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TCFD Information

The Task Force on Climate-Related Financial Disclosures ("TCFD") was created in 2015 by the Financial Stability Board ("FSB") to develop consistent climate-related financial risk disclosures for use by companies, banks, and investors in providing information to stakeholders.

GOL has been voluntarily increasing the amount of reliable information it provides, organized in overview, risks and opportunities (below), to contribute with the transition to a more stable and sustainable economy.

Task Force on Climate-related Financial Disclosures (TCFD) Index

TCFD Recommended Disclosure Disclosure location in the 2019 Annual and Sustainability Report
Governance
Disclose the organization’s governance around climate-related risks and opportunities.
  • Describe the board’s oversight of climate-related risks and opportunities.
  • Describe management’s role in assessing and managing climaterelated risks and opportunities.
  • Addressing topic on pages 16, 56 and 57
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning where such information is material.
  • Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term.
  • Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
  • Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2ºC or lower scenario.
  • Addressing topic on pages 22 and 25
  • Addressing topic on pages 22, 25 and 56-61
Risk Management
Disclose how the organization identifies, assesses and manages climate-related risks.
  • Describe the organization’s processes for identifying and assessing climate-related risks.
  • Describe the organization’s processes for managing climaterelated risks.
  • Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management.
  • Addressing topic on pages 22 and 25
Metrics and Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
  • Disclose the metrics used by the organization to assess climaterelated risks and opportunities in line with its strategy and risk management process.
  • Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas emissions, and the related risks.
  • Describe the targets used by the organization to manage climaterelated risks and opportunities and performance against targets.
  • Addressing topic on pages 71, 72, 73, 74 and 75
  • Addressing topic on pages 71, 72, 73, 74 and 75
  • Addressing topic on pages 59, 60, 71, 72, 73, 74 and 75

Main Risks

Type of Risk Definition of Climate-Related Risk Potential Financial Impact Deadline Mitigation Strategy
Political and legal matters Existing and emerging regulations that address climate change. This may include:
  • Increase in the price of GHG emissions
  • Enhanced reporting obligations
  • Exposure to litigation
  • Limits on operating licenses
New carbon taxes that could increase the price of aviation fuel, thus increasing our operating costs and potentially reducing demand for travel. Regional or country-specific policies to reduce emissions by the aviation sector could undermine CORSIA as the single global approach to deal with international aviation emissions, thus increasing our compliance and reporting costs. Brazilian lawmakers can enact laws that determine targets for reducing emissions by domestic airlines, which could limit our ability to grow. Lawmakers may also require new technologies that would imply in significant capital investments and increase our operating costs to meet these requirements. Mid-term We are developing a robust and multilayered long-term climate change strategy aimed at making progress towards ambitious goals and positioning the Company as a regional leader in sustainability. We monitor emerging regulations to understand the risks and opportunities for our business. We work with lawmakers to identify policy solutions that can help the aviation industry reduce its emissions through new technologies. We also continue to advocate for improvements in CORSIA as the single global approach to deal with emissions from international aviation, reducing the imbalance between developing nations and stable economies. We remain focused on seeking efficiency gains in our operations, searching for opportunities to employ Biokerosene and technologies that reduce, or zero, emissions as they become available on a commercially reasonable basis.
Technology Risk of emerging technologies to support the global low-carbon transition. This may include:
  • Replacement of existing products and services with options for lower emissions
  • Initial costs for the transition to lower emission technology
Our fleet renewal program will allow us to have a younger fleet, with state-of-the-art aircraft. However, more aggressive restrictions imposed on emissions in the short and medium term may force us to initiate a new fleet renewal cycle for newer and more efficient aircraft. There is a risk that technology will not be developed enough for us to meet our ambitious climate goals. In progress, mid-term. GOL’s fleet consists of a single type of aircraft, with 127 Boeing aircraft and firm orders for 95 737 MAX aircraft to replace its NGs, scheduled for delivery in 2022-2032, making the Company one of Boeing‘s largest customers. The 737 MAX aircraft is essential for GOL‘s expansion plans, due to greater fuel efficiency and reduced carbon emissions. The advanced technology used in the engines, wings and control surfaces of the 737 MAX aircraft increases productivity by 24%, reduces fuel consumption by approximately 15% and allows the aircraft to have an additional flight range of approximately 1,000 kilometers (up to 6,500 km) compared to the 737NG aircraft. We will continue to engage with fuselage and aircraft engine manufacturers to better understand the new low-carbon technologies that may become available for our planned strategy.
Market Risk of changes in supply and demand as economies react to climate change. This may include:
  • Changes in customer behavior
  • Uncertainty in market signals
  • Rising costs of raw materials
Corporate customers may choose to use alternative travel options, such as virtual meetings and workspaces. The collateral we use to secure capital loans - in the form of aircraft, spare parts, and airport slots - may lose their value as changes in customer behavior and economies shift towards low-carbon alternatives. Further development and improvement in terrestrial transportation modes in markets currently served by short-haul flights (such as high-speed connections between SP and RJ) may offer passengers with lower carbon emissions alternatives than flying with us. Mid-term We are currently working to offer our customers a voluntary carbon offset opportunity as a way to allow them to travel efficiently, while compensating for the environmental footprint of their flights.
We plan to integrate other sustainability practices into the products, services, and experiences that we offer to our customers, such as recycling of cabin waste and sustainable products.
We will deepen our customer relationships through partnerships with a wide range of stakeholders, including governments, manufacturers, suppliers, and customers, aimed at sustainability initiatives that have potential to generate low-carbon emissions, such as sustainable aviation fuels.
Reputation Risks of damages to the brand’s value and loss of customer base as public sentiment changes due to climate change. This may include:
  • Changes in customer preferences
  • Stigmatization of the aviation sector
  • Increase in stakeholder concerns
Society‘s growing recognition that climate change is a threat to our current livelihood may imply that certain customers will choose to fly less often or fly on an airline perceived to be more sustainable.
Investors can demand more aggressive sustainability goals and practices from our sector.

