ULTRAPAR PARTICIPACOES S.A. Sustainability report 2023
Contents
ABOUT THE REPORT | 3 | SUSTAINABILITY CONNECTED TO | SOCIAL IMPACT | 44 | |
STRATEGY | 18 | ||||
Materiality | 4 | Inclusive Culture and Diversity | 45 | ||
ESG 2030 Plan | 22 | ||||
MESSAGE FROM THE MANAGEMENT 5 | Health and Safety | 49 | |||
Stakeholders | 24 | ||||
WHO WE ARE | 7 | Responsibility for the | |||
GOVERNANCE AND INTEGRITY | 25 | Surrounding Communities | 53 | ||
Portfolio of companies | 10 | ||||
Reference in governance | 26 | Value Chain | 58 | ||
Business model | 16 | ||||
Integrity as a guiding principle | 29 | INDICATOR BOOKLET | 60 | ||
Results for 2023 | 17 | ||||
Risk management | 32 | GRI, SASB, AND TCFD | |||
LISTS OF CONTENTS | 63 | ||||
Regulatory environment and public policies 33 | |||||
EXTERNAL ASSURANCE | 71 | ||||
COMMITMENT TO | |||||
THE ENVIRONMENT | 34 | CORPORATE INFORMATION | |||
AND CREDITS | 72 | ||||
Energy Transition | 35 | ||||
Eco-efficient Operations | 39 |
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
2
About the report
CONTENTS
ABOUT THE REPORT
GRI 2-2,2-3,2-14
As part of its commitment to transparency and integrity, the Ultra Group presents its 2023 Sustainability Report, which brings together the year's highlights in the areas of finance, operations and ESG (Environmental, Social and Governance).
The publication also serves as an update of the ESG 2030 Plan, publicly announced in early 2023, which is a set of ambitions and goals related to the Group's seven material topics.
This report, which was prepared based on the Global Reporting Initiative (GRI) Standards, refers to the period from January 1st to De- cember 31st, 2023 and covers the activities of Ultrapar and its controlled companies: Ultrapar, Ultragaz, Ultracargo, Ipiranga, AmPm, Abastece Aí (now KMV), and Iconic. The information on the workforce also includes Millenium. The period and scope of the report are the same as for the financial statements.
The report also includes the Sustainability Accounting Standards Board (SASB) indicators for the Oil and Gas sector: Refining and Mar-
keting, and presents data on the Group's gov- ernance, strategy, risk management and climate performance, in line with the guidelines of the Task Force on Climate-Related Financial Disclosures (TCFD).
The process of the preparation of the Sustainability Report was coordinated by Ultrapar's Finance and Investor Relations directorate. The managers and directorates responsible for the information being reported validated the doc- ument, which has also been subjected to a process of limited assurance carried out by an independent external auditing firm. Since the contents of the report were discussed at meetings of the Board of Directors, the report was not reviewed by the Board Members. Furthermore, the publication has been assured by an independent third party.
Any questions or suggestions should be sent to:
sustentabilidade@ultra.com.br
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
3
Materiality
GRI 3-1
Ultrapar's materiality matrix was created in 2019, based on a process divided into three major stages:
▶ Analysis of studies linked to the sustainability agenda; media publications; comments disclosed by investors, government bodies and national and international entities; applicable legislation and standards, in addition to an assessment of the status of the businesses and their sectors of activity.
▶ Consultations with the Group's principal stakeholder groups: Executive Board; shareholders and investors; employees; regulatory and supervisory bodies; sectoral entities; civil society organizations; and the media.
▶ The matrix was validated by the Board of Di- rectors.
The matrix was revised in 2021 and focused on seven material topics. For each of these topics, the ESG 2030 Plan established an ambition and specific goals that are to be achieved by 2030 (for more information see page 22).
Material topics
GRI 3-2
- Health and Safety
- Governance and Integrity
- Energy transition
- Eco-efficientOperations
- Responsibility for the Surrounding Communities
- Value Chain
- Inclusive Culture and Diversity
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
4
Message from the Management
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
GRI 2-22
The year of 2023 was another year of important progress for the Ultra Group. Despite the volatility and uncertainties during the year, our three main businesses, Ipiranga, Ultragaz and Ultra- cargo, all achieved record results. In Ultragaz and Ultracargo the emphasis was on the continuance of growth, while Ipiranga achieved a significant recovery ot its profitability through the fine-tuning of its pricing policy, a greater level of engagement with its network of resellers, the implementation of improvements in supplies, logistics and trading and the selective disinvest- ment of service stations with low potential.
The Group's strong operational cash flow generation enabled it to achieve its lowest financial leverage ratio for 15 years and to receive, once again, an investment grade rating from Standard & Poors.
