our Safety Recognition Program rewards both groups of been implemented. Individual initiatives are recognized by the
employees and individual employees. In 2021, the 101 Guardian in Safety trophy. The recognition happens annually
award-winning employees in our VCBR team showcased and includes the Cement, AACI, Logistics and Concrete busi- 1
Considers the number of lost-time injuries divided by the
total hours worked x 1,000,000. Does not include Uruguay
initiatives that confirm safety and health as non-negotiable nesses. The winners of each phase qualify for the next, until operations.
values in our operations. In the Teams Category, three to five they reach the final VCBR phase. This a healthy competition 2
Considers on-site occurrences in cement, aggregates, mortar,
people can submit an improvement project that has already to further increase safety in our operations. logistic, grout and concrete facilities.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

HEALTH AND WELL-BEING

|GRI 403-3|

In 2021, we once again dedicated energy and resources to

fighting and minimizing the effects of the coronavirus. Initiatives
implemented in the previous year (including social distancing in
cafeterias, buses, and other common areas; temperature checks;
wearing masks; monitoring all suspected and confirmed COVID-19
cases; and large-scale COVID testing), were maintained.

We also adopted a hybrid work system, where the majority of

administrative employees have been working remotely since
the beginning of the pandemic, while production areas have
continued to work in person. To support that, in VCBR we
distributed ergonomic kits (chair, mouse, keyboard, laptop stand
and headset) to employees who needed to work remotely and,
in 2021, we continued this initiative by providing a virtual credit
EMPLOYEE WORKING FROM HOME
card for our employees to purchase equipment.

In all regions, we encouraged our employees to be vaccinated,

since we believe that the only way to get through the pandemic
is by focusing on the common good. In Brazil, our campaign Naturally, there are regional variations in the different countries vaccinate a significant percentage of the population in 2021.
was called “Your Life is Made to Last” and focused not only on where we operate. Uruguay, for example, was quick to vaccinate its
This year, thanks to a reduction in number of cases and the increase
our employees but also on their families and the communities population and avoided a large wave of cases and hospitalizations.
in the percentage of the population that has been vaccinated,
living in the vicinities of our sites. Our campaign to encourage Argentina also fared well, while Bolivia was affected by a lack of
we published the Work from Anywhere Policy for administrative
vaccination was publicized internally and externally throughout vaccines and insufficient hospital infrastructure. In Europe, Spain
employees, which allows them to work half the time from home—an
Brazil, including through social media, internet, newspapers and was the country that had the highest percent of its population
option that is offered in all regions. In addition, we produced a Home
billboards in cities where we operate. Worldwide, more than vaccinated. In North America, despite the early start of vaccination,
Office Guide that includes tips such as the importance of taking short
90% of our employees had taken one dose of the vaccine and the percentage of people vaccinated progressed slowly. In Brazil,
breaks during the workday and maintaining a healthy diet.
approximately 50% were fully vaccinated by December 2021. we had a delay in the start of vaccinations, but we managed to

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Comprehensive Program |GRI 403-6|

To help employees overcome challenges and limitations resulting
from the pandemic, we paid special attention to mental health and
sought to offer help in the best ways possible. The first step was
to carry out an internal survey and create a comprehensive global
health program that included:

O Virtual live events and communications: At VCNA, we

organized a Mental Health Awareness Week, with lectures and
discussions on the issue and promoted the availability of Employee
Assistance Programs (EAPs). In Brazil, we also promoted a mental
health virtual live event focused on how to balance family, children,
home and work and shared what we are doing in our personal lives
to keep our spirits up.

O Video distribution: At VCBR, we distributed videos on topics

such as hypertension, sexually transmitted diseases, alcohol
consumption, smoking, women’s and men’s health, sedentarism
and metabolic diseases.

O Partnership with specialists: At VCEAA, we worked in O Online well-being platform: At VCBR, we created an online O Project VIK: An app that uses gamification to promote a
partnership with specialists from the Jaume I University, in platform, named Total Pass Plus to promote emotional well-being healthier lifestyle through physical activities (launched as a pilot in
Castellón (Spain), to develop initiatives that were combined under and offered mindfulness workshops and stress management Brazil, the project will be extended to other units starting in 2022).
the umbrella of VCEAA’s Mental Health Strategy, which was also training. At VCNA, we launched a monthly newsletter (focused on Social Service: In 2020, we started the Social Service program
O
implemented in other countries (Morocco, Tunisia and Turkey). health, nutrition, personal and family care, use of medication and for Engemix employees and in 2021 we expanded the service to
suicide prevention) and a new employee wellness portal, which all VCBR employees. Through this program, social workers support
O Psychological support: In Brazil, we developed an initiative
already has more than 170 exclusive product and service offerings employees with personal problems that impact their productivity
named Estamos com Você (“We are with You”), which
for our employees in the U.S. and Canada, including discounts for and help employees that have trouble using the healthcare plan
included virtual, free-of-charge counseling for employees and
in-person and virtual fitness classes. offered by the company.
their dependents and mental health virtual live events with
psychologists, and the Pilar Program (“Pillar”), with psychologists O H1N1 vaccine: Every year, we offer the H1N1 vaccine at no cost O Baby Program: Provides prenatal care and a stipend until the
and social workers available by phone, 24 hours a day. to our employees. child’s first birthday.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
DIVERSITY
—
|GRI 103-2, 103-3: 405|

We are committed to create a diverse, ethical and inclusive work improvements to our maternity and paternity coverages in Canada and decision-making. The Spanish unit also signed the Diversity
environment, respect people regardless of their characteristics, and and United States, aimed at providing a better working environment Initiative Charter, a voluntary charter of principles promoted by the
value and learn from our differences. We understand that we have for our current employees and making VCNA an even more attractive European Commission and the Ministry of Equality to reinforce and
a fundamental role in promoting diversity and inclusion and in the destination of choice for future employees of all ages and cultural give visibility to our commitment to diversity and inclusion at work.
fight for equal opportunities. backgrounds. We also partnered with the Toronto Community In Morocco, the company extended paternity leave beyond the
Benefits Network (TCBN) to hire people with different profiles, time required by law.
With the purpose of recognizing the differences that make us
increasing diversity, and we sponsored the Building Diversity Awards.
unique, in 2019, we had established groups of allies in Brazil on four
All funds raised will support the entity’s NexGen Builders mentoring
major themes (gender, race/ethnicity, LGBTQIA+ and people with
program. The objective is to increase the participation of Black
disabilities) to promote diversity and inclusion; in 2021 the work of
people, indigenous people and other races in the local construction
these groups advanced through the organization of more than 50
industry.
meetings, diversity talks and events.
In addition, we encouraged our employees to participate in
“PODE ENTRAR” VIRTUAL LIVE EVENTS
Also in 2021, our governance process based on Regional Diversity
Juneteenth (a date that celebrates the end of slavery in the United
Plans strengthened our culture of inclusion in different businesses We promoted discussions about diversity
States and became a national holiday in 2021) through a webinar
and locations. More than 300 local initiatives were organized in through live events hosted by a sponsoring
focused on diversity, inclusion and equality promoted by LifeWorks.
eight plans (regional Center-North office, regional Southeast office, director, with the participation of important
The session discussed the various ways in which we can be complicit,
regional South office, regional Northeast office, Sales & Marketing, Brazilian public figures, such as Mafoane Odara
intentionally or unintentionally, in producing or perpetuating
Concrete, Adjacencies and Corporate). (Psychologist from São Paulo University and
systemic barriers, prejudices and norms surrounding racial issues.
specialist in reducing gender and race inequal-
During the year, we also carried out the Diversity and Inclusion VCNA also organized a Pride Month and a Transgender Awareness
ities), Rita Von Hunty (drag queen, artist and
Census (in the past, our performance in this area was evaluated webinar on being an LGBTQ+ Ally. Another regional initiative was to
speaker), Laís Souza (Brazilian gymnast who
through climate surveys). The results of this assessment, which had create the option to add gender pronouns to email signatures.
became quadriplegic) and Benilda Brito (Social
the participation of 77% of employees in Brazil, will help us develop
At VCEAA, we produced a video in which four employees from Spain manager and founder of the Odara Black
and prioritize initiatives in the coming years.
shared their experiences from the perspective of four generations Women’s Institute). On average, each video
As part of our ongoing efforts to build VCNA’s pipeline of talent and working side by side in our company, using different knowledge was watched by 1,500 employees.
attract a new generation to our industry, we announced several new and skills to promote tolerance and enrich our teams, processes

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
GENDER
—
As part of our 2030 strategy, we are committed to steadily
increasing the number of women in leadership positions. We
ended 2021 with 20.2% of women in leadership positions. This
WOMEN IN CHARGE
was the result of several initiatives we carried out throughout the
In line with our strategy to increase
organization.
the number of women in our
During the year, three women joined our governance bodies: operations, in the second quarter of
economist Clarisse Lins became a member of our Board of 2021 we inaugurated a distribution
Directors, Luciana Domagala joined the Compensation and People center in Juazeiro do Norte (Ceará)
Committee, and Cristina Betts became a member of our Finance 100% operated by women. This is
Committee. our first unit operated exclusively by
women, representing a milestone
At VCBR, we had important developments in this area: we opened
in the inclusion of women. With
a new distribution center 100% operated by women in Juazeiro
the opening of the new distribution
do Norte, Ceará; launched the Reliable Engineers training and
center, we ended the year with
development program for women, to increase the number of
27% more women in the Logistics
women in technical operational positions; offered a free training
area than initially anticipated. "We
program for women interested in becoming ready-mix truck
are very proud of this important
drivers; hosted a unique course on Neuroscience Applied to
milestone and believe that it serves
Unconscious Decision Making, which had the participation of
as a great example of diversity,
100% of our senior leadership team; and opened the second
inclusion and the important role
LideraVC, a program for the development of leadership skills
women play in the construction
exclusively for women, to all female managers in Brazil.
industry," said Luis Eduardo Valim,
At VCNA, we appointed our first woman president, Resha Watkins, Logistics director at VCBR. This
who heads up VCNA’s Aggregates business. We also teamed up initiative earned us the VI SENAI
with an organization, to create the Hamilton Uplift program, which 2021 Logistic Panel Award, as an
offers training and refresher courses to women and non-binary industry benchmark in Diversity and
individuals to expand their career opportunities. Inclusion. EMPLOYEES IN THE JUAZEIRO DO NORTE DISTRIBUTION CENTER, BRAZIL

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
TRAINING AND DEVELOPMENT
—
|GRI 103-2, 103-3: 404-1|

Since the beginning of 2020, we have pledged to not lay off offered 333 undergrad students in different fields the opportunity
employees as a result of the COVID-19 pandemic. The good news
is that, since then, we have actually created jobs. And during this
to work in the corporate, industrial and commercial areas of
the different VCBR business units (cement, concrete, mortar,
TECHNICAL SCHOOLS
time, we have improved how we train new and existing employees aggregates, co-processing and aglime).
Another important initiative in Brazil was the
virtually.
Our training initiatives at VCNA included the creation of six continuation of technical schools to strengthen and
One of the main highlights of 2021 was the launch of the VC new Corporate University classes, including courses in French train teams. More than 2,500 employees participated in
Learning Platform, which enables independent knowledge to accommodate our new employees in Quebec (Canada), with training on maintenance, production, processes, mining
management in different areas, such as personal and professional a 22% increase in the number of students, and the relaunch of and quality. During the year, our focus was on technical
development, and technical, operations and corporate issues the Mind-to-Mind employee mentoring program. In technical training—a continuous education effort on the mastery
(through video classes, technical manuals, podcasts and other training, the highlights were a new partnership with the Colorado of the 18 critical functions we have in our operations.
tools), ensuring that employees can play a leading role in their own School of Mines and TPC Training (which specializes in industrial With support from in-house specialists (employees)
development at the company. The platform is now available to maintenance training) and the strengthening of a program in and certified external consultants, we launched Green
100% of the VCBR team and is planned to be extended to VCNA partnership with the Kline Group focused on providing knowledge Berets and White Berets programs. We also worked
and VCEAA in 2022. and solutions for the value chains of various sectors of the on technical training as part of the Cement Leaders
economy. program and technical internships, and held technical
We also launched the Leadership Development Journey (a new
workshops for leaders (maintenance, production, quality,
development model for all Votorantim Cimentos leaders that At VCEAA, we assessed our development needs to implement
mining and area managers). In addition, we had more
includes different content on culture, people management, strategic initiatives to increase thermal substitution. We designed
than 550 participants in our management training
business and self-knowledge), divided into four tracks according a program, called VCEAA AFR Core Curriculum, to train more than
program. In 2021, the Sales and Marketing School
to career stages: Toward Leadership, First-rate Leadership, From 100 employees by the end of the first half of 2022. This is in line
focused on training on product and sales techniques,
Leader to Leader, and Succession in View. Another highlight was with one of our priorities to implement co-processing operations
and on virtual orientation for new employees. This
our Gateway program, to help recruit talent in the market for for the use of alternative fuels in the different plants in the
was also the first full year of the Concrete School; its
succession in the medium and long term. region. We also focused on the on-boarding and engagement of
programs prioritized training and recycling in operations
new employees with the launch of a welcome mentor program.
In 2021, we opened enrollment for the Technical Internship and safety, aiming at productivity and operational
In addition, we concentrated our efforts to support the “new
Program, exclusively for women. In all of Brazil, 25 technical school excellence.
normal” by offering training on remote work and creating specific
students were selected. Another program, University Internship,
Communities of Practice to exchange ideas and tools.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

09
Innovation

Logistics

Customer
focus

COMPETITIVENESS & INNOVATION

MORE TECHNOLOGY IN CONCRETE - ENGEMIX APP
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
58
–

—
INNOVATION
—
|GRI 103-2, 103-3: VC-2|

To meet the current and future needs of society, we are constantly

looking for innovative solutions for our products and services. This
is a cross-cutting theme within our company that is facilitated
TECHNOLOGIES
through partnerships with startups, suppliers, universities and ON OUR RADAR
research centers. This is the path to gain competitiveness with
sustainability and leave a positive legacy for society. And the speed The Technological Radar,
at which these changes are being implemented is increasing. created by the Research &
Development (R&D) team,
Therefore, we believe in the importance of implementing a culture
enables us to monitor
of innovation and conveying to our teams the idea that we are
the most interesting
not afraid of making mistakes, since this is part of a company’s
developments taking place
evolution process. What is important is to have a curious, growth
around the world in the area
mindset, to find technological solutions that align with our
of cement, concrete and
journey. Continuing the strategy set the previous year, in 2021 CIVIL CONSTRUCTION, BRAZIL
aggregates; this increases
we maintained an Innovation Commission (within the Executive
our competitiveness while
Committee) and a working group (within the Board of Directors)
mapping out solutions that
that analyzed more than 100 ideas and 17 projects under
can support the safe and
development, six of which were determined to have the greatest
overall impact and are already being implemented.
sustainable growth of cities. SCRUBBER (SOX)
Technical news and articles
Our innovation territories are: future plants, retailer performance, are evaluated by specialists At our St Marys Cement plant in Bowmanville, Ontario (Canada) we
construction optimization, affordable housing, clinker reduction, from the R&D team and commissioned a new scrubber that is expected to result in a significant
carbon capture and use, and construction waste management— the topics considered most decrease in process emissions. This $25 million investment in technology
the last four topics are directly linked to our sustainability relevant are commented on, to improve the plant’s environmental performance has proven to be
performance. “Our goal is to prioritize major themes every six highlighting their technical 90% effective in removing sulphur dioxide (SO2) produced in the
months and review future scenarios at least every three years,” and economic feasibility and cement manufacturing process. This is the first scrubber installed at a
explained Danielle Totti, global general manager of Strategic strategic importance. cement plant in Canada.
Planning and Innovation. Each project has specific performance

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

indicators (KPIs). More than 48 employees were directly involved in

PERMEABLE CONCRETE the working groups in 2021, a year in which we invested almost R$ 6
million in innovation initiatives.

