ESG Indicators – 2021

In line with the topics identified in the materiality process, Cogna reports every quarter its most relevant ESG indicators¹. Information about previous years can be found in our Annual Sustainability Reports.

Highlights – Quarters of 2021

Highlights of the 1st Quarter of 2021

Cogna Education Results Center.

2nd Quarter 2021 Highlights

Operational Highlights

Start of periodic disclosure of ESG (Environmental, Social, Governance | Environmental, Social, Governance) information in our Earnings Release, expanding the reach of this information in addition to our website www.esg.cogna.com.br.

Message from Management

After a difficult year in 2020, Cogna takes another important step towards consolidating its performance recovery, aiming to build the most complete and digital education ecosystem in Brazil. With this major objective ahead, the company has been consistent with its capital allocation strategy, prioritizing asset light segments and business models, with greater growth potential and Return on Invested Capital “ROIC”.

Following the same guideline for all business units, we presented important results throughout the first half of 2021, aiming to make the holding structure increasingly efficient, to support the future plans of the business units.

Seeking to reinforce our commitments and positioning towards the environment, society and our stakeholders, we launched, in March 2021, a website dedicated exclusively to the ESG theme (Environmental, Social, Governance | Environmental, Social, Governance), www.esg.cogna.com. br, where we publish our quarterly indicators. Additionally, as of 2Q21, we began publishing ESG information in a section dedicated to theme in our Earnings Release.

Highlights of the 3rd Quarter of 2021

ESG goals:

Our purpose is to impact people through education for a better world, as we know the importance of education in building a fairer and less unequal country. Offering our educational service is our main social development tool, but we believe that, in addition to our core activity, we should make commitments to the environmental, social and governance impacts of our activities. Based on this premise, we carried out a broad discussion process and defined specific goals for environmental, social and governance commitments that we will assume until 2025. These goals were created with the participation of hundreds of employees in 3 specific working groups and will be made public in the end of November 2021.

Highlights of the 4th Quarter of 2021

The year 2021 consolidated initiatives related to environmental, social and governance aspects at Cogna that not only point to the path we hope to follow in the coming years but also demonstrate the results of the investments made and the deepening of our ESG strategy and the influence of this agenda at the Company.

The maturity of our practices aligned with the ESG strategy culminated in the launch of “Cogna Commitments for a Better World”, a public manifesto resulting from our reflection on challenges and opportunities in which the Company must continue to advance, such as diversity, and urgent global demands to which we believe we have the potential to contribute, such as social inequalities, so present in our country, and the advancement of climate change. Thus, we defined 14 objectives, with targets to be achieved between 2022 and 2025, in three pillars: Balance between People and Nature; Education, Diversity and Human Rights; and, Governance and Integrity.

The construction involved mapping all of the Company’s actions and diagnosing the company’s maturity in a participatory process. The objectives and goals were approved by the Board of Directors. In addition to public commitments, there are internal goals so that we can advance in other aspects in the coming years. We also created ten new policies throughout the year, reviewed another 15 and carried out more than 20 benchmarks for priority themes.

Another advance that influenced this agenda was the formal linking of the ESG agenda within the scope of the Board of Directors, through the creation of the People and ESG Committee. This movement strengthened the sustainability strategy in all business units and should gain even more momentum with the implementation of ESG criteria in leadership remuneration, another of the challenges foreseen in Cogna Commitments for a Better World.

Check out the main highlights of 2021 below:

✓ Increased transparency with website dedicated to the Company’s ESG journey, Access here;
✓ Quarterly report of the main indicators related to ESG, with inclusion in quarterly releases to the market;
✓ Disclosure of Cogna Commitments for a Better World;
✓ Social actions, such as: projects, programs and community services, impacted more than 3 million people and, for every R$1 invested, R$8 was generated in benefits for society – following the SROI methodology (Social Return on investment);
✓ Achievement of the Women on Board (WOB) seal, an independent initiative supported by UN Women, due to the current female representation on the Board of Directors;
✓ In addition to our presence in the Global Compact Brazil Network, of which we have been signatories since 2010, in 2021 we formalized adherence to the Female Empowerment Principles (WEPs, in the English acronym), the Business and LGBTI+ Rights Forum and the Ethos Institute, which will allow us to share experiences and participate in important discussions on the ESG agenda;
✓ Creation of affinity groups in gender, ethnicity, PWD’s and LGBTQIA+.

