Embraer S.A.
Annual Report 2023

Plain-text annual report

A N N U A L R E P O R T 20232023M E S S A G E F R O M MANAGEMENT Safety first. Quality always 2023 was a pivotal year for Embraer, marking the beginning of a new chapter in the company’s recent history: we embarked on a new phase focused on sustainable growth aimed at un- locking the company’s full potential. We improved our finan- cial performance consistently, paving the way for revenue and profitability growth this year and in the years to come, despite significant constraints in the supply chain and escalating in- ternational conflicts. In 2023, we closed the year with revenue exceeding USD 5.3 billion, representing an 11% growth compared to 2022, retur- ning to pre-pandemic levels. The adjusted EBITDA margin reached 10.6%, and free cash flow minus Eve was USD 318.3 million. The net debt minus Eve to adjusted EBITDA ratio was reduced to 1.4x, compared to 3.4x in 2019 and 20.7x in 2020. Thanks to increased sales, the backlog surpassed pre-pande- mic levels, reaching USD 18.7 billion, the highest in the last 6 years. The continued focus on business efficiency and innovation, as well as strengthening of sales efforts, was crucial in achieving the significant results of 2023. This was compounded by the genuine engagement of all our employees to carry out the stra- tegic plan with great discipline and excellence. Aligned with the growth strategy, our commercial activity in- tensified across all business units, and we continued to make progress on major innovative projects while progressing with our commitment to ESG. The Phenom 300 was the best-selling light jet in its category for the 12th consecutive year and became the most-flown exe- cutive jet in the United States. For the entry-level segment, we announced the Phenom 100EX, the latest evolution of the jet that offers unparalleled flight deck comfort, operational versa- tility, and enhanced avionics. For Defense & Security, we further consolidated the presence of the C-390 Millennium military freighter among NATO coun- tries and their allies. Two new European countries, Austria and the Czech Republic, selected the C-390 to renew their fleets of tactical transport, joining Portugal, Hungary, and the Ne- therlands. Sales activities intensified due to the growing in- terest in the multi-mission jet on virtually every continent. By late 2023, South Korea also decided to incorporate the C-390 into its fleet. We expanded our Commercial Aviation customer portfolio with increased orders for E190-E2 and E195-E2 aircraft. Air- lines Scoot (Singapore), Royal Jordanian (Jordan), SKS Airways (Malaysia), and Luxair (Luxembourg) announced orders for the E2, while Porter (Canada), Binter (Spain), and aircraft leasing company Azorra expanded their existing orders. The E195-E2, the biggest of its line, received Type Certification from the Civil Aviation Administration of China (CAAC), opening up a new opportunity for product penetration in the Chinese market. “Since 2008, Embraer has been a signatory and reaffirms its commitment to the UN Global Compact. In 2023, we advanced on our journey towards a low-carbon economy and a more diverse organization, while maintaining the highest standard in corporate governance.” Francisco Gomes Neto - President of Embraer The E175-E1 maintained its leadership in the sector with addi- tional sales to American Airlines for operations in its subsidiary Envoy Air, to SkyWest for operations in the United Airlines ne- twork, and to Air Peace, West Africa’s leading airline. Additio- nally, the first E190 jet from the E1 generation being converted into a freighter was showcased in São José dos Campos as part of the Passenger-to-Freight (PSF) project. The Services & Support division sustained strong performan- ce, executing new agreements and extensions of Pool and inte- grated logistics support programs. At the same time, it further expanded its training centers with new flight simulators. We also announced an agreement that will double our mainte- nance service capacity for executive aviation customers in the United States. Furthermore, progress continued in preparing facilities for the new Authorized Service Center to be inaugura- ted this year at OGMA in Portugal, dedicated to servicing Pratt & Whitney’s GTF engines. In the realm of innovation, another cornerstone of our strategy, we are heavily investing across various fronts to drive the tran- sition towards zero-emission aviation in the future. Last year, for instance, we established Nidec Aerospace, a joint venture with the Japanese company Nidec, a global leader in electric motors, to merge our organizations’ combined expertise and deliver electric propulsion systems for the aerospace industry. Additionally, significant progress has been made in Eve’s eVTOL program, with the identification of key vehicle suppliers and the location of the first manufacturing plant dedicated to electric vertical take-off and landing vehicles in Brazil, to be situated at our facility in Taubaté (SP). Eve continues to advance towards developing solutions for the Urban Air Mobility (UAM) market, including an Urban Air Traffic Management (UATM) system for eVTOLs and a global network of services and support. By late 2023, Eve had secured 29 eVTOL customers, with potential orders for 2,850 vehicles at an estimated USD 8.6 billion, the largest backlog in the industry, in addition to 14 customers for its UATM system and 10 customers for its services and operations solution. Strengthening internal culture has been one of Embraer’s key strengths in enabling our growth plan, fostering a more diver- se, inclusive, and collaborative work environment, while prio- ritizing quality and safety. A prime example of collaboration and the “One Embraer” spirit comes from our Engineering de- partment, which operates cohesively to facilitate the exchange of knowledge and technology across different business units, overcoming the inherent technological challenges of the ae- rospace and defense industry. In 2023, we also made significant strides in our commitment to promoting more sustainable aviation. The Phenom 300E and Praetor 600 jets successfully conducted test flights using 100% sustainable aviation fuel (SAF 100%), joining the E195-E2, which had undergone similar tests in 2022. This is part of our goal to transition our entire portfolio of commercial and executive aircraft to SAF 100% by 2030. Furthermore, American Airlines and Air New Zealand have joined the advisory group of the Energy Project, adding to the extensive collaboration aimed at defining and establishing sustainability requirements for commercial air transport based on operators’ perspectives. These are just some of the most notable achievements and numerous initiatives across various areas of our company in our journey that combines profitable growth with the transition to a low-carbon economy. We want to express our gratitude to the Embraer team, who consistently demonstrate total com- mitment, focus, and excellence in carrying out our strategic plan. We would also like to thank our customers, partners, and investors for their continuous trust and support. As we celebrate Embraer’s 55th anniversary in 2024, we are poised to reap the rewards of our efforts in recent years and continue to grow profitably. We remain confident in our growth strategy and value creation for customers, shareholders, and society through strategic partnerships, business efficiency, in- novation, and ESG initiatives. Francisco Gomes Neto President of Embraer Alexandre Silva Chairman of the Board of Directors ANNUAL REPORT 2023 IND E X Click to browse the desired topic All pages in this file can be browsed: menus and pagination. 0 6 ABOU T EMBR AE R Where We Are 8 Cultural Pillars 9 1 1 FINANCIAL PERFORMANCE Operating Result 1 3 1 4 ESG COMM IT MENT TO TH E FUTURE Environmental Commitment 1 6 Social Commitment 1 9 Entry-level Programs 2 2 Commitment to Governance 3 2 3 5 TECHN OLO GY AND IN NOVATION Awards and Highlights 3 7 Innovation Verticals 3 8 Culture of Innovation 4 1 Embraer-X 4 2 Eve Air Mobility 3 8 4 7 BUSI NES S UNIT S Commercial Aviation 4 8 Executive Aviation 5 1 Defense & Security 5 4 Agricultural Aviation 5 7 Services & Support 5 8 S U S T A I N A B I L I T Y I N D I C A T O R S Technical References, Materiality, Indicators, GRI, SASB, TCFD A B O U T EMBRAERIN DE X AB OUT EMBRAER AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS A L E A D E R I N T H E A E R O S PA C E A N D D E F E N S E S E C T O R K N O W N F O R I T S GLOBAL IMPACT AND COMMITMENT TO INNOVATION. Since its inception in 1969, Embraer has prioritized sustainable growth based on innovation, product sa- fety, and focus on industry demands, making these the fundamental pillars of our organization. With a presence in the Commercial Aviation, Executive Aviation, Defense & Security, and Services & Support markets, our company has manufactured and delivered over 8,000 aircraft throughout its history. On average, every 10 seconds, an Embraer-manufac- tured aircraft takes off somewhere in the world, trans- porting over 145 million passengers annually. Going beyond borders, Embraer provides positive contribu- tions to scientific, technological, industrial, and social development wherever it operates, shaping a better fu- ture for people and the planet. With a dedicated workforce of 19,179 employees by late 2023 in Brazil and abroad, Embraer’s global presence is reinforced by its industrial operations, offices, ser- vice centers, and parts distribution centers on various continents. The number of employees includes interns and apprentices directly hired by Embraer companies. Data from affiliates Atech, Visiona, and OGMA were not considered. As a global aerospace manufacturer, Embraer generates revenue from various products and services which, in 2023, contributed to the company’s results in the following proportions: Commercial Aviation: 35.1%; Executive Aviation: 26.7%; Defense & Security: 9.8%; Services & Support: 26.9%; other sectors: 1.5%. By late 2023, its substantial firm order backlog indica- ted excellent prospects: COMMERCIAL AVIATION 47,2% - USD 8.8 BILLION EXECUTIVE AVIATION 23,1% - USD 4.3 BILLION DEFENSE & SECURITY 13,3% - USD 2.5 BILLION SERVICES & SUPPORT 16,4% - USD 3.1 BILLION 7 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS W H E R E WE ARE 2 3 1 5 8 7 6 4 9 11 10 1 2 BRAZIL São José dos Campos Gavião Peixoto Botucatu Taubaté Brasília Belo Horizonte São Paulo Rio de Janeiro Sorocaba Campinas UNITED STATES Mesa Nashville Melbourne Irwindale Fort Lauderdale Davie Jacksonville Memphis Dallas Subsidiaries ATECH VISIONA TEMPEST Subsidiaries EMBRAER CAE TRAINING SERVICES EVE NIDEC AEROSPACE 3 MEXICO Chihuahua 4 PORTUGAL Alverca 5 UNITED KINGDOM Farnborough 6 IRELAND Dublin 7 FRANCE Le Bourget 8 NETHERLANDS Amsterdam 9 UNITED ARAB EMIRATES Dubai 10 SINGAPORE Singapore 11 CHINA Beijing Subsidiaries EZ AIR INTERIOR Subsidiaries OGMA Subsidiaries EMBRAER CAE TRAINING SERVICES J O I N T V E N T U R E S & A F F I L I A T E S 8 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS P I L L A R S O F CULTURE ONE EMBRAER. ONE TEAM. TAKE RESPONSIBILITY FOR COMPANY RESULTS. BE OPEN AND HONEST IN HOW YOU SPEAK AND LISTEN. PASSION TO MAKE A DIFFERENCE. ADDRESS COMPLEXITY WITH SIMPLICITY. 