Risk management model

The preparation of our enterprise risk matrix is coordinated by the corporate risk management area and involves all areas of our structure. In this process, we seek to understand our exposure to enterprise risks through the involvement of workers from various specialties. They identify, assess, propose treatment for and report potential risks to our entire organization, covering risks of any nature, including social, environmental and economic.  

The impact assessment considers five dimensions: financial, image and reputation, legal and compliance, environmental and life, and social. This last dimension specifically considers our potential to impact communities, infrastructure, local productive activities and cultural heritage. The risk analysis we conduct allows us to prioritize and direct the efforts related to the action plans necessary to minimize events that may lead to adverse effects and maximize those that may bring benefits. The evolution of the treatment of higher-severity risks, including those related to sustainability, is periodically monitored by the Executive Risk Committee.

Considering the relevance of certain corporate results to our strategy, we have defined together with the entities representing our employees a collective bargaining agreement for variable compensation. For the year 2025, this variable compensation was established back in 2024, based on metrics that strongly relate to the results of the mitigation actions for enterprise risks associated with sustainability. Among these metrics are operational greenhouse gas emissions and the volume of fresh water withdrawn for our operations. The variable compensation program covers our entire workforce. 

Based on the enterprise risks identified and registered in our enterprise risk matrix, we highlight, in a synthetic and non-exhaustive manner, some of the main events and risk factors related to material sustainability topics that may affect our performance, including in the long term. Corporate indicators, top company metrics or indicators and targets described in our 2050 Strategic Plan and 2026-2030 Business Plan related to the material topics and the associated risk factors are also mentioned. Some of these indicators are associated with financial incentives for our employees, promoting alignment between the risk management culture and the execution of the business strategy.  

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¹The Serious Injury Rate (TAG), which joined the Total Recordable Injury Rate (TRIR) metric in the Indicator of Commitment to People’s Safety (ICSP)
²The occurrence of one of these events, or other related incidents, may result in impacts on the health of our workforce and/or communities in the area of operation, fatalities and environmental damage
³The Environmental Commitment Indicator (ICMA) is currently represented by the volume of oil and oil products spilled in occurrences with a volume above one barrel (0.15m3) that have reached water bodies or non-impermeabilized soil not (VAZO).
⁴The Indicator of Commitment to People’s Safety (ICSP) is currently composed of the Total Recordable Injury Rate (TRIR) and the Serious Injury Rate (TAG).
⁵Risk factor that also impacts other material topics (E.g.: Biodiversity, Waste Management and Decommissioning, etc.)
⁶Risk factor that is also related to other material topics.
⁷in the Corporate Human Rights Benchmark (CHRB).
⁸By project, measurable (over a three-year period.
⁹In the Corporate Human Rights Benchmark (CHRB).
¹⁰Reference year: 2021.
¹¹Reference year: 2021. Business segments that were not part of our portfolio in 2021 (Fertilizers and BioQAV) are not within the scope of the commitment.