In Uruguay, through Cementos In parallel, we created three global working groups throughout 2021
Artigas, we participated in the to address issues of significant relevance to the company’s future:
development of a permeable concrete,
an environmentally friendly solution O New technologies, including industry 4.0 initiatives
and an adaptive strategy for new (such as digitalization, analytics, artificial intelligence)
materials to address the expansion
of cities without impairing the soil’s O Alternative FUELS AND RAW materials
drainage capacity. Today, green spaces
are replaced by waterproof buildings,
O Clinker factor reduction (KKC)
pavements and sidewalks, which leads
to the collapse of rainwater collection
An industry 4.0 initiative that continues to advance involves the
systems and causes, among other
Spectrum platform, which we use for the predictive maintenance of
effects, floods. CEMENTOS ARTIGAS PLANT, URUGUAY
assets; in two years (2020 and 2021), it has already resulted in R$
71 million in cost savings. Based on artificial intelligence, it enables
Developed as part of the National
online monitoring of our main operational assets (such as kilns, mills,
Adaptation Plan (NAP Cities) to
fans, gearboxes and elevators) and anticipates planned interventions
address climate change, the project
in these types of equipment.
is the result of an agreement with
the School of Engineering of the We also created the InovaVC program, for employees to suggest new CARBON CAPTURE
University of the Republic, through the ideas, and relaunched VC Connect, an open innovation platform:
Ricaldoni Foundation. The product has in November, startups and research centers presented possible Through a partnership with the School of Engineering of the
been studied since 2020 by a group solutions in four of the territories (construction optimization, retailer University of the Republic, in Uruguay, VC Latam offered a
of students from the institution. In performance, affordable housing and clinker reduction). Proof that master’s in engineering program to one of our employees.
June 2021, a 30-square-meter area we are increasingly maturing in this area is our evolution in the Valor The focus of the program was on CO2 capture initiatives—a
of permeable concrete pavement was Inovação ranking of the 150 most innovative companies in Brazil, pilot project conducted at the Minas site resulted in a 25%
built to enable the evaluation of the published by the newspaper Valor Econômico and the consulting firm reduction in emissions, thanks to joint funding with the
real-life performance of this concrete. Strategy&: in 2019, we occupied the 84th position; in 2020, we moved National Agency for Research and Innovation.
up to 65th place; and in 2021, we ranked 47th.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Artificial Intelligence
In an innovative way, we developed and implemented an
artificial intelligence system that predicts final cement strength.
AI FOR A MORE SUSTAINABLE CONCRETE
Under Brazilian technical standards, compressive strength tests
VCNA’s Ready Mix Concrete businesses have
are mandatory at day 28. Thanks to models based on machine
entered into an agreement with the UCLA’s
learning, we can now predict the results—which used to take
Samueli School of Engineering, in California,
four weeks—in just three days. This way, we can make fast
to provide operational and performance
preventive corrections in occasional resistance deviations,
data that will be fed into machine learning
eliminating or reducing concrete problems at the jobsite.
models that will use artificial intelligence (AI)
The artificial intelligence system is being used in 27 to predict and propose more sustainable AI-
laboratories of our cement plants in Brazil and Turkey. generated concrete mixes. The models will be
Naturally, the tests required by Brazilian law continue to be used to optimize raw materials consumption,
performed in the traditional way and confirm the predictions reduce the environmental footprint of concrete
in 99% of cases. and its production and further quantify the
environmental and performance benefits of
In addition, the new system also enables us to predict technical
Portland Limestone Cement (PLC). VCNA will
efficiency—the only parameter that measures the performance
then participate in the testing and validation of
of cement in concrete. Since technical efficiency tests are not
EMPLOYEE IN THE TECHNICAL CENTER IN CURITIBA, BRAZIL the Al-generated mixes.
a legal requirement and are relatively slow to complete, our
industrial units used to perform them only once or twice a week
(and only for cement sold in bulk). Currently, we have faster and
better ways to perform these tests in our plants.
THE ARTIFICIAL
As a result, we reduced the time dedicated to testing by INTELLIGENCE SYSTEM PREDICTIVE CONCRETE ANALYSIS
119 hours per month and increased in more than 200% IS BEING USED IN
the number of results available for analysis. In other words,
we have more agility to solve quality problems, resulting
in greater customer satisfaction. This initiative supports
27 Engemix is already using predictive quality analyses to assess the potential for standard deviation
reductions (in cost and carbon footprint) to be gained from the lower volume of cement used
in concrete production. Based on artificial intelligence (AI), the project uses mathematical and
LABORATORIES
decision-making in construction sites, paves the way for OF OUR CEMENT statistical resources to calculate future results. From a model initially used in our cement operations
our leading role and established us as a benchmark in PLANTS we created others for use in our concretes and mortars.
sustainability in the value chain.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
CYBERSECURITY LOGISTICS
—
Information security is vital for business. With more
employees working from home, we intensified
Inflationary pressure in the second half of 2021 was one of the Despite all efforts to use different transportation modes, there is still
campaigns to ensure that everyone is aware of
major challenges faced by our Logistics area. Adding to the rise in a significant prevalence of road transport in Brazil.
cyberattacks that can endanger both personal and
fuel prices were the difficulties in contracting shipping containers,
company data. This year we implemented a global During the year, we invested R$ 18.5 million in Brazil to improve the
which required significant efforts from the teams to maintain and
program to review our cybersecurity risks. In February, infrastructure at our terminals, to inaugurate and expand distribution
improve productivity. At VCNA, we faced a lack of supplies and
we administered a questionnaire to better understand centers and to update machinery and equipment. In the first half
tools in several areas. Significant flexibility was required to procure
our behavior in relation to data security, to identify our of the year, our distribution centers in Juazeiro do Norte (CE) and
the materials needed and protect our teams without disrupting
main weaknesses and improve the management of our Santarém (PA) started operating and we moved the one in Rio de
operations, especially in times of coronavirus.
environments. Janeiro to a location with larger storage capacity. In addition, we
In VCNA, the McInnis integration resulted in a significantly have two other distribution centers under construction in Ceará (one
Based on the responses, we created awareness
strengthened network of maritime operations and distribution in Crateús and another one in the metropolitan region of Fortaleza).
campaigns. Among the tips we offered were the need
terminals for transporting and supplying bulk cement. VCNA’s In September, we also inaugurated a distribution center exclusively
to redouble our attention to suspicious messages that
network and reach now extends from the Great Lakes region in for Viter, in Pratápolis (MG).
include urgent matters, ask to open a file or visit a
Canada and U.S. across Eastern Canada and into the Northeastern
website, share and offer miraculous cures or offer free “What we already knew before the pandemic—and our experience
Coast of the United States.
services, for example. Our Information Security team in the last two years has only made it more evident—is that the work
also reinforced the importance of making sure that all At VCEAA, in line with our strategy, we digitalized another part of of our business areas to achieve the best performance necessarily
links or emails we receive come from a trusted source. our VCEAA dispatching operation. The new system that had been involves the proper use of technology,” said Luis Eduardo Valim,
Another effort was to ensure that passwords used in installed at cement plants in Morocco and Tunisia in 2020 was Logistics director at VCBR. In this area, we see four opportunities to
computers and other electronic devices are always extended to the aggregates operation. In Turkey, a similar project leverage our efforts and contribute to greater value generation:
strong, difficult to guess and updated frequently. started in November, improving our relationship with customers.
1. Increase the productivity of processes that take place in our
In August, we launched the campaign VC Protecting In Brazil, we continued to expand the use of river transport to meet
distribution centers and in the dispatch areas of our plants.
Information and in November we participated in the demand for bagged cement in Manaus (AM); we also created a
the International Information Security Day, which new flow for the transport of plaster from Maranhão to our plants 2. Ensure that our decision-making process is faster
highlighted, for example, how criminals try to trick us in Mato Grosso. Another highlight was the use of rail instead of and more assertive during production planning.
into obtaining confidential information. Marcos Meira, road transport. By transporting part of our products via train, we
specialist in cyber scams and fraud, participated in a substantially reduced our CO2 emissions. In September alone, we
3. Contribute to the improvement of the customer buying experience.
discussion about the dangers in the digital world. prevented the emission of 34,724 tonnes of CO2, which is equivalent 4. Ensure that independent drivers consider
to the emissions produced by 4,000 homes or more than 6,000 cars. VCBR as their first option to work.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Routinely, we work to ensure good working conditions for drivers their trips faster and occasionally return to the unit for a second
by maintaining clean, organized and comfortable spaces in our trip on the same day, thereby increasing their earnings. In addition,
distribution centers. And, naturally, we always emphasize a non- we expanded the use of the “Mi Ruta” app in Spain. The app helps
negotiable value: safety. Throughout 2021, we intensified awareness track deliveries to our customers and provides information on the
campaigns for drivers and, in the last quarter, we launched a availability of our fleet.
series of four educational podcasts on rushing and distraction,
overconfidence, patience in traffic and vehicle checklists.
Business Transformation
We achieved exceptional results throughout 2021 with MOV-C, our
Technology at the Service of Logistics carrier dedicated exclusively to the supply chain, whose main customer
In Brazil, the MOV app has been used for a few years to strengthen is our own company: we transported 9.6 million tonnes of products.
the relationship with independent drivers. In 2021, new features Through MOV-C, we hire independent drivers directly to transport
of the app included scheduling of new shipments, confirmation of our products and support cargo identification to facilitate return
deliveries and settlement of transport contracts (in the past, they logistics, increasing the profitability for the drivers and strengthening
needed to go to a designated location to confirm deliveries, which our relationship with these partners. In line with the Business
is not required anymore). In addition, we expanded the scope of Transformation pillar, we decided to extend input supply routes to
the order routing system: we started the year with 13 units and our plants and offer logistics services to third parties. The goal is to
ended with more than 54 units with all shipments programmed by offer road transport and move and store materials in markets close to
software to reduce the distance traveled by trucks and optimize their MOV-C facilities that have logistical needs, especially customers who
schedule. With smarter and shorter routes, drivers are able to finish have cargo needs that are similar to those of Votorantim Cimentos.

—
IN LINE WITH THE BUSINESS TRANSFORMATION PILLAR,
WE DECIDED TO EXTEND INPUT SUPPLY ROUTES TO OUR PLANTS
EMPLOYEE OPERATING A FORKLIFT IN ONE OF OUR VCBR PLANTS
AND OFFER LOGISTICS SERVICES TO THIRD PARTIES
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
63
–

—
CUSTOMER FOCUS
—
|GRI 103-2, 103-3: VC-1|

Our customers are at the heart of our strategy. Therefore, we

seek to offer solutions and products that are aligned with their
needs, which drives the diversification of our businesses and
products. This includes not only investments in innovation, but
also specialized technical support and guaranteed quality in
everything we do.

In 2021, we continued to improve our digitalization with a

focus on our customers. Our main initiative in this area was
the launch of eCare, an online platform for interacting with WE HAVE MORE THAN
our customers at VCEAA: in just four months, it accounted
for more than half of our virtual sales in the four countries in 80,000
the region (Morocco, Spain, Tunisia and Turkey). In addition REGISTERED RETAILERS,
to being a digital sales channel that offers our entire product WHO CAN ENJOY THE CONVENIENCE
portfolio, the tool enables customers to download invoices, OF TAKING THE BEST
delivery notes and technical documentation, schedule and BRANDS IN BRAZIL
track orders and monitor complaints. The system went live in
July, in six different languages.

Our sales platform Juntos Somos+, created in 2018 in

partnership with Gerdau, Tigre and other large manufacturers,
received a contribution of R$ 100 million from our
shareholders during 2021, to continue to explore the vast
potential of digital solutions for the building materials sector.
One of the initiatives was the purchase of the Habitissimo
website, which established the program as the largest
BUILDING MATERIALS RETAIL STORE, BRAZIL
construction marketplace in the country. We have more than
80,000 registered retailers, who can enjoy the convenience

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

of taking the best brands in Brazil to their stores in a single order. In 2021, VCBR’s NPS was 71 (compared to 61 in 2020).“This
In addition, we launched a new portal that facilitates business even significant increase in our overall high NPS score is the result of a
more—and has already reached the incredible mark of R$ 7 billion in dedicated plan that focuses on the main needs and pains of our
sales. In the last six months of the year, more than 30% of customers customers and looks at the entire order-to-cash cycle,” said Hugo —
redeemed rewards. Armelin, VCBR’s commercial director.

In Brazil, retailers also have access to VC Ajuda, an online platform In 2021, for the first time, we expanded the NPS survey to new business
"THIS SIGNIFICANT INCREASE
that provides tools and tutorials to accelerate sales through digital
channels (for example, how to create a WhatsApp commercial
in VCBR and to all countries in the VCEAA region. The survey with Viter
customers, for example, found that 74% of them would recommend
IN OUR OVERALL HIGH NPS IS RESULT
account or promote products on Instagram and Facebook). Another
initiative is Mapa da Obra, a website that contains articles, videos
our products and services to friends and colleagues, putting our NPS
at a level of excellence. “The positive result is primarily a reflex of the
OF A DEDICATED PLAN THAT
and complete content about the construction sector. Papo de Obra
is a YouTube channel that aims to bring us closer to construction
recognition of the quality of the Viter products; the survey helped us
in our process of continuous improvement related mainly to customer
FOCUSES ON THE MAIN NEEDS
workers and end consumers. In December 2021, we had more than
150 videos uploaded, 50,000 subscribers and 10 million views.
service,” said Bruno Marin, commercial manager of Viter.
AND PAINS OF OUR CUSTOMERS
At VCEAA, in addition to the Customer Satisfaction Score (CSAT)
Other initiatives in the region in 2021 included expanding the survey, which we have been periodically conduction, we carried out a AND LOOKS AT THE ENTIRE
Asmenty loyalty program, which we maintain in Morocco, to concrete NPS survey for our cement and mortar businesses. Feedback from our
customers, and Mercim, a similar program developed in Tunisia. In customers led to the decision to modernize our visual identity in the four ORDER-TO-CASH CYCLE"
addition, the call center system implemented in Spain in 2020 inspired countries in the region, with new product branding and new cement
Morocco and Tunisia to set up a similar service in 2021. packaging—an improvement that was identified by surveys conducted
in 2020. It is worth mentioning that, in Africa, most of our cement
(75%) is sold in bags, while in Europe the majority of our sales is in bulk
Customer Satisfaction
(75%). Also, as we continuously strive to increase our efficiency, we
We conducted customer satisfaction surveys, such as net promoter
invested in an automated rotary system for packing cement and on the
score (NPS), and used the results to guide our initiatives. These
dispatch automation at the Hasanoglan plant in Turkey.
evaluations help us to improve products and services by pointing
out if we need to enhance the monitoring of the performance of At VCNA, the exceptional performance of the business was
our salesforce, reduce bureaucracy for large purchases, monitor a reflection of not only robust demand in the region, but
compliance with deadlines and do improvements in logistics and in strengthened customer relationship and the value customers
the sales channel. These are initiatives that reflect our concern for place on VCNA's value proposition, which combines technical
our customers and demonstrate our agility and ability to adapt to expertise and high-quality products with trusting relationships and Hugo Armelin,
market demands. uncomplicated solutions. VCBR’s commercial director

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

More Technology in Concrete BUSINESS AND PRODUCT

At Engemix, we continued to invest in technology. We strive to offer DIVERSIFICATION
fair and competitive prices and technical quality. “In our concrete
operations, for example, a high level of service is critical, hence the
importance of meeting agreed-upon delivery times very precisely,”
EXCELLENCE WITH SPECTRA We believe that long-term sustainable growth involves business
transformation. Our priority is to continually innovate to strengthen
said Ricardo Soares, VCBR’s Ready Mix director. our cement operations and increase our participation in adjacent
Since 2020, the Spectra concrete
areas (such as Verdera, Viter, Aggregates, Mortars and Concrete),
Technology also helps us offer better services. The Engemix Online has ensured superior performance
developing new business models that improve the retail experience
app, which provides real-time information about concrete application, and increased productivity in the
and bring us closer to the end consumer.
incorporated new features in 2021, including access to the customers’ construction of structures and
credit limit and a tab to respond to a satisfaction survey. reduced the use of concrete and In 2021, we diversified our product portfolio in Brazil. To increase the
steel, which translates into lower strength of our Votomassa brand, we launched a pilot project for the
Likewise, we are committed to serving smaller retail customers, who,
costs and less greenhouse gases Superfix adhesive additive and the Imperplus waterproofing additive,
during the pandemic, saw a need to build or renovate. In 2021, we
emitted in the construction process. which provide higher yield and greater efficiency when used with
experienced a 28% growth in the volume of concrete sold to this
Our concern with sustainability has mortar. Our intention is to further expand this product line to offer
specific target, which already accounts for approximately 20% of the
earned us, in partnership with the different waterproofing admixtures in the future.
total sold. To help people make the right choice in terms of material
construction company Nortis, the
and quantity, we developed a sales channel and trained a salesforce
ACI’s (American Concrete Institute)
to work specifically with this market segment.
Excellence in Concrete Construction
In the industrial segment, we launched the Masters project, focused award: the mechanical properties
on medium and large customers, many of whom have strong local or of the concrete we supplied for
regional presence, with the goal of helping them grow. We offered the Leopoldo 1201 project in the
technical training and the development and optimization of concrete center of São Paulo, enabled a 17%
mixes, as well as macroeconomic and marketing information. This reduction in the building structure’s
way, we improved our services and reduced costs for these partners, carbon footprint with no negative
thereby increasing their competitiveness. effect on the performance of the
material.
Our focus remains on product and portfolio quality, agility in
commercial processes, service level, carbon footprint, integration
with the production chain and innovation with a focus on
construction productivity, always with credibility, reputation and
financial security. IMPERPLUS AND SUPERFIX MORTAR ADDITIVES

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

We also extended Votomassa’s warranty to ten years and

launched new packaging for the end consumer, made 100%
of paper—since it no longer has an inner layer of plastic,
PORTLAND LIMESTONE
it is much more sustainable. Its expiration date was also CEMENT (PLC)
extended from six to twelve months.
At VCNA, a major innovation in 2021
Another new product in our portfolio is Sungard, launched
was the expansion of the use of
by Viter (VCBR’s agribusiness brand), which protects
ENVIROCEMTM Portland Limestone
perennial plants, such as coffee, tomatoes and citrus fruits,
Cement (PLC) in the United States,
from excessive exposure to the sun by providing higher
which works, measures and performs
thermal protection. “This is the first product of its kind
the same as traditional cement, but
produced in Brazil—and it was developed internally using
with a 10% lower carbon footprint.
raw materials that we already have in our plants, such as
At the Praire Material business, which
calcium and magnesium hydroxide,” explained Bruno Marin,
supplies concrete and aggregates, more
Viter’s manager. It was launched in October 2021, at a time
than 25% of the concrete supplied in
when meteorologists were predicting a hot summer with
2021 used this more environmentally
below-average rainfall in Brazil.
friendly Portland Limestone Cement.
High temperatures and intense sunlight can burn leaves and PLC, which was already sold in Canada,
fruits, in addition to causing physiological disturbances in contains more limestone and less clinker.
plants, such as reduced photosynthesis, enzyme degradation Compared to the rest of the world, U.S.
and reduced cell membrane stability. All these factors affect regulations are more specific regarding
the formation of the reproductive structures of crops and the amount of clinker in cement. “For
lead to a drop in productivity. Sungard is a highly soluble this reason, we had to work with
product that is applied by spray to create a protective government agencies to ensure that our
physical layer on leaves and plants, without interfering with product has the same properties required
gas exchange and photosynthesis. by law and can be used in infrastructure
projects, since it must comply with
regulations from the Department of
Transportation,” said Jeffrey Ouhl, vice
EMPLOYEE IN FRONT OF A CONCRETE MIXER OF PRAIRE, VCNA
president of VCNA’s Cement Operations.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

10
Circular Economy:
Verdera,
Cementitious
and Viter

Energy efficiency

Sustainable
supply chain

Environmental
management

Biodiversity and
water resources

Social
transformation

Our impacts

Monitoring
our 2030 targets
BUILDING A POSITIVE LEGACY
VOLUNTEER WORK IN THE HELIÓPOLIS COMMUNITY IN SÃO PAULO, BRAZIL
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 09
10 BUILDING
POSITIVE LEGACY 11 ANNEX
68
–

—
CIRCULAR ECONOMY: VERDERA, CEMENTITIOUS AND VITER
—
|GRI 103-2, 103-3: 302, 305, 306, 306-1|

Like any large-scale industrial process, cement production also has VERDERA AND CO-PROCESSING
social and environmental impacts. Recognizing our responsibility,
we adopt a regenerative approach in the way we do business, Waste co-processing and management are drivers of the circular to enable the recovery of waste (such as boiler ash and filter cake)
seeking to eliminate waste, repurpose by-products from other economy. During the cement production process, kilns reach for use in our cement and concrete operations. Both programs were
industries and increase the use of renewable resources, through a temperatures as high as 1,500°C, requiring a high amount of thermal successful and in 2022 we will collect proceeds from the disposal
circular economy. energy. Through co-processing, we reuse industrial, urban and biomass of waste. This is a step that paves the way for other initiatives with
waste as alternative fuels, helping to reduce the amount of waste sent other pulp mills in the country.
In this way, we create a renew/reuse circuit, in which the
to landfills, which also has a positive impact on our CO2 emissions.
extraction of natural resources is minimized, losses are eliminated VCNA is also increasing the rate of co-processing throughout
and by-products from other production processes are transformed Globally, we have already replaced 22.4% of the fuels we consume Canada and United States. In Bowmanville, Ontario, for example,
into new raw materials. with alternative energy sources and we are committed to reaching we obtained a new license that allowed us to increase our thermal
53% by 2030. substitution from 5% to 15%. In Charlevoix, Michigan (U.S.), our
In our operations, we adopt several practices in line with the
concept of the circular economy. We have ambitious global levers At VCEAA, we achieved 30.1% thermal substitution—an increase license was amended for increased use of AFR.
related to this significant challenge: of 63% in four years. In 2021, all of our plants in the region had At VCBR,in Laranjeiras (SE), we started co-processing sugarcane
co-processing facilities. We achieved a thermal substitution rate of bagasse, a type of biomass that used to be discarded by sugar and
52.3% at our plant in Hasanoglan, Turkey, the highest yearly rate ethanol plants in the state of Sergipe. And at our plant in Rio Branco
1) Replace fossil fuels used by the company achieved in VCEAA operations. do Sul (PR), we are reusing solid waste from the production of pulp
with alternative fuels. and paper.
“Increasing our thermal substitution rate in all VCLatam countries is a
key element of our sustainability strategy. The pandemic had a strong In line with our strategy of expanding co-processing in all units, we
2) Reduce the proportion of clinker in cement. effect on the availability of used tires and other alternative fuels. obtained a preliminary license to co-process hazardous waste (Class
Despite that, we were able to achieve a 24% thermal substitution rate
I) at our plant in Salto de Pirapora, São Paulo. This will allow us to
3) Recycle concrete that returns to our plants in Uruguay. In Argentina, we managed to maintain an 18% thermal
start co-processing trials, in our path to obtaining a permanent
or results from demolition. substitution rate, despite the high increase in production volumes,”
license to diversify our energy matrix. During the year, we also
highlighted Günther Smetana, CEO of VCLatam.
obtained a license to use cashew nut and babassu coconut at the
4) USE LIMESTONE THAT IS NOT SUITABLE FOR In Uruguay, Cementos Artigas developed a project together with Sobral plant, in Ceará, and we are awaiting a permanent license to
CEMENT PRODUCTION AS AGLIME. the Montes del Plata pulp mill and the Ministry of the Environment co-process palm fronds in our cement kiln in Primavera, Pará.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Environmental Solutions
In 2019, we created our Verdera business unit, which
operates in the environmental solutions chain in Brazil by
offering a sustainable co-processing technology alternative
to dispose waste that cannot be recycled, using it to
generate alternative thermal energy. VERDERA CO-PROCESSED
The pandemic led us to diversify our waste portfolio
and expand our operations to new industrial sectors,
1.05 MILLION
such as the food and packaging industry. Verdera co- TONNES OF WASTE
processed 1.05 million tonnes of waste. We have a robust
investment plan (R$ 400 million in the next five years) to
increase our waste management capacity globally.

BY PASS TECHNOLOGY
One of the highlights in 2021 was the
development of the Bypass project at the Vidal
Ramos plant, in Santa Catarina. This technology
removes chlorine from the kiln, enabling us to
increase the co-processing of alternative fuels;
our forecast is to achieve 70% fuel substitution at
the unit. The system will start operating in 2022
and this is the first plant in Brazil to have this type
of technology. VERDERA AND CO-PROCESSING IN VIDAL RAMOS, BRAZIL

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

CEMENTITIOUS
By-products from other industries, such as slag from blast furnaces and
ashes from coal-fired power plants, find sustainable use when they
are incorporated into cement and concrete. They are a sustainable
alternative to clinker, which is the main material produced in the
manufacture of cement and, through its manufacture, produces CO2
emissions. We have a team dedicated to identifying opportunities in
the areas of cement, lime and aglime production and processing.

We are usually able to reduce the clinker factor (amount of clinker in

cement) in our products by using additions such as slag, pozzolans,
calcined clay and/or fly ash, or by reducing quality and operational
deviations during cement production. In 2021, the use of additions
brought the clinker factor in cement to 74.9% (compared to 74.0%
in 2020). Our goal is to reduce this percentage to 68% by 2030.