9 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS EMBRAER C U L T U R E During a cultural evolution, the primary transformations are not in processes and systems but within each person’s beliefs, ha- bits, and decisions. At Embraer, the evolution of our culture is based on five pillars that serve as the foun- dation of our behaviors and our commitment to ethics and integrity, safety, sustainability, and the continuous pursuit of excellence in products and services for our customers and other stakeholders. Our pillars are: • One Embraer. One Team. • Take Responsibility for Company Results. • Be Open and Honest in How You Speak and Listen. • Passion To Make a Difference. • Address Complexity with Simplicity. These pillars also play a key role in the success of the strate- gic plan and Embraer’s sustainable and profitable growth. Since their creation, we have promoted actions and reflections on the evolution of our culture and have already seen positive results in our surveys and people’s daily lives. To provide more clarity on the attitudes that the company expects from us, we cooperated with the company leadership to outline the desired behaviors surrounding each pillar. Then, to ensure that all personnel understood and acted upon them, we provided training, communication campaigns, and actions in various areas globally. We also fostered conversations about culture and diver- sity to allow anyone to play a role on this journey. We also created eTalks, a channel that brings senior leadership closer to employees. It provides an opportunity to speak openly about strategic matters and helps employees realize they are a part of the company’s results. Internal goals began to be shared among all teams, strengthe- ning the spirit of collaboration and increasing our focus on re- sults. We then created the “Simplification Team”, a group formed by various areas focused on accelerating the implementation of simple solutions and ensuring more agility and efficiency for the company’s operation and business. We also hold our annual “Blue Week”, an event to celebrate Em- braer’s anniversary and engage everyone in our cultural journey. Through this cultural evolution and unity, we continue to shape the organization we want to be every day. 10 10 ANNUAL REPORT 2023 F I N A N C I A L PERFORMANCEIN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS F I N A N C I A L PERFORMANCE In 2023, Embraer achieved the financial indicator estimates disclosed at the beginning of the year: Adjusted EBIT, Adjusted EBITDA, and Free Cash Flow. These results reflect better operational efficiency compared to previous years. In comparison to 2022, the company increased the delivery of Commercial, Executive, and Military aircraft by 13%, from 160 to 181 aircraft in 2023, increasing revenue by 16% (USD 5.3 billion). Detailed results of the company’s financial performance are available in the Management Report. 181 aircrafts C O M M E R C I A L , E X E C U T I V E , A N D M I L I T A R Y A I R C R A F T S D E L I V E R E D I N 2 0 2 3 12 12 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS O P E R A T I O N A L RESULT In 2023, the adjusted operational result and margin (EBIT) were USD 350 million and 6.6%, respectively. The approximately 13% increase in the number of aircraft deliveries (Commercial Avia- tion, Executive, and Defense) and higher volumes in the Servi- ces and Support sector, combined with lower operating expen- ses, largely explain the improved profitability presented in 2023 compared to 2022. Embraer’s shares have been listed on the São Paulo Stock Ex- change’s (B3) Novo Mercado index since 1989 and on the New York Stock Exchange (NYSE) through the Level III American Depositary Receipts (ADRs) program since 2000. By late 2023, Embraer’s shares traded on B3— EMBR3 – were quoted at BRL 22.39, representing a 56.5% increase compared to BRL 14.31 at the end of 2022. The American Depositary Shares (ADSs) listed on the NYSE— ERJ – reached a quotation of USD 18.45, a 68.8% increase compared to USD 10.93 in the previous year. REVENUE BY SEGMENT Net Revenue (USD Billion) 5,2 27% 4,5 28% REVENUE BY REGION Net Revenue (USD Billion) 5,2 2% 4,5 3% 9% 11% 2% 4% 1% 2% 10% 9% 22% 19% 27% 27% 35% 34% Services & Support Defense & Security Executive Aviation Commercial Aviation 62% 63% Others Latin America Asia-Pacific Brazil Europe North America 2023 2022 2023 2022 13 ANNUAL REPORT 202316% HIGHER (USD) THAN IN 2022USD 5.2 BILLIONTOTAL NET REVENUE C O M M I T M E N T TO THE FUTURE IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Announced in late 2021, the sustainability strategy and long-term ESG goal plan continued to be part of Embraer’s daily operations throughout 2023. Our company remains focused on decarbonizing aviation through the development of more sustainable products, services, and technologies and reinforcing its historic role in social responsibility. In 2023, these goals evolved and achieved concrete results across a number of areas. Carbon-Neutral Growth from 2022 Maintain the Ethics and Compliance Program fully aligned with global standards Maintain the highest standards in International governance Commitment to 50% diversity in hires across all entry-level programs by 2025 Promote technological education for 1,500 people from underrepresented groups by 2025 with the Social Tech Program 100% renewable electricity by 2030 Carbon-neutral operations by 2040 Products for zero-carbon aviation by 2050 2022 2025 2030 2040 2050 Continuous Diversity & Inclusion Training Maintain approval of over 80% of high school students from Embraer schools in public universities or private universities with full scholarships Maintain high product safety standards and full alignment with international requirements Ensure 25% of enrollments in Embraer’s Master’s program in Aeronautical Engineering are women by 2025 Ensure 20% of senior leadership positions are filled by women by 2025 E / Environmental S / Social G / Governance 15 ANNUAL REPORT 2023GRI 2-22; 3-3; RT-AE-410A.2 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS E N V I R O N M E N T A L COMMITMENT SAF PURCHASE In 2023, Embraer continued its sustainable aviation fuel (SAF) acquisition strategy at its Melbourne facility in the United States. Our company has been working consistently to evolve this pro- cess, making it possible to properly track and report the benefits obtained from purchasing this type of fuel while establishing part- nerships with industry companies to leverage SAF availability in the regions where we operate. Embraer is directly involved in various initiatives and partnerships for the research and development of the SAF chain in Brazil and worldwide. Last year, it joined the Roundtable on Sustainable Bio- materials (RSB), an organization that drives the fair and sustai- nable transition to a circular economy. It also joined the working group of the International Aerospace Environmental Group (IAEG), which is dedicated to studying the compatibility of current aircraft with the use of 100% renewable SAF. *SAF (Sustainable Aviation Fuel) is considered a renewable energy source that can reduce greenhouse gas emissions by up to 80% compared to traditional aviation fuel. It is expected to be one of the main drivers of decarbonization in the aerospace sector, and its use is critical to ensure that the company’s operations are carbon-neutral by 2040. RENEWABLE ELECTRICITY One of the first measures aimed at decarbonizing operations is reducing Scope 2 emissions associated with electricity. Contracts for the purchase of renewable electricity have already been signed in Brazil, starting in 2024, and in 2023, our company made efforts to structure its renewable electricity acquisition plan for its operations in the United States. 16 16 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS LOWERING EMISSIONS MANUFACTURING EFFICIENCY INTERNAL AND SUPPLY CHAIN PUBLIC AWARENESS Embraer expanded its contract with Toyota Brazil to apply the fundamentals and concepts of the Toyota Production System (TPS) in its industrial operations. Since June 2022, the two companies have been working together to assess and recom- mend manufacturing improvements at Embraer’s main factory, the Ozires Silva Unit, located in São José dos Campos, São Paulo. In 2023, a new methodology was implemented in a production phase for the wings of the E-Jets line of commercial jets, speeding up the manu- facturing cycle by 50%. This accounted for 17% faster manufacturing time in this sector and 20% efficiency gains. In order to reduce emissions from the use of natural gas, which constitutes the second-largest source of Scope 1 emissions in Embraer’s operations, a comprehensive study was conducted to identify the primary equipment using this fuel across the units in Brazil. Presently, the company is deepening its understanding of process electrification solutions and the possible adoption of bio- gas as an alternative for decarbonizing manufacturing processes. Last year also was the beginning of the Internal Campaign for Energy Transition and Efficiency, focused on raising company personnel’s awareness of Climate Change and sharing the com- pany’s efforts to improve its sustainability performance. It was also the first year of adoption of the CDP Supply Chain tool, ai- med at engaging and understanding the maturity of Embraer’s suppliers regarding climate change. 