In addition to the progress monitored on the fronts below:

Sustainalytics: Cogna evaluated as a low-risk company, among the top 2% in consumer services; best in the Americas and 6th position globally;
MSCI: BBB rating – among the top 10% in Diversified Consumer Services;
S&P CSA (Body rate Sustainability Assessment): above the sector average in the assessment, ranking 4th globally and 1st in comparison with peers in Brazil;
Exame’s Biggest and Best: 1st place in the Education sector, Cogna received a score of 9 (out of 10), within the group of companies that stood out in ESG in their sectors;
Estadão Empresas Mais: 2nd place in the general Education ranking, with emphasis on 1st place in the sector in the thematic rankings of Innovation, Sustainability and Corporate Governance.

Supported Organizations and Movements
Global Compact	Since 2010
Ethos Institute	Since 2021
LGBTI+ Company Forum	Since 2021
WEPs – Women’s Empowerment Principles - UN Women	Since 2021
Citizen Company	Since 2021

Seals and Certifications
FSC – Forest Stewardship Council	Since 2006
WOB – Women on Board	Since 2021
WEPs – Women’s Empowerment Principles - UN Women	Since 2021
Justice Friendly Company	Since 2021

ESG Indices
TEVA – Women in Leadership

Learn more about our sustainability recognitions. Click here.

Environmental

GRI	Water capture²	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
303-3	Groundwater	m³	25,379	24,774	37,160	57,901
	Municipal supply	m³	74,764	74,958	69,712	68,185
	Total	m³	100,143	99,732	106,872	126,152

Highlights and Notes:

4Q2021

There was a slight increase in water consumption, due to the partial return of face-to-face practical classes. As also occurred in 3Q2021, the reduction was due to the return of some Kroton units in 2021.

2Q2021

The increase in water consumption between 2Q2020 and 2Q2021 is due to an underground leak identified in May and already resolved.

1Q2021

The increase in water consumption between 2Q2020 and 2021 is the result of preventive measures to combat Covid-19 in the previous year, which included the migration of activities to the digital environment. However, the numbers are still lower than expected, as Kroton's activities, mainly, have not returned in their entirety to face-to-face mode.

SDG	GRI	Energy consumption	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
	302-1	Total energy consumed	GJ	32,782	32,066	31,615	32,750
	302-1	Percentage of energy from renewable sources³	%	85%	86%	83%	88%

Highlights and Notes:

4Q2021

Energy consumption remained stable in 4Q2021 compared to 2Q2021. The result also reflects the effects of Covid-19 and the partial resumption of activities, both on campuses and in offices. During the period, there was a migration of Kroton units to the Free Energy Market, whose energy comes from renewable sources.

2Q2021

Noteworthy is the slight increase in energy from renewable sources and the migration of new units to the Free Energy Market. We also highlight the SOMOS distribution center in São José dos Campos, whose consumption is 100% from renewable energy sources and represents on average 93% of the total energy consumed by all distribution centers.

Social

GRI	Diversity in the workforce by functional category	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
405-1	C-level - Female	% of people	ND	ND	ND	ND
	C-level - Male	% of people	ND	ND	ND	ND
	Total - C-level⁴	Number of people	ND	ND	ND	ND
	Leaders - Female (≥ manager)	% of people	45%	47%	47%	46%
	Leaders - Male (≥ manager)	% of people	55%	53%	53%	54%
	Total - Leaders (≥ manager)⁶	Number of people	659	678	703	662
	Coordinators, teachers and tutors - Female	% of people	57%	57%	57%	57%
	Coordinators, teachers and tutors - Male	% of people	43%	43%	43%	43%
	Total - Coordinators, teachers and tutors⁷	Number of people	11,466	10,836	11,406	10,995
	Administrative - Female	% of people	65%	66%	67%	68%
	Administrative - Male	% of people	35%	34%	33%	32%
	Total - Administrative⁸	Number of people	12,075	13,266	13,905	11,685
	Total - Women	% of people	61%	61%	62%	62%
	Total - Male	% of people	39%	39%	38%	38%
	Total - Employees	Number of people	24,211	24,791	26,026	23,354