Our investments take this goal into consideration. For example, the
expansion of the plant and installation of a new mill in Pecém, Ceará,
led to an increase in the use of by-products with a consequent effect
on the clinker factor. At VCNA, the upgrade of the Charlevoix and
the St Marys Cement mills (using press technology plus hot gas) also
increased our grinding capacity, including slag, by 3.4%, in addition
to reducing the specific consumption of energy per tonne produced.

Over the past two years, VCNA successfully reduced its clinker factor
by more than 3%. This improvement is equivalent to eliminating the
greenhouse gas emissions from 28,000 vehicles for one year, or the
carbon sequestered from 150,000 acres of forest in a year’s time.
Contributing further to the improvement was VCNA’s investment in
CHARLEVOIX PLANT, VCNA thermogravimetric analysis (TGA) technology, which enables VCNA’s
Cement Operations to monitor variations in the mass of a sample, in

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

an environment with controlled temperature and atmosphere, as

the temperature of the sample is changed over time. This provides
evaluable data that can be analyzed to help determine the properties
VITER’S INTERNATIONAL EXPANSION
of the material and identify additional opportunities to reduce the
In 2021, we took an important step to establish
clinker factor.
Viter as a relevant brand in this segment: we entered
the international market and made our first sale to
Paraguay, which is the sixth largest soybean producer
VITER in the world and has great potential for agricultural
We awaken and perpetuate the maximum potential of the growth. Our expectation is to export 30,000 tonnes to
soil through Viter, a brand with Votorantim Cimentos quality, Paraguay, increasing our volumes and directly benefiting
exclusively for the agricultural segment. Through it, we promote the Rio Branco do Sul (PR) and Itapeva (SP) units.
the circular economy by using limestone that is not suitable
for cement production as an agricultural input. “A portion
of limestone with high magnesium content that used to be
considered waste to be discarded is now repurposed and used
in agribusiness, which is a growing market in Brazil,” said Bruno improve soil quality. According to the Brazilian Agricultural Research
Marin, Viter’s Commercial manager APPLICATION OF AGLIME IN A FARM, BRAZIL Company (EMBRAPA), pasture makes up the largest planted area in
Brazil—159 million hectares (IBGE’s 2017 Agra Census), compared
We offer the best products to promote the renewal, maximum
to 39 million hectares covered by soy (CONAB 2020/21 harvest), for
power and high productivity of the many different types of soil and modernization plan for the plant, which also produces cement
example. However, less than 15% of pasture areas are managed
crops. In 2021, we continued to renew our portfolio of solutions, and aggregates.
using high technology.
including the development of special products, such as our
In December, we launched the first phase of Viter’s Go
Optimix line. Viter’s sales grew 4.8% to 5.2 million tonnes in 2021 In our study, we collected soil samples and found that high pH and
to Market project: we invested R$ 1 million to accelerate
(compared to 5 million tonnes in 2020). We opened the brand’s aluminum levels impaired root development. After six months of
agricultural businesses and enhance our relationships with
first dedicated distribution center in Pratápolis, Minas Gerais. The Optimix use, new chemical analyzes showed increased levels of
customers in this area.
site will supply high quality limestone produced by an external calcium, magnesium and sulfur, which improved soil characteristics
partner. At the Itapeva (SP) plant, we invested to increase our and fertility and ensured full development of the pasture area. “We
capacity; as a result, our production grew by 83,000 tonnes a year. Increased Fertility performed the test on 50 hectares and the preliminary results were
In Nobres (MT), we now have a new shipping scale, improving the An experiment carried out at the Campo Novo Farm, in fantastic. Before, we used to leave 100 head of cattle in this area for
logistical flow, and a new storage shed. And in Xambioá (TO), we Aquidauana (MS), owned by singer and composer Almir Sater, 20 days. Today, we leave 150 cows and 150 calves in the same place
started the production of Optimix as part of a major expansion and proved the efficacy of Optimix, our limestone-gypsum mix to for 90 days,” said Almir Sater.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
PRODUCTION PROCESS OF
OUR PRODUCTION PROCESS AND THE CIRCULAR ECONOMY STEEL INDUSTRY
Steel Industry
— Distribution
Mining THERMOELECTRIC
PRODUCTION
PRODUCTION PROCESS OF
VOTORANTIM CIMENTOS Slag
Steel + WASTE HEAT RECOVERY

PRODUCTION PROCESS Mining Thermoeletric

OF CONCRETE
HIDRATED LIME Ashes
AND LIMEPAINT Eletricity
Energy
MINING
+ AGLIME
+ ADDITIONS
AGRICULTURAL + BIOMASS Heat
PRODUCTION

AGLIME
Distribution
Grinding
Distribution
Biomass Cement MORTAR
waste AGGREGATES
Agricultural production CO2
products

+ USED TIRES Distribuition Final

product GROUTS
Refuse-derived fuel CEMENT
+ MICROALGAE Bio-reactor
+ CONCRETE
+ SOLID URBAN WASTE
CONCRETE
Waste
SOLID
URBAN WASTE

+ INDUSTRIAL WASTE
Distribution
Recycling
Waste / By-products Industrial
products INDUSTRIAL
Raw material PRODUCTION

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
ENERGY EFFICIENCY
—

CLEAN AND RENEWABLE ENERGY

|GRI 103-2, 103-3: 302|

We believe that cement production must use clean technologies

that minimize the use of natural resources and enable constant
improvements to reduce emissions and energy consumption. For
this reason, we seek to increase the use of renewable energy in all
regions. In 2021, 18.5% of the electric energy we consumed globally
came from renewable sources—and we are committed to reaching
45% by 2030.

Since 2018, our Asment Temara plant in Morocco has had a contract
to acquire 83% of its electricity from wind sources—currently, 100
GWh out of the 120 GWh the plant consumes come from renewable
sources. At the end of 2020, we signed an agreement to acquire all
energy used at our plant in Tenerife, Spain, from renewable sources.
And at the Toral unit, in the same country, we are implementing a
photovoltaic project to generate 15% of the energy we require on a
daily basis. In Tunisia, we have a waste heat recovery (WHR) system
that converts waste heat from combustion processes into electricity,
resulting in a 30% reduction in our electricity purchases.

In Argentina, with the expansion of the San Luís unit, the plant
started operating at full capacity, which also resulted in an important
reduction in energy consumption (24%). The next step will be to
build a photovoltaic plant in the unit, with 20 MWp of installed EMPLOYEES IN THE PEDRA DO CAVALO HPP, BRAZIL

power and an overall annual energy capacity of 50,000 MWh.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

In Brazil, 24% of our energy comes from renewable sources

(self-generation by our hydroelectric plants). We own four Small IN BRAZIL
Hydroelectric Power Plants (SHPP), one hydroelectric power plant
(the Pedra do Cavalo HPP), and a stake in the Machadinho HPP
consortium. Historically, the operation and maintenance of the Pedra
24%
do Cavalo HPP has been managed by Votorantim Energia through OF OUR ENERGY COMES FROM
a service agreement. However, as of February 2022, we will fully RENEWABLE SOURCES
assume the management of the Pedra do Cavalo HPP operation. The
plant is located on the Paraguaçu River, in the state of Bahia, and has
a total installed capacity of 160 MW. This change will give us more
autonomy in managing our renewable energy needs.

In partnership with Votorantim Energia, two new wind farms will

be inaugurated in the state of Piauí by 2023, adding 55 megawatts GREEN HYDROGEN
(MW) in installed generation capacity and increasing our share of
renewable energy to 49%. In addition to the environmental benefit, An opportunity to advance
the complexes will provide more predictability with regard to energy the consumption of
costs and reduce our exposure to volatility. renewable energy, while
ensuring energy efficiency,
In VCNA, our St Marys Cement business is an industry leader in
is the program launched
the area of energy management. Over the past seven years, our
in 2021 by the Uruguayan
Cement Operations were able to reduce power consumption
government to allow the
by more than 7%. Our investment in the modernization of our
use of green hydrogen.
Charlevoix, Michigan (U.S) plant contributed significantly to this
Cementos Artigas has
reduction. In Canada, our Bowmanville plant, in Ontario, became
already signed a non-
the first industrial operation in North America to earn ISO 50001
disclosure agreement with
energy management certification in 2012 and in 2021, our St.
a local company to carry
Marys, Ontario, plant also earned this highly regarded energy
out a feasibility project to
certification. At VCLatam, we obtained, during the year, the ISO
convert part of our fleet of
50001 energy standard recertification in Uruguay, reaffirming
concrete mixers to use this
our commitment to the energy efficiency of our operations. At
type of fuel.
VCEAA, the Alconera plant (Spain) also earned ISO 50001 energy PEDRA DO CAVALO HPP, BRAZIL

management certification.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
SUSTAINABLE SUPPLY CHAIN
—
|GRI 103-2, 103-3: 204, 407, 408, 409; GRI 102-9, 204-1|
LOCAL PURCHASES
One of our 2030 Commitments is to increase the
We play close attention to our supply chain and maintain our Despite the challenging landscape, we did not have any production number of local purchases in all regions where we
procurement management focused on generating value for our interruption due to a breach in the supply chain. operate. Guided by this target and in partnership
stakeholders. Local suppliers, in particularly service providers, with the Instituto Votorantim, we developed a
At VCBR, our Sustainable Supply Program, approved in 2020, made
represented 56.3% of our annual purchases, while the remaining pilot project in the units of Primavera (PA) and
significant progress in different areas throughout the year. One of
spend was sourced either nationally or globally. We hire nationally Corumbá (MS) to help improve the quality of
the results was the approval , by our top leadership, of five objectives
operating companies for continuous services, materials and inputs. services provided by companies in these cities
that will guide the Supply strategy through 2030:
and, as a result, increase hiring in the region.
Our current operating expenses can be divided into three large groups:
1. Increase local purchases in the regions where we operate. Four categories were chosen for this project:
O Inputs, such as paper bag, diesel, admixtures, pet coke, sand
mechanics, belt vulcanization, machining and
and explosives.
2. Strengthen our relationships with suppliers civil maintenance. The first step was to identify
O Services, such as internal handling, mechanical maintenance, IT, and interview local companies. As a result of this
that have superior sustainability practices.
consulting and transportation. initiative, we reached a broad contract with one
local supplier for each of the units. Initially, the
O Materials, such as refractory materials, spare parts, casts, belts 3. Increase purchases from suppliers
companies we identify may not have the technical
and industrial equipment.
with diverse leadership teams. and financial expertise to meet our requirements;
The year 2021 was very challenging with regard to supply however, we will train these partners to qualify
negotiations. We had to seek balance with our partners to maintain 4. Engage our teams to incorporate best practices them to work with us.
competitive costs, high quality, and, most importantly, product supply.
in sustainability into procurement. By helping to prepare these small providers, we
We faced significant constrains in the global supply chain with lack
aim to have reliable and efficient local partners to
of raw material and production shortage in certain industries, both
5. Reduce waste and scrap production along the supply chain. provide essential services to our plants, while also
in Asia and Europe, and also a bottleneck on the overseas circulation
promoting local entrepreneurship and the growth
of containers (read more in Logistics, on page 61). Faced with this
The Sustainable Supply Chain Program is divided into 10 pillars; our of these businesses. Our idea is to replicate this
situation, our procurement team had to continue to focus both on
2021 achievements are described on the next page: model in two additional cities each year, through
cost control and on a continuous effort to keep operations running.
2030. With that, we hope to increase our spending
As a result, some plants had to work with very low inventories, with
on local purchases by four percentage points.
supply of essential materials reaching the production lines just in time.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
PILLARS OF THE SUSTAINABLE SUPPLY CHAIN PROGRAM
ENVIRONMENTAL
Pillars 2021 achievements
MANAGEMENT
Sustainable Supply Chain policy and strategic plan Our strategic objectives were validated by the top management of Votorantim Cimentos. —
|GRI 103-2, 103-3: 307, GRI 102-11, SASB EM-CM-160a.1|
Incorporating sustainability into the process We held three Risk Committee meetings to monitor the action plans for the 30 suppliers identified as
(planning, sourcing and contract management) high risk.
We strive to make our operations increasingly sustainable by managing
Incorporating sustainability into the process We re-registered the 1,140 high- and medium-risk suppliers. and reducing our impacts on the environment and natural resources.
(registration and re-registration) We work to ensure the fulfillment of our environmental commitments,
with each country setting its goals and targets in accordance with local
Supplier portfolio management We developed the first version of the dashboard with an intelligent view of the supply portfolio. legislation. Our performance is guided by our Global Environmental
Policy and Green Rules, and our Environmental Management System
Sustainable technical requirements We defined technical requirements with social and environmental criteria applied to the procurement is based on the ISO 14001 standard.
process and conducted a bidding process on five pilot categories.
The environmental results of each of our units are compiled into
the Operational Environmental Performance Indicator, which is
Internal customer assessment of suppliers (IQF) We reviewed our assessment tool (IQF – Supplier Qualification Index) and carried out audits with support monitored by our leaders and teams on a monthly basis. The
from 430 internal auditors to assess 350 partners, from 46 categories, who work with 150 VC units.
items analyzed include control of legal requirements; operating
licenses and their conditions; environmental risk management; solid
Pact with strategic suppliers We held a quarterly committee meeting to monitor 22 selected projects, of which 16 were completed in
waste management; water resources management; prevention
2021.
of contamination; air emissions management; biodiversity
management; and recovery of degraded areas. In addition to
Development of local suppliers We mapped out and trained local companies, started bidding processes in pilot units (Corumbá and
monitoring our operational results, we encourage the exchange of
Primavera), developed the Local Procurement Matrix and trained category managers.
best practices between our units to improve these indicators.
Supplier recognition program (VC Partner) In May 2021, we held an event for the 2020 cycle, where we recognized 53 suppliers. In 2021, VCBR’s Pecém unit (CE) and the South Regional units
underwent the process to renew their ISO 14001 certification. After
Communications of the Sustainable We trained buyers and the Procurement leadership on sustainable procurement, performed benchmarking resuming operations, our Samsun unit, in Turkey, also received this
Supply Chain Program with Group companies and other industries, and communicated the Program’s results at external events same certification; as a result, all VCEAA cement plants are now ISO
and through the media. 14001 certified.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
BIODIVERSITY AND WATER RESOURCES
—
We are committed to protecting water resources and biodiversity activities do not affect paleontological studies and that the local
by managing protected areas and implementing plans to recover ecosystem and biodiversity are preserved. In 2019, we received an
degraded areas. Following the Integrated Biodiversity Assessment award from the European Aggregates Association for our restoration
Tool (IBAT) methodology, in 2020, we identified 10 priority locations work at Cova Eirós and in 2021 we developed the Sustainable Land
for the development of Biodiversity Management Plans—and we are Management Plan for the area. REHABILITED MINES
committed to implementing these plans in sensitive areas.
At VCNA, Canada Building Materials (CBM) is recognized as an
In September, the Institute
Our commitment to the protection of natural resources is also industry leader in land rehabilitation. In 2021, we rehabilitated a total
for the Environment and
reflected in internal investments to close mines. In 2021, more than of 57.17 hectares, in three different locations, for agricultural activities
Water Resources of the
R$ 2 million were invested in ARO (Asset Retirement Obligation) and biodiversity preservation (with the reintroduction of animals in the
Federal District approved the
activities (refers to the legal or non-formalized obligations of former mining sites). We are anticipating the first harvest in an area
activities for the recovery
restoration of the environment upon discontinuation of operations of known as Brown Pit, scheduled for the spring of 2022 in the Northern
of degraded areas in the
mines) in the VCBR units. They included the implementation of good Hemisphere (between March and June). We also planted more than
Rua do Mato and Boa Vista
practices for the recovery of degraded areas, such as: installation of 26,000 trees and continue working to further increase our total
mines, at the Sobradinho
drainage systems, revegetation of areas, planting of native species preserved area.
unit, where approximately
and development of mine closure plans. In 2022, the plan is to invest
10,000 seedlings of native
approximately R$ 4 million in 16 units.
Water Cerrado species were planted.
In July 2021, the State Foundation for Environmental Protection In addition to preserving biodiversity, we implemented The Institute recognized the
(FEPAM) of Rio Grande do Sul issued a term of closure for the measures to ensure sustainable water management to effectiveness of the good
Augusta mine (in the town of Pinheiro Machado, Brazil, near the prevent negative impact on watercourses near our practices implemented as
MORE THAN
border with Uruguay), which has 22 hectares in advanced stage of operations and to reduce our water withdrawal. With it attested to the survival
recovery. We enclosed the entire site to ensure the preservation of
biodiversity in the area, which has great potential as a refuge for
the help of technology, we monitored 11 VCBR units
and another seven VCEAA units in areas of water
R$  2 MILLON and growth of 90% of the
seedlings planted, as well
wild fauna, with spaces for nesting, burrows and natural perches. scarcity and implemented local Water Management WERE INVESTED IN ARO as the absence of erosive
plans to preserve this important natural resource. (ASSET RETIREMENT processes, which had a
In an area within our Oural cement plant, in the province of Galicia,
Spain, we found signs of human presence dating back to 30,000 to In Tunisia, we installed a new gas filter and an osmosis
OBLIGATION) positive impact on the local
biodiversity.
50,000 years ago. We set up a plan for the preservation of the rock water treatment system to return clean water to the dam.
mass surrounding the Cova Eirós cave to ensure that our mining At one of our major Toronto, Ontario (Canada), ready-mix

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

concrete plants, we installed a large-scale concrete pond with a Partnerships for the Environment
sophisticated water treatment facility in the third quarter of 2021. In 2021, we celebrated 11 years of partnership with the
The system captures water from existing on-site production and Brazilian Speleology Society and the Brazilian Atlantic
rainwater for concrete production and has reduced freshwater Forest Biosphere Reserve. This is a one-of-a-kind initiative,
consumption by 27%. since it brings together industry, one NGO that focuses on cave
preservation and another that fights for the conservation of
In Itaú de Minas (Brazil), we manage more than 60 existing
biomes in the Atlantic Forest. In December, we participated in
springs on our properties in the region, through strong interaction
the presentation of the results of the first seven research projects
with the community and public authorities. Thanks to this
selected to receive funds from this partnership. This work shows
relationship, we were invited to support the Pró-Mananciais
the evolution of our internal environmental management system,
project, financed and conducted by the Water Supply Company
which is now much more robust than a decade ago.
(COPASA). The main objective of the project is to preserve and
recover springs and water courses in rural areas. Votorantim To promote biodiversity and water conservation, in 2021 we
Cimentos contributes technical knowledge, provides support to continued our work as one of the sponsors of Legado das
understand local demands and helps direct the activities (which Águas, the largest private reserve of Atlantic Forest in Brazil.
include inclosing springs, building eco-friendly sewage systems, In an area of 31,000 hectares, in the South of the state of
recovering degraded areas, improving access pathways and São Paulo, we support environmental protection activities,
building decanting systems). with an emphasis on scientific research, cultivation of native
plants, ecotourism and income-generating projects for local
The year 2021 marked the end of the El Agua nos Une project, a
communities. In December, in conjunction with a celebration
Latin American network that aims to develop and strengthen the
for this partnership, we were recognized
management of water resources in companies through the water
for our involvement as founders of
footprint technique. In the 2018-2020 cycle, three companies
Legado das Águas.
(CBA, Klabin and Votorantim Cimentos) developed impact studies
and action plans to reduce their water footprint. The process IN AN AREA OF
involved studies of the lifecycle of concrete and the use of several
important software tools to assess the impact of the operations 31,000
on water resources. The project enabled the identification of HECTARES
critical points along the value chain, increasing knowledge about WE SUPPORT ENVIRONMENTAL
the impacts related to the product, which led to improvements in PROTECTION ACTIVITIES
our internal management systems. The results were published and
CAVE IN THE ITAU DE MINAS PLANT, BRAZIL
presented at an event held in June.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
SOCIAL TRANSFORMATION
—
|GRI 103-2, 103-3: 413|

With more than 300 industrial sites on four continents, we are in

constant and direct contact with very different communities in terms
of diversity, knowledge, needs and cultures. We work to promote
the social and environmental development of these communities,
while remaining committed to generating shared value, improving
people’s lives and respecting the unique characteristics of each
country and region. In 2021, we extended our social performance to
include Engemix and Viter in the activities we carry out and support.