17 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS emissions per seat compared to the previous generation of E-Jets and more than 30% compared to emissions per trip with jets between 150 and 200 seats. These jets often fly with low occupancy, resulting in high emissions per passenger transported. After flight tests using 100% SAF on an E-195 E2 in 2022, Embraer continued to work on understanding the eventual adjustments required to have its products certified for flights with 100% SAF by the end of the decade, in partnership with its suppliers. FLIGHT TESTS USING 100% SAF IN EXECUTIVE AIRCRAFT In 2023, in partnership with Honeywell Aerospace, Parker, Pratt & Whitney Canada, Safran, and WorldFuel, flight tests were successfully conducted on the Phenom 300E and Praetor 600 executive aircraft using 100% pure sustainable aviation fuel (SAF). The tests -- with one engine running on 100% SAF -- were carried out at Embraer’s facilities in Melbourne and provi- ded significant information on system performance when using entirely renewable fuel. SUSTAINABILITY TODAY AND TOMORROW Embraer continued its studies related to the “Energia Family” concept involving aircraft that incorporate different layouts, alternative energy sources, and sustainable propulsion technologies to transport up to 50 passengers while aiming to reduce carbon emissions, aligned with the goal of supporting the aviation sector’s goal of net-zero emissions by 2050. In 2023, American Airlines and Republic Airways, two of the leading air transport companies in the US, joined the Energia Family Advisory Group, along with other airlines, lessors, suppliers, and aviation experts. The memorandum of understanding signed with Embraer allows companies to work together to define and establish actual requirements for sustainable aviation, which means not only emission-free but also commercially viable aviation. The second meeting of this Advisory Group, held with several other guests, took place in November, where various aspects of the product were subject to in-depth discussions. These aspects included the number of seats, range, infrastructure challenges, and target operational cost zone. The Energia Family will certainly be part of the sustainable solution in the future, but it is important to emphasize the role of the currently available solution for lowering emissions. Currently, the E2 family is the most efficient jet family in the sector and can contribute with up to 25% reduction in 18 18 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS S O C I A L COMMITMENT EMBRAER CULTURE Embraer values and celebrates everyone’s actions and unders- tands that people are a vital part of the whole. With this in mind, we seek to provide the necessary support for our employees to perform their duties with a sense of belonging and strengthen ourselves as an inclusive and humane company that respects what makes people unique. In 2023, our company focused directly on increasing opportuni- ties for underrepresented groups, reinforcing respect for all indi- viduals as our foundation. Public commitments made on social aspects continue to address Diversity, Equity, and Inclusion as an important issue in the evolution of our culture. Our company made significant advances in the evolution of our culture throughout 2023 by focusing on our five pillars. In ad- dition to training and various engagement and communication actions, Embraer strengthened the spirit of “one team” and the understanding of what is global and what is local. Increasingly dedicated to diversity and inclusion, we remain focused on re- sults in an agile and efficient manner, seeking to address the most complex issues with simplicity. Our enthusiasm is reflected in the 78% favorable perception of more than 7,500 employees worldwide. 19 19 ANNUAL REPORT 2023GRI 405; 3-3FAVORABILITYGLOBAL CULTURE SURVEY:78% IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS In 2023, Embraer joined the 25by2025 initiative promoted by the International Air Transport Association (IATA). This global voluntary effort aims to increase the aviation female participation sector and encourage gender balance in the field. Joining this initiative is part of our commitment to increasing female representation in leadership positions and technical roles by 25% by 2025. in EMPOWER WOMEN To structure the actions that will help us achieve our goal of 25% fe- male senior leadership by 2025, Embraer created the Women’s Trai- ning Program in 2022 to help drive career development. The idea is to empower and develop women as leaders, strengthening their roles and expanding their leadership skills so that they can have an even greater impact on the company’s results. The first class was made up of directors and managers, and comple- ted the training in September 2023. This training was promoted by the “Leadership Academy,” which promotes development programs across our company. A total of 38 global leaders completed the pro- gram following 55 hours of workload. Key subjects included self- -awareness, gender awareness, navigating power dynamics in the or- ganization, culture, and management practices. A closing event was also held in September, featuring a round table discussion on how Embraer can achieve its goal of women in senior leadership posi- tions. The Women’s Training Program is expected to continue in 2024. Our company also attended the 34th Annual Women in Aviation Con- ference (WAI) in Long Beach and the 35th International Association of Women in Aviation Conference (IAWA) in San Diego. Their focus was on stimulating, supporting, discussing and expanding the pre- sence of women and their careers in a predominantly male segment globally. Embraer also supported the 7th edition of AMAB - Associa- tion of Women Aviators of Brazil, which promotes gender equality in the Brazilian aviation sector. 20 ANNUAL REPORT 2023GRI 401; 404; 405 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS EMBRACE GRI 404; 405 Embrace is an affinity group or ERG (Employee Resource Group) of Embraer employees created in 2019 to support underrepresented groups and diversity, equity, and inclusion issues in the company. Starting with Embraer’s diversity, equity, and inclusion strategy and aligned with a global ca- lendar with relevant dates, Embrace proposes actions, initiatives, and discussions throughout the year. DIVERSITY ALLIES LEADERSHIP PROGRAM In Brazil, individuals are grouped into four cate- gories: • WOMEN • PEOPLE WITH DISABILITIES • PEOPLE OF AFRICAN AND MIXED DESCENT • MEMBERS OF THE LGBTQIA+ COMMUNITY In 2023, Embraer introduced an innovative pro- gram aimed at broadening diversity initiatives beyond corporate norms and fostering greater leadership involvement in these crucial matters. Each VP division appointed an executive manager or director to spearhead diversity efforts tailored to the unique developmental needs of their res- Conversely, the Embraer units in the United States have three designated groups: • AFRICAN-AMERICANS • VETERANS In 2023, Embraer launched its “Plan for Inclu- sion of People with Disabilities in Brazil.” This comprehensive plan involved conducting a de- mographic survey to understand the circums- tances of these individuals within the company, along with an assessment of physical and digital accessibility in Embraer’s key Brazilian facilities, with the goal of ensuring this widespread acces- sibility in our company. SOCIAL TECH Initiated in 2021, this program was created to enhance the professional skills of underrepre- sented groups. In its maiden iteration, Social Tech welcomed participants with disabilities, followed by people of African and mixed descent in 2022. By 2023, the focus had shifted exclusively to empowering women, attracting over 17,000 applicants. Fifty scholarships were provided to nurture opportunities and foster professional inclusion. The program, spanning four months and concluding in January 2024, provided partici- pants with data analysis skills. The curriculum en- compasses a number of subjects such as Python programming language -- pivotal for data science -- as well as artificial intelligence, automation, De- pective departments. The inaugural step entailed comprehensive global training, blending both in-person and online components, designed to immerse the entire company in a strategic dis- course on diversity, equity, and inclusion. 17,000 IN 2023 APPLICATIONS WERE RECEIVED FOR 50 SCHOLARSHIPS EXCLUSIVELY FOR WOMEN vOps and Cloud Computing, AWS, Power BI, MyS- QL and NoSQL, Business Intelligence, Excel, and spreadsheet applications. Employing the boot camp methodology, an immersive remote training approach ensures the acquisition of essential skills and competencies in the technology sec- tor. Participants who complete the program will be incorporated into Embraer’s talent pool and considered for future recruitment endeavors with partner companies. *A type of immersive training designed to develop crucial skills across various fields. 21 ANNUAL REPORT 2023GRI 401; 404; 405GRI 401; 404; 405 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS E N T R Y - L E V E L PROGRAMS DIVERSITY IN RECRUITMENT FOR ENTRY PROGRAMS • Fifty percent of all hires in Entry Programs were dedicated to underrepresented groups (people of African and mixed descent, women, LGBTQIA+ members, and People with Disabilities), aligning with the objectives set in 2021. • 2023 saw around 70% recruitment rate from underrepresen- ted groups in the Young Apprentice Program. • This year also saw an expansion of affirmative action vacan- cies for women and people with disabilities. 