Navigator : informs on 2021 Annual Sustainability Report

A bioindustry on the right side of the future.

THE NAVIGATOR COMPANY

IN THIS REPORT

ANNEX - EUROPEAN TAXONOMY INDEPENDENT LIMITED ASSURANCE REPORT

1.	OVERVIEW	2
1.1. OUR REPORTING APPROACH	2
1.2. NAVIGATOR IN 2021	4
1.3. MESSAGE FROM THE CHAIRMAN	6
1.4. MESSAGE FROM THE CHIEF EXECUTIVE OFFICER	8
1.5. OUR BUSINESS VENTURES	12
1.6. THE GLOBAL CONTEXT	17
2.	CREATING VALUE RESPONSIBLY	27
2.1. RESPONSIBLE GOVERNANCE MODEL	27
2.2. OUR 2030 AGENDA	29
2.3. IMPACT ON SDGs	31
2.4. STAKEHOLDER RELATIONS	33
2.5. 2030 ROADMAP	34
3.	A RESPONSIBLE BUSINESS	43
3.1. CREATING SUSTAINABLE VALUE	45
3.2. ETHICS, TRANSPARENCY AND INCLUSION	51
3.3. RISK MANAGEMENT AND BUSINESS CONTINUITY	58
3.4. BIOPRODUCTS	62
3.5. INNOVATION, TECHNOLOGY AND R&D	66
4.	A BUSINESS RESPONSIBLE FOR NATURE	72
4.1. RESPONSIBLE USE OF RESOURCES	74
4.2. SUSTAINABLE FORESTRY MANAGEMENT AND CONSERVING BIODIVER-	81
SITY
4.3. CIRCULAR ECONOMY	91
5.	A BUSINESS RESPONSIBLE FOR CLIMATE	97
5.1. CLIMATE CHANGE AND CO 2 SEQUESTRATION	99
6.	A BUSINESS RESPONSIBLE FOR SOCIETY	107
6.1. TALENT MANAGEMENT AND DEVELOPING HUMAN CAPITAL	109
6.2. HEALTH, SAFETY AND WELL-BEING	114
6.3. STAKEHOLDER ENGAGEMENT AND COMMUNITY RELATIONS	120
7.	OUR PERFORMANCE	130
130
131
133
137
141

ECONOMIC INDICATORS

ENVIRONMENTAL INDICATORS SOCIAL INDICATORS

1. OVERVIEW

1.1 REPORTING APPROACH

This Sustainability Report is designed as a response to The Navigator Company's Responsible Management Agenda (known as the "2030 Agenda"), announced in 2021. It provides information on the Company's performance in relation to its 2030 Agenda, addressing both the central focus, a Responsible Business, and the three strategic action areas - for Nature, for Climate and for Society. These action areas cover a total of 12 material topics, identified during the materiality review conducted in 2019 and 2020. This means they reflect the key issues as identified by stakeholders. At the same time, this report publishes, for the first time, the Company's performance on the 15 commitments made in the 2030 Roadmap, published in the 2020 Sustainability Report.

Navigator's experience of sustainability reporting has enabled it to make the transition to the new Global Reporting Initiative framework in this year's report, implementing GRI universal standards 1, 2 and 3, published in October 2021, one year ahead of the required adoption date. This report is therefore GRI compliant, conforming to all the principles and rules required by the Standard. The 2021 Sustainability Report also addresses the impact of Navigator's 2030 Agenda on the United Nations Sustainable Development Goals, aligning the Company's commitments with this framework. In line with the growing importance of stakeholders in the pathway to business sustainability, the indicators reported under the GRI standards have been aligned with the metrics presented in the framework published in 2020 by the World Economic Forum (WEF): Measuring Stakeholder Capitalism Towards Common Metrics and Consistent Reporting of Sustainable Value Creation. In another important development, Navigator has signed up to the Science Based Targets initiative and submitted its Scope 1, 2 and 3 emissions reduction targets, adding further to the reliability of its targets for climate action. This step is consistent with Navigator's commitment to adopting best reporting practices, by increasing the rigour and transparency of disclosure of Sustainability information. Lastly, attention is drawn to our publication of European Taxonomy information, in relation to eligible activities under this regulation and the respective indicators.

In the course of 2022, The Navigator Company intends to integrate the TCFD recom-mendations into corporate strategy and risk management processes, seizing the op-portunity to assess the potential financial and strategic implications of climate change and to develop appropriate responses.

Recognition of ESG performance

Navigator is aware of the importance of being included in ratings that assess its ESG - Environmental, Social and Governance - performance, not only because this allows its activities to be analysed on these criteria, but also because it is possible to makecomparisons with its peers. Even more importantly, this can identify areas for improvement.

Sustainalytics

Score: 14.3

Ranked 3rd out of 81 Paper & Forestry companies

Period, scope and limits of this Report

CDP Climate and Forest

Score: B

A score of B in its first response to CDP Forest, and the same score for CDP Climate.

This Report refers to activities during 2021 (1 January to 31 December 2021). It includes the Group's activities that contribute to producing and selling pulp and paper and its dedicated energy production operations. All indicators are consolidated, except those for Mozambique, where activities are described over the course of the document, wherever applicable.

Review of information

The information contained in this report has been verified by KPMG, which has drawn up an independent assurance report. The KPMG report may be consulted on page 141.

Opinions and contact details

Your opinion is important to us. We would be grateful if you would complete the feedback questionnaire for this document available on the Company website: thenavigatorcompany.com.

For any enquiries, please contact: The Navigator Company

Av. Fontes Pereira de Melo 27, 1050-117 Lisboa

Ana Nery

Sustainability [e-mail]

1.2 NAVIGATOR IN 2021

3rd

place in Sustainalyticsrating

out of total of 81 companies in Paper & Forestry sector

€ 1.49 Billion distributed

in salaries, suppliers, community, and others

Includes approx. € 90 Million in tax

Sustainable Forestry Management and Conserving Biodiversity

71%

certified wood purchased 78% wood suppliers with certified chain of custody

€ 4.3 M investment in forest fire prevention and firefighting