We focus our efforts and leverage our experience to support initiatives

that can address social issues by leveraging the knowledge, talent
and resources in each location. We pay special attention to solutions
aimed at improving the quality of life of families in vulnerable
conditions, in addition to seeking to increase the participation of
local suppliers in our value chain, boost local businesses and create
employment opportunities for local residents. We also identify areas
considered important by the communities and municipal governments
surrounding each of our operations to invest and to partner with other
like-minded organizations for the benefit of each community.
EVENT WITH LOCAL SUPPLIERS, BRAZIL

Effectiveness
The mechanisms to assess effectiveness focus on two areas: we
monitor and analyze direct indicators of each social activity, project of our employees in volunteer initiatives. the community and respect for local culture guide our strategies and
or program that we develop in each location, and we measure Our 2030 Sustainability Commitments establish that the company’s initiatives. We also work in partnership with the Votorantim Institute,
engagement events and initiatives, including crisis management, positioning encompasses all stakeholders (customers, employees, which is managed by our holding company Votorantim S.A. Our
community activities and protests. This movement is strengthened shareholders and communities) and that we must do more than initiatives are guided by policies and by the Procedure for Implementing
through transparent dialogue channels and the active participation required by law in each country. Land development, dialogue with and Executing Community Relations Plans at Votorantim Units.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

SOCIAL INVESTMENT Fighting COVID We also participated in the Coalition for Housing, led by Artemisia,
Despite mobility restrictions imposed by the pandemic, we still actively which maintains a Housing Lab that has accelerated 64 business in
In 2021, we invested R$ 12,7 million globally in social participated in communities where we operate. Globally, we invested three years. In addition, following our decision to include the Engemix
transformation projects, including activities in the areas of social more than R$1.5 million in initiatives to fight COVID. business in our social strategy, we developed a pilot project, called
engagement, connection with the business, support to public Reforma VC, to renovate five homes of Engemix employees, thus
At VCNA, we continued our established tradition of giving to healthcare
management, education and other initiatives. promoting decent housing and ensuring better quality of life. And in
facilities such as the Bowmanville Hospital, the St. Mary’s Healthcare
Turkey, in support of communities that were affected by summer fires,
Foundation and the Munson Healthcare Charlevoix Hospital Foundation,
we donated cement to renovate approximately 700 homes, as part of
among other institutions.
the #birdestekbiryuva project started by the NGO Need Map.
SOCIAL INVESTMENT IN 2021 At VCEAA, our most important initiative was the donation of 50,000 dinars
to support hospitals in Tunisia. In Bolivia, we donated equipment, medical
(R$ thousand)
supplies and construction materials to the hospitals El Carmen Rivero Torrez,

8,749.7
Arroyo Concepción and Centro de Salud Yacuses and Puerto Suarez.
CO-INVESTMENT FOR SOCIAL IMPACT
WE INVESTED In Brazil, through the Votorantim Institute, we were one of the companies
that supported Fiocruz in the construction of a laboratory (LAFIQ), which In 2021, we also created and structured a new form

R$ 12.7 MILLON was essential for the production of vaccines in the country. In a record 18
months, the Foundation completed four installations: the COVID Vaccine
of social investment, directly aligned with the social
component of our ESG (environmental, social and
GLOBALLY IN SOCIAL Plant (Oxford/AstraZeneca viral vector technology); LAFIQ; the Hospital governance) efforts. As a result, we led the creation
TRANSFORMATION Center, with 195 beds; and Biobank. of a collaborative co-investment network in the area
PROJECTS To address the coronavirus crisis, five municipalities from different
of housing and standing forest: the Rede Transformar,
which was designed as a social investment fund formed
regions of Brazil participated in the second phase of the Support to
by suppliers, customers, financial institutions and
Public Management program, carried out by the Votorantim Institute,
other companies to maximize the collective impact. In
which offered technical support to their municipal health offices for the
September, we also participated, together with other
development of contingency plans to address the pandemic.
portfolio companies of the Votorantim Group, in the
1,729.6 Social Performance Meeting organized by the Votorantim
1,509.7 Housing
Institute around ESG issues. At that event, we presented
725.5 One of our most important initiatives in the area of housing falls within the
our practices and had the opportunity to learn about
territory of affordable housing innovation and led us to be recognized by
other important initiatives, broadening our view of this
Habitat for Humanity as a valuable partner in building a world where people
VCBR VCNA VCEAA VCLatam strategic and relevant agenda.
have a decent place to live.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

HELIÓPOLIS COMMUNITY IN SÃO PAULO, BRAZIL

i.V Ventures Investment
AFFORDABLE HOUSING In 2021, we joined i.V Ventures, a new impact fund
managed by the Votorantim Institute that supports early-
We know that many people in Brazil live in precarious “One of the lessons learned stage entrepreneurs who are committed to developing
conditions—and many don’t even have a place to from being part of the transformative solutions for issues related to Water and
live. That is why we want to invest in affordable coalition is to think about Sanitation, Low Carbon Economy and Social Interest
housing for more and more people. Since 2019, we the ecosystem as a whole— Housing.
have participated in the Housing Lab, an initiative to to look at houses as part of a
Over the next five years (the average period expected for
accelerate impact businesses to provide affordable system that includes issues such
the development of new businesses), iV Ventures will invest
housing for low-income populations, water and as land. They are part of a broad,
resources from the companies Votorantim Cimentos, Banco BV,
sanitation, landholding regularization and reverse complex and historical context,” said
CBA, Nexa, Votorantim Energia, Citrosuco and Altre, and from the
logistics in partnership with social businesses, Priscilla Alvarenga, Social Transformation
Institute itself, in startups with projects in these areas.
incubators, NGOs and other large companies, such as manager. Since 2018, Coalizão Habitação, through
Gerdau, Vedacit and Tigre. the Housing Lab, has supported several entrepreneurs from Specific metrics will be used to calculate the social and environmental
all over Brazil, creating a network of strengthened businesses impacts achieved by the initiatives. In addition, as these startups
We supported the renovation of 89 homes in
with enhanced impact. develop, the financial return on investments will enable i.V Ventures
communities in São Paulo, Curitiba, Recife, Aracaju and
to reinvest more capital to continue multiplying the positive impacts
Laranjeiras, benefiting a total of 328 people by improving
of the initiatives.
their housing conditions. In June, this initiative was
recognized by Habitat for Humanity, a social organization
that works in over 70 countries to ensure affordable
64 IMPACT BUSINESS WITH ENHANCED HOUSING SOLUTIONS
Health Initiatives
housing conditions for people living in poverty.

The project is also one of the themes of Inova VC,

124 ENTREPRENEURS SUPPORTED BY THE PROGRAM
Our Support to Public Management Program (AGP) in Brazil moved
its focus away from emergency action and toward partnerships
that can help municipalities structure and improve their health
our internal program to identify ideas within the

198
management. At VCNA, we funded health and medical science
innovation territories established in each new cycle. At
the end of 2021, we launched a challenge to create MENTORS AND EXPERTS ENGAGED initiatives at the Bowmanville Hospital, Stratford Perth Rotary
Hospice, Munson Healthcare Charlevoix Hospital Foundation, and St.
solutions that can expedite construction, use less
Marys Healthcare Foundation. In Tunisia, we sponsored a campaign
waste, and result in lower carbon footprint, lower
costs and increased productivity. 48% WOMEN ENTREPRENEURS
called Breast Cancer Prevention Caravan, through which we invited
women from the community to have a physical exam and attend an
awareness session in our cement plant.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Partnership for the Enhancement of Education (PVE)

Through the Partnership for the Enhancement of Education (PVE),
conducted together with the Votorantim Institute, we were active in 540
SOCIAL ENGAGEMENT AND
schools in 18 Brazilian municipalities, involving 72,590 elementary, middle COMMUNITY COUNCILS
and high school students. The project supported municipal offices in the
development of distance learning programs during the pandemic. Our community councils continued
to be active during the pandemic,
At VCNA, we reinforced our educational partnerships with the RMC
with virtual meetings to facilitate
Research & Education Foundation (Alexandria, USA), the Ontario Tech
open dialogue with residents in the
University (Ontario, Canada) and the Industrial Art Institute (Michigan,
vicinity of our units. In addition,
USA). In Morocco, we organized an entrepreneurship course for women.
in VCBR we started a new virtual
We also supported community and family-related initiatives such as the
program FortaleCIMENTO dos
Osprey Valley Open (official PGA Tour event in Toronto, Canada).
Conselhos Comunitários Brasil
At VCLatam, we carried out the campaign “Building values – with (“Strengthening the Community
solidarity, we contribute to a better future”, which resulted in the Councils in Brazil”), which was
delivery of 175 books and teaching materials to children at school N° 63 created in collaboration with
in Minas, Uruguay. In Bolivia, we sponsored computer classes in Puerto 45 participants of the councils.
EMPLOYEE IN ONE OF OUR PLANTS IN BRAZIL
Quijarro, offered technical training scholarships to students from the This program focuses on training
INFOCAL Foundation in Yacuses, supported the construction of a multi- council members to develop
sport court at the Yacuses Educational Unit and trained construction
workers in Albañilería.
EVOLUIR – PROFESSIONAL QUALIFICATION abilities and skills they identify as
critical to improve communication,
fundraising efforts, financial
The Evoluir Program offers technical and professional qualification
results, and community
Income Generation – Inclusive Production courses in strategic areas of industry, such as mechanical
engagement. After two years of
To encourage entrepreneurship and social and production inclusion, maintenance and mining. The initiative promotes the access
pandemic, our experience has
we promote the Valor and ReDes programs, the latter in partnership of workers to education and encourages communities and our
resulted in initiatives that are more
with the Votorantim Institute, to support different production chains own employees to improve their qualification and development.
autonomous and can drive the
(waste and recycled materials, biomassand agriculture). Both programs The program is part of our social strategy to contribute toward
agenda of priorities created by
help develop the local economy and workforce, aiming to increase the community development and increase local employment, especially
communities themselves.
income of vulnerable communities. In Primavera, since the beginning of in municipalities such as Primavera (Pará), Edealina (Goiás), São Luís
the Valor Program, the income generated through family farming has (Maranhão) and Vidal Ramos (Santa Catarina), in Brazil.
increased by 82%.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Volunteer Program
As a result of the social distancing measures implemented at the
beginning of the pandemic, in 2021, our volunteering activities
continued to be held remotely. To reach our target of having 20% of
our employees engaged in volunteering initiatives by 2030, in 2021
we increased our participation in projects that we carry out and
support. Our main initiative was the Volunteer Challenge, a game
among the companies of the Votorantim Group that encourages the 54 EMPLOYEES
participation of employees. The theme of this year’s challenge was WERE INVITED TO HELP NGOS
Playing Together: we are ready to build a positive legacy (“Joga Junto IN THEIR WORK TO IMPROVE
– prontos para constuir um legado positivo”). THE LIVES OF PEOPLE
In November, we published the e-book “Volunteering with the face WITH DISABILITIES
of your VC area”. Produced by the São Paulo Corporate Volunteering
Committee and the Social Transformation area, the guide offers a
large menu with suggestions of groups and volunteer activities.

At VCBR, we also hosted the 1st Social Hackathon, in partnership

with ASID Brasil (Social Action for Equality of Differences). The
event, held in May and 100% online, aimed to explore our ability
to solve problems and create solutions to produce social impact. AT THE END OF THE
In a dynamic, gamified and collaborative way, 54 employees were VOLUNTEERING CAMPAIGN
invited to help non-governmental organizations (NGOs) in their work
to improve the lives of people with disabilities. At the end of the
volunteering campaign, 372 employees were involved in the social
372 EMPLOYEES
activities via online. WERE INVOLVED IN THE SOCIAL
ACTIVITIES VIA ONLINE.
At VCNA and VCEAA, we also launched our volunteer program that
provides for paid time off for employees to take part in various
social and charitable initiatives and activities. At VCLatam, through
the voluntary participation of employees, we delivered 40 food
baskets to El Caif Verdisol, supporting families in situations of
socioeconomic vulnerability.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
OUR IMPACTS
—
We map the impacts of our activities, recognizing that they include both positive and potentially negative aspects from an economic, social and
environmental standpoint. In our analysis, we consider our key activities: construction of plants, mining, production, logistics, sales, research,
process management, communication and co-processing.

Key activities Materiality Trend Risks 2030 Commitments

Environmental impact Economic impact Social impact

GHG NOx Emissions Waste Dependence Use of Effluent Impact on soil, Impact on Noise Tax Revenue/ Job creation Pressure Diversity Training Employee
emission and SOx of management on fossil fuels natural production biodiversity archaeological and generation return and income on local and human health and
emissions particulate resources and vegetation paleontological generation generation infrastructure development safety
matter suppression sites

Construction of plants

Mining

Production

Logistics

Sales

Research

Process management

Communication

Co-processing

Positive impacts
Potentially negative impacts

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
MONITORING OUR 2030 TARGETS
—
|GRI 102-15| Route planned for 2030 Deviation from the route planned for 2030

Pillar SDG Initiatives in 2021 Status

1. Our DNA guides Our Way of Being, Working and Thriving, ethical conduct, supported by Compliance processes, is the basis for our operations. Regardless
of changes in the market, business portfolio or organizational structure, Votorantim Cimentos seeks to preserve its principles and values. In this sense,
We operate with through reassessment processes, we work to further establish our Compliance Program globally by increasing its power and reach.
integrity and
transparency

Pillar SDG Indicator 2030 target Initiatives in 2021 Status

2 Lost-time injurie Global lost-time injury rate lower than 0.40 Safety and health are non-negotiable values. We
continued to work to prevent accidents, our lost time
Safety, health and injury rate decreased from 1.14 to 1.12.
well-being are
fundamental values
Fatalities Achieve zero fatalities in our operations Safety and health are non-negotiable values. We
continued to work to prevent accidents and ended the
year with zero fatalities in our operations

Employee satisfaction and well-being Achieve at least 85% favorability in climate We achieved 67.4% favorability in satisfaction and
surveys. well-being surveys

3 Financial revenue through sustainable

solutions
30% of revenue from sustainable solutions We increased the revenue coming from sustainable
solutions from 20.8% to 24.8%, especially from
Innovation: we co-create products with a lower environmental footprint
sustainable solutions

4 Gender diversity in leadership positions At least 25% of leadership positions occupied

by women
We increased the percentage of women in leadership
positions from 20.1% to 20.2%
A diverse and inclusive
environment
Internal perceptions of diversity and Achieve at least 90% favorability with respect to We achieved 81.1% favorability in diversity and
inclusion diversity and inclusion in employee surveys. inclusion surveys

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Route planned for 2030 Deviation from the route planned for 2030

Pillar SDG Indicator 2030 target Initiatives in 2021 Status

5 Net CO2 emissions Achieve 520 kg of net CO2 emission per tonne of
cementitious product
We increased our CO2 emissions from 576 to 597 kg/tonne of cementitious product due to the
acquisition of two new operations and to lower waste availability, as described on page 35.
Reducing our
environmental Dust emissions per tonne of clinker Reduce the emission of dust per tonne of product to 30g/ We reduced our dust emission from 44 to 38 g/tonne of clinker
footprint tonne clinker

SOx emissions per tonne of clinker Reduce the emission of SOx per tonne of product to We increased our SOx emission from 667 to 687 g/tonne of clinker
490g/tonne clinker

NOx emissions per tonne of clinker Reduce the emission of NOx per tonne of product 1,400g/ We reduced our NOx emission from 1,483 to 1,394 g/tonne of clinker
tonne clinker

Renewable electricity Achieve 45% renewable electricity As a result of the increase in production, we reduced our renewable energy use from
21.0% to 18.5%. However, our projects Ventos do Piauí, in Brazil, and Solar Panels, in
Spain, will put us back on track toward our 2030 targets.

Water and biodiversity management Evolve in the implementation of our water and Biodiversity management plans are already being implemented by at least four units,
plans biodiversity management plans in sensitive areas including activities to survey springs, environmental monitoring and environmental
education for employees. The initiatives had been limited by the COVID-19 pandemic
but are currently being resumed.

6 Thermal substitution Achieve 53% thermal substitution We decreased our thermal substitution from 23.8% to 22.4% due to the acquisition of
two new operations and to lower waste availability, as described on page 35
Promoting a
more circular Percentage of clinker in cement Reduce the clinker/cement factor to 68% We increased our clinker/cement factor from 74.0% to 74.9% due to the acquisition of two
business new operations and to lower waste availability, as described on page 35.
environment
Percentage of recycled concrete returned 70% recycled concrete returned We increased the reuse of concrete in our operations by using the returned concrete
as aggregates, recycling it and reusing it in our production processes. We achieved a
record in 2021 of 93% of concrete returned recycled.

7. Operations with community

engagement, impact assessment and/or
90% of operations with community engagement, impact
assessment and/or development programs
We expanded our social activities in the countries where we are present, achieving
46.1% of operations with community engagement programs
Generating development programs
shared
value in our Employees engaged in volunteer 20% of employees engaged in volunteer initiatives We increased the percentage of employees engaged in volunteer initiatives from 4.7%
communities initiatives to 4.9%.

Local supply 60% local supply We increased the percentage of our expenses with suppliers coming from local
purchases ended the year with a percentage of 56.3%

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

11
External reader

GCCA Charter

KPIs GCCA

GRI content
index

SASB Content
Index

GRI and SASB

Standards
Disclosures

Assurance Letter

Corporate
information ANNEX
EMPLOYEE IN THE JBEL OUST PLANT, TUNISIA
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
88
–

— Judy Kuszewski is chief executive of Sancroft

EXTERNAL READER
International, a London-based sustainability advisory
company. She has over 25 years’ experience in
sustainability and corporate responsibility. Judy is also chair
— of the Global Sustainability Standards Board.

I welcome Votorantim Cimentos’ integrated report and the messages it Cement is a material with a high sustainability impact, but Votorantim I very much appreciate the clarity of Votorantim Cimentos’ action plans on
conveys. From this report, I have the sense of a company sincerely working Cimentos has demonstrated how cement contributes to the circular sustainability, including its overall environmental impact activities and its
to change the reality and the future of cement, famously one of the economy, including through making use of numerous waste materials efforts to build sustainability into its supply chain, although I would encourage
most useful, and most used, materials on earth. Yet the sector has major and industrial by-products, some of which have little intrinsic value the company to make this more prominent and more explicitly related to its
sustainability impacts, which is why this report, and Votorantim Cimentos’s otherwise and few alternative uses or safe disposal options. Nevertheless, business strategy. In the social sphere, I appreciate the strong health & safety
ongoing attention to sustainability matters, is so important. it is imperative for the sector to make progress on materials substitution performance figures and the holistic approach to the COVID-19 response, from
and lower-impact renewable energy. This may not be something that mental health to community resilience, this report highlights.
First, I would like to congratulate Votorantim Cimentos for its commitment to
Votorantim Cimentos can deliver on its own, but is rather a sector-wide
setting science-based targets in relation to carbon reduction. This commitment Votorantim Cimentos joins many other leading businesses around the
and cross-sector industrial challenge. Nevertheless, the company should
obliges the company to identify specific, time-bound actions in line with the world in committing to report transparently using a variety of international
demonstrate its ambition in this area, with a strong and clear vision of
Paris agreement on climate change, and for these targets to be reviewed and standards and frameworks, notably the Global Reporting Initiative (GRI),
sustainable transformation.
accredited by the Science-Based Targets Initiative (SBTi). Votorantim Cimentos SASB and the Global Cement and Concrete Association’s (GCCA) charter.
has further committed to Net Zero Concrete, an initiative with potentially Votorantim Cimentos’ efforts embrace the power of the capital markets’ In truth, there is significant overlap between these standards, which is
transformative impact, which is also business material. Climate change is the gathering sophistication in respect of key sustainability drivers—not only regrettable in that it leads to reports that may be more cumbersome than
defining global challenge of our time—it is essential that all of our institutions, because it is the right thing to do, but because it is recognised as essential necessary, but Votorantim Cimentos has recognized that they have distinct
including private sector companies, do everything in our power to reduce to business performance. Votorantim Cimentos’ use of sustainability- purposes, and that it is possible to produce an engaging, transparent report
carbon emissions rapidly and radically, and we must all have confidence linked finance to drive its business strategy is one indicator of the emerging that seeks to address a multiplicity of audiences.
that the actions institutions are taking are fit for purpose and sufficient to alignment between at least some sustainability and business concerns, one
Moreover, I appreciate this report and Votorantim Cimentos’ efforts to
the magnitude of the task. The cement sector generates some 8% of global that will become more important in the years to come. Another example
link clearly its business strategy with the impacts to people and planet
warming emissions worldwide, which means Votorantim Cimentos has is the company’s response to the reporting recommendations of the
associated with its business activities—and to present these alongside
the obligation, and the opportunity, to take action of real consequence. Its Task Force on Climate-related Financial Disclosures (TCFD), embraced by
performance against targets and commitments for the future, which many
commitment to science-based targets is, therefore, a commitment to be held investors and regulators around the world as a means to substantiate—
corporate reports avoid.
accountable, not only for the promises it makes, but also for their delivery. and act upon—climate-related risk and opportunity in investment. TCFD
reporting is still in its infancy, but I urge Votorantim Cimentos to build The sustainable transformation of cement is not going to be easy, but
More broadly, Votorantim Cimentos should be proud of its approach
on these foundations with more specific, and increasingly quantifiable, Votorantim Cimentos has demonstrated with this report that they are
to sustainability targets in general. The 2030 progress report, with the
concrete disclosures presented clearly and succinctly for investors. The serious about helping to make it a reality. Based on these foundations, I
breadth of targets and the progress update provided, demonstrate genuine
TCFD recommendations are ultimately intended to be incorporated into anticipate seeing even more action toward the urgent change we need in
seriousness. I would have preferred to see more evaluation and analysis of
financial statements—and Votorantim Cimentos current TCFD reporting is a the years to come.
the performance demonstrated, whether Votorantim Cimentos considers
long way away from this.
its progress to be strong enough, and how it will act to drive performance
even further in the coming year.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
GCCA CHARTER
— Status 2021