Highlights:

3Q2021

We carried out an engagement action to train employees on diversity issues and achieved a 79% increase in the issuance of trail certificates;
We held a live to present the results of the diversity survey to all employees and on our social networks;
We celebrate the dates: National Week for People with Intellectual and Multiple Disabilities, National Day for People with Disabilities and Lesbian Visibility Day;
We created the affinity groups to work the Gender, Race and PwD pillars;
We carried out the engagement survey with a pillar dedicated to measuring employees' perception of diversity issues.

2Q2021

Adherence to the WEP (Women Empowerment Principles) commitment of UN Women, in promoting female protagonism in our Company and society;
Conducting a diversity survey to understand the Company's current scenario;
Conducting educational activities, including the LGBTQIA+ Pride live.

1Q2021

Formation of the first affinity group to address the LGBTQIA+ pillar;
Association to the LGBTQIA+ Business and Rights Forum;
Conducting educational activities, including the LGBTQIA+ Pride live;
Conducting a diversity survey to understand the Company's current scenario;
Updating the diversity and inclusion track at the Corporate University;
Maintenance of content curation and availability of materials for employees' literacy.

GRI	Indirect economic impact⁹	Unit.	1st Semester 2021	2nd Semester 2021
103-2, 103-3, 203-1, 103-2 and 413-1	Social Projects	No.	229	485
	People benefited	No.	37,650	135,383
	Students and teachers involved	No.	11,073	22,813
	Academic volunteering	Hours	2,115	24,538
	Corporate volunteering	Hours	1,100	4,562

Highlights and Notes:

2Q2021

The drop in the volume of projects, due to the pandemic, was offset by the dissemination of free content through digital platforms. In addition, in the second quarter, we carried out the Solidarity that Transforms campaign: a fundraising action that totaled more than 48 tons of food and more than 4,000 personal hygiene items for partner organizations of Kroton's HEIs, with 10 tons of direct donation from Kroton to the Red Cross.

GRI	Health and safety	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
403-5, 403-9 and 403-10	% of units covered by the Risk Management Program (PGR)	%	100%	100%	100%	100%
	Total number of employees trained in health and safety¹⁰	Number of people	2,539	2,796	2,327	4,526
	Average hours of health and safety training per participant¹¹	No.	3.1	5.4	7.3	2.4
	Accidents with and without lost time¹⁸	No.	ND	ND	ND	ND
	Accident frequency rate - Employees¹²	rate	ND	ND	ND	ND
	Accidents with serious consequences¹⁹	No.	ND	ND	ND	ND
	Accident rate with serious consequences - Employees¹³	rate	ND	ND	ND	ND
	Mandatory reporting accidents²⁰	No.	ND	ND	ND	ND
	Occupational accident rate of mandatory reporting - Employees¹⁴	rate	ND	ND	ND	ND
	Deaths resulting from work accidents	rate	ND	ND	ND	ND
	Death rate - Employees¹⁵	rate	ND	ND	ND	ND

Highlights and Notes:

2Q2021

Creation of the Vacinometer in 2Q2021, a monitoring panel for employees vaccinated against Covid-19. The initiative aims to guarantee the health of employees, engagement and communication in encouraging vaccination, as well as being an instrument for the Company's decision-making on the safe resumption of face-to-face activities;
The reduction in total hours of training between 2Q2020 and 2Q2021 is due to the migration from on-site training to distance learning (EAD), resulting from the company's new training strategy.

Governance

GRI	Diversity on the Board of Directors	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
405-1	Female	% of people	17%	29%	29%	33%
	Male	% of people	83%	71%	71%	67%
	Total	Number of people	6	7	7	6

Highlights and Notes:

2Q2021

Achievement of the WOB – Women on Board seal;
Literacy lectures were given to the board of directors and leaders on valuing diversity.

