Irani Papel e Embalagem S A : Integrated Report 2022

Mar/2022 - Mar/2023

Integrated

Report (ESG)

Allamir Souza Santos, Indaiatuba unit e Adriana Lemos Rosa, Balneário Pinhal unit

Contents

Our Business	Intelectual
Model	Capital

Social and	Manufacturing
Relationship Capital	Capital

FinancialNatural

CapitalCapital

Human	About the
Capital	Report

Acácia Barbosa, Campina da Alegria unit

Message from the CEO

Our Business Model

Social and Relationship Capital

Financial Capital

Human Capital

Intellectual Capital

Manufacturing Capital

Natural Capital

About the Report

Sérgio Luiz Cotrim Ribas

CEO

INTEGRATED REPORT IRANI 2022 (ESG)

Message from the CEO

__GRI (102-14)

For more than eight decades, we have been sowing relationships to reap prosperity and improve the lives of people and the planet, always guided by our mission to package everyday items with quality and care.

Irani's entire team is convinced that our company's mission extends far beyond the production of goods. As one of the most important industrial companies in Brazil's sustainable paper and corrugated packaging segment, we are committed to making a positive impact on the environment and the communities surrounding our facilities. Every day, we make every effort to improve management practices incrementally and add value to the various stakeholders with whom we maintain relationships.

As a result of this positioning, Irani was added to two significant B3 (Brazilian Stock Exchange) portfolios in 2022. It made its debut in the Dividend Index (IDIV), which exhibits the typical performance of asset prices and is notable for providing investors with compensation in the form of dividends and interest on shareholders' equity. Additionally, it was included in the B3 ISE portfolio (Corporate Sustainability Index). Being recognized by being included in this index, which aims to help investors make decisions, shows that we are dedicated to sustainable development and business transparency.

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Message from the CEO

Our Business Model

Social and Relationship Capital

Financial Capital

Human Capital

Intellectual Capital

Manufacturing Capital

Natural Capital

About the Report

4

Environmental issues are at the forefront of our activities. We produce entirely recyclable products using renewable resources, and we were the second business in our sector to issue carbon credits in accordance with the Kyoto Protocol. To put it another way, we are able to sell these "credits" because we no longer emit large amounts of greenhouse gases into the atmosphere. We were also the first business in Brazil to be certified for a greenhouse gas emissions inventory under NBR 14.064-1:2006.

This dedication is deeply ingrained in the company's manufacturing process; at the moment, paper scrap recycling accounts for 72% of our paper production, which supports the circular economy. Our support of societal projects like the Trash Biennial, which exhibits works of art made from trash as well as artistic interventions, workshops, lectures, and panel discussions that add to the conversation about environmental preservation, also serves as evidence.

Likewise, our commitment to ESG policies is present in the innovative businesses we implement. We are also deeply concerned with people's well-being and development. Currently, all cities where we have operations have programs to support local communities. By 2022, we plan to invest R$ 910,000 in projects with private social resources and donations in the communities near our units. Additionally, we allocated more than R$ 3.2 million through incentive laws to municipal projects and funds.

The encouragement of volunteer work is another area we focus on. In the previous year, over a thousand hours were committed

INTEGRATED REPORT IRANI 2022 (ESG)

to this purpose, supporting 29 corporate volunteer programs carried out by nearly 500 employees. All of this is made possible by facilitating workshops, renovating public places, organizing blood drives, and engaging the community in solidarity activities.

Attention to human capital

When it comes to investing in our employees' professional growth and training, we spare no expense. In 2022, we encouraged professional self-development so that our staff members could take charge of their own careers. For example, we held the 2nd Self-Development Day to further engage teams that had received training throughout the year.

Every day, we respect and welcome each person and value the power of differences. Regardless of gender, age, ethnicity, religion, nationality, marital status, sexual orientation, or any type of disability, Gera Diversidadeprojects promote diversity and equal opportunities for everyone. We have come a long way in terms of gender issues. By 2022, we will have increased the ESG indicators for gender equality by 7%, with 22% of women in the workforce and 19% in leadership roles. We also created an LGBTI+ Talent Bank and reentered the Fórum Empresas e Direitos LGBTI+. These actions had a direct effect on our workplace and gave us beneficial chances for shared learning.

The inclusion of ESG goals into executive bonuses was a significant additional step. Furthermore, we continued to make progress

Message from the CEO

Our Business Model

Social and Relationship Capital

Financial Capital

Human Capital

Intellectual Capital

Manufacturing Capital

Natural Capital

About the Report

5

toward our 2021-2030 cycle goals, which include zero lost-time occupational accidents; 40% of women in the workforce and 50% of women in leadership positions; 100% renewable energy use by 2025; and 0% non-hazardous waste dumped in landfills.

Expressive numbers

The financial performance of the organization was directly affected by the engagement and wellness initiatives at work. Irani reported

• record-settingnet income of R$ 378 million in 2022, an increase of 32.6% over the previous year. In addition, its net income of
  R$ 1,686.66 billion was 5% higher than in 2021. Moreover, the company's adjusted EBITDA, which rose by 8.9% to R$ 537.99 million, was the highest ever recorded. It is also important to note that the company's ROIC (return on invested capital) for the entire year was 23%.

The results did not come by chance: we set 106 productivity records across all areas in 2022. Furthermore, our Net Promoter Score (NPS) of 82, which places us in the Zone of Excellence, reinforced our belief that we are on the right track.

At the ESG + Investor Day 2022 in Indaiatuba, we presented our ESG aims and initiatives focused on innovation and value creation to investors and financial experts (SP). They were guided around the packaging plant and could observe the manufacturing process firsthand.

INTEGRATED REPORT IRANI 2022 (ESG)

Iran maintained its investment strategy in industrial process modernization and automation in 2022. A total of R$ 524.8 million was invested during this period in reforestation, maintenance and improvements to physical structures, software, machinery, and equipment. The Gaia Platform, our aggressive expansion strategy aimed at increasing the company's competitiveness, production capacity, and energy self-sufficiency, received R$ 402.9 million of this sum.

The Gaia Platform is guided by a strong commitment to sustainable development in its three spheres: economic, social, and environmental. In 2022, we highlighted the conclusion of Gaia III, focused on the paper plant in Vargem Bonita (SC). This will enable us to boost the production of paper bags for physical and online retail, as well as kraft bags for delivery and takeout. (GS1)

We believe that innovation and sustainability go hand in hand. We ranked 17 topics for the development of RD&I projects in 2022, including 50 innovation initiatives. Currently, 22 of these projects are in the development phase, 12 are in the research phase, 10 are in the ideation phase, and 6 are in the implementation phase.

Among them is our collaboration with Nanox Tecnologia, which enabled the introduction in Brazil of the first paper packaging with antimicrobial technology, a solution that deactivates viruses, bacteria, and fungi. To promote the market for sustainable

and niche packaging, we expanded our antimicrobial paper line partnerships with Mobri and Xalingo in 2022. This allows for greater health and safety for children's toys and packaging.