CO2 and climate O Use the tools set out in the GCCA CO2 and Energy protocol to define and make public our baseline emissions ² Protocol used by all plants of our cement business and verified by a third party
protection O Develop a climate change mitigation strategy, and publish targets and progress ² Decarbonization strategy approved by the Board and publicly annouced in 2020 in Our 2030
Commitments
O Report annually on CO2 emissions in line with the protocol ² See our 2021 Integrated Report
O Participate in and contribute agreed datasets to the global cement database system of CO2 and energy information ² Effective participation since the beginning of CSI (founding member) – current GCCA

Responsible use of O Apply the guidelines for co-processing fuels and raw materials in cement manufacturing ² Effective application (2018 CSI audit) and elaboration, in 2019, of internal VC guideline
fuels and raw materials

Employee, health and O Apply the Health and Safety in the Cement Industry: Guidelines for measuring and reporting ² Implemented
safety O Report to the GCCA annually on employee safety data in line with the guidelines developed for measuring and reporting ² Through 2021 Integrated Report and reported to GCCA
O Promote the sharing of good health practices ² Implemented

Emissions reduction O Apply the Guidelines for Emissions Monitoring and Reporting in the Cement Industry ² Reports used by all plants of our cement business and audited by the CSI in 2014 and 2018
O Make emissions data publicly available and accessible to stakeholders ² See our 2021 Integrated Report
O Set emissions targets for main pollutants (NOx, SOx, dust) and report publicly on progress ² Set in Our 2030 Commitments and monitored annually in the Integrated Report

Local impact on land O Apply the Environmental and Social Impact Assessment Guidelines and develop tools to integrate them into decision making processes ² We adopt environmental and social impact assessment criteria for our new projects and for
and communities O Apply the Guidelines on Quarry Rehabilitation significant expansion projects. Verified by CSI audit in 2018
² Guidelines adopted for all cement plants in Brazil

Water O Apply the Protocol for Water Reporting for the Cement Industry ² Protocol adopted by all cement plants

Reporting and O Report publicly on all agreed GCCA Key Performance Indicators (KPIs) on an annual basis ² See our 2021 Integrated Report
communications O Publish a statement of business ethics ² See our Code of Conduct
O Establish a systematic dialogue process with stakeholders to understand and address their expectations ² See our 2021 Integrated Report
O Report progress on developing stakeholder engagement programs ² See our 2021 Integrated Report
O Develop documented and auditable environmental management systems at all plants ² See our Global Environmental Policy

Assurance CO2 O Companies will carry out assurance at least once every two years using recognized, independent third-party assurance practitioners ² Carried out every year by BVQI
emissions data O Assurance practitioners will decide on the number of sites to be visited ² Decided by BVQI
O Assurance statements will explicitly mention the number of sites visited and the corresponding % CO2 emissions covered ² Included in BVQI assurance statement

Assurance safety data O Companies will carry out assurance at least once every three years using recognized, independent third-party assurance practitioners ² Carried out every year by BVQI

Assurance NOx, SOx and O Companies will carry out assurance at least once every three years using recognized, independent third-party assurance practitioners ² Carried out every year by BVQI
Dust emissions data

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
KPIS GCCA
—
Climate protection 2019 2020 2021¹ HM25 2019 2020 2021
Total CO2 emissions – gross (million tonne) 19.0 20.4 24.9 Hg - coverage rate (%) 97%* 98% 96%
Total CO2 emissions – net (million tonne) 18.3 19.6 24.0 HM14- coverage rate (%) 96%* 98% 96%
Destacar o último ano,
Specific CO2 emissions – gross (kg/tonne cementitious material) 615 599 619 HM25- coverage rate (%) 97% 98% 91%
Specific CO2 emissions – net (kg/tonne cementitious material) |VC 2030| 591 576 597 igual fizemos na tabela
Dust - specific emissions (g/ tonne clinker) 58* 44* 38
Scope: Global
NOxdo GRI.
- specific emissions (g/tonne clinker) 1,734* 1,483* 1,394
¹Increase due to a change in scope and the acquisition of two new cement operations (McInnis and Balboa), which are still at a lower level of thermal substitution
and clinker factor, in addition to reduced thermal substitution in some regions due to limited access to waste caused by the pandemic in a time of increased cement SOx - specific emissions (g/tonne clinker) 723* 667* 687
production. VOC/THC - specific emissions (g/tonne clinker) 63 54 118
Responsible use of fuels and raw materials 2019 2020 2021 PCDD/F - specific emissions (μg / tonne clinker) 0.10 0.12 0.02
Specific heat consumption of clinker production (MJ/tonne clinker) 3,474 3,398 3,584 Hg - specific emissions (mg / tonne clinker) 12 8 11
Alternative fossil fuel rate (%) 11.6%* 11.6%* 10.3% HM14 - specific emissions (mg / tonne clinker) 22 14 19
Biomass fuel rate (%) 11.0%* 12.3%* 12.1% HM25 (mg / tonne clinker) 889 688* 475
Alternative raw materials rate (%) 6.2% 7.5%* 9.2% Dust - absolute emissions (tonne / year) 1,318* 1,041* 1,122
Clinker / cement ratio (%) |VC 2030| 74.3% 74.0% 74.9% NOx - absolute emissions (tonne / year) 39,186* 35,385* 41,150
Scope: Global *Revised figures GRI 102-48 SOx - absolute emissions (tonne / year) 16,330 15,918 20,282
Safety¹ 2019 2020 2021 VOC/THC - absolute emissions (tonne / year) 1,413 1,298 3,473
PCDD/F - absolute emissions (mg / year) 2,239 2,866 541
Number of fatalities (directly employee) 0 1 0
Hg - absolute emissions (kg / year) 274 200 311
Number of fatalities per 10,000 directly employed 0 0.87 0
HM14 - absolute emissions (kg / year) 500 324 564
Number of fatalities (indirectly employee)² 1* 1* 0
HM25- absolute emissions (kg/year) 20,079 16,407* 14,022
Number of fatalities (third party) 1 0 0
Scope: Global
Number of days lost due to injuries (calendar days / directly employees) 5,320 1,522 1,602 ¹Includes only cement business, ²KPI1: Monitoring of all pollutants mentioned in the emissions guidelines, ³KPI2: Monitoring of PM, NOx and SOx, 4HM1:
Number of days lost due to injuries (calendar days / directly + indirectly employees) 5,750 2,149 2,613 Cadmium and Thallium, HM2: Antimony, Arsenic, Lead, Chromium, Cobalt, Copper, Manganese, Nickel, Vanadium.
*Revised figures GRI 102-48
Lost time injuries per 1 million man-hours (directly employees) 1.83 1.11 1.30
Scope: Global Local impact on land and communities 2019 2020 2021
¹Figures do not include Uruguay operations
²Considers on-site occurrences in cement, aggregates, mortar, logistic, aglime and concrete facilities
Sites with existing community engagement plans (%)¹ 41.0% 33.4% 46,1%
*Revised figures GRI 102-48 Sites with existing mine rehabilitation plans (%)² 93.1% 93.7% 91.1%
Operational sites owned, leased, managed in, or adjacent to, protected
Emissions reduction¹ 2019 2020 2021 12* 11* 10
areas and areas of high biodiversity, as specified by GRI 304-1²
Overall coverage rate (KPI1)² 90%* 85% 82%
Mines with high biodiversity value in which biodiversity
Coverage rate continuous measurement (KPI2)³ 100% 100% 100% 58.3%* 72.7%* 80.0%
management plans are actively implemented (%)²
Dust - coverage rate (%) 100% 100% 100% ¹Scope: Global, ²Scope: VCBR, VCNA, VCEAA
NOx - coverage rate (%) 100% 100% 100%
Specific water consumption 2019 2020 2021
SOx - coverage rate (%) 100% 100% 100%
Total water consumed (liters) per tonne of cement produced¹ 384* 340* 370
VOC/THC - coverage rate (%) 98% 96% 96%
Total water consumed (liters) per m³ of concrete produced² 350* 612* 533
PCDD/F - coverage rate (%) 93%* 85% 83%
¹Scope: Global
²Scope: VCBR and Uruguay
2021 INTEGRATED REPORT VOTORANTIM CIMENTOS
OUR STRATEGY AND –
01 ABOUT
THE REPORT 02 MESSAGE FROM THE
GLOBAL LEADERSHIP 03 VOTORANTIM
CIMENTOS 04 2021
HIGHLIGHTS 05 CONNECTION WITH
SUSTAINABILITY
06 CORPORATE
GOVERNANCE 07 FINANCIAL
MANAGEMENT 08 CARING
FOR PEOPLE 09 COMPETITIVENESS
& INNOVATION 1009 BUILDING
POSITIVE LEGACY 11 ANNEX
91
–

—
GRI CONTENT INDEX
—
|GRI 102-55|

This report was prepared in accordance with the GRI Standards: Core option. |GRI 102-54|
For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references
for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the report. This service was performed in the English version of the report.

GRI Standard Disclosure item Page Omission SDG

GRI 101: Foundation 2016
Organizational Profile
GRI 102: General Disclosures 2016 102-1 Name of the organization 15, 18
102-2 Activities, brands, products and services 15,18
102-3 Location of headquarters 15,114
102-4 Location of operations 15,18
102-5 Ownership and legal form 15
102-6 Markets served 15
102-7 Scale of the organization 18, 45, 47, 80
102-8 Information on employees and other workers 49, 110 8

102-9 Supply chain 75

102-10 Significant changes to the organization and its supply chain 16

102-11 Precautionary Principle or approach 76
102-12 External initiatives 20
102-13 Membership of associations 20, 100
Strategy
GRI 102: General Disclosures 2016 102-14 Statement from senior decision-maker 10, 12, 16
102-15 Key impacts, risks and opportunities 10, 12, 16, 42, 85,

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

Ethics and Integrity
GRI 102: General Disclosures 2016 102-16 Values, principles, standards and norms of behavior 28, 39 16
102-17 Mechanisms for advice and concerns about ethics 39 16
Governance
GRI 102: General Disclosures 2016 102-18 Governance structure 38
102-20 Executive-level responsibility for Governance body and its committees 38
102-22 Composition of the highest Governance body and its committees 38 5, 16
102-23 Chair of the highest Governance body 38 16
102-26 Role of highest Governance body in setting purpose, values, and strategy 38
102-28 Evaluating the highest governance body’s performance 38
102-31 Review of economic, environmental, and social topics 38
Stakeholder Engagement
GRI 102: General Disclosures 2016 102-40 List of stakeholder groups 6, 9, 91
102-41 Collective bargaining agreements 110 8
102-42 Identifying and selecting stakeholders 9
102-43 Approach to stakeholder engagement 6, 9
102-44 Key topics and concerns raised 6, 7
Reporting Practice
GRI 102: General Disclosures 2016 102-45 Entities included in the consolidated financial statements 100
102-46 Defining report content and topic boundaries 6, 7
102-47 List of material topics 6, 7
90, 101, 103, 104, 105,
102-48 Restatement of information
106, 108, 110, 111, 112
102-49 Changes in reporting No changes
102-50 Reporting period 5
102-51 Date of most recent report March 2020
102-52 Reporting cycle 5
102-53 Contact point for questions regarding the report 114
102-54 Claims of Reporting in accordance with the GRI Standards 5, 91
102-55 GRI content index 91
102-56 External assurance 113

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

Material Topics
GRI Standards 200 Economic Series
Anti-corruption
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39
103-3 Evaluation of the management approach 39
GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption 102 16
205-2 Communication and training about Anti-corruption policies and procedures 103 16
205-3 Confirmed incidents of corruption and actions taken 103 16
Anti-competitive behaviour
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39
103-3 Evaluation of the management approach 39
GRI 206: Anti-competitive Behavior 2016 206-1 Legal actions for anti-competitive behavior, anti-trust and monopoly practices 103 16

GRI Standards 300 Environmental Series

Materials
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 106
103-2 The management approach and its components 106
103-3 Evaluation of the management approach 106
GRI 301: Materials 2016 301-1 Materials used by weight or volume 106 8, 12
Energy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 68, 73
103-3 Evaluation of the management approach 68, 73
GRI 302: Energy 2016
302-1 Energy consumption within the organization 105 7, 8, 12, 13

302-2 Energy consumption outside of the organization 105 7, 8, 12, 13

302-3 Energy intensity 105 7, 8, 12, 13

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

Emissions
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 33, 68
103-3 Evaluation of the management approach 33, 68
GRI 305: Emissions 2016 305-1 Direct GHG emissions (scope 1) 35, 107 3, 12, 13, 14, 15
305-2 Energy indirect GHG emissions (scope 2) 108 3, 12, 13, 14, 15
305-3 Other indirect GHG emissions (scope 3) 108 3, 12, 13, 14, 15
305-4 GHG emissions intensity 107 13, 14, 15
305-5 Reduction of GHG emissions 108 13, 14, 15
305-7 Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and other significant air emissions 108 3, 12, 13, 14, 15
Waste
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 68
103-3 Evaluation of the management approach 68
GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts 68
306-2 Management of significant waste-related impacts 109
306-3 Waste generated 109 3, 6, 12
306-4 Waste diverted from disposal 109 3, 6, 12
306-5 Waste directed to disposal 109 3, 6, 12
Environmental Compliance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39, 76
103-3 Evaluation of the management approach 39, 76
GRI 307: Environmental Compliance 2016 307-1 Non-compliance with environmental laws and regulations 109 12, 13, 14, 15, 16

GRI Standards 400 Social Series

Employment
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 49
103-3 Evaluation of the management approach 49
GRI 401: Employment 2016 401-1 New employees hires and employees turnover 5, 8

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

Occupational Health and Safety
GRI 103: Management Approach 2018 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 50
103-3 Evaluation of the management approach 50
GRI 403: Occupational Health and Safety 2018 403-1 Occupational health and safety management system 50 8
403-2 Hazard identification, risk assessment, and incident investigation 50 8
403-3 Occupational health services 52 3, 8
403-4 Worker participation, consultation, and
50 8
communication on occupational health and safety
403-5 Worker training on occupational health and safety 50 8
403-6 Promotion of worker health 53 3, 8
403-7 Prevention and mitigation of occupational health and
50 8
safety impacts directly linked by business relationships
403-9 Work-related injuries 51, 111 8
Training and Education
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 56
103-3 Evaluation of the management approach T56
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee 110, 111 4, 5, 8
Diversity and Equal Opportunity
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 54
103-3 Evaluation of the management approach 54
GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees 111, 112 5, 8
Non-discrimination
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39
103-3 Evaluation of the management approach 39
GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken 104 5, 8, 16

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

Child Labor
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 75
103-3 Evaluation of the management approach 75
GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor 104 8, 16
Forced or Compulsory Labor
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 75
GRI 103: Management Approach 2016 103-3 Evaluation of the management approach 75
GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for
104 8
incidents of forced or compulsory labor
Local Communities
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 79
103-3 Evaluation of the management approach 79
GRI 413: Local Communities 2016 413-1 Operations with local community engagement,
112 -
impact assessments, and development programs
Public Policy
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39
103-3 Evaluation of the management approach 39
GRI 415: Public Policy 2016 415-1 Political contributions 102 16
Socioeconomic Compliance
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 6, 7
103-2 The management approach and its components 39
103-3 Evaluation of the management approach 39
GRI 419: Socioeconomic Compliance 2016 419-1 Non-compliance with laws and regulations in the social and economic area 104 16

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

GRI Standard Disclosure item Page Omission SDG

VC Topic
Customer Relationship and Satisfaction
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 63
103-2 The management approach and its components 63
103-3 Evaluation of the management approach 63
VC Topic: Customer Relationship and Satisfaction VC-1 Satisfaction survey results (NPS) 102 8, 9
Research and innovation
GRI 103: Management Approach 2016 103-1 Explanation of the material topic and its boundary 58
103-2 The management approach and its components 58
103-3 Evaluation of the management approach I58
VC Topic: Research and Innovation VC-2 Investments in research and innovation 58 8., 9, 17

Non-Material Topic
GRI 201: Economic performance 2016 201-1 Direct economic value generated and distributed 101 2, 5, 7, 8, 9
GRI 202: Market presence 2016 202-2 Proportion of senior management hired from the local community 101 16
GRI 204: Procurement Practices 2016 204-1 Proportion of spending on local suppliers 101 2, 5, 7, 8, 9
GRI 303: Water and Effluents 2018 303-3 Water withdrawal 106 6
303-4 Water discharge 106 3, 6, 12, 14
303-5 Water consumption 106 6, 12
GRI 304: Biodiversity 2016 304-3 Habitats protected or restored 107 6, 14, 15
304-4 IUCN Red List species and national conservation list
107 6, 14, 15
species with habitats in areas affected by operations
Sector disclosures: MM2 MM2 The number and percentage of total sites identified as requiring
biodiversity management plans according to stated criteria, and 106
the number (percentage) of those sites with plans in place
Sector disclosures: MM10
MM10 Number and percentage of operations with closure plans 106

GRI 308: Supplier Environmental Assessment 2016 308-1 Percentage of new suppliers that were screened using environmental criteria 101
308-2 Negative environmental impacts in the supply chain and actions taken 101
GRI 411: Rights of Indigenous Peoples 2016 411-1 Incidents of violations involving rights of indigenous people 104
GRI 414: Supplier Social Assessment 2016 414-1 Percentage of new suppliers that were screened using social criteria 101
414-2 Negative social impacts in the supply chain and actions taken GRI Content Index

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
SASB CONTENT INDEX
—
SASB standards are intended for use in communications to investors regarding sustainability issues that are likely to impact corporate ability to
creative value over the long term. This report was prepared according to SAB Standards for Construction Materials.

