About the Report Environmental Social Governance Reading Tools

2

Chapter 1

Chapter 4

About the Report

3

Governance

19

Corporate Governance

20

Chapter 2

Integrity and Ethics

24

Contents

Environmental

4

Anti-corruption

25

Social

9

Environmental Management System

5

Fraud prevention

28

Privacy and data protection

29

Chapter 3

Participation in associations

31

Attraction and Engagement

10

Chapter 5

Performance evaluation

11

Reading Tools

32

Development

12

Indicators panel

33

Benefits and Compensation

13

GRI Content Index

56

Health and Safety

15

SASB Content Index

63

Human Rights

16

Assurance report

65

Supplier Management

17

Credits

67

About the Report Environmental Social Governance Reading Tools

3

About

the Report

Welcome to the Cielo Integrated Annual

Report Supplementary Index!

This document is a complement to our

Main Reportand is part of a set of initiatives aimed at providing transparency to stakeholders about our practices and performance.

The content presented herein is organized into ESG pillars and the reader can guide their queries by searching for indicators of interest, arranged in the sections, in the Indicator Panel or in the GRI and SASB indexes.

Enjoy your reading!

About the Report Environmental Social Governance Reading Tools

4

Environmental Management System

5

About the Report Environmental Social Governance Reading Tools

5

Environmental Management System

GRI 3-3

In order to ensure that our activities are in line with environmental standards recognized as guides for corporate actions, we have an Environmental Management System (EMS) certified by ISO 14.001:2015, which regulates the system and establishes requirements for its implementation and operation.

The Scope of Cielo's EMS includes:

  • Headquarters Administrative Activities;
  • Management of emissions generated by the
    Commercial Force (Fleet);
  • Management of POS logistics (Outsourced Service); and
  • Management of the final disposal of the POS
    (Outsourced Service).

We have internal procedures to identify aspects and evaluate the significance of the environmental impacts of our operations and activities, preventing their occurrence and avoiding their recurrence.

Impact monitoring, as well as data updating, is carried out on a regular basis, whenever there are significant changes that may affect the compliance of the Management System. The results of this monitoring are presented in critical analysis meetings.

Waste

GRI 306-3 | 306-5

Aware of the growing impact electronic waste has on the environment, we are committed to reverse logistics and recycling of equipment used in our machines, batteries and peripheral items (cables, chargers and power supplies).

We have a logistics operation responsible for receiving and properly directing equipment that is returned to Cielo. Therefore, terminals that are still fit for use undergo a restoration and maintenance process. Those that are not suitable are destroyed and their waste is reintroduced as raw material in other sectors of the economy.

Non-hazardous waste, by type and destination, in tons

2021

2022

2023

Recycling

249.4

161.10

411

Technological Waste - Machines

78.3

60.6

216

Supplies and peripheral items

133.7

75.1

163

Marketing materials

37.4

25.5

32

Landfill

10.4

7.99

28,4

Recyclable waste (Headquarters)

5.3

3.24

13.9

Organic waste (Headquarters)

5.1

4.75

14.5

TOTAL

259,7

169,09

439,4

End of life of sold products, in tons

2022

2023

Paper reels discarded by commercial

1,376

1,074

establishments and/or end users

Cardboard discarded by commercial

708.6

793.8

establishments

TOTAL

2,253.4

1,868.1

Energy

GRI 3-3 | 302-1 | SASB TC-SI-130A.1

At Cielo, energy management is a strategic factor for the continuity of our business,

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Energy consumption within Cielo*

Energy efficiency in data centers

which is why we direct efforts to ensure energy efficiency and the use of renewable and low-impact sources.

We acquire renewable energy certificates (REC), which assure us that all electricity consumed is clean and free of carbon emissions.

2021

2022

2023

Electricity consumed (SIN)

2,779.0

2,721.5

2,021.8

Renewable fuels (GJ)

20,964.4

22,727.7

54,045.7

Non renewable fuels (GJ)

88,480.5

127,894.9

157,975.0

2021

2022

2023

Power Use Efficiency

1.63

1.58

1.54

(PUE) index

Total energy consumption

62,855

67,753

69,847

in data centers (MWh)

Renewable energy

84.76%

100%

100%

percentage*

We also evaluate the energy efficiency of the data centers (PUE) providing services to Cielo. Our metric is the ratio between the total energy used in the data center (electricity, cooling, light, etc.) and the energy used by IT devices (servers).

* Energy consumption data refer to scopes 1 and 2 of the GHG

* For regulatory reasons, electricity transmission is carried out by the

inventory and include information from Cielo (Aliança, Servinet and

National Interconnected System (SIN).

Stelo) and Cateno.

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Emissions

GRI 3-3 | 305-1 | 305-2 | 305-3

We account for greenhouse gas (GHG) emissions following the guidelines of the Brazilian GHG Protocol Program. This allows us to monitor emissions, propose actions to reduce them and offset for remaining emissions.

An independent third party, accredited by Inmetro, ensures our inventory in accordance with the certification criteria.