We invested R$1.9 billion in expanding and maintaining our businesses. We announced the acquisitions of Stella Energia and NEOgás, which marked Ultragaz's entry into the renewable electricity and compressed natural gas segments, expanding its range of products
Achieved the lowest financial leverage for 15 years and recovered an investment grade rating from Standard and Poors.
and services, and enhancing its distribution capability, sales strength, and brand name. We also completed the acquisition of a 50% stake in Opla, an ethanol terminal in Paulínia (SP), and a base for Ipiranga in Rondonópolis (MT). Furthermore, we announced the construction of the first bulk-liquid terminal in the State of Tocantins, which marked the expansion of Ultracargo into the interior of Brazil and reinforced the company's positioning as a provider of integrated logistics solutions.
As a continuance of our transformation agenda for governance, in April we implemented important changes to the size and composition of the Board of Directors, for the term of 2023 to 2025. This process of renewal consisted of the reelection of some of the existing Board Members, preserving the knowledge
Jorge M. T. Camargo
Chairman of the Board of Directors
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
5
We made good progress on our ESG journey, by making public commitments to our targets for 2030, and embedding these topics and targets in the Group's strategic planning processes.
base in relation to Ultrapar and the businesses, and the election of new members who brought complementary experience that will be important to building the Group's future.
Furthermore, we made good progress on our ESG journey, by making public commitments to our targets for 2030, and embedding these topics and targets in the Group's strategic planning processes.
For the year 2023, we recorded a net revenue of R$126 billion and a recurring adjusted EBITDA of R$5.6 billion, 41% higher than for 2022, due to the record results in all our three main business- es, even after the disinvestment of Oxiteno and Extrafarma. The Group's net profit was a record R$2.5 billion, of which R$713 million will be distributed in dividends to shareholders.
As we highlighted above, the reduction in our financial leverage, from 1.7x in December 2022 to 1.1x in December 2023, enables the Group to
pursue additional investment opportunities that provide both good returns and are aligned to our strategic planning objectives. We would like to emphasize that there are receivables related to the above-mentioned divestments that total approximately R$0.9 billion, and which have not been considered in the leverage calculation.
In addition, we announced our investment plan for 2024 totaling R$ 2.7 billion, 37% higher than for 2023. Around 55% of the total will be invested in expansion projects in Ipiranga, Ultragaz and Ultracargo, in addition to their on-going investments in the maintenance and safety of the operational units.
We would like to thank our customers, sup- pliers, shareholders and other stakeholders for their trust and partnership in enabling the continued evolution of the Group's activities. We would especially like to thank all our employees for their dedication, commitment, and achievements during the year.
Marcos Marinho Lutz
CEO
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
6
Who we are
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
7
ULTRA'S ESSENCE AS A LEVER FOR BUILDING THE FUTURE
GRI 2-6
With 86 years of history and a trajectory marked by a pioneering spirit and a passion and commitment to the development of Brazil, the Ultra Group operates in the energy, logistics infrastructure and mobility value chains through its subsidiaries Ultragaz, Ultracargo and Ipiranga respectively.
Ultrapar is responsible for the allocation of capital and the maximization of value creation of the Group's portfolio of businesses, which, in turn, have operational autonomy, and follow common business parameters and a Group-wide organizational culture.
In 2023, the Ultra Group carried out an extensive work program to revisit its essence and history and to identify the major themes and challenges of the contemporary world to establish its positioning for the future.
The process shed light on the Group's most significant attributes, present since its foundation in 1937, when an Austrian immigrant, Ernes- to Igel, founded Empreza Brasileira de Gaz a Domicílio Ltda. These attributes are:
Ability to make ideas happen A combination of entrepreneurial drive and the ability to visualize and create what does not yet exist, with the talent to structure, organize and implement great ideas and projects.
Courage, boldness, and creativity Ability to attract and value people who believe in effort, work, creativity, and integrity of character as the main tools for building their individual, organizational and societal stories.
Genuine commitment to fostering a more dignified and fairer Brazil Since the beginning, the Group's activities have played an important role in the modernization
of Brazil, projecting an accurate and bold vision of the future, applying a great willingness to implement this vision, while conducting its activities with impeccable ethical behavior.
In addition to these attributes, the defining nature of the Group's essence was summarized in the phrase Passion for Brazil's Energy, encapsulating the Group's vocation and ability to imagine, to achieve, and to improve people's daily lives by providing energy in all its forms.
MAIN AWARDS AND RECOGNITION
Ranked as the seventh largest company in Brazil in the Valor 1000 Ranking, published by the Valor Econômico newspaper.