Sustainability Disclosure Topics & Accounting Metrics

Topic Accounting Metric Category Unit of Measure Code Page

Greenhouse Gas Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations Quantitative Metric tons (t) EM-CM-110a.1 107
Emissions CO2-E,
Percentage (%)
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, Discussion and - EM-CM-110a.2 33
emissions reduction targets, and an analysis of performance against those targets Analysis
Air Quality Air emissions of the following pollutants: Quantitative Metric tons (t) EM-CM-120a.1 108
(1) NOx (excluding N2O)
(2) SOx
(3) particulate matter (PM10),
(4) dioxins/furans
(5) volatile organic compounds (VOCs)
(6) polycyclicaromatic hydrocarbons (PAHs)
(7) heavy metals
Energy Management 1) Total energy consumed Quantitative Gigajoules (GJ), EM-CM-130a.1 105
(2) percentage grid electricity Percentage (%)
(3) percentage alternative
(4) percentage renewable
Water Management (1) Total fresh water withdrawn Quantitative Thousand cubic meters EM-CM-140a.1 106
(2) percentage recycled (m³), Percentage (%)
(3) percentage in regions with High or Extremely High Baseline Water Stress
Waste Management Amount of waste generated, percentage hazardous, percentage recycled Quantitative Metric tons (t), EM-CM-150a.1 109
Percentage (%)

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Topic Accounting Metric Category Unit of Measure Code Page

Biodiversity Impacts Description of environmental management policies and practices for active sites Discussion and - EM-CM-160a.1 76
Analysis
Terrestrial acreage disturbed, percentage of impacted area restored Quantitative Acres (ac), EM-CM-160a.2 Not reported
Percentage (%)
Workforce Health 1) Total recordable incident rate (TRIR) Quantitative Rate EM-CM-320a.1 111
& Safety (2) near miss frequency rate (NMFR) for (a) fulltime employees and (b) contract employees
Number of reported cases of silicosis2 Quantitative Number EM-CM-320a.2 111
Product Innovation Percentage of products that qualify for credits in sustainable building design and construction certification Quantitative Percentage (%) by EM-CM-410a.1 Not reported
annual sales revenue
Total addressable market and share of market for products that reduce energy, Quantitative Reporting currency, EM-CM-410a.2 101
water, and/or material impacts during usage and/or production Percentage (%)
Pricing Integrity Total amount of monetary losses as a result of legal proceedings associated Quantitative Reporting currency EM-CM-520a.1 103
& Transparency with cartel activities, price fixing, and anti-trust activities3

Activity Metric Category Unit of Measure Code Page

Production by major product line4 Quantitative Metric tons (t) EM-CM-110a.1 GRI Content Index

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
GRI AND SASB STANDARDS DISCLOSURES
—
PROFILE MEMBERSHIP OF ASSOCIATIONS CANADA UNITED STATES
|GRI 102-13| O Cement Association of Canada (CAC) O Illinois Association of Aggregate Producers (IAAP)

O Concrete Ontario O National Ready Mix Concrete Association (NRMCA)

Following are the major associations of each region, which also
O Ontario Stone, Sand and Gravel Association (OSSGA) O Portland Cement Association (PCA)
participate in numerous local affiliations and associations for the
advancement of the industry. MOROCCO URUGUAY
O Arab Association for Cement & Building Materials (AUCBM) O Cement Manufacturers Association
O Association Marocaine des Producteurs de Béton (AMBPE) O Construction Chamber of Uruguay

GLOBAL O Association Professionnelle des Cimentiers (APC) O Construction League

O Federación Interamericana del Cemento (FICEM) O Confédération Générale des Entreprises du Maroc (CGEM) O Exporters Union of Uruguay

O Global Cement and Concrete Association (GCCA) O Promoters of Construction Uruguay (APPCU)
SPAIN
O Innovandi GCCA Research Network O Spain-Uruguay Business Chamber
O Asociación Industrial de Canarias (ASINCA)
O World Business Council for Sustainable Development (WBCSD) O Trade Defense League
O Asociación Nacional de Empresarios Fabricantes de Áridos (ANEFA)
O DERES – Empresas por el Desarrollo Sostenible
O Asociación Nacional Española de Fabricantes
BOLIVIA
de Hormigón Preparado (ANEFHOP)
O Asociación Boliviana de Gestión Humana (ASOBOGH) ENTITIES INCLUDED IN THE
O Asociación de Fabricantes de Morteros (ANFAPA)
O Cámara de la Construcción de Santa Cruz (CADECOCRUZ)
O European Cement Association (Cembureau)
CONSOLIDATED FINANCIAL STATEMENTS
O Cámara de Exportadores de Santa Cruz (CADEX) |GRI 102-45|
O Fundación Laboral del Cemento y el Medio Ambiente (CEMA)
O Cámara de Industria, Comercio, Servicios y
O Instituto Español del Cemento y sus Aplicaciones (IECA) Calmit Mineração e Participações Ltda.; Votorantim Cimentos N/NE S.A.;
Turismo de Santa Cruz (CAINCO)
O Oficemen (Association of Cement Manufacturers in Spain) Votorantim Cimentos S.A.; CRB Operações Portuárias S.A.; Fazenda
O Fundación Germán Busch

O Global Compact Bolivia Network São Miguel Ltda.; Cia. de Cimento Pinheiro Machado; Cimento Itau
TUNISIA
O Instituto Boliviano del Cemento y Hormigón (IBCH) do Paraná Ltda.; Pedreira Pedra Negra Ltda.; Petrolina Mineração Zeta
O Arab Association for Cement & Building Materials (AUCBM)
Ltda.; Mineração Potilider Ltda.; Lidermac Indústria e Comércio Ltda.;
O Chambre Nationale des Producteurs de Ciments de la Tunisie (CNPC)
BRAZIL D&L Mineração Ltda.; Cimento Vencemos do Amazonas Ltda.; MOV-C
O Associação Brasileira de Cimentos Portland (ABCP) Transportes Ltda.; Silcar; Empreendimentos, Comércio e Participações
TURKEY
O Associação Brasileira da Indústria de Materiais de Construção (ABRAMAT) Ltda.; Votorantim Cimentos Machadinho Energia Ltda.; St Marys Cement
O Çimento Endüstrisi İşverenleri Sendikası (ÇEiS)
O Instituto Brasileiro do Concreto (IBRACON) Inc.; Cementos Artigas S.A.; Votorantim Cimentos EAA Inversiones, S.L.;
(Cement Industry Employers Association)
O Instituto Brasileiro de Mineração (IBRAM) Votorantim Cimentos Argentina S.A.; Votorantim Cement Trading S.L.;
O Türk Çimento (Turkish Cement Manufactures Association)
O Sindicato Nacional da Indústria de Cimento (SNIC) Itacamba Cementos S.A.; GB Minerales Y Agregados S.A.; Votorantim
O Türkiye Hazır Beton Birliği (THBB) (Turkish
O Sindicato Nacional da Indústria de Produtos de Cimento (SINAPROCIM) Cimentos International S.A.; VC Latam S.A
Ready Mixed Concrete Association)

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

ECONOMIC PERFORMANCE Contracting of suppliers |GRI 308-1| |GRI 308-2| |GRI 414-1| |GRI 414-2|
Direct economic value generated and distributed |GRI 201-1| 2019 2020 2021
2019 2020 2021 Total number of new suppliers 751 836 1,262
Economic value generated (R$ thousands) 15,877,520 19,600,528 25,914,457 Total number of new suppliers selected according to environmental
751 836 137
Net revenue 13,026,664 16,740,228* 22,295,681 criteria |GRI 308-1|¹
Cement 9,127,448 11,542,316 15,584,206 New suppliers selected according to environmental criteria (%) |GRI 308-1|¹ 100% 100% 10.9%
Concrete 2,606,247 3,561,241 4,771,898 Number of suppliers identified as causing negative
Not monitored Not monitored 7
Aggregates 481,304 545,417 670,253 environmental impact and actions taken |GRI 308-2|²
Mortar 425,218 604,661 731,441 Total number of new suppliers selected according to social criteria |GRI 414-1|¹ 751 836 806
Others 386,447 486,593* 537,883 New suppliers selected according to social criteria (%) |GRI 414-1|¹ 100% 100% 63.9%
Economic value distributed (R$ thousands) 7,157,514 8,941,224 11,630,113 Number of suppliers identified as causing negative
Employee remuneration¹ 2,305,332 2,900,373 3,430,794 Not monitored Not monitored 0
social impact and actions taken |GRI 414-2|²
Taxes and fees² 2,603,860 3,431,588 4,154,439 Scope: VCBR
Third-party capital remuneration³ 1,699,082 2,136,807* 2,418,168 ¹Change in the indicator’s accounting method starting in 2021: number of suppliers approved in the registration process for categories that consider environmental
Economic value retained4 8,720,006* 10,659,304* 14,284,344* and social criteria and number of suppliers that were re-approved for the first time and received a purchase order in the current year. 100% of suppliers go through
Scope: Global. ¹Direct remuneration, retirement plan and pension plan, social charges and benefits.² Federal, State, Municipal and Deferred taxes and contributions. an approval process via the SIPM Ariba platform. As part of this process, suppliers that fall into environmental and social categories must meet certain procurement
³Financial expenses and passive exchange variations and rents. 4Non-controlling interest, profit (loss) retained and profit (loss) from discontinued operations. criteria. VSA performs the analysis and rejects the approval of suppliers that do not meet the pre-defined criteria.The assessment included the suppliers of alternative
fuels and inputs (Verdera), according to the criteria for prioritization established by Supply Chain.
Production by major product line |SASB EM-CM-000.A| ²In 2021, risk mapping was carried out for each procurement category. Action plans were created for suppliers with greater risk potential, which are periodically mon-
2019 2020 2021 itored by the Risk and Sustainability Committee.
Sales of cement (million metric tons) 29.9 32.4 37.2
Sales of aggregates (million metric tons) 21.7 22.7 24.4 Local hires |GRI 202-2|
Sales of concrete (million m³) 6.8 7.1 8.1
Sales of mortar (million metric tons) 1.5 1.5 1.6 Senior management hired from the local community (%)¹ 2019 2020 2021
Scope: Global (cement, aggregates and concrete) and VCBR (mortar).
VCBR 88.2% 81.3% 81.6%
Financial revenue through sustainable solutions |VC 2030| |SASB EM-CM-410a.2| VCEAA 35.3% 56.3% 60.0%
VCNA 100% 95.8% 87.5%
2021
VCLATAM 40.0% 47.0%* 46.7%
Financial revenue through sustainable solutions¹ (%) 24.8%
Scope: VCBR, VCNA, VCEAA Employees from the local community (%)² 2019 2020 2021
¹Products and/or services that mitigate our environmental footprint or offer environmental benefits compared to traditional options VCBR 82.9% 82.4% 89.6%
Suppliers |GRI 204-1| |VC 2030| VCEAA 96.4%* 98.4% 98.4%
VCNA 96.6%* 99.8% 99.2%
2019 2020 2021¹
VCLATAM 70.8% 75.9% 75.6%
Total amount spent with suppliers (R$ billion) 1.9 3.2* 8.5 ¹Includes senior managers, general managers, directors and CEO.
Total amount spent with local suppliers (R$ billion) 0.9 1.2 4.8 ²Employees born or naturalized in the country of operation are considered to be local hires at VCNA, VCEAA and in Uruguay. At VCBR and in Bolivia, due to specific
Spent with local suppliers at significant operating locations (%) |GRI 204| |VC 2030| 49.3% 37.8%* 56.3% local characteristics, we adopt regional criteria.
Scope: VCBR, VCNA, VCEAA. *Revised figures GRI 102-48
¹Change in scope: in 2020, the scope of the indicator was VCBR. As of 2021, the scope was expanded to include VCBR, VCNA and VCEAA.
Local suppliers: Due to the territorial extension of the countries where we operate, specific criteria were adopted for each of the regions. VCBR: local suppliers are those
located within a 200km radius from the operating unit; VCEAA: local suppliers are those located in the same country of the operating unit; VCNA: suppliers within the
United States or the province (Canada) where the plant is located.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Government relations |GRI 415-1| Consumer relations |GRI 102-43| |VC-1|

2019 2020 2021
Net Promoter Score (NPS) survey results 2019 2020 2021
Political contributions 0 0 0
VCBR 73 61 71
Scope: VCBR, VCNA, VCEAA
VCEAA - - 36
Scope: VCBR, VCEAA
The indicator can range from -100 to 100.

Operations assessed for risks related to corruption |GRI 205-1|

2019 2020 2021
Operations assessed (%) 0% 25% 50%
Significant corruption-related risks Em 2019, the Compliance area conducted a self-assessment of its For VCBR, the Compliance area performed a pilot Anti- Even though our core business is not related to commercial transactions
identified through this assessment Compliance Program at a global level, including the Anti-Corruption Corruption Risk Assessment including two specific areas with governments, at Votorantim Cimentos, like any other legal
pillar. The self-assessment , which involves several areas of the and exposures in relationships with the Government. entity, interactions with the public sector are part of the company’s
company aims to provide insight into the level of maturity of the pillars For the other regions, the Compliance area maintained the inherent activities. Therefore, in addition to the compliance evaluations
that make up the Votorantim Cimentos Compliance Program through continuous self-assessment of its Compliance Program at incorporated into the company’s daily processes (for example, integrity
an integrated and consolidated panel, as well as to direct the strategy a global level, including the Anti- Corruption pillar. assessments of M&A partners and critical third parties, as well as risk
and priority actions to improve compliance over the next years. assessments for new business models), at VCBR and VCEAA we carried
out specific anti-corruption assessments.
At VCBR, we mapped all the interactions with the public sector, which
enabled us to qualify them, assess our level of control over them,
identify the parties involved and train them on anticorruption issues.
This mapping confirmed an original perception regarding the absence
of significant risks related to corruption and served as a resource to
inform integrity processes.
At VCEAA, because of the diverse legal framework in the region, we
carried out an anti-corruption risk assessment that focused on mapping
and evaluating each country’s legislation; we also did a self-assessment
of our Compliance Program, including the Anti-Corruption pillar.

In the other regions, the Compliance area continued to work on

priority issues/gaps identified in previous self-assessments, including
anti-corruption training and the background check process.

Scope: Global

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Anti-corruption communication and training |GRI 205-2|

2019 2020 2021¹

Communicated Communicated Communicated

Number of Number of Number of
Employees employees Number Percentage employees Number Percentage employees Number Percentage
President/Director 17 17 100% 17 17 100% 38 38 100%
Manager/General Manager 232 232 100% 321 321 100% 366 366 100%
Coordinator/Consultant 397 397 100% 481 481 100% 618 618 100%
Technician/Analyst/Supervisor 2,036 2,036 100% 2,421 2,421 100% 2,909 2,809 97%
Operator 4,377 4,377 100% 6,173 5,293 86% 8,131 7,295 90%
Total number of employees 7,059 7,059* 100% 9,413 8,533 91% 12,062 11,126 92%
Members of governance bodies 13 1 8% 11 0 0% 13 13 100%
Business partners ² - 4,159 ~50% - 9,480 ~50% 21,402 ~70%

2019 2020 2021¹

Trained Trained Trained

Number of Number of Number of
Employees employees Number Percentage employees Number Percentage employees Number Percentage
President/Director 17 6 35% 17 1 6% 38 17 45%
Manager/General Manager 232 57 25% 321 103 32% 366 104 28%
Coordinator/Consultant 397 102 26% 481 145 30% 618 213 34%
Technician/Analyst/Supervisor 2,036 600 29% 2,421 645 27% 2,909 878 30%
Operator 4,377 1,921 44% 6,173 832 13% 8,131 1,109 14%
Total number of employees 7,059 2,686* 38%* 9,413 1,726 18% 12,062 2,321 19%
Members of governance bodies 13 1 8% 11 0 0% 13 0 0%
Scope: VCBR, VCNA, VCEAA.
¹Change in scope: in 2020, the scope of the indicator was VCBR and VCEAA. As of 2021, the scope was expanded to include VCBR, VCNA and VCEAA.
²Documents referring to the Anti-corruption policy
*Revised figures GRI 102-48

Anti-corruption |GRI 205-3| Competition |GRI 206-1| |SASB EM-CM-520a.1|

2019 2020 2021¹ 2019 2020 2021
Number of cases of corruption confirmed by the Business Ethics Line 0 0 0 Total number of legal actions for unfair competition, trust and monopoly Practices ¹ 2 2 4
Scope: Global Value of legal actions (R$ million) 6,100 6,344* 7,754
¹Change in scope: in 2019 and 2020, the scope of the indicator was VCBR, VCEAA and VCNA. As of 2021, the scope was expanded to global. Scope: Global
¹Considers only legal actions above R$ 98 million, in line with the standards applied for M&A and Due Diligence.
*Revised figures GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Socioeconomic Compliance |GRI 419-1| Child labor |GRI 408-1|

2019 2020 2021 2021
Total number of significant fines received in the year¹ 0 0 1 Operations at significant risk Compulsory and child labor are issues included the Votorantim Cimentos Code
for incidents of child labor of Conduct, which addresses our commitment to the United Nations Universal
Total monetary value of significant fines received in the year (R$ million) 0 0 1.6 Declaration of Human Rights and the UN Global Compact and has among its
Operations at risk of having young principles to eliminate all forms of forced or compulsory labor and eradicate all
Total number of non-monetary sanctions² 0 0 0
workers exposed to dangerous work forms of child labor from our production chain. These practices are prohibited in
Number of cases (fines + sanctions) brought
0 0 1 all company and commercial partners’ facilities. It is also prohibited to hire any
through dispute resolution mechanism Suppliers at significant risk for
Scope: Global incidents of child labor organization that does not follow our company’s conduct guidelines. This issue
¹Significant monetary fines: value above R$ 1 million. ²Non-monetary sanctions that cause interruptions or adjustments over R$ 5 million is also addressed in the event of complaints to our Business Ethics Office, which
Suppliers at risk of having young is prepared to carry out investigations and verify the materiality of the complaint.
workers exposed to dangerous work All the suppliers contracted must be submitted to the registration process. The
Discrimination |GRI 406-1| Office of Labor (within the Ministry of Economy) Restricted List is cross-checked
with our SAP list of suppliers. If there is evidence of misconduct, the supplier
Total number of incidents of discrimination received by
the business ethics office and corrective actions taken 2019 2020 2021¹ Forced or compulsory labor is demobilized and blocked to prevent future hiring. The Votorantim Cimentos
|GRI 409-1| General Conditions Term states that all suppliers must follow our Code of Conduct
Race / Color 2 5 1 (ethics, values and compliance with labor legislation). Through the new SIPM
Age group 0 0 0 Operations at significant risk for incidents tool, suppliers must accept our General Conditions Term; otherwise, they are
Gender 0 0 0 of forced or compulsory labor rejected in the certification process. They must also fill out a Compliance Survey,
Religion 0 0 1 in which they need to address several topics, including child labor. If the survey
Political opinion 0 1 0 Suppliers at significant risk for incidents answers are unsatisfactory, the supplier is submitted for analysis by the Compliance
Nationality / nationality 1 4 0 of forced or compulsory labor incidents area and may be rejected in the certification process. The company will map
operations and suppliers with significant risks to child, forced or slave-like labor
Social origin 0 0 0
Physical conditions 1 0 0
Harassment and abuse of power 0 0 0
Other incidents (discrimination) 0 0 4 Indigenous rights |GRI 411-1|
Total number of incidents analyzed 4 10 6
Analyzed and considered unfounded 2 6* 1 2019 2020 2021¹
Analyzed and considered well-founded 1 1 3 Incidents of violations involving rights of indigenous peoples 0 0 0
Analyzed and considered inconclusive 1 2 1 Scope: Global
¹Change in scope: in 2019 and 2020, the scope of the indicator was VCBR, VCEAA and VCNA. As of 2021, the scope of the indicator was expanded to include the
Under analysis 0 0 1 global.
Without sufficient Information for investigation 0 1 0
Scope: Global
¹Change in scope: in 2019 and 2020, the scope of the indicator was VCBR, VCEAA and VCNA. As of 2021, the scope was expanded to global.
*Revised figures GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

ENVIRONMENTAL PERFORMANCE
Energy consumption inside the organization |GRI 302-1| |SASB EM-CM-130a.1| Energy Management |EM-CM-130a.1| |VC 2030|
Non-renewable sources (GJ) 2019 2020 2021 2019 2020 2021
Cement 71,774,692* 75,249,280 95,601,831 Grid electricity (%) 79.2% 81.8% 84.3%
Aggregates 72,528* 77,412 71,983 Renewable Energy (fuels + electricity)(%) 13.9% 14.3% 13.6%
Concrete 220,278* 220,288 254,853 Alternative fuels (%) |VC 2030| 22.6% 23.8% 22.4%
Mortar 12,254* 11,785 15,206 Renewable Energy (electricity) | VC 2030| – – 18.5%
Limes and agricultural inputs 29,427* 24,900 24,328 Scope: Global.
Total 72,109,178* 75,583,666* 95,968,201

Renewable sources (GJ) 2019 2020 2021 Energy consumption outside the organization |GRI 302-2|
Cement 8,593,891 10,244,265 12,857,184 Transport and distribution (GJ) 2019 2020 2021
Aggregates 9,283* 11,049 9,079 VCBR 4,101,619* 3,862,299 4,322,852
Concrete 32,274* 36,073 35,518 Scope: VCBR
Mortar 6,927 15,090* 33,999 *Revised data GRI 102-48
Limes and agricultural inputs 2,040,042* 1,695,075* 1,759,473
Total 10,682,417* 12,001,552* 14,695,253
Energy intensity |GRI 302-3|
Electricity (MWh) 2019 2020 2021
Cement 3,422,937 3,707,824 4,242,316 Fuels 2019 2020 2021
Aggregates 10,294 4,368 8,943 Clinker(MJ/tonne of clinker) 3,474* 3,398 3,584
Concrete 3,067 3,086 3,394 Aggregates (MJ/tonne of product) 22* 28 26
Mortar 7,928 7,601 8,544 Concrete (MJ/m³ of product) 142* 141 144
Limes and agricultural inputs 47,561 50,094 50,096 Mortar (MJ/tonne of product) 27* 39* 62
Total 3,491,786 3,772,973 4,313,292 Lime and agricultural inputs (MJ/tonne of product) 996* 819* 816
Total consumption (GJ) 2019 2020 2021 Electricity¹ 2019 2020 2021
Cement 92,691,154* 98,841,710 123,731,351 Cement (kWh/tonne of cement) 112 109 109
Aggregates 118,870* 104,187 113,256 Aggregates (kWh/tonne of product) 2.7 1.4 2.9
Concrete 263,591* 267,470 302,590 Concrete (kWh/m³ of product) 1.7 1.7 1.7
Mortar 47,721* 54,238* 79,963 Mortar (kWh/tonne of product) 11 11 11
Limes and agricultural inputs 2,240,690* 1,900,314* 1,964,147 Lime and agricultural inputs (kWh/ton of product) 23 24 23
Total 95,362,025* 101,167,919* 126,191,306 Scope: all VCBR operations and VCEAA, VCNA and VCLatam cement operations
Scope: all VCBR operations and VCEAA, VCNA and VCLatam cement operations. ¹The cement business has the highest energy consumption (98%)
*Revised figures GRI 102-48 *Revised data GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Environmental investments Water discharge by source |GRI 303-4|