GRI	Ethical behavior	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
2-25	Cases registered in the Confidential Channel	No.	ND	ND	ND	ND
406-1	Discrimination complaints received on the Confidential Channel	No.	ND	ND	ND	ND
406-1	Confirmed cases of discrimination	No.	ND	ND	ND	ND
405-1	Employees trained on anti-corruption policies and procedures	% of people	100%	100%	100%	100%
	Operations subject to corruption-related risk assessment	% of operations	100%	100%	100%	100%
	Number of confirmed cases of corruption	Number of cases	0	0	0	0

ND: Not available: quarterly disclosure began in the second quarter of 2023. Previously, disclosure was made annually through the Sustainability Reports of the respective reporting cycles.

*The other 3 complaints received are under investigation and have not yet been concluded.

Highlights and Notes:

2Q2021

Start of two Newsletters aimed at 100% of employees, dedicated to Sustainability (ESG) and Compliance, covering topics such as: efficient use of natural resources, human rights and human dignity and potentializing the positive impact; Company policies, available and mandatory training and information about the Confidential Channel, respectively;
Adherence to the ETHOS Institute, with active participation in the Working Group on Human Rights and Integrity.

1Q2021

In March, a lawsuit was filed involving a possible breach of a student's data. On that occasion, we presented the defense and, so far, the case has not been judged. It is worth mentioning that the security of information for all our stakeholders is a priority for Cogna.

GRI	Compliance	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
307-1 and 419-1	Fines for socioeconomic non-compliance	R$ (thousand)	0.0	0.0	0.0	0.0
	Non-financial sanctions for socioeconomic non-compliance	% sanctions	0	0	0	0
	Fines for environmental non-compliance	R$ (thousand)	0.0	0.0	0.0	0.0
	Non-financial sanctions for environmental non-compliance	% sanctions	0	0	0	0

GRI	Privacy of customer data	Unit.	1Q2021	2Q2021	3Q2021	4Q2021
418-1	External complaints proven by the organization	No.	ND	ND	ND	ND
	Complaints received from regulatory agencies or similar official bodies	No.	ND	ND	ND	ND
	Identified cases of leakage, theft or loss of customer data	No.	ND	ND	ND	ND

Footnotes
SDG	Sustainable Development Goal. Indicate goal to which the actions monitored contribute.
GRI	Global Reporting Initiative. List the GRI standard indicators related to the data monitored.
ND	Indicator discontinued or not measured in the quarter.
1	Quarterly monitoring of a selection of material indicators. For further information, consult our Sustainability Reports, available here.
2	Based on invoices from sanitation concessionaires.
3	Acquired from the free energy market.
4	Segmentation adopted from 2022. Takes into the account the positions of CEO, vice presidents reporting directly to the CEO and all directors. Up to 2021, the data were consolidated for positions not reporting directly to the CEO and reported in the Senior management segment.
5	Reporting of the segmentation was stopped in 2022. The history consolidates the data of the CEO, vice presidents (reporting to the CEO or not) and directors.
6	Management, senior management and leadership positions not reporting directly to the CEO (regional directors, unit directors and vice presidents).
7	Course coordinators, teachers and tutors.
8	Corporate coordination, specialists, adjuncts, assistants and analysts.
9	Indicators reported on semi-annual basis (2Q and 4Q).
10	Since 2021, the indicator includes all the employees undergoing training in the period, not only new hires.
11	Total hours of training/employees trained.
12	Total accidents (with and without leave)/ Total man/hours worked (MHW) x 1,000,000.
13	Work-related injury (excluding fatalities) from which the worker cannot recover fully to pre-injury health status within 6 months. Formula: Number of injuries/MHW x 1.000.000.
14	(Accidents with leave + Fatalities)/ MHT x 1,000,000.
15	Fatalities/ MHW x 1,000,000.
16	The amounts referring to 1Q2022, 2Q2022 and 3Q2022 were equalized in 4Q2022 considering the total amount of invoices from concessionaires received in the respective quarters – considering the different closing deadlines for each location.
17	Indicators measured from the first quarter of 2023.
18	It also includes minor injuries treated in the workplace.
19	Accidents that cause injury or limitation of the worker's capabilities for a period of more than six months. Does not include deaths.
20	Accidents resulting in lost time and deaths.

Download PDF of the ESG Earnings Release by Quarters of 2021: