Metalurgica Gerdau SA

The report has been reviewed by the Executive Board and approved by the Board of Directors, responsible for analyzing and approving its content and participating in the process of defining the materiality matrix with the assistance of the Strategy and Sustainability Committee. The information was externally assured by Bureau Veritas. GRI 2-5, 2-14 [...] The Strategy and Sustainability Committee has the requisite knowledge and experience as the advisory body to the Board of Directors. It assists the latter in decision-making and formulating general sustainability guidelines to be followed, aligning the company's interests with environmental, social and governance topics. The committee also analyzes Gerdau's investments from a social and environmental perspective. Project monitoring and efficiency are analyzed by the Executive Board and Board of Directors members in quarterly meetings of the Strategy and Sustainability Committee and the ESG Squad. Executives are tasked with making strategic investment decisions based on the data presented at these meetings. GRI 2-12 [...] ESG Squad: Responsible for monitoring, evaluating and correcting any deviations in action plans related to ESG practices, and for tracking the ESG Scorecard on a quarterly basis. This group also monitors market trends and assesses their impacts on the business, providing technical support to Business Operations and supporting strategic discussions in the Strategy and Sustainability Committee. It is composed of representatives from the following functions: Environment, Social Responsibility, Investor Relations, Diversity, Equity and Inclusion, Procurement, Communication and Institutional Relations, Legal and Industrial, reporting to the CEO. GRI 2-24 [...] Interacting with organizations: Gerdau maintains policies and regulations related to its interactions with organizations representing the sector, public entities, and other institutional stakeholders relevant to the business. Our specific corporate guidelines for relationships with government agents guides these contracts, whether they are direct or through a representative. All our businesses and productive activities must comply with various tax, environmental, legal and regulatory obligations. Our Code of Ethics and Conduct states that our employees must rigorously abide by anticorruption and anti-money laundering activities in all geographies. Directly or indirectly (via third parties) offering, promising, making, authorizing, or providing undue advantages, payments, gifts, or the transfer of any valuable to any person, whether a government agent or not, to illegally influence or reward any official action or possible decision in the company's favor is strictly prohibited. The applicable rules and regulations that govern our relationship with government agents are reviewed from time to time, and encourage ethics, honesty, and transparency in business.

The monitoring of indicators, such as greenhouse gas (GHG) emissions, energy consumption, the consumption and recirculation of water, and the generation of effluents, waste and coproducts, is performed by a management system. The indicators are monitored periodically by the senior management and the GHG emissions reduction indicator is tied to their bonus, demonstrating our commitment to the theme. Our units have been awarded the ISO 14001 certification and undergo annual internal audits. 78% of the steel manufacturing units, as well as the mining operations, hold the certification. We also have a Sustainability Policy and all environmental issues are addressed during meetings of the Board of Directors and the Strategy and Sustainability Committee.