Total Environmental Capex and Opex (million R$) 2019 2020 2021¹ 2019 2020 2021
Environmental investments (Capex) 102.3* 39.6* 108.8 Areas with
Environmental expenses (Opex) 105.3* 69.8* 86.3 Water discharge - Areas with Areas with water
Scope: Global Cement (megaliter) All areas water stress All areas water stress All areas stress
*Revised figures GRI 102-48 Surface water 35,015* 27,985 44,429 17,997 45,828 15,729
Groundwater 11.0 0.0 164 12.8 119 2.3
Material used |GRI 301-1| Sea water 0.0 0.0 0.0 0.0 0.0 0.0
Water sent to third-party supplier 32.0 8.9 40.1 11.3 29.8 13.9
2019 2020 2021
Total 35,058* 27,994 44,632 18,021 45,977 15,745
Non-renewable materials (tonne) 44,048,090 54,048,612* 66,529,293 Scope: Global
Renewable materials (tonne) 54,429* 68,181 66,294 The data was obtained by measurement and estimates. Water stress analysis was performed using the Aqueduct tool
Scope: VCBR, VCNA and VCEAA cement operations *Revised data GRI 102-48
Materials include raw materials used in the raw meal (flour) phase and in the cement griding phase, alternative raw materials and other materials. Water consumption |GRI 303-5|
All materials used in our processes are non-renewable, except biomass.
*Revised figures GRI 102-48 2019 2020 2021

Water withdrawn by source |GRI 303-3| |SASB EM-CM-140a.1| Areas with

Water consumption - Areas with Areas with water
2019 2020 2021 Cement (megaliter) All areas water stress All areas water stress All areas stress
Water withdrawn - Areas with Areas with Areas with Total water withdrawn |GRI 303-3| 44,965* 32,150* 54,205* 23,099 57,723 21,451
Cement (megaliter)¹ All areas water stress All areas water stress All areas water stress Total water discharged |GRI 303-4| 35,058* 27,994 44,632 18,021 45,977 15,745
Surface water 11,763* 6,372 13,110 5,978 13,107 6,080 Total water consumed |GRI 303-5| 9,907* 4,156* 9,573* 5,078 11,746 5,706
Groundwater 1,750 817 1,054 177 2,818 221 Scope: Global
Rainwater 5.7 0.0 14.4 0.9 43.4 0.2 *Revised data GRI 102-48

Produced water 31,213 24,804* 39,663 16,806 41,496 14,954 Biodiversity and resource conservation |GRI 304-1| |GRI MM2| |GRI MM10|
Third-party water 233 157 363* 138 258 196
Total 44,965* 32,150* 54,205* 23,099 57,723 21,451 2019 2020 2021
Total number of mines 130* 127* 135
Water withdrawn - Areas with Areas with Areas with Mines with closure plans (%) |GRI MM10| 93.1% 93.7% 91.1%
Concrete (megaliter)² All areas water stress All areas water stress All areas water stress Total number of high biodiversity value units |GRI 304-1| 12* 11* 10
Surface water 0.0 0.0 0.0 0.0 8.8 0.0 Number of high biodiversity value areas with existing
Groundwater 321 0.0 1,002* 0.0* 1,042 0.0 7 8 8
biodiversity management plans |GRI MM2|
Rainwater 0.0 0.0 0.0 0.0 0.0 0.0 Units with high biodiversity value with existing
58.3%* 72.7%* 80.0%
Produced water 0.0 0.0 0.0 0.0 0.0 0.0 biodiversity management plans (%) |GRI MM2|
Third-party water 334 0.0 155 0.0* 164 0.0 Scope: Global
Total 655 0.0 1,157* 0.0* 1,214 0.0 According to the “Votorantim Cimentos Biodiversity Management Plan Manual”, the identification of areas of high biodiversity value considers three factors:
- The importance of the area of high biodiversity relevance overlapping with the mining area;
¹Scope: Global
- The percentage of overlap between the area of high biodiversity relevance and the mining area (considering a 5-km radius from the center of the mine);
²Change in scope: in 2019 and 2020, the scope of the indicator was VCBR. As of 2021, the scope was expanded to VCBR and Uruguay.
- The distance of the area of high biodiversity relevance to the mining center.
The data was obtained by measurement and estimates. Water stress analysis was performed using the Aqueduct tool
We apply the methodology and rank all areas that are close to or overlap with areas of high biodiversity value, according to these criteria.
* Revised data GRI 102-48
*Revised data GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Biodiversity |GRI 304-4| Biodiversity |GRI 304-3|

Total number of species in the IUCN Red List and Habitats protected (in km²) 2019 2020 2021¹
with habitats in areas affected by operations 2019 2020 2021¹ Type of area LR, PPA LR, PPA LR, PPA
Critically endangered 8 1 0 Status of the area Preserved Preserved Preserved
Endangered 24 26 0 Pampa 4.22 4.22 2.40
Vulnerable 53 39 7 Type of area LR, PPA LR, PPA LR, PPA
Near Threatened 17 28 12 Status of the area Preserved Preserved Preserved
Least concern² N/A N/A N/A Scope: VCBR
Brazilian classification of areas: Legal Reserve (LR), Permanent Protection Area (PPA), Private Reserve of Natural Heritage (PRNH), Wildlife Refuge Area (WRA). The
Total number of species in the National Conservation List
indicator only considers protected habitats.
and with habitats in areas affected by operations 2019 2020 2021¹
¹Change in the indicator's accounting methodology starting in 2021.
Critically endangered 0 0 0
Endangered 2 2 1
Vulnerable 21 17 10
Direct CO2 emissions |GRI 305-1| |GRI 305-4| |SASB EM-CM-110a.1| |GCCA| |VC2030|
Near Threatened 12 13 2 Cement 2019 2020 2021¹
Least concern² N/A N/A N/A Gross absoluteCO2 emission (tCO2) 19,027,609 20,421,293 24,877,550
Scope: VCBR Net absolute CO2 emission (tCO2) 18,280,538 19,630,033 23,999,550
¹Change in the indicator’s accounting method: in previous years, the indicator considered the accumulated wealth, which explains the high number of species in all Gross specific CO2 emission (kg CO2/tonne cementitious) 615 599 619
categories. As of 2021, the indicator considers only the species sampled in the year.
Net specific CO2 emission (kg CO2/tonne cementitious) 591 576 597
²Information not available due to a focus on identifying species of greatest concern for conservation.
Aggregates 2019 2020 2021
Biodiversity |GRI 304-3| Absolute CO2 emission (tCO2e) 4,943 5,199 5,168
Specific CO2 emission (kgCO2e/tonne aggregates) 1.30 1.63 1.69
Habitats protected (in km²) 2019 2020 2021¹
Concrete 2019 2020 2021
Amazônia 28.72 33.72 21.95
Absolute CO2 emission (tCO2e) 16,430 20,455 19,007
Type of area LR, PPA LR, PPA LR, PPA
Specific CO2 emission (kgCO2e/m³ concrete) 9.22 11.22 9.42
Status of the area Preserved Preserved Preserved
Caatinga 3.36 5.79 7.50 Mortar 2019 2020 2021
Type of area LR, PPA LR, PPA LR, PPA Absolute CO2 emission (tCO2e) 1,853 1,674 1,563
Status of the area Preserved Preserved Preserved Specific CO2 emission (kgCO2e/t mortar) 2.62 2.42 1.98
Cerrado 25.52 25.52 25.54 Lime and agricultural inputs 2019 2020 2021
Type of area LR, PPA, PRNH, WRA LR, PPA, PRNH, WRA LR, PPA, PRNH, WRA
Absolute CO2 emission (tCO2e) 156,781 184,442 194,582
Status of the area Preserved Preserved Preserved
Specific CO2 emission (kgCO2e/tonne lime and agricultural inputs) 75.49 87.78 89.06
Mata Atlântica 50.03 87.70 45.35
Total - Scope 1 19.207.615 20.633.043 25.097.870
Type of area LR, PPA LR, PPA LR, PPA, PRNH
Biogenic emissions - Scope 1 (tCO2) 1,189,082 1,322,731 1,524,961
Status of the area Preserved Preserved Preserved
Scope 1 emissions include cement operations in Brazil, VCNA, VCEAA and VCLATAM through a consolidation approach. Emissions from the Cement business were
Pantanal 1.68 1.68 1.68 calculated considering the GCCA guidelines for calculating the sector’s CO2 emissions. Emissions from other businesses were calculated considering the guidelines
of the Brazilian GHG Protocol Program. The gases included in the calculation for scope 1 and 3 were: CO2, CH4, N2O.
¹Increase due to a change in scope and the acquisition of two new cement operations (McInnis and Balboa), which are still at a lower level of thermal substitution and clinker
factor, in addition to reduced thermal substitution in some regions due to limited access to waste caused by the pandemic in a time of increased cement production.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Indirect CO2 emissions |GRI 305-2| |GRI 305-3| Other air emissions |GRI 305-7| |EM-CM-120a.1| |VC 2030|
SOx 2019 2020 20214
Indirect CO2 emissions - Scope 2 (tCO2) 2019 2020 2021¹
Absolute emissions (tonne/year) 16,330* 15,918* 20,282
Cement 660,573 532,913 771,610 Specific emissions (g/tonne clinker) 723* 667* 687
Concrete 230 190 429
PM (Dust) 2019 2020 20214
Aggregates 772 270 1,130
Absolute emissions (tonne/year) 1,318* 1,041* 1,122
Mortar 595 469 574
Specific emissions (g/tonne clinker) 58* 44* 38
Lime and agricultural inputs 3,569 3,092 6,333
Mercury 2019 2020 20214
Total - Scope 2 665,739 536,934 780,076
Absolute emissions (kg/year) 274 200 311
Other indirect emissions - Scope 3 (tCO2e) 2019 2020 2021² Specific emissions (mg/tonne clinker) 12 8 11
Total 581,035 249,061 5,158,605 VOC 2019 2020 20214
Total - Scope 3 581,035 249,061 5,158,605 Absolute emissions (tonne/year) 1,413 1,298 3,473
Biogenic emissions (tCO2) 61,437 30,661 30,297 Specific emissions (g/tonne clinker) 63 54 118
Scope 2 activities consider emissions related to electricity purchased by Brazilian operations and VCNA, VCEAA and VCLatam cement operations. Dioxins/Furans 2019 2020 20214
¹Increase due to a change in scope and the acquisition of two new cement operations (McInnis and Balboa). Absolute emissions (mg/year) 2,239 2,866 541
²For 2021, we refined our Scope 3 inventory including the emissions from purchased goods and services, fuel and energy related activities, upstream and down-
Specific emissions (μg/tonne clinker) 0.10 0.12 0.02
stream transportation and distribution. In the last years, the scope 3 considered only transportation and distribution.
HM1¹ 2019 2020 20214
Absolute emissions (kg/year) 500 324 564
Reduction of GHG emissions |GRI 305-5| Specific emissions (mg/tonne clinker) 22 14 19
HM2² 2019 2020 20214
Base year/
2019 2020 2021 denominator Absolute emissions (kg/year) 20,079 16,407* 14,022
Specific emissions (mg/tonne clinker) 889 688* 475
CO2 reduction as a direct result of initiatives (%) 23% 25% 22% 1990
Polycyclic Aromatic Hydrocarbons |EM-CM-120a.1| 2019 2020 20214
Scope: Global Absolute emissions (tonne/year)³ - - 80
Specific emissions (g/tonne clinker)³ - - 0.01
Other air emissions |GRI 305-7| |EM-CM-120a.1| |VC 2030| Monitoring data
Overall coverage (KPI1)5 90%* 85% 82%
2019 2020 20214
Coverage rate continuous measurement (KPI2)⁶ 100% 100% 100%
Number of kilns reported 35 36 39 Scope: Global
NOx 2019 2020 20214 ¹HM1: Cadmium and Thallium.
Absolute emissions (tonne/year) 39,186* 35,385* 41,150 2
HM2: Antimony, Arsenic, Lead, Chromium, Cobalt, Copper, Manganese, Nickel, Vanadium.
Specific emissions (g/tonne clinker) 1,734* 1,483* 1,394 ³Setor average in Spain, extrapolated to Tunisia, Morocco and Turkey.
4
In 2021, we had an increase in emissions in some of the parameters, as result of three factors: higher number of kilns in operation in 2021, compared to 2020;
significant increase in clinker production; and significantly higher rate of waste co-processing.
5
KPI1: Monitoring of all pollutants mentioned in the emissions guidelines.
6
KPI2: Monitoring of PM, NOx and SOx.
*Revised data GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Management of significant waste-related impacts |GRI 306-2| Waste diverted from disposal and directed to disposal |GRI 306-4| |GRI 306-5|
2021 2019 2020 2021²
As per its Global Environmental Policy and Green Rules, Votorantim Cimentos aims to minimize waste production through Diverted from disposal Non- Non- Non-
reuse, recycling and responsible waste disposal. To prevent waste from reaching the environment, it is necessary to: |GRI 306-4| Hazardous hazardous Hazardous hazardous Hazardous hazardous
Total (tonne) 2,011 18,432 222 47,180 1,547 65,178
• Store waste in closed, ventilated, access-controlled spaces and on impermeable bases that have areas to drain and collect contaminated
Composting 0 1,785 1 3,049 0 46
liquids.
Reuse 142 6,224 0 27,867 34 35,620
• Avoid contact between rainwater and waste; if there is contact, the rainwater must be collected for inspection. Recycling 1,351 8,618 39 14,103 727 26,161
Recovery 208 1,243 183 1,249 371 2,149
• Train employees to take action in case of incidents, according to the Emergency Plan and the internal and external Communication System.
On-site storage 309 562 0 913 414 1,203
• Dispose of waste according to its characteristics and classification. Non- Non- Non-
In addition, internal waste management, separation and temporary storage until final disposal is performed by Votorantim Cimentos. Waste Directed to disposal |GRI 306-5| Hazardous hazardous Hazardous hazardous Hazardous hazardous
Total (tonne) 2,910 36,980 14,028 91,070 2,186 32,402
transportation and final disposal is carried out by service providers
Scope: Global Incineration 244 553 12 1,086 19 255
Landfilling 106 12,843 5 86,758 185 12,071
Deep well injection 0 1,585 0 0 0 34
Waste generated by composition |GRI 306-3| Others 2,560 22,000¹ 14,010 3,226¹ 1,982 20,042¹
Scope: Global
2019 2020 2021
¹For non-hazardous waste, it includes the use in co-processing.
Hazardous waste (tonne) 4,921 14,250 3,733 ²In 2021, we acquired new operations that were included in the base and impacted the total hazardous and non-hazardous waste generated by the organization.
Non-hazardous waste (tonne) 55,412 138,250 97,580
Scope: Global
Non-compliance with environmental laws and/or regulations |GRI 307-1|
Waste management |SASB EM-CM-150a.1| 2019 2020 2021
Total number of significant fines received for non-compliance with environmental laws and/or regulations 0 1 1
2019 2020 2021 Total monetary value of significant fines received in the year (in millions R$)¹ 0 1.2 1.2
Amount of waste generated (tonne) 60,333 152,500 101,313 Total number of non-monetary sanction² 1 1 0
Hazardous (%) 8.2% 9.3% 3.7% Number of cases (both fines and sanctions) brought through dispute resolution mechanism 0 1 2
Recycled (%) 27.1% 27.5% 61.7% Scope: Global
Scope: Global ¹Significant monetary fines: value above R$ 1 million.
²Non-monetary sanctions that cause interruptions or adjustments over R$ 5 million.

Recycled Concrete Returned |VC 2030|

2021
Percentage of recycled concrete returned 93%
Scope: VCBR, VCNA, VCEAA

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

SOCIAL PERFORMANCE Turnover |GRI 401-1|

Total number and rate
Employment |GRI 102-8| of employee turnover 2019 2020 2021

By type of employment 2019 2020 2021 By gender Number Rate Number Rate Number Rate
Female 1,468 1,507 1,679 Female 500 4.2% 485 4.1% 566 4.5%
Full-time Male 9,818 9,796 10,210 Male 1,965 16.4% 1,589 13.5% 1,976 15.9%
Total 11,286 11,303 11,889 By age group Number Rate Number Rate Number Rate
Female 366 264 332 Under 30 years old 908 7.6% 800 6.8% 924 7.4%
Part-time Male 301 216 245 30-50 years old 1,224 10.2% 984 8.4% 1,214 9.7%
Total 667 480 577 Over 50 years old 333 2.8% 290 2.5% 403 3.2%
By employment contract 2019 2020 2021 By region Number Rate Number Rate Number Rate
Female 18 15* 13 VCBR 1,742 22.5% 1,530 20.0% 1,798 22.4%
Temporary Male 148 132* 136 VCEAA 268 19.1% 147 11.0% 152 10.9%
Total 166 147 149 VCNA 412 17.0% 367 15.2% 557 0.0%
Female 1,816 1,756 1,998 VCLATAM 43 10.9% 30 7.7% 34 8.7%
Permanent Male 9,971 9,880 10,319 Total rate of turnover 20.6% 17.6% 20.4%
Total 11,787 11,636 12,317 Scope: Global
Female 1,834 1,771 2,011
Total employees Male 10,119 10,012 10,455 New hires |GRI 401-1|
Total 11,953 11,783 12,466
Scope: Global Total number and rate of
new employee hires 2019 2020 2021
Collective bargaining agreements |GRI 102-41| By gender Number Rate Number Rate Number Rate
Female 646 5.4% 406* 3.4% 417 3.3%
2019 2020 2021
Male 1,855 15.5% 1,404* 11.9% 1,792 14.4%
Total number of employees 11,953 11,783 12,466
Employees covered by collective bargaining agreement 9,263 9,358 9,791 By age group Number Rate Number Rate Number Rate
Employees covered by collective bargaining agreement (%) 77.5% 79.4% 78.5% Under 30 years old 1,168 9.8% 832* 7.1% 800 6.4%
Scope: Global 30-50 years old 1,182 9.9% 937 8.0% 1,269 10.2%
Over 50 years old 151 1.3% 124 1.1% 140 1.1%
By region Number Rate Number Rate Number Rate
VCBR 1,975 25.5% 1,431 18.7% 1,622 20.3%
VCEAA 87 6.2% 81 6.0% 209 15.0%
VCNA 407 16.8% 365 15.1% 342 12.8%
VCLATAM 32 8.1% 26* 6.7% 36 9.2%
Total rate of new hires 20.9% 16.2% 17.7%
Scope: Global
* Revised figures GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Occupational health and safety |GRI 403-9| |VC 2030| Satisfaction and Well-being |EM-CM-320a.2| |VC 2030|
Work-related injuries – Employees |GRI 403 -9| 2019 2020 2021 2021
Fatalities 0 1 0 Favorability in climate surveys (%) 67,4%
Rate of fatalities 0.00 0.87 0.00 Scope: VCBR, VCNA, VCEAA

High-consequence accidents¹ 4 0 1
Rate of high-consequence accidents¹ 0.17 0.00 0.04 Average hours of training |GRI 404-1|
Number of lost-time injuries² 42 25 33 2019 2020 2021
Rate of lost-time injuries² 1.83 1.11 1.30
Severity rate 232.16 67.71 63.11 By functional category Female Male Female Male Female Male
Number of hours worked 22,915,653 22,478,029 25,382,557 President/Director 10 11 1 8 3 9
Manager/General Manager 14* 27* 22 27 60 26
Work-related injuries – Contractors |GRI 403 -9| 2019 2020 2021
Coordinator/Consultant 26* 31* 24 33 41 27
Fatalities 1 1 0 Technician/Analyst/Supervisor 20* 25* 24 31 19 18
Rate of fatalities 0.14 4,68 0,00 Operator 10* 16* 11 13 8 16
High-consequence accidents¹ 1 1 1 Average hours of training
Rate of High-consequence accidents¹ 0.05 0.06 0.04 16* 18 19
(female + male)
Number of lost-time injuries² 13 20 22 Scope: Global
Rate of lost-time injuries² 0.60 1.17 0.93 *Revised figures GRI 102-48
Severity rate 19.88 36.66 42.62
Number of hours worked 21,625,476 17,102,640 23,720,780 Diversity |GRI 405-1| |VC 2030|
Total work-related accident rate (employees + contractors) |VC 2030| 1.23 1.14 1.12 2019 2020 2021
Near accidents (employees + contractors) |EM-CM-320a.1| - - 11,079
Under Under
Near miss frequency rate (employees + contractors) |EM-CM-320a.1|³ - - 45.13 30 30-50 Over 50 30 30-50 Over 50 Under 30 30-50 Over 50
Scope: Global. Figures do not include Uruguay operations years years years years years years years years years
¹The number and rate of high-consequence accidents include amputations or six-month leave of absence and exclude deaths.
By age group (%) old old old old old old old old old
²The number and rate of accidents consider only lost-time incidents.
³The rate of near accidents was calculated based on 2,000,000 hours worked. President/Director 0.0% 48.6% 51.4% 0.0% 38.9% 61.1% 0.0% 40.0% 60.0%
Other rates were calculated based on 1,000,000 hours worked. Among employees, the main work-related injuries involve the ankles, feet, hands and fingers, and Manager/General Manager 2.1% 75.5% 22.4% 1.0% 72.2% 26.7% 0.2% 72.1% 27.7%
include sprains and fractures. The greatest risks for high-consequence injuries are dangerous energies, moving and rotating parts, high temperatures, possibility of
Coordinator/Consultant 10.1% 74.0% 15.9% 5.8% 75.7% 18.5% 5.4% 77.3% 17.3%
hot flour leakage, movement of machines and equipment, lifting of loads and activities at height and in confined spaces. These risks are determined after a systematic
study of the processes and assessment of the hazards and risks involved. Technician/Analyst/Supervisor 17.8% 67.2% 15.1% 15.6% 67.8% 16.6% 15.5% 69.1% 15.5%
Operator 18.9%* 59.8%* 20.7%* 17.1% 59.9% 23.0% 18.4% 60.3% 21.4%
Health |EM-CM-320a.2| Intern 97.9% 2.1% 0.0% 95.8% 4.2% 0.0% 94.6% 5.4% 0.0%
Apprentice 100.0% 0.0% 0.0% 100.0% 0.0% 0.0% 100.0% 0.0% 0.0%
2021 Total employees 22.2% 59.7% 18.1% 18.9% 60.7% 20.5% 19.9% 61.0% 19.1%
Number of reported cases of silicosis 0 Members of governance body (%) 0.0% 38.1% 61.9% 0.0% 38.1% 61.9% 0.0% 23.5% 76.5%
Scope: VCBR Scope: Global
The percentage corresponds to the number of employees within each functional category that meets the diversity criteria.
*Revised figures GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Diversity |GRI 405-1| |VC 2030| Internal perceptions of diversity and inclusion |VC 2030|
2019 2020 2021 2021
By gender (%) Female Male Female Male Female Male Favorability in climate surveys (%) 81.1%
Scope: VCBR, VCNA and VCEAA
President/Director 10.8% 89.2% 8.3% 91.7% 7.5% 92.5%
Manager/General Manager 16.8% 83.2% 18.8% 81.2% 17.9% 82.1%
Coordinator/Consultant 27.9% 72.1% 29.3%* 70.7% 30.6% 69.4% Social transformation |GRI 413-1| |VC 2030|
Technician/Analyst/Supervisor 23.0% 77.0% 22.8% 77.2% 24.1% 75.9% Operations with implemented local community engagement,
Operator 7.7% 92.3% 7.9% 92.1% 8.7% 91.3% impact assessments, and/or development programs 2019 2020 2021
Intern 57.9% 42.1% 57.4% 42.6% 57.9% 42.1% Total number of operations¹ 305 323 336
Apprentice 48.7% 51.3% 50.8% 49.2% 57.1% 42.9% Number of operations with implemented local community engagement,
Total employees 15.3% 84.7% 15.0% 85.0% 16.1% 83.9% 124 108 155
impact assessments, and/or development programs
Members of governance body (%) 9.5%* 90.5%* 9.5% 90.5% 17.6% 82.4% Operations with implemented local community engagement, impact
Gender diversity in leadership 41% 33% 46%
assessments, and/or development programs (%) |VC 2030|
- - 20.1% 79.9% 20.2% 79.8%
positions¹ (%) |VC 2030|
Scope: Global
Global social investment (R$ thousand) 2019 2020 2021
The percentage corresponds to the number of employees within each functional category that meets the diversity criteria. VCBR 14,513.3 7,975.1 8,749.7
The calculation of gender Diversity in leadership Positions includes the Positions of CEO, director, manager, general manager and coordinator VCEAA 1,706.0 2,151.3 1,509.7
*Revised figures GRI 102-48
VCNA 1,379.5 810.4 1,729.6
VCLATAM 831.3 786.6 725.5
People with disability (%) 2019 2020 2021 Total 18,430.5 11,705.3 12,714.5
President/Director 0.0% 0.0% 0.0% Scope: Global
Manager/General Manager 1.3%* 1.0% 1.0% ¹Total number of sites mapped for the social engagement plan.
Coordinator/Consultant 0.8%* 0.8% 0.5%
Technician/Analyst/Supervisor 1.5%* 1.5% 1.5% Volunteer initiatives |VC 2030|
Operator 2.4%* 2.6% 2.5%
Intern 0.2% 0.0% 0.0% 2021
Apprentice 0.4% 0.0% 0.0% Employees engaged in volunteer initiatives (%) 5%
Total employees 1.9% 2.0% 2.0% Scope: VCBR, VCNA, VCEAA

Members of governance body (%) 0,0% 0,0%* 0,0%

Scope: Global
The percentage corresponds to the number of employees within each functional category that meets the diversity criteria.
*Revised figures GRI 102-48

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
ASSURANCE LETTER INDEPENDENT ASSURANCE STATEMENT – BUREAU VERITAS
—
|GRI 102-56|

INTRODUCTION METHODOLOGY LIMITATIONS AND EXCLUSIONS

Bureau Veritas Certification Brazil (Bureau Veritas) was engaged by Votorantim The verification included the following activities: This assessment excluded any information referring to:
Cimentos to conduct an independent assurance of its 2021 Integrated Report 1. Interviews with the parties responsible for material topics and the  Activities outside the determined reporting period;
(hereinafter referred to as the Report). content of the Report;  Position statements (expressions of opinions, beliefs, objectives or future
This assessment was conducted by a multidisciplinary team with expertise in 2. Analysis of documentary evidence provided by Votorantim Cimentos intentions) by Votorantim Cimentos;
non-financial data. for the period covered by the Report (2021);  Economic and financial data included in this Report and taken from
3. Verification of performance data in relation to the principles that financial statements verified by independent auditors;
SCOPE OF WORK ensure the quality of the information, in accordance with the GRI  Data and information regarding operations and activities that are not
The scope of this verification encompassed the Standards and Principles1 of the standards and the sector disclosures;
part of the scope of the Report.
Global Reporting InitiativeTM for Sustainability Reports, including GRI’s Mining 4. Verification of performance data against the criteria established in the
and Metals Sector Disclosures (2013), and covered the period between January GCCA Guidelines described in the scope of work;
1 and December 31, 2021. OPINION ON THE REPORT AND THE VERIFICATION PROCESS
5. Evaluation of the systems used to compile data;
Additionally, the scope of verification included three GCCA (Global Cement and  Votorantim Cimentos prepared the Report in accordance with the GRI
6. Remote assessments of the following units: Global Corporate Center
Concrete Association) Guidelines: (1) Reporting and Monitoring of Safety in Standards and Principles, and also with the Mining & Metals Sector
(São Paulo/SP, Brazil), and Edealina/GO (Brazil), Vidal Ramos/SC
Cement Manufacturing (February 2020); (2) Reporting and Monitoring of CO2 Disclosures;
(Brazil), St Marys – Ontario (Canada) and Toral de los Vados (Spain)
emissions in Cement Manufacturing (October 2019). operational units.  Votorantim Cimentos published information on the indicators associated
With regard to geography, we state that we verified Votorantim Cimentos data with the material aspects of the GRI standards and the sector disclosure.
7. Documentary analysis of stakeholder engagement activities
and information on a global level. We evidenced an expansion in the disclosure of GRI indicators and
conducted by Votorantim Cimentos.
conceptual/technical quality improvement of the data collection sheets.
However, we emphasize the importance of implementing data collection
RESPONSIBILITIES OF VOTORANTIM CIMENTOS AND BUREAU The verification level adopted was Hybrid (Limited* and Reasonable*), systems and disclosure of common data, to all geographic regions where
VERITAS according to the requirements of the ISAE 30002 standard, which were the company operates, since part of the indicators verified by us is
The collection, calculation and presentation of the data published in the Report incorporated into the internal verification protocols of Bureau Veritas. limited to the geographic scope Brazil (VCBR);
are the sole responsibility of Votorantim Cimentos’ management. Bureau * Limited verification level: All indicators, except those described below.  The safety indicators follow the criteria from the GCCA Guidelines for
Veritas is responsible for providing Stakeholders with an independent opinion, Safety in Cement Manufacturing. We assessed the completeness and
* Reasonable verification level: GRI 305-1/305-2/305-3/305-4/305-5 standards
in accordance with the scope of work defined in this statement. reliability of safety data according to the Reasonable scope;
(GHG emissions and emissions intensity); GRI 302-1/302-2/302-3 (Energy
consumption and intensity) GRI 403-9 (Work related accidents).  The CO2 emissions indicators are in accordance with criteria from the
___
GCCA Guidelines for the Reporting and Monitoring of CO2 Emissions
1
Materiality, Stakeholder Inclusiveness, Sustainability Context, Completeness, Balance, Comparability, In addition to this scope of verification, Votorantim Cimentos Brazil’s
Accuracy, Timeliness, Clarity and Reliability from Cement Manufacturing (Reasonable scope);
Greenhouse Gas (GHG) inventory was the subject of an exclusive verification,
2
International Standard on Assurance Engagements 3000 – Assurance Engagements other than Audits
or Reviews of Historical Financial Information. carried out through a specific protocol from Bureau Veritas.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

 The data presented to meet the GHG emissions indicators are part of  Regarding the indicators GRI 408-1 and 409-1 (Operations and suppliers at  Votorantim Cimentos has not established appropriate systems for the
Votorantim Cimentos’ GHG Emissions Inventory. This inventory was significant risk for incidents of child labor and forced or compulsory labor), collection, compilation and analysis of quantitative and qualitative data
verified by Bureau Veritas through an independent assurance process. We we evidenced that Votorantim Cimentos is planning a process to map the used in the Report;
found that the presentation of data regarding the inventory followed the associated risks of operations and suppliers  The Report does not adhere to the Core option and does not comply with
methodology of the GRI standards; the Principles for defining content and ensuring the quality of the GRI
 We evidence that Votorantim Cimentos started a global governance RECOMMENDATIONS Standards and Mining & Metals Sector Disclosures.
structure to monitor and present its 2030 targets (published in the 2020
 Prioritize efforts to obtain consolidated data on recovered and/or restored
integrated report) to the Executive Board, ESG Committee and Board of
areas within the company’s operating units (recommendation from the DECLARATION OF INDEPENDENCE AND IMPARTIALITY
Directors, on a quarterly basis. The company is in the process of defining
previous cycle);
metrics and strategies regarding these targets; Bureau Veritas is an independent professional services company specializing in
 With regard to the process of collecting data from units abroad, improve Quality, Health, Safety, Social and Environmental management, with more than
 We found that the Report presents SASB indicators associated with the
the systematization of the collection process, defining calculation 185 years of experience in independent assessment services.
material topics of the company´s business. However, the assessment of
memories and data traceability to obtain a minimum reliability base of the
these indicators was not part of the Bureau Veritas verification scope; Bureau Veritas has a quality management system that is certified by a third party,
information received (recommendation from the previous cycle);
 Regarding occupational safety indicators, we evidenced a certain according to which it maintains documented policies and procedures to ensure
 Implement a mechanism for associating the Economic Mining Plans compliance with ethical, professional and legal requirements.
inconsistency in the calculation of the number of lost days, representing
(Plano de Aproveitamento Econômico – PAE) with the Mine Closure Plans
a weakness in the consolidated presentation of some safety indicators, The verification team has no connection with Votorantim Cimentos, and its work
(MM10 indicator), aligning the requirements applicable to both, especially
which depend on the number of lost days; is conducted independently.
with respect to guarantees of the provision of financial resources for the
 With regard to the indicator of “new suppliers that were screened using execution of closure plans; Bureau Veritas created a Code of Ethics that is followed in all of its business
environmental criteria” (GRI 308-1), we found an improvement in the activities to ensure that its employees maintain the highest standards of ethics,
 Improve the calculation of lost days of the units, necessary for the final
establishment of environmental criteria for the approval of suppliers. integrity, objectivity, confidentiality and professional competence/behavior in
consolidation of safety indicators;
However, we observed a certain weakness in the method of accounting for their daily activities.
them, since we evidenced categories of suppliers that were selected based  Review the system for calculating the indicator “new suppliers that were
on environmental criteria, but were not accounted for as such; screened using environmental criteria” (GRI 308-1), in order to account for
all categories of suppliers for which there are established criteria; At the end of the Verification process, a Detailed Report was produced; the
 With respect to the mining operations with closure Plans (MM10 document is kept as a record in our Management System.
indicator), we found that there is an opportunity to optimize the  Improve the system of establishing long-term targets, including the
management approach, associating the updating of the Plans (including resources needed to achieve them
their scope) with the Economic Mining Plans (Plano de Aproveitamento CONTACT
Econômico - PAE). It was not possible to evidence the provision of www.bureauveritascertification.com.br/faleconosco.asp
CONCLUSION
resources for the execution of mine closure plans;
Based on the verification performed, on the evidence presented to us and phone: +55 (11) 2655-9000.
 We noted that the company has improved the system for monitoring
according to the scope of work defined in this statement, nothing has come to São Paulo, March 2022.
protected areas in its operational units, but maintained the disclosure of
our attention that could indicate that: Alexander Vervuurt
the GRI 304-3 indicator limited to the geographic scope of Brazil (VCBR)
and without data on restored areas;  The information provided in the Report is not balanced, consistent and Leader Auditor, AssuranceSustainabilityReports (ASR)
reliable;
Bureau VeritasCertification – Brazil

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

—
CORPORATE INFORMATION
—
BOARD OF DIRECTORS PEOPLE & REMUNERATION COMMITTEE HEADQUARTERS |GRI 102-3|
Luiz Antonio dos Santos Pretti (Chairman)1 Franciso de Sá Neto (Chairman)¹ Rua Gomes de Carvalho, 1996, 11th floor – Vila Olímpia
Clarissa Lins1 Luciana Domagala¹ São Paulo – SP – Brazil
Fabio Ermírio de Moraes Luiz Antonio dos Santos Pretti¹ + 55 11 4572-4000
Francisco de Sá Neto1 ¹Independent members of the People www.vcimentos.com.br
and Compensation Committee
Johann Markus Akermann1
José Roberto Ermírio de Moraes CREDITS
Sérgio Malacrida EXECUTIVE LEADERSHIP Votorantim cimentos Graphic design and layout
Marcelo Strufaldi Castelli – GLOBAL CEO Álvaro Lorenz Multi Design
1
Independent Board members
Ana Carolina Ricardo da Costa
Filiberto Ruiz – CEO, VCNA Materiality and SDG Study
Christopher Mason
Report
AUDIT COMMITTEE Günther Smetana – CEO, VCLATAM Fabio Cirilo
José Écio Pereira da Costa Júnior (Chairman)¹ Geraldo Magella External Assurance
Jorge Alejandro Wagner – CEO, VCEAA Bureau Veritas
Isadora Miyuki Kano Carmo
Diego Fresco Gutierrez¹
Mariangela Daniele Maruishi Bartz Kelly Cristina Bassi Theodosio Images
Luiz Aparecido Caruso Neto – GLOBAL GENERAL COUNSEL Maria Jose Martin Aradilla Adobe Stock Photo
¹ Independent members of the Audit Committee Melissa Domenich Bianchi Votorantim Cimentos image bank
Osvaldo Ayres Filho – CHIEF FINANCIAL
AND INVESTOR RELATIONS OFFICER
Content and editing English translation
FINANCE COMMITTEE Adjarbas Guerra Neto – GLOBAL DIRECTOR OF Editora Contadino Claudia Gustavsen
Sergio Augusto Malacrida Junior (Chairman) GOVERNANCE, RISKS, COMPLIANCE AND INTERNAL AUDIT

Cristina Betts¹ Álvaro Lorenz – GLOBAL DIRECTOR OF

SUSTAINABILITY, INSTITUTIONAL RELATIONS,
We are grateful for the support and dedication of the corporate and industrial areas of Votorantim Cimentos
Luiz Antônio dos Santos Pretti¹ and, especially, to the Edealina, St Marys, Toral de los Vados and Vidal Ramos units, which were part of the
PRODUCT DEVELOPMENT AND ENGINEERING
Marcio Yukio Yamachira assurance process and the collection and verification of the information that is included in this document.

¹Independent members of the Finance Committee

Cristiano Carvalho Brasil – GLOBAL DIRECTOR OF Questions about this document or about Votorantim Cimentos, as well as comments and suggestions
PEOPLE, MANAGEMENT, COMMUNICATIONS AND IT that may help us improve our reporting process, can be directed to [email protected] |GRI 102-53|

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

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VC Integrated Report 2021

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VC Integrated Report 2021

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INTEGRATED REPORT 2021

OUR VC WAY: CREATING CHANGES WHILE REMEMBERING OUR HISTORY

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

19 3 3 19 36 19 38 200 1 2002 2007 20 12 20 17 20 18 20 19 2020 202 1

O Transparency O Amessage O Abuilding O 2021 O Our VC Way O Boards

O Our impacts O Assurance Letter

EMPLOYEE IN OUR PLANT IN MOROCCO

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

To identify our material topics, in our last cycle (2020),

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

MATERIAL TOPICS |GRI 102-44, 102-46, 102-47, 103-1|

Stakeholder group Alignment with

10.4, 10.2 11.a, 11.c

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

High costs affected our raw materials, many of them traded

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

ON THE RIGHT PATH

The year 2021 will be marked as one of the best in the

We were able to increase our internationalization with the

Another important item in our strategy is the generation of

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

OUR WAY OF BEING, WORKING AND THRIVING

|GRI 102-1, 102-2, 102-3, 102-4, 102-5, 102-6|

A year of expansions and modernizations

In line with our strategy of solidifying our presence in more mature

CANADA | MCINNIS – On April 30, following approval by regulatory

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

+ BRANDS VCNA 4 Ohio

Lime and aglime

VOTORANTIM CIMENTOS EUROPE,

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Lime & aglime

Lime & aglime

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

SBE VC RBMA TECHNICAL PARTNERSHIP: Partnership

LETTER OF COMMITMENT TO THE BUSINESS growth.

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

R$ 1.6 MILLION 37.2 MILLION by region where we operate

tonnes of cement sold

1.55 x 1.6 million 8.1 million 24.4 million of women hired

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Intellectual Capital Social and NATURAL CAPITAL

HUBIC innovation platform PARTICIPATION in the Race to

SOCIAL AND VOLUNTEER activities

100 ideas analyzed by the Innovation Commission

17 projects under development

R$ 1.5 million to fight the pandemic

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

ANAMACO AWARDS – Votorantim Cimentos was the winner of the 30th

ANEFHOP AWARD FOR OCCUPATIONAL RISK PREVENTION –

BEST HEALTHY AND SUSTAINABLE COMPANY IN THE PROMOTION

BEST PLACE TO WORK BOLIVIA – We made the Great Place to Work

BOLIVIAN BUSINESS RANKING – We were recognized as the best cement

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

OUR STRATEGY AND THE CONNECTION WITH SUSTAINABILITY

In 2021, we dedicated ourselves to advancing our journey

Honors our past

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

We are a building materials and

GROWTH & POSITIONING FINANCIAL PERFORMANCE COMPETITIVENESS BUSINESS TRANSFORMATION SUSTAINABILITY

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

Natural capital Natural capital

Human capital Human capital

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

The fact that we are experiencing a climate emergency is a consensus.

Even in countries where regulation on carbon emissions has not yet

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

2021 INTEGRATED REPORT VOTORANTIM CIMENTOS

CDP MSCI ESG1 Moody’s ESG Solution² Sustainalytics3

R$  1.5 million to fight the pandemic