Environmental, Social and Corporate Governance (ESG)

ESG is an acronym that stands for Environmental, Social, and Corporate Governance.

It was discussed for the first time in 2004 when Kofi Annan, Secretary General of the UN, invited leaders of large companies to seek alternatives to make the market a fairer and more diverse environment. ESG is linked to good environmental, social and business governance practices.

The main questions that concern Adolfo Turrion's business and that may also involve a purchase decision on behalf of the consumer about our products are extensively worked on daily by the company:

• What are the impacts of our business on the environment?
• How do we contribute to the community in which we operate?
• How do we conduct our business?

Our concern, control, and acquisition of our main raw materials such as leather (upper, insoles, and soles), rubber (soles), cotton (laces), recyclable fabrics (bags), vegetable fibers (insoles), foam high-density (heel pads), cardboard (boxes) and steel involve all the environmental aspects foreseen in the ESG:

• Use of natural resources;
• Gas emission control;
• Energy efficiency;
• Pollution levels;
• Waste treatment;
• Preservation of biodiversity.

Social and human development today is materialized in our actions to support basic education and primary training of the workforce through direct investments in the NGO we support in Brazil, idap.org.br.

Good practices in conducting our internal human resources policies, our concern for the well-being of our employees, our capacity for innovation, and total alignment with the LGPD policy (General Law for the Protection of Personal Data) also involve all social aspects provided for in the ESG:

• Policies and labor relations within the company;
• Support for inclusion and diversity programs;
• Defense of human rights;
• Community support relationships;
• Capacity for innovation;
• Employee training and health care;
• Data security.

Corporate governance still does not involve all aspects of our operation, but full transparency in the actions of our business leaders, diversity in the composition of our executive staff, fiscal responsibility, ethics, and the primary commitment to combating corruption are the pillars of Adolfo Turrion's business and are part of the governance aspects provided for in the ESG:

• Independence from the board of directors
• Leader transparency policy
• Diversity in the composition of the board
• Quality of audit committees
• Fiscal responsibility
• Ethics and fight against corruption
• Guarantee of shareholders' rights.