26/07/2017

To our stakeholders:

I am pleased to confirm that CTG Brasil reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely,

Li Yinsheng

CEO

CTG Brasil respects Human Rights and recognizes both its importance and its universality. We carry out the Social and Environmental Management of the Supplier Chain, Social Investment, Donations and Sponsorships in a transparent way, seeking the transformation and the involvement of communities, aligned with the needs and priorities, compatible with respect for human rights and in accordance with the requirements of the Social Investment, Donation and Sponsorship of CTG Brasil and with the Code of Ethics and Business Conduct of CTG Brasil.

CTG Brasil develops the core competencies for the organization of its employees and leaderships, constantly engaging employees and stakeholders with the CTG Brasil culture. Human resources policies were developed to effectively integrate employees and the organization, safeguarding the values of the organization and actively linking the practices to the strategy to achieve the mission of CTG Brasil.

The management of Social Responsibility, which is under the responsibility of the communication area, aims to make the relationship with the communities and other interested parties. In order to assist in this structuring, a diagnosis was made in all its units to identify the main impacts of its operation with the community and to define its strategy of relationship with the various stakeholders.

We do not benefit from unfair, exploitative or abusive labor practices with our partners, suppliers and outsourcers. We make efforts to encourage organizations in their sphere of influence to adopt responsible labor practices. We demand that the CTG Brasil supplier ensure respect for the human rights and fundamental rights of its employees and that the basic working conditions are in accordance with the Brazilian labor law applicable to its business (eg labor, social security, health and safety) , Among others), with the principles and standards of labor practices of CTG Brasil, present in this document and in company regulations, in accordance with the Code of Ethics and Business Conduct of CTG Brasil and the Health and Safety Policy of CTG Brasil.

The Compliance, Risks and Auditing Department was created, which is responsible for implementing methodologies and tools to strengthen corporate governance and risk management. In 2017, the Compliance Program was implemented and a risk assessment was carried out in all the companies in the group.

Dialogue with employees and related entities (trade unions, professional class councils) are carried out based on current labor legislation and regulatory norms inherent to the topic to be addressed, and generally linked to the negotiations aligned in collective bargaining.

Sustainability is an integral part of our business. In addition to working with renewable energies, we are convinced that issues such as protection of biodiversity, rational use of natural resources, relationships with communities and generation of jobs and local income are essential for good business performance.
A sustainability and environmental policy was developed that also addresses biodiversity in a clear way in the environmental programs linked to the Operating Licenses, each company has a goal (agreed with the respective environmental agency), which are reflected in the Biodiversity Monitoring programs, Recovery of Degraded Areas and Reforestation.

O foco ambiental da CTG Brasil tem sido a estruturação da área de Meio Ambiente e integração de ações, bem como a elaboração dos Programas Básicos Ambientais. Os programas ambientais das usinas de Rio Canoas e Rio Verde continuam em execução, e tem como objetivo a minimização e compensação dos seus impactos ambientais.

Proteger o meio ambiente e restaurar habitats naturais e as diversas funções e serviços de ecossistemas de áreas próprias e de influência direta a partir da identificação, mitigação e eliminação desses impactos, priorizando, nessa ordem, a prevenção, a restauração e a compensação de impactos, além de fomentar a proteção de áreas de alto índice de biodiversidade.

Support and stimulate the development of public policies that benefit society and the environment as a whole. The organization periodically reviews procedures and processes at appropriate intervals to ensure that it is taking sustainability and the environment into account in its processes and to determine whether new issues need to be considered.

CTG Brasil is committed to protect the environment in issues relevant to the organization's context such as pollution prevention, sustainable use of resources, protection of biodiversity, habitats and ecosystems and climate change. In addition, it monitors the environmental aspects and impacts related to its operations, aiming at their minimization and mitigation, identifying and managing risks aimed at their elimination, reduction and control, preventing incidents, accidents and environmental, material or personal liabilities and ensuring the communication of And measures to improve the management of the environment.

We also undertake to promote the interlocution between the company's areas of sustainability and environmental issues, disseminating this culture and commitment throughout the organization, in the supply chain and to the main partners.

In 2016, CTG Brasil created the Compliance, Risks and Auditing department, which is responsible for implementing the methodologies and tools to strengthen corporate governance and risk management. In 2017, the Compliance Program was implemented and a risk assessment was carried out in all the companies in the group.

In 2016, the Compliance, Risks and Internal Audit Department was created to implement these functions and improve Corporate Governance. CTG Brasil plans to implement, in the first half of 2017, the Compliance Program, which includes, among others, Code of Ethics and Business Conduct, Ethics Channel, Policies and Procedures related to the topic and training. The company did not participate in projects and actions related to governmental social projects and did not receive government aid or benefits in 2016.

We established an integration program to create a closer and collaborative environment as our staff began to bring together people from different companies. We have institutionally divulged the mission, vision and values of CTG Brasil, seeking a strong and solid cultural identity. We also strengthened our governance system with the establishment of a Compliance, Risk and Internal Audit Department.