Mid-term We are developing a robust and multilayered long-term climate change strategy aimed at making progress towards ambitious goals and positioning the Company as a regional leader in sustainability.
We intend to continue our efforts to reduce carbon emissions by using the channels that are currently available for us, including considerations on how to include modern aircraft, efficient technology, solid operating practices, and sustainable aviation fuels in our climate mitigation strategy.
We are seeking to embrace new low carbon solutions as they become available.
We also plan to maintain and expand communication regarding our sustainability practices to our customers, team members, and suppliers so they understand the measures being taken to reduce our climate impact.
Severe climate events The risk of increase in severity of climatic events Extremely high temperatures may exceed the maximum temperature at which our aircraft are certified by regulators (ANAC) and allowed to operate.
A higher number of hot days may interrupt our operations, causing displacements and buckling in runways and taxiways, in addition to other infrastructure damages. These damages, in turn, can increase airport operating and repair costs, which would be passed on to us.
In extreme situations, it can become difficult to cool down aircraft to a temperature that is acceptable for customers and crew.
Long-term We will continue to monitor temperatures at airports exposed to risks of high temperature and will work with aircraft manufacturers to ensure that our aircraft are able to operate safely under several operating conditions.
In the future, we plan to incorporate the projected impacts of climate change into project designs for physical assets, capital improvement plans, disaster management, emergency response and network.
Severe climate events The risk of increase in severity of climatic events Increase in the number and severity of torrential and temporal rainfalls in the main Hubs of São Paulo (CGH), Guarulhos (GRU), Rio de Janeiro (GIG) and Brasília (BSB), reducing operational availability at these hub airports and limiting growth and connectivity strategies. The decrease in operational availability at these airports can lead to extended disruptions to the network and cause excess load on infrastructure at alternative airports that were not built for this purpose. Long-term To mitigate the impacts caused by floods to infrastructure, we plan to incorporate the projected impacts from lower operational availability into project requirements for new physical assets, capital improvement plans, disaster management and emergency response, development of master plans and early warning systems.

Chronic climate events Risk of long-term changes in weather patterns The Porto Alegre (POA), Florianópolis (FLN), Rio de Janeiro (GIG-SDU), Recife (REC) and Belém (BEL) airports will face critical threats if global temperature rises by 2ºC and will be submerged if it rises by 4ºC.
As high temperatures reduce air density, chronically high temperatures at some of our hub airports may require restricting the availability of seats in certain markets, using aircraft with greater engine thrust and potentially reduced operating hours.
Long-term We recognize that we cannot stop the rising of sea levels by ourselves, this is a global concern. Given the vulnerability of these airports to floods from rising sea levels and its impacts on business continuity, we plan to identify local mitigation options for the impacts caused by rising sea levels, including the possibility of relocating to inland areas.
The cost-benefit of the available options may result in adjustments to our network. We also plan to engage with lawmakers to explore ways for greater climate resilience.
Search for new aircraft and engine models capable of maintaining performance at higher average temperatures.

Main Opportunities

Opportunity Potential financial impact Deadline Execution Strategy
Resource Efficiency Reduce fuel costs through the ongoing modernizing of our fleet with more efficient aircraft and operational improvements. Mid-term GOL’s fleet consists of a single type of aircraft, with 127 Boeing aircraft and firm orders for 95 737 MAX aircraft to replace its NGs, scheduled for delivery in 2022-2032, making the Company one of Boeing‘s largest customers. The 737 MAX aircraft is essential for GOL‘s expansion plans, due to greater fuel efficiency and reduced carbon emissions. The advanced technology used in the engines, wings and control surfaces of the 737 MAX aircraft increases productivity by 24%, reduces fuel consumption by approximately 15% and allows the aircraft to have an additional flight range of approximately 1,000 kilometers (up to 6,500 km) compared to the 737NG aircraft. We will continue to engage with fuselage and aircraft engine manufacturers to better understand the new low-carbon technologies that may become available for our planned strategy. We are seeking measures to improve operational efficiency, including a stronger fuel conservation management and monitoring. We will also continue to advocate with lawmakers to update and develop the Brazilian air traffic control system, which has the potential to reduce GHG emissions for the aviation industry.
Fuel Sources Greater focus on actions involving sustainable aviation fuels (SAF), reducing exposure to increasing carbon regulation and diversifying fuel supply. Mid-term We already have a memorandum of intent signed with two potential suppliers of sustainable aviation fuels and we continue to seek for new potential suppliers in Brazil and the LAC region. GOL positions itself as an off-taker of its future production, subject to certain pre-established conditions. We maintain our strategy to support the development of sustainable aviation fuels (SAF), promoting the structuring of a Brazilian regulatory framework for the production of these fuels, creating an environment that is attractive for investments without causing market distortions for our industry. Achieve the first recurring supply of sustainable aviation fuels for our operations and the first 1% biofuel supply in the total operation. We encourage the production of sustainable biomass in Brazil, to be used for energy and other by-products through biokerosene platforms, particularly the Biokerosene Platform located in Zona da Mata (MG), always seeking for the external socio-economic inclusion of the communities involved.
Products and Services Attract travelers with a preference for low-carbon travel Short-term We are currently working to offer our customers a voluntary carbon offset opportunity that allows them to travel efficiently while compensating for the environmental footprint of their flights. We plan to integrate other sustainability practices into the products, services, and experiences that we offer to our customers, such as recycling of cabin waste and sustainable products.
Resilience Mid-term We plan to implement a resilience program by 2023, which includes:
  • Conducting assessments on the criticality and resilience of our current operating procedures and infrastructure
  • Integrating the projected impacts caused by climate change into our business continuity and emergency plans
  • Developing effective communication channels with airport employees and aviation stakeholders, including air navigation service providers, off-airport service providers, academia, communities, and municipal authorities responsible for meteorological monitoring, climate analysis and disaster management

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