Cielo offsets its scope 1 and 2 emissions through the purchase of carbon credits, which support a project to reduce GHG emissions with positive social and environmental impacts, in a traceable way and verified by an entity recognized in the world market.

DIRECT EMISSIONS (SCOPE 1)

Cielo's direct emissions in 2023 totaled 9,130.5 tCO2eq - a 35% increase compared to 2022. Such growth is mainly related to the expansion of the commercial team, which resulted in an increased vehicle emissions.

Direct Emissions

(Scope 1) (tCO2e)

2021

2022

2023

Mobile combustion

5,130.3

7,393.1

9,130.3

Fugitive emissions

0.2

0.3

0.2

Stationary combustion

7.2

12.1

0

TOTAL

5,137.7

7,405.5

9,130.5

INDIRECT EMISSIONS (SCOPE 2)

Indirect emissions related to energy consumption totaled 77.6 tCO2eq - a 33% reduction compared to the previous year. The decrease is due to the closure of Cielo stores, making the Head Office and the Leopoldo Branch the only offices with energy consumption in the company.

Indirect Emissions

(Scope 2) (tCO2e)

2021

2022

2023

Acquisition of electricity

333.5

116.5

77.6

TOTAL

333.5

116.5

77.6

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OTHER INDIRECT EMISSIONS (SCOPE 3)

Indirect emissions

(Scope 3) (tCO2e)

2021

2022

2023

Water and Effluents

GRI 303-1 | 303-2 | 303-5 | SASB TC-SI-130A.2

Indirect emissions related to scope 3 totaled 25.049,4 tCO2eq.

It is worth mentioning that in 2023 a new methodology was created to calculate employees displacement, which considers the occupancy

of the Headquarters, crossing with the use of parking, transport vouchers and charter. In this way, 2023 emissions better reflect the Company's hybrid work model.

Another important factor to keep emissions balanced despite the business expansion was the gain in efficiency in calls related to the Upstream Transport and Distribution category, achieved through proactive monitoring actions, resulting in fewer trips and, consequently, fewer emissions.

Purchased goods and services

Displacement of employees (home-work)

Waste generated in operations

Transport and distribution (downstream)

Transport and distribution (upstream)

End-of-life treatment of products sold

Use of goods and services sold

158.5 45.6

177.0 2,291.0

24.0 18.1

5.3 47.2

16,901.9 15,338.5

- 7,782.4

799.5 201.1

50.4

1,300.0

25.7

22.3

15,999.5

6,309.8

157.5

To prioritize and encourage water efficiency in our operations and in the management of natural resources, we adopt internal measures and projects to reduce water consumption and use alternative sources for non-drinking purposes.

All drinking water used at the Company's headquarters comes from a water utility company. In 2023, 1,682 m³ were consumed, a 26% increase compared to the previous year, due to the consolidation of the hybrid work model at the headquarters and the increased number of employees (find out more on page 51 of the Main Report).

WATER CONSUMPTION (m³)

Business trips

141.0

605.2

1,184.0

TOTAL

18,207.2 25,329.0 25,049.4

2021

2022

2023

Municipal water supply or

1,632

1,336

1,682

other water supply companies

In the headquarters building, there is a Sewage Treatment Station (ETE), which allows the treatment and reuse of water in toilets and cleaning of external areas.

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Attraction and Engagement

10

Performance evaluation

11

Development

12

Benefits and Compensation

13

Health and Safety

15

Human Rights

16

Supplier management

17

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10

Attraction and Engagement

GRI 3-3 | 401-1

Cielo understands that the talent found by the Attraction and Selection team is a key component for business strategy and development. Aiming to ensure our success in the medium and long term, our objective is to attract, retain, engage and develop talents that are guided towards innovation, data analysis, productivity and performance.

We monitor Attraction and Selection indicators through the candidate funnel, in addition to carrying out research and surveys in order to understand employees' perception and guide future strategies, whether for retention or acknowledgment programs.

HIRING

As a result of the expansion of the commercial and technology teams, by the end of the year, we had hired 3,240 new employees, at an average cost of R$3,708.40 per hire.

Demonstrating our efforts to value and promote the team, 14.2% of open positions were filled through internal recruitment.

Total hiring, by gender

2021

2022

2023

Percentage of positions

filled through internal

16,0%

13,8%

14,2%

recruiting

Average hiring cost

R$ 3.268,0

R$ 3.467,21

R$ 3.708,40

Total hiring

610

2.584

3.240

Homens

1.440

1.518

2.014

Mulheres

830

1.066

1.226

TURNOVER

Last year, we recorded a turnover rate of 35.7%. This index is lower than that recorded in 2022, which demonstrates the organization's attention to developing and retaining our talents.

2021

2022

2023

Total turnover rate

49.5%

38.4%

35.7%

Men

46.9%

38.7%

36.4%

Women

47.9%

37.8%

34.7%

DISMISSALS

2021

2022

2023

Total dismissals

1,989

1,740

1,918

Men

1,214

1,065

1,175

Women

775

675

743

For additional hiring and turnover data, see the

Indicators Panel

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Disclaimer

Cielo SA published this content on 31 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2024 21:43:05 UTC.