Returned to a rating equivalent to investment grade rating by S&P Global.
Re-inclusion in the B3
Corporate Sustainability Index (ISE) portfolio.
Included in the Melhores
e Maiores (Best and
Biggest) Ranking for 2023, published by the Exame magazine.
Ultrapar's CEO, Marcos Lutz, was elected as one of the
500 most influential people in Latin America, by Bloomberg Línea.
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
8
The Group is present in the lives of millions of Brazilians countrywide
CONTENTS
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
Head Office
São Paulo (SP)
Shared Solutions Center (CSC)
Campinas (SP)
37 company-owned bases and pools1 for fuel distribution
SUSTAINABILITY
CONNECTED TO STRATEGY
GOVERNANCE AND INTEGRITY
39 production and bottling bases and satellite storage and distribution bases
Juazeiro, São Francisco do Conde - Mataripe, Salvador - Pirajá (BA), Caucaia, Mucuripe (CE), Aracruz, Barra de São Francisco
(ES), Senador Canedo (GO), Betim, Betim - Imbiruçu, Pouso Alegre (MG) , Miramar (PA), João Pessoa (PB), Ipojuca - Suape (PE), Araucária, Cascavel, Londrina, Ponta Grossa (PR), Duque de Caxias (RJ), Canoas, Caxias do Sul (RS), Chapecó, Florianópolis , Joinville (SC), Aracaju (SE), Araçatuba, Araraquara, Barueri, Bauru, Mauá, Mauá - Capuava, Paulínia - two bases, Ribeirão Preto, Santos, São José do Rio Preto, São José dos Campos
- two bases, Sorocaba (SP).
Betim - 1 base and 1 pool, Governador Valadares, Montes Claros (MG), Porto Velho, Vilhena (RO), Cascavel, Guarapuava, Londrina (PR), Barueri, Bauru, Cubatão, Paulínia - 1 base and 1 pool, Ourinhos, Presidente Prudente, São Caetano do Sul, São José do Rio Preto - two bases (SP), Barcarena, Belém, Itaituba, Santarém (PA), Canoas, Cruz Alta, Passo Fundo, Santa Maria (RS), Cuiabá (MT), Campo Grande (MS), Duque de Caxias, Campos (RJ), Manaus (AM), Macapá, Munguba (AP), Maceió (AL), Fortaleza (CE) and Itajaí (SC).
8 bulk-liquid storage terminals
Vila do Conde (PA), Itaqui (MA), Suape (PE), Aratu (BA), Rio de Janeiro (RJ), Santos, Paulínia2 (SP) and Rondonópolis (MT).
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
- Pools are fuel logistics bases with shared operations with other distributors.
- Joint-venturewith BP.
9
Portfolio of companies
CONTENTS
GRI 2-6
In 2023, Ultragaz consolidated its position as an energy-solutions brand, going beyond the role of supplier of liquefied petroleum gas (LPG).
Using its capillarity, the brand strength and solid relationships with customers, the company increased its product range offering renewable
electrical energy via
distributed generation
through Ultragaz Energia Inteligente (former Stella Energia), and compressed natural gas (CNG) and biomethane, through NEOgás.
In LPG, a segment in which it was a pioneer in Brazil, it continued to implement its operational efficiency strategy and formalized a consortium with SHV/Supergasbras to share part of its operations and infrastructure of LPG storage and bottling bases. This will enable a greater level of security of supply in the regions served and improved service levels, with positive impacts for customers and resellers. This progress will also enable Ultragaz to capture operational effi- ciencies, such as a reduction in product movements and greenhouse gas (GHG) emissions, and the optimization of investments, without any change or interference in either of the com- panies' commercial operations.
In the domestic LPG market, the company continued to invest in the digitalization of its relations with partners and customers. In addition to the Ultragaz app, in 2023 Ultragaz began to sell its products through the abastece ai (now KMV) platform, part of Ipiranga's relationship ecosystem. In the B2B segment, it offered exclusive and innovative solutions for industry, commerce, services, and agribusiness, improving customers' environmental performance, optimizing energy consumption, and reducing GHG emissions.
ABOUT THE REPORT
MESSAGE FROM
THE MANAGEMENT
WHO WE ARE
SUSTAINABILITY
CONNECTED
TO STRATEGY
GOVERNANCE
AND INTEGRITY
COMMITMENT TO
THE ENVIRONMENT
SOCIAL IMPACT
INDICATOR BOOKLET
GRI, SASB, AND TCFD LISTS OF CONTENTS
EXTERNAL
ASSURANCE
CORPORATE
INFORMATION
AND CREDITS
10
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Disclaimer
Ultrapar Participações SA published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 22:10:06 UTC.
