NOTICE TO THE MARKET

Ambipar Participações e Empreendimentos S.A. ("Ambipar" or "Company") (B3: AMBP3) hereby informs its shareholders and the market in general that it has completed the acquisition of 53.6% of the share capital of Biofílica Investimentos Ambientais S.A. ("Biofílica").

Founded in 2008 by Plínio Ribeiro, who will continue to lead the business, Juscelino Martins (Grupo Martins and Tribanco) and Cláudio Pádua (IPÊ and Parquetur), Biofílica's mission is to create a solid and reliable market for environmental services in Brazil, allowing to make forest conservation and restoration economically relevant activities for rural producers and communities. The company was a pioneer in the development of REDD+ projects (Reduction of Emissions from Deforestation and Forest Degradation) in the Amazon and today has in its portfolio of projects the largest area in the world under forest carbon credit certification with 1.5 million hectares under conservation. The company has also become a national reference in legal reserve compensation, offering solutions in all modalities and states. Leader in conservation projects in Brazil, it has a forest bank to offset the legal reserve of more than 4.6 million hectares in all Brazilian biomes.

Biofílica, at this moment, becomes Biofílica Ambipar Environment S.A., with the objective of accelerating its growth, enhancing the synergy with the Ambipar Group and expanding its portfolio of environmental services. The expansion plan for the coming months foresees massive investment in the development of Nature-Based Solutions (NBS) carbon projects and programs. From this merger and in the medium term, its mission is to become the largest NBS company in the world.

For Ambipar, this acquisition: (i) increases its portfolio of services, as it starts to work with projects for conservation in the Amazon, reforestation and restoration, sustainable agricultural management and compensation for the legal reserve; (ii) incorporates know-how on Greenhouse Gas (GHG) management strategies that are much in demand by current customers; (iii) expands its national and international regulatory knowledge on climate change and carbon markets; (iv) reinforces ESG's Environmental and Social pillars.

Additional information about Biofílica:

Building a sustainable future means meeting the needs of the current generation without compromising the resources of future generations. For this to be possible, we have to act today to reverse the effects of climate change - caused by the increase in greenhouse gas (GHG) emissions into the atmosphere.

Forests, in addition to conserving biodiversity, have an incomparable capacity for carbon storage and, contrary to popular belief, maintaining them does not negatively influence agricultural production capacity, especially in Brazil, where there are many open areas degraded and that could be better managed through smart low-carbon crops.

However, this is work that goes beyond environmental contexts. This is why socioeconomic issues are also considered when measuring the mechanisms involved in the NBS. For deforestation to be avoided, investments that pay for environmental services are needed, so that maintaining the forest is more advantageous than deforesting it.

With this purpose, Biofílica was born, using two main approaches: (i) REDD+, a mechanism that proposes a set of actions to combat deforestation through social, climate and biodiversity activities that result in the Reduction of Emissions from of Deforestation and Forest Degradation added to sustainable management aimed at the conservation and increase of forest carbon inventory and

  1. Legal Reserve Compensation, a solution for owners with a Legal Reserve deficit, who do not comply with the New Forest Code, to regularize their properties without losing productive areas.

The result of the projects is impressive. Together, they total over 1.5 million hectares (largest in the world), at least 858 protected flora species, at least 3,400 protected fauna species and also

333 families positively impacted in the Amazon, one of the planet's main carbon reservoirs, constantly threatened by deforestation. In addition, the Biofílica Legal Reserve Compensation Forest Bank reaches more than 4.6 million hectares in all Brazilian biomes and states.

Today, the most common and most cost-effective way to offset is through the purchase of carbon credits on the voluntary market. There are different types of projects that generate carbon credits, as different activities can reduce emissions or capture CO2 from the atmosphere.

With this in mind, the company has already incorporated into its portfolio two more solutions that meet this demand: Agricultural Land Management (ALM) - an approach in which rural producers adopt innovative technologies and improved management practices that improve the quality and storage of carbon in the soil, thus, intensifying agricultural production while generating carbon credits; and Afforestation/Reforestation (ARR) - an approach based on storing carbon in biomass by planting new trees in areas where there was no forest (afforestation) and in areas where there was deforestation (reforestation), recovering or creating a new forest.

A pioneer in the national environmental services market, its intention is to be always following the evolution of this market, adding new approaches. Among them, Blue Carbon - an approach that generates carbon credits through the conservation and restoration of coastal ecosystems such as mangroves, marshes, apicuns and seagrass - marine grasslands.

Área total: 246.327 ha

Área total: 909.461 ha

Área total: 73.079 ha

Área total: 30.987 ha

Área total: 146.000 ha

Área total: 95.300 ha

Leadership in the forest carbon market

Leader in the development of forest carbon projects in Brazil, all of Biofílica's REDD+ projects are also certified by the Climate Community and Biodiversity Standard (CCBS), which quantifies the benefits to communities and biodiversity. More than 5 million tons of Verified Carbon Units (VCUs) from the projects have already been sold, of which 4,115,657 were sold to more than 100 customers, with approximately 70 customers in Brazil and more than 40 international customers. Furthermore, these projects are aligned with the sustainable development goals (SDGs) of the UN 2030 Agenda.

Recognition also came in the form of awards. The company was a 4-time champion of the EF Annual Voluntary Carbon Market Rankings in the category "The Best Project Developer, Forest and Land use", offered by Environmental Finance, the main communication vehicle on environmental asset markets worldwide.

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Ambipar Participações e Empreendimentos SA published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2021 13:39:00 UTC.