Company also ranked world 1st in the Business Ethics, Corporate Governance and Community Relations categories

São Paulo, November 2022 – Aegea, the leading private company in Brazil’s sanitation sector, has been ranked world 1st among sanitation peers in the ESG Rating ranking announced by Sustainalytics, a leading independent ESG research, ratings and analytics firm that supports investors around the world, belonging to the Morningstar group. Aegea also ranked world 1st in the Corporate Governance, Business Ethics and Community Relations categories.

According to André Pires, CFO of Aegea, this recognition is the outcome of the company’s commitment to the ESG (Environmental, Social and Governance) pillars and the results of its core business, which is taking health and dignity to its consumers. “We strive to make Aegea be recognized for its business model, which is based on operating efficiency, responsible investments and returns for its shareholders, with practices always aligned with ESG principles. This achievement is proof of the result of our focus,” he said.

Currently, over 12,000 companies from diverse sectors around the world have their ESG risk assessed by Sustainalytics. For sanitation companies, more than 50 ESG significant aspects for the sector are assessed and given scores that make up the company’s rating. Since the rating assesses risk exposure, the lower the score the higher the ranking.

Through its ESG Committee, Aegea monitors and guides its diverse ESG initiatives, engaging all areas to prioritize the projects and maintain the focus. “A better understanding of our positioning on the ESG agenda increases the trust of our stakeholders and contributes to the sustainable growth of our business,” said Pires.

Commitment to the ESG agenda

The company has a long history of ESG initiatives and formal commitments, such as those associated with the issue of a Sustainability-Linked Bond (SLB) in April 2022, when the company undertook three sustainability targets to be achieved by 2030: reduce specific energy consumption by 15%; increase the percentage of women in leadership positions from 32% to 45%; and increase the number of black people in leadership positions from 17% to 27%. The company was the first in the sanitation sector to issue a bond linked to ESG goals in Latin America and the pioneer in setting targets for racial diversity in leadership positions in Brazil.

With regard to governance, the company adopts the best practices and has the ISO 37001 certification (Anti-Bribery Management Systems), which encompasses a series of internationally recognized standards aimed at contributing to the compliance programs of companies and certifying their alignment with the Anti-Bribery Standard. Aegea was the first company in its sector to obtain this certification in 2018 and has renewed it two times in a row, underscoring its commitment to ethics and integrity. The company has a Compliance Program, overseen by the Chief Integrity Officer, who reports to the Board of Directors, and an independent Ethics Channel. In terms of ESG governance, Aegea has an ESG Executive Committee and ESG commitments linked to the variable compensation of executives, and its annual sustainability report is assured by an independent audit firm.

The company impacts directly and indirectly the communities in the municipalities where it operates, taking health, quality of life and dignity to them through social, educational and environmental programs, and by creating jobs and fostering the local economy. Through the Vem com a Gente program, Aegea engages agents in vulnerable neighborhoods and communities to conduct a diagnosis of how the existing water infrastructure is functioning and make the necessary interventions to provide quality sanitation. The agents also update the registration data of consumers, including families that meet the requirements of the Social Tariff program.