22 ANNUAL REPORT 2023GRI 404; 405; 3-3 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS EMBRAER INTERNSHIP PROGRAM Structured to ensure an enriching experience, the Embraer Internship Program prioritizes the development of behavioral skills and the reten- tion of emerging talents within the company. In 2023, the company welcomed 598 new interns distributed among diverse departments. Alon- gside their day-to-day responsibilities, interns were tasked with crafting projects that contri- buted to their respective fields, whether through process enhancements or the creation of inno- vative services or products. In addition to pro- ject-based learning, the program encompassed pillars of company culture, soft skills training, and deeper insights into Embraer’s diverse bu- siness domains. SUMMER JOB PROGRAM The Summer Job Program was reinstated at Em- braer in 2023. It features a pilot immersive ex- perience across various departments at its São José dos Campos unit. Twenty-nine students from 10 universities across Brazil were carefully selected, nominated by their academic coordinators or recognized for their achievements in the Aerodesign Compe- tition organized by SAE Brazil, an educational institution in São José dos Campos. Represen- ted universities included USP/POLI, USP/EESC, ITA, UNIFEI, UFABC, FEI, UFMG, UFBA, UNI- VASF, and UFSC. The program aims to establish a talent pipeline for these individuals, leading to regular inter- nship positions, specialized programs, or per- manent roles. Remarkably, around 70% of parti- cipants were rehired in the same year to join the regular internship program. YOUNG APPRENTICE PROGRAM One of Embraer’s tangible initiatives for conti- nuous improvement and responsible integration of teenagers into the workforce is the Young Apprentice Program. It provides young adults and adolescents with learning experiences to cultivate essential habits for entering and thri- ving in the job market. The actions undertaken with them are geared towards fostering their autonomy. In 2023, around 140 apprentices were recruited to participate in the program across São José dos Campos, Botucatu, and Gavião Peixoto. In addition to offering technical and administrative courses, new affirmative action classes were in- troduced to help raise the skills of young profes- sionals with disabilities. CONNECTIONS Embraer operates an internal job posting pro- cess called Connections. This process enables individuals to steer their careers within our com- pany toward new pathways and provides oppor- tunities for learning and growth so that candida- tes can reach their full potential. The selection process now occurs both inter- nally and externally simultaneously, with more transparent evaluation criteria for candidates, ensuring that all applicants receive feedback. Embraer provides training to guide both leader- ship and employees to understand the details of this important career opportunity channel. In 2023, 450 positions were filled with internal candidates. 23 ANNUAL REPORT 2023NEW INTERNSACROSS DIFFERENT DOMAINS598REHIRED IN THE SAME YEAR70%HIRED140BY EMPLOYEES450APPRENTICES POSITIONS FILLED IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS UNIVERSITY RELATIONS In 2023, Embraer amplified its efforts in engaging with universities and other educational institutions as part of our company’s talent attraction strategy. Opportunities for attracting and developing talent were outlined in alignment with our company’s objectives. Leaders and experts from various areas of our company contributed to these initiatives, sharing knowledge and guidance to young students in their preparation for the workforce. Key activities in university relations included career events, fairs, student competitions, and lectures. Sponsorships and participations in fairs, competitions, and student events University mentoring sessions with the Embraer Institute University tours to Embraer Lectures in Universities and Technical Schools University Relationship Visits (Ambassadors) Professionals trained to speak about Entry- level Programs Meetings with the Engineering Practice Community new student contracts new CVs on online recruitment platform Gupy Half of the internship CVs from attraction actions in corporate investment per year Ranked as the top-of-mind company of the year at the largest student fair in Latin America 24 ANNUAL REPORT 20233Over50,00039Over 300,000301/282 million501o174 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS ESP - ENGINEERING SPECIALIZATION PROGRAM The Embraer Engineering Specialization Program (ESP) is a cor- porate program aimed at preparing new engineers for product development areas operating in dynamic and multidisciplinary environments. In partnership with ITA (Aeronautics Institute of Technology), it offers a master’s degree in aeronautical engineering recognized by the Ministry of Education (MEC). Lectures are hybrid (in- -person and remote) and given by ITA professors together with Embraer professionals and contracted consultants. In-person activities take place at the facilities of these two institutions. In 2023, the program celebrated its 22nd anniversary and, as part of its training and development efforts, delivered 2,300 hours of lectures to 123 engineers with an investment of around BRL 13 million. Out of these 123 active students, 38 were hired by our company in 2023 as engineers, and the others are set to complete their training in July 2024, with a success rate of 98.9%. The selection process for the next cohort also took place in 2023, with 4,675 applicants selected step by step until the fi- nal cohort of 45 was formed. Of these, 12 are women, repre- senting a female participation rate of 26%, in line with the 2025 target for this program (25% of ESP participants being women). BRL 13M APPROXIMATE INVESTMENT IN 2023 25 25 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS PES - SOFTWARE AND DATA SCIENCE SPECIALIZATION PROGRAM In response to the growing demand for professionals in technology, software, and data science fields, PES emerged as an Embraer initiative to foster the training of individuals in these expertise areas. In partnership with UFPE (Federal Uni- versity of Pernambuco), the program of- fers a nine-month specialization course. Lectures are given by UFPE professors with the participation of Embraer profes- sionals in a 100% online format, consis- ting of theoretical modules and a practi- cal course completion project. The first cohort was admitted by Embra- er in January 2023, with 33 professionals working in roles such as Engineers, Te- chnical Product Development Assistants, and Data Scientists. The second cohort, active in 2023, com- prised 33 participants and received over 300 classroom hours, with an appro- ximate investment of BRL 3 million per cohort. Through targeted actions in the selec- tion process, compared to the previous cohort, the current cohort doubled female participation from 9% to 18%. Similarly, black participants increased by 3%, and the goal is to improve these metrics in the selection process for the next cohort. PES also provided opportunities for 94 employees from related areas to partici- pate in individual course modules, with 42 employees taking courses in Data Science and 52 in Embedded Software classes. UFPE also provides certificates for the- se employees for completing the course modules. BRL 3M PER COHORT IN 2023 26 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Embraer leveraged the Course Calculator in 2023. This solution focused on identifying trai- ning needs aligned with the company’s strategy. This solution provided visibility into which ini- tiatives and development programs would take place in 2024, with an in-depth analysis of the investment to be applied in comparison to busi- ness needs and people development. E M B R A E R LEARNING HUB Embraer’s education brand, EMpower, is focu- sed on disseminating a culture of learning glo- bally and aligned with market trends. Different learning solutions are offered, acces- sible from anywhere, at any time, and by all Em- braer employees. Our company is taking on the challenge of main- taining relevant knowledge to sustain current and future skills aligned with business needs, culture, and diversity. We seek to ensure stra- tegic and continuous investment in people’s development while respecting different career stages. Developing our people helps retain them in our company, increasing engagement and the sustainability of intellectual capital. EMpower is designed with a learning hub tem- plate and includes corporate programs, acade- mies, and learning platforms. Learn More The content and curation of Embraer’s Learning Hub are developed by training and development specialists together with business area experts to provide the best possible solution within the best timeframe and with the best investment. There are over 4,000 topics in EMpower, and in 2023, there were over 900,000 training hours, with more than 5,000 cohorts avera- ging 47 hours per employee and reaching a 99% workforce coverage rate. Empower also offers a self-development pla- tform launched in November 2023, providing employees with access to over 21,000 courses on a variety of subjects. Within the Learning Hub, for improved planning, 27 ANNUAL REPORT 2023GRI 404-2 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS H E A L T H AND SAFETY OCCUPATIONAL SAFETY CULTURE DIAGNOSTIC PROGRAM To provide a safe and healthy environment, Embraer has a set of pre- vention practices to protect employees from occupational hazards and workplace accidents. In 2023, our company expanded these practices by standardizing Per- sonal Protective Equipment (PPE) to further ensure safety. Additionally, a monthly assessment of occupational safety indicators was conducted under Embraer’s leadership supervision, both in visibi- lity meetings with directorates and in Board meetings. Furthermore, our company maintained its Integrated and Cooperati- ve System, which includes Global, Regional, and Local Management, created in 2022. The purpose of this system is to ensure synergy so that all data and information are handled dynamically and objectively, integrating the work of all Embraer units worldwide. Another ongoing process is the use of exoskeletons, robotic devices that assist the human body in performing certain tasks while helping human joint movements. These devices can support human motion and reduce the need for exerting force, contributing to the team’s sa- fety and ergonomics. The purpose of this program is to position Embraer’s occupational safety maturity level. Carried out across several stages, it involves conducting surveys with employees both in Brazil and abroad, as well as spot checks in work environments, to provide an overall report on the company. Based on the data collected, a methodology is applied that categorizes Embraer into five safety levels. FIRST OCCUPATIONAL ACCIDENT GUIDE 28 ANNUAL REPORT 2023GRI 403; 3-3 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS SAFE ENVIRONMENT PROGRAM Introduced at Embraer in 2018, the program has since been up- dated and, in 2023, became part of the company’s Goals Plan. The “Safe Environment” program addresses workplace safety with preventive data that can be reported by employees, con- tractors, or visitors. Information can be submitted through mo- bile devices or PCs using QR codes distributed across the com- pany facilities. Unsafe situations are reported in the program, then addressed and resolved as soon as possible. This allows us to maintain a database with all reported situations and their resolutions to bolster accident and incident prevention and en- sure a safe environment. WELL-BEING PROGRAM The Well-Being Program contributes to a better quality of life for active employees, their dependents, and interns. To reduce health risk factors, the program promotes beneficial habits and provides means to facilitate the introduction of a healthier lifestyle. In 2023, Embraer implemented the Gym Benefit, where employe- es in Brazil and abroad have access to a comprehensive physical, mental, and nutritional well-being program. This includes provi- ding leadership training to support mental health issues. 29 29 ANNUAL REPORT 2023GRI 403 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS and Life Project. While the pillars of General Education and Forma- tive Itineraries aim to prepare young people for the top universities and a successful career, respectively, the Life Project pillar aims to provide support for socioemotional development and healthcare. The schools include teams and work hours, as well as modern la- boratories and facilities dedicated to each pillar. In 2023, Embraer Institute entered into a groundbreaking partner- ship with the Banco do Brasil Foundation to improve the social evolution of Embraer Schools. The three-year project “Quality Edu- cation Integrated with Social Technologies” seeks to connect the education provided by Embraer Schools with social impact initiati- ves, promoting pedagogical innovation through students’ reapplica- tion of Social Technologies. More than 200 students from Embraer Schools Juarez Wanderley in São José dos Campos (SP) and Casimiro Montenegro Filho in Botucatu (SP) were trained in the application of Social Technolo- gies to impact communities and developed practical solutions ba- sed on solar energy. In Botucatu, the project benefited independent beekeepers who received equipment for processing beeswax. The equipment, which comprises the “Honey Station,” will be important for generating income and reducing environmental impacts. In São José dos Campos, the project benefited the “Pandavas” and “Ma- dre Teresa” schools, located in rural areas, responsible for assisting children in situations of social vulnerability. Eight solar-powered light poles and eight lamps were also delivered. C O R P O R A T E SOCIAL RESPONSIBILITY EMBRAER INSTITUTE Since its foundation in 2001, the Embraer Institute has benefited more than 20,000 people through social engagement efforts, Over 5,000 students have graduated from Embraer Schools, known for their high approval rates in the country’s top universities. Embraer Schools offer free, full-time high school education to stu- dents from public schools and low-income families in São José dos Campos and Botucatu, in the interior of São Paulo. They are joined by a contingent of paying students (20% of the total student body), totaling 720 students in 2023. For scholarship students, quality education is offered free of charge, along with uniforms, teaching materials, transportation, and meals. Currently, graduates enroll in public or private higher education with full scholarships at a rate of 75+%. To maintain positive results, Embraer Schools was founded upon three pillars of excellence: General Education, Formative Itineraries, 30 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS REVOAR PROGRAM WINGS OF KINDNESS CLIMATE EMERGENCY Embraer Institute launched the Revoar Program, which focuses Mentoring Accelerating Careers is an outstanding project on financially supporting graduates from Embraer Schools. If among many in the Wings of Kindness volunteer program. The- the student has been admitted to a public university or a pri- vate institution with a 100% scholarship but is having difficulty continuing their studies, the Program, in partnership with the non-profit organization Instituto Semear, provides financial as- sistance (BRL 750/month) in the first year of undergraduate stu- dies, as well as mental health support and career mentoring with volunteers. In 2023, 21 students received support as part of this program, and we expect this number to double going into 2024. se include online meetings focused on employability aimed at creating a welcoming learning environment for young students. In 2023, over 120 students joined the program, and 900 volun- teers engaged in this and other activities as part of the Embraer Institute. In partnership with the NGO World Vision, Embraer Institute assists victims of environmental disasters. In 2023, support ef- forts were provided in the São Sebastião, Vila Sahy, and Juqueí regions, with a total of BRL 86,000 in donations, including ba- sic food kits. Embraer Institute works in partnership with Em- braer’s community of employees to raise funds. DIVERSE SCIENCE EMBRAER FOUNDATION MINI GLIDER CHALLENGE The event, which brought together hundreds of students from public schools in São José dos Campos, Botucatu, and Gavião Peixoto, aimed to foster enthusiasm for engineering and avia- Diverse Science is an incentive program that offers underre- presented groups education in STEM (Science, Technology, Engineering, and Mathematics). Its second edition was held in 2023. This time, the target audience was self-declared people of African and mixed-race descent aged 16 to 24. tion through mini-glider construction and competitions. In ce- In 2023, the following were selected to develop their projects: lebration of Embraer’s 54th anniversary, it involved approxima- AVEC (Efigênia Vidigal Association for Education and Culture) tely 40 volunteers who shared knowledge and passion for the and Redes da Maré. Each organization received, respectively, Brazilian Aeronautical Industry over 5 months. The event was BRL 170,000 and BRL 190,000. The projects were carried out also sponsored by Eve Air Mobility, inspiring future generations in Belo Horizonte (MG) and Rio de Janeiro (RJ) and impacted with the future of urban mobility. more than 330 people with the development of technology and entrepreneurship skills. In an effort to align its corporate social responsibility strategy in the United States, in 2017, Embraer founded Embraer Foun- dation, a sister organization of Embraer Institute, which ope- rates under three main pillars: employee engagement through volunteering, social investment through mission alignment and support for the local community, and inspiring young people through aviation outreach. The pillars are aligned with the company’s global social responsibility strategy and account for the particularities of social investment in the United States. In 2023, more than 500 volunteers participated in social activi- ties developed by the Foundation, totaling 3,400+ hours. Thir- ty-three community organizations received support from the Embraer Foundation for the implementation of social projects. 31 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS C O M M I T M E N T T O GOVERNANCE Embraer seeks to ensure the highest level of corporate integrity and ethics in all its businesses. Our corporate governance model focuses on sustainable growth, mee- ting the highest standards of the Brazilian and interna- tional markets. Reinforcing the company’s commitment to the best corporate governance practices, continuous improvements are sought in governance instruments and the Board of Directors, such as internal regulations of advisory committees, as well as the enhancement of policies and the code of ethics and conduct. Embraer’s Board of Directors is supported by three Ad- visory Committees: the Strategy and Innovation Com- mittee, the Audit, Risk, and Ethics Committee, and the People and ESG Committee. The People and ESG Committee is responsible for ad- vising the Board of Directors in developing robust stra- tegies, defining key performance indicators, and esta- blishing goals integrated with the company’s corporate sustainability plan. ETHICS AND COMPLIANCE Our company has a mature Compliance program to promote and support all activities in accordance with laws, regulations, and in- ternal policies. PILLARS OF THE COMPLIANCE PROGRAM • Corporate Governance (Anti-corruption) • Risk Management • Policies and procedures • Training and communication • Helpline • Monitoring and evaluation of Compliance risks • Compliance in relationships with Third Parties • Audit and continuous improvement 32 32 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS COMPLIANCE PROGRAM GOALS Promote a culture of ethics and integrity based on Embraer’s values and code of ethics and conduct, as well as applicable anti-corruption laws. Help other Embraer departments prevent risks, identify red flags and improve processes. TRAINING SESSIONS IN 2023 Several training sessions were conducted on an- ti-corruption topics, namely Bribery & Corruption, Ethics & Compliance, Conflict of Interest, Corporate Governance, Compliance programs for new leaders, as well as training for Agents and Compliance teams, as applicable. In 2023, Embraer focused its efforts on complying with the requirements of national and international regulatory bodies, further improving policies by reviewing processes, roles, and responsibilities. Among the changes are revisions to Compliance procedures and policies, including the code of ethics and conduct to encompass diversity and inclusion, ESG, and pillars of culture, trading policy, and disclosure of market information, clawback policy, among others. These adjustments were made to ensure that Embraer has effective methods and metrics to maintain high levels of corporate integrity in all relations in and outside the company. *Policies for protection in case of fraud, misconduct, business earnings downturn, or poor performance by an employee. Embraer’s Compliance program had its 10th anniversary in 2023 and has been improving every year, in line with the com- pany’s strategic plan, establishing fundamental processes for sustainability and the continuity of the company’s successful trajectory. Embraer has 40 entities in its group, with majority control of most of these companies and some established in partnership with external partners. Group companies follow corporate go- vernance standards based on the main governance aspects used in Embraer, with the necessary adaptations according to the cultural particularities of the location and activities perfor- med in each entity. 33 33 ANNUAL REPORT 202312 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS O P E R A T I O N A L S A F E T Y & PRODUCT QUALITY SAFETY FIRST. QUALITY ALWAYS. Since 2007, Embraer has adopted the LEAN philosophy as a business strategy that disseminates the fundamentals, concepts, and practices of the P3E—Enterprise Excellence Program. This program is responsible for leading integrated transformations, providing means for the entire company to make leaps in improving its processes. This excellence system aims for safety first, quality at all times, on-time deliveries, and the best cost efficiency. SAFETY MANAGEMENT SUMMIT – SMS BRAZIL 2023 21ST EDITION OF THE EMBRAER OPERATORS’ SAFETY MEETING (EOSM) The National Civil Aviation Agency (ANAC) promoted the 8th edition of the Safety Management Summit – SMS Brazil 2023 in October in the city of São Paulo. The event served as a platform to share experiences and information among representatives of the civil aviation industry, air operators, aerodrome operators, maintenance organizations, pilots, and manufacturers. Embraer actively participated with representatives in four event panels, sharing information and seeking to strengthen the operational safety culture of the Brazilian aviation system. Learn More The 21st edition of the Embraer Operators Safety Meeting (EOSM) took place in Portugal in May 2023, bringing together representati- ves from 22 operators of ERJs, E-Jets E1, and E2 aircraft. The event aimed to continuously improve the operational safety of Embraer products. EOSM also promoted the implementation of preventi- ve measures through the discussion of technical topics related to products, relevant operational events, publication updates, and operational techniques. 20TH ANNIVERSARY OF THE PRODUCT SAFETY COMMITTEE The Product Safety Committee had its 20th anniversary in 2023. Comprised of directors from different product areas, since July 2003, the committee has been holding monthly meetings, and during this period, on 352 occasions, more than a thousand situations related to the operational safety of 20 different types of Embraer aircraft in operation were addressed and prioritized. 34 ANNUAL REPORT 2023 T E C H N O L O G Y A N D INNOVATION IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS 50% ABOUT OF OUR COMPANY’S REVENUE IN 2023 CAME FROM INNOVATIONS IN PRODUCTS AND SERVICES LAUNCHED IN THE LAST 5 YEARS. T E C H N O L O G Y A N D INNOVATION Embraer contributes to the technological ad- vancements of Brazil and the global aerospace industry. Our company’s journey of evolution and innovation is pursued every day through commitment, networking, and extensive colla- boration within the ecosystem involving part- ners, various universities and research institu- tions, suppliers, and clients. In 2023, Embraer, in partnership with ITA (Ae- ronautics Institute of Technology - anchor institution) and FAPESP (São Paulo Research Foundation), inaugurated FLYMOV (Flight and Mobility Innovation Center), an Engineering Research Center (CPE) dedicated to studies on the Future Air Mobility. Also partnering with FLYMOV are Unicamp and the São Carlos cam- pus of USP. The unprecedented initiative in Brazil was an- nounced in 2022 and brings together represen- tatives from the scientific community and ex- perts from the aerospace industry in activities based on three pillars: low-carbon aviation, au- tonomous systems, and advanced design and manufacturing. The goal is to find innovative technological solutions that will enhance sus- tainability and competitiveness in the global innovation ecosystem. FLYMOV mobilizes over 130 people, including researchers, Embraer employees, and scholar- ship recipients for Scientific Initiation, Mas- ter’s Degrees, Doctorate Degrees, and Post- -Doctorate Degrees - in an ambitious initiative aiming to establish a new benchmark for Bra- zil’s industry competitiveness and training of professionals who will change the air mobility innovation ecosystem. IN 2023, EMBRAER INAUGURATED FLYMOV, AN ENGINEERING RESEARCH CENTER (CPE) DEDICATED TO STUDIES ON FUTURE AIR MOBILITY. 36 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS AWARDS NATIONAL INNOVATION AWARD For the second year in a row, Embraer was among the leaders of the National Innovation Award, an initiative of the Business Mobilization for Innovation (MEI) carried out by the National Confederation of Industry (CNI) and SEBRAE (Brazilian Service to Support Micro and Small Businesses). Embraer was awarded in the Innovation Management category, which shines the spotlight on organizations that, through processes, methods, techniques, and tools, create a conducive environment for innovation. Our company also ranked among the top three in the sustainability category. VALOR INOVAÇÃO BRASIL 2023 AWARD In its 9th edition, Embraer ranked as the fourth-most innovative company in Brazil. HIGHLIGHTS USD 15 million investment in Eve Air Mobility, in partnership with United Airlines. The US-based company also signed a purchase agreement for 400 electric aircraft, with the first 200 deliveries expected in 2026. Investment in the MSW MultiCorp 2 fund managed by MSW Capital, a Corporate Venture Capital manager), aiming to attract and boost innovative Brazilian startups that have synergy with our company’s innovation strategy. Embraer hosted the Marathon Embraer Startups, an event aimed at identifying solutions to previously mapped challenges related to operations and business management while expanding relationships with the startup ecosystem. To enhance its innovation capacity, Embraer has been diversifying its sources of funding aligned with neo-industrialization policies. In December 2023, a USD 100 million investment was approved under the BNDES More Innovation Program. These initiatives ensure the sustainability of innovation projects in the company, enhancing its growth. Embraer actively participated in global innovation events such as Web Summit Lisbon, Web Summit Rio, and SXSW. These events connected companies, startups, investors, and innovation agents with the most disruptive trends of the present. Our company stayed up to date on the latest innovation trends and positioned Embraer as an innovative company. 37 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS ZERO EMISSION VERTICAL Embraer and Collins Aerospace continue to collaborate on the development and testing of an innovative carbon nanotube (CNT) based electrothermal heating technology for frost-proof systems. A flight in a natural ice environment was conducted in 2023. CNT electrothermal technology is lighter and more energy-efficient, using environmentally superior manufacturing processes compared to current systems. Embraer believes it will become the future standard for frost-proof systems, including in more electric aircraft projects. INNOVATION V E R T I C A L S Innovation Verticals are priority areas of innovation under study by Embraer. Our company currently has the following Verticals: Zero Emission, AI & Data Science, Industry 4.0, Airframe Competitiveness, Autonomous Flight, Cybersecurity, and Passenger Experience. 38 38 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS AUTONOMOUS FLIGHT VERTICAL Continuously advancing to achieve greater efficiency and safety is a deci- sive factor for Embraer to invest in au- tonomous flight technologies. Auto- nomous flight represents a significant advancement in aviation, based on a combination of technologies such as sensors, control systems, communi- cation, and artificial intelligence. The application of these technolo- gies enables the emergence of new markets, such as drones, where un- crewed aircraft can operate safely, often on dangerous missions, without risking human lives. These same te- chnologies, in another context, can assist pilots in safely operating the aircraft, reducing workload, expan- ding awareness of nearby airspace, and aiding decision-making. These developing technologies will be incor- porated into Embraer’s portfolio, con- tributing to the company’s long-term competitiveness and sustainability. Embraer believes that autonomous flight will revolutionize various eco- nomic sectors, with agriculture, in particular, having strong potential as a pioneer. High precision, optimi- zation of inputs, lower losses due to crop trampling, and safe nighttime operation are some of the characte- ristics brought by autonomous flight to agribusiness, enabling productivity gains while respecting environmental concerns. In line with this vision, Embraer ex- panded its investment in XMobots, the leading drone company in Latin America, located in São Carlos, São Paulo, and operating in agribusiness, defense, and security. The partner- ship began in 2022 and aims to ac- celerate the future of the midsized and large autonomous drone market and expand Embraer’s collaboration network in researching new techno- logies. 39 39 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS PARTNERSHIPS FOR R&D & INNOVATION FLIGHTSAFETY INTERNATIONAL Embraer and FlightSafety International inaugurated a new Praetor flight simulator in Orlando, Florida. The simulator has already been approved by the United States Federal Aviation Administration (FAA). Initial training is available for customers, as well as recurrent training. The companies also announced a fourth Praetor simulator in Europe at a location to be determined. Operations are expected to begin by the end of 2024. FINEP Embraer signed an agreement with the Financing Agency for Stu- dies and Projects (FINEP) to develop demonstrator platforms for new aeronautical technologies. Public funds will be used to share costs and risks inherent to research and development of low and medium technological maturity. GERMAN AEROSPACE CENTER Embraer and the German Aerospace Center (Deutsches Zentrum für Luft-und Raumfahrt; DLR) announced a Memorandum of Understanding (MoU) for collaboration in pre-competitive technology research and development. The goal is to assess the possibility of establishing future cooperation in a wide range of initiatives. This includes aircraft design, flight systems and physics, system architectures, flight testing, wind tunnel experiments, structures and materials, and safety. 40 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS INNOVATION C U L T U R E INNOVA PROGRAM Created to disseminate culture and foster inno- vation among all employees willing to seek inno- vative solutions while stimulating ideas within the company through Innovation Challenges. Green Light An intrapreneurship program that evaluates innovative proposals voluntarily submitted by employees. The program provides technical and business guidance, leadership engagement, time, and resources for developing ideas until their technical and economic viability is proven. Innovation Day An initiative to disseminate culture and foster innovation, bringing a collaborative environment and the opportunity to discuss future trends among different institutions at a global level. The event had over 8,300 participants in 2023 for its 7th edition. 41 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Embraer’s disruptive innovation company focused on the future of air mobility, clean energy, and connection with global innova- tion ecosystems, among other themes, to fos- ter and structure new business opportunities. In 2023, Embraer-X positioned itself as a market accelerator committed to developing solutions for energy transition, working on va- rious fronts to contribute to a carbon-neutral economy. Throughout the year, it also strengthened its relationship with the Netherlands, where it opened an office the year prior at the Aeros- pace Innovation Hub@TUD at Delft Universi- ty of Technology (TU Delft). Embraer-X’s stra- tegic position at the Aerospace Innovation Hub@TUD serves as a base for continuous connection to the institution’s business ecosystem, establishing connections with the European ecosystem and establishing links with countries such as Austria, Switzer- land, and Finland, among others. In 2023, Embraer-X reactivated its connection with Silicon Valley and the Boston metropolitan area. This will allow the company to expand its partnerships with cutting-edge technology organizations, venture capital investors, and academic and research institutions in key innovation ecosystems in North America and the world. 42 42 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS ACTIVE CONNECTION WITH THE ECOSYSTEM Embraer-X participated in the Web Summit Rio, which took place in May. This was the first edition of the technology and innovation festival outside of Europe, and the company organized its booth where visitors could get sneak peeks into a flight simulator, demonstration screens for an electric vertical take-off and landing (eVTOL) aircraft, and advice on career development in the aerospace industry. In June, during the Paris Air Show, Embraer-X announced a collaboration with the multinational GKN Aerospace for the development of hydrogen propulsion technologies for the aviation industry. This partnership may result in the development of a flight technology demonstration platform. Hydrogen fuel cell propulsion systems are considered essential for reducing pollutant emission levels in aviation in the future. They are essentially electric motors that obtain energy to operate from chemical reactions with hydrogen, thus avoiding the use of heavy batteries. The new partnership agreement is part of Embraer’s commitment to achieving zero emissions by 2040. GKN Aerospace is a developer and manufacturer of various aerospace systems and already has advanced hydrogen studies underway in the Netherlands, Sweden, and the United Kingdom. This technology and its application in the commercial sector is expected to reach maturity sometime in the coming decade. 43 43 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Eve Air Mobility is dedicated to accelerating the Urban Air Mobility (UAM) ecosystem. Backed by over 50 years of Embraer’s experien- ce in aerospace and benefiting from a startup mindset, it adopts a holistic approach to UAM ecosystem progress, with an advanced eVTOL* project, a comprehensive global network of services and support, and a unique urban air traffic management solution. Eve has been listed on the NYSE since May 10, 2022. FIRST EVTOL FACTORY FARNBOROUGH AIRSHOW Eve announced that Taubaté, in the interior of São Paulo, will host the first eVTOL production plant. The plant will be located in an expanded area within Embraer’s existing unit in the city. The location benefits from strategic logistics, offering easy access via highways and proximity to a railway line. Another advantage is the proximity to Embraer’s headquarters in São José dos Campos and Eve’s engineering and human resources team. This will facilitate the development and sustainability of new production processes, increasing agility and competitiveness. In 2022, Eve presented for the first time, during the Farnborough Airshow, the mock-up of the eVTOL cabin, which reinforces the company’s human-centric design concept. Aimed at providing a glimpse into the future of urban air mobility and gathering feedba- ck from users, Eve’s eVTOL cabin mock-up has been showcased at different events and locations around the world. In 2023, the public had the chance to experience Eve’s eVTOL cabin in Austin, Melbourne, Paris, and Dubai. The feedback is being incorporated into product development to offer comfort and efficiency in the experience for future users and operators. *Electric Vertical Take-off and Landing Vehicle. 44 44 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS eVTOL TESTING PHASE In 2023, Eve completed propulsion tests in its test environment (RIG) to measure aerodynamic performance and sound properties for modeling and development. Various models were evalua- ted to improve efficiency and reduce noise im- pact and operational costs. Lift rotors were also tested aboard a custom truck-mounted pla- tform. The mobile equipment was specifically designed to assess rotor performance during the flight transition phase. In May, wind tunnel tests were completed using a scaled model of the eVTOL. Wind tunnel tests provide a unique insight into the aerodynamic behavior of complex geometry and offer a high level of validation of vehicle design characte- ristics. The goal is to collect experimental data to validate production solutions, tools, and de- velopment models, but the primary intent was to investigate and validate how components— including fuselage, rotors, wing, tail, and other surfaces—would behave in flight. By late 2023, Eve and Bradesco concluded the first ESG bond operation aligned with the Green Loans Principles (2023 version), which follows a set of guidelines for structuring loan operations for sustainable purposes. Up to BRL 490 million will be provided as investment and exclusively allocated for eVTOL development. The funds were made available by the Brazilian Development Bank (BNDES) in 2022 from the Finem Line and the Climate Fund (urban mobility subprogram), aimed at supporting the implementation of ventures and technological development related to greenhouse gas emission reduction and adaptation to climate change and its effects. With the completion of the prototype of its Urban Air Traffic Management (Urban ATM) software, focused on essential concepts and services to support the introduction and sca- lability of Urban Air Mobility (UAM) operations, Eve began commercial development of the solu- tion in 2023 to integrate future urban airspace. At the end of the year, Eve and Flexjet, a global leader in executive aviation, conducted an initial simulation of the software to validate and refine the technology through user tests, as well as to receive feedback on its interface and industry value. The initiative addressed aspects such as regular commercial operations, atypical scena- rios, and flights adapted to the specific needs of an eVTOL, providing a demonstration of the software’s behavior across a number of real-life scenarios. In 2023, Eve announced partnerships for the development of the urban air mobility market in two specific regions. With United Airlines, the plan is to launch eVTOL flights throughout the San Francisco Bay Area in the United States. With Hunch Mobility, the result of a partnership between Hunch Ventures and Blade Air Mobility, Inc., the plan is to introduce the first urban electric flights in Bangalore, India. In both cases, companies are working together with local, state, and federal authorities, as well as infrastructure, energy, and technology providers, to ensure the implementation of the necessary technologies to enable eVTOL flights in these regions. 45 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS PARTNERSHIP WITH NIDEC Embraer and Nidec Corporation an- nounced in 2023 an agreement to create a company to develop electric motors for eVTOLs. The new company, named Nidec Ae- rospace, was introduced at the 54th edition of the Paris Air Show and aims to combine Embraer’s aviation expe- rience with the Japanese company’s electric motors. Its creation aims to develop and manufacture systems for eVTOLs, which are seeking certifica- tion to enter the market like Eve Air Mobility, but without being restricted to supply only to Eve. The company may also develop solutions to equip other hybrid and electric aircraft mo- dels. Nidec will have a 51% stake in this new company, while Embraer will have the remaining 49%. The com- pany’s headquarters will be in Saint Louis, Missouri. Eve announced in 2023 some of the key primary suppliers for its eVTOL. Among them is Nidec Aerospace LLC, a joint venture between Nidec Corporation and Embraer, which will provide the eVTOL’s electric propulsion system. BAE Systems will provide an advanced energy storage system, enabling the aircraft to operate efficiently with zero emissions and low noise. DUC Hélice Propellers will supply the rotors for the eight lift motors and the cruise propeller. The other three suppliers announced for the eVTOL were Garmin®, which will be responsible for avionics; Liebherr- Aerospace, which will provide flight control actuators; and Intergalactic, which will provide the thermal management system. 46 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS SUSTAINA BILIT Y INDICATORS B U S I N E S S UNITS 47 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS COMERCIAL A V I A T I O N Embraer’s E2 family of aircraft, with its next- -generation jets, is the most sustainable on the market: it consumes less fuel and emits less CO2 than any other next-generation jet. One of the highlights of the year was the Embraer E195-E2, considered the most efficient, quiet, and advanced jet of the new generation. It was certified for steep approach* by the European Union Aviation Safety Agency (EASA) to operate at London City Airport (LCY). With this, airlines will be able to operate this jet in London City, known for its short runway approach. The certification process noted the low noise level of the E195-E2 jet compared to other nar- row-body** aircraft. Its noise level during takeoff is 60% lower compared to current-generation aircraft and the E190-E1. Additionally, it offers reduced emissions and improved fuel efficiency compared to the previous generation. * Steep approach; ** Narrow-body aircraft; *** Extended Range Twin Operations. With the certification of the E195-E2 aircraft, both jets in the E2 family are authorized to ope- rate at LCY – the E190-E2 had already been cer- tified in 2021. In 2023, the E2 family also received ANAC and EASA certifications for ETOPS*** 120-min opera- tion. An ETOPS 120-min operation refers to the aircraft’s ability to fly with one engine inopera- tive for up to 120 minutes, being crucial for lon- g-distance flights over oceanic areas where al- ternate airports are limited. ETOPS certification ensures compliance with safety requirements for these extended operations. Additionally, the E195-E2 jet received Type Certification from the Civil Aviation Administration of China (CAAC). In the year prior, certification of the E190-E2 jet was already announced to be certified by the CAAC. IN 2023 12% MORE AIRCRAFT WERE DELIVERED COMPARED TO THE PREVIOUS YEAR: 39 FROM THE E2 FAMILY AND 25 FROM THE E1 FAMILY. 48 48 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS E2: 39 25 E1: TOTAL: 64 COMMERCIAL AIRCRAFT Jordan Pakistan China Oman Malaysa Singapore 74 38 E1 + 36 E2 NUMBER AS OF 12/31/2023 Argentina Madagascar GLOBAL PRESENCE The E-Jets family finished 2023 with over 1,490 aircraft in service, being present in more than 90 airlines across 60+ countries spanning all continents. 49 ANNUAL REPORT 2023COUNTRIES WHERE THE E2 WAS CERTIFIED IN 2023DELIVERIES IN 2023SALES IN 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS CABIN OF THE FUTURE In 2023, Embraer created the Cabin of the Future group, which stu- dies expectations for the future of cabins in commercial and execu- tive aircraft in the next 10 to 15 years. This includes analyzing con- nectivity, sustainability, and accessibility and considering a second generation of aircraft interiors. NEW PLATFORM FOR MANAGING CHEMICAL SUBSTANCES IN THE SUPPLY CHAIN Environmental regulations such as the EU’s REACH require com- panies to provide documentation on substances in products being transported, with the intent of improving the protection of human health and the environment. These laws are constantly being upda- ted, and new substances are regularly classified as restricted. In June 2023, Embraer implemented a tool to manage these requirements: Assent Sustainability Manager, a platform for ma- naging substance data in the supply chain to monitor chemical substances found in products and processes and the use of certain substances restricted by these regulations. This now allows Embraer to clarify to customers and partners what products we use in each part. Our company can also individually analyze the application of certain substances to assess potentially more sustainable alternatives. 50 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS EXECUTIVE A V I A T I O N In 2023, our company delivered 115 executive air- craft. This represents a significant growth of 13% compared to 2022, leading the industry with three consecutive years of above-market performance. Strong market capture while maintaining price discipline. Record backlog of firm orders (USD 4.3 billion) aligned with a book-to-bill ratio greater than 1.3X. IN 2023, DELIVERED 115 AIRCRAFT 13%+ THAN IN 2022 PHENOM 100EX In 2023, Embraer introduced the Phenom 100EX executive jet, the newest evo- lution of the Phenom 100 series of 400 aircraft in operation since 2008. The Phenom 100 series is the most reliable entry-level platform in the sector, chosen by owner pilots, airlines, and flight academies such as the United Kingdom’s Royal Air Force, Emirates, Etihad, and the Finnish Aviation Academy. The new jet offers a superior level of cabin comfort, operational versatility, and new avionics features – enhanced to provide the best flight experience. The Phenom 100EX incorporates Embraer’s design principles, both in the layout of the Upper Tech Panel digital cabin controls and in seat design, use of sustai- nable materials, and spacious work tables. In its basic configuration, the jet also features a fifth lateral seat and a certified lavatory seat for take-off and landing, thus increasing passenger capacity. These new features complement the OvalLite™ cabin concept – the category leader, offering more head and legroom. The jet also features the most elegant boarding stairs and the largest baggage compartment in its category. The Phenom 100EX is triple-certified by ANAC (Brazil’s National Civil Aviation Agency), FAA (Federal Aviation Administration), and EASA (European Union Aviation Safety Agency). All 2024 and 2025 jets have already been sold, and future deliveries will be available starting in 2026. 3 CONSECUTIVE YEARS OF ABOVE-MARKET GROWTH In 2023, Embraer achieved a historic milestone: the Phenom 300 series jets became the most-flown mo- dels in the United States for its category, surpassing the 15-year leader. The series of executive jets was the best-selling in the world for the 11th year in a row, with over 750 units in operation and an average of 50 deliveries per year sin- ce December 2009, the year it entered the market. Additionally, we reached a milestone of over 2,000,000 flight hours on the Phenom 300 platform, plus 3,000,000 when adding the Phenom 100. 51 51 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Embraer announced a new autothrottle* feature in 2023, which will be available for Phenom 300E aircraft in the third quarter of 2024. The optional feature was created to enhance the Phenom 300E cabin, which is certified for single-pilot ope- ration and includes the advanced Prodigy Touch cockpit based on the Garmin G3000 avionics suite, further enhancing the jet’s operational capabilities. Through the advanced autothrottle automation technology, pi- lots will be able to fly with better automation and intuition. This technology will assist in throttle control during various flight phases, meaning passengers will have even greater comfort in the cabin. Embraer is also committed to supporting in-service aircraft through a service bulletin (SB), available from the fourth quar- ter of 2024, for aircraft that received factory-installed provi- sions from January 2023. NetJets signed a new contract with Embraer for up to 250 options of Praetor 500 jets, including services and support. The contract is worth over USD 5 billion, with deliveries set to begin in 2025. This will be the first time NetJets offers the midsize Praetor 500 to customers. The partnership between NetJets and Embraer began in 2010, and NetJets has operated Embraer’s Phenom 300 series for over a decade. EBACE AND NBAA 2023 CONVENTIONS Embraer showcased three of its leading industry jets at the 2023 European Business Aviation Convention and Exhibition (EBACE 2023) in Geneva, Switzerland. The Phenom 300E, the world’s best- selling light jet with the fastest single-pilot operation and longest range; the Praetor 500 and Praetor 600, the most revolutionary and technologically advanced executive jets in the medium and super-midsize segments, which were certified by the FAA, EASA, and ANAC less than a year after being announced in 2018. Embraer’s three executive jets flew to Geneva using the book- and-claim mechanism** to maintain the company’s sustainability commitments. In Geneva, they were refueled with Sustainable Aviation Fuel (SAF) for the return journey. Embraer continues to increase SAF usage, including at its headquarters in Melbourne, Florida, where 30,000 gallons were used in 2023. Additionally, the company invests in the development of alternative propulsion technologies that include low and zero-emission solutions such as electrification, hybrid-electric, and hydrogen. In October, Embraer attended the NBAA convention in Las Vegas and presented four presentations—Praetor 500 and 600 and Phenom 100EV and 300E—using sustainable aviation fuel (SAF) and the Book-and- Claim program. *Allows the airplane to adjust its speed automatically. **Allows companies to purchase SAF credits without needing to use them. 52 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Embraer’s executive aviation division was certified in the NBAA (National Business Avia- tion Association) Sustainable Flight Department Accreditation Program, which recognizes com- panies that annually reduce the environmen- tal impact of their flight department, meeting exceptional environmental sustainability stan- dards. The goal is to further promote a culture of sustainability within the industry’s community. CONCLUSION OF FLIGHT TESTS USING 100% SAF In 2023, in partnership with Honeywell Aerospace, Parker, Pratt & Whitney Cana- da, Safran, and WorldFuel, flight tests were successfully conducted on the Phe- nom 300E and Praetor 600 executive aircraft using 100% pure sustainable avia- tion fuel (SAF). The tests, with one engine operating on 100% SAF, were carried out at Embraer’s facilities in Melbourne and provided significant insights into system performance when using an entirely renewable fuel source. Embraer and 4AIR announced that new cus- tomers of Embraer executive jets enrolling in the Embraer Executive Care program will recei- ve 25 hours of carbon-neutral flight courtesy of 4AIR, offsetting their carbon emissions during the initial operation. After completing the 25-hour flight, Embraer customers can maintain their commitment to fight climate change by participating in 4AIR programs. 53 53 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS D E F E N S E & SECURITY Embraer Defense & Security is a leader in the Aerospace and Defense Industry in Latin America and has been gaining increasing international prominence. Offering solutions in 60+ countries, it continues to expand its presence in the global market. DEFENSE & SECURITY AIRCRAFT In 2023, the Brazilian Air Force (FAB) received its sixth C-390 Millennium aircraft. The Brazi- lian fleet has accumulated over ten thousand flight hours, with an exceptional level of ma- turity (operational reliability above 99.5%). The Portuguese Air Force (FAP) received its first aircraft - the first C-390 in NATO configuration. This aircraft has demonstrated the same levels C-390 MILLENNIUM OPERATIONAL RELIABILITY ABOVE 99.5% of reliability and availability observed in the Bra- zil-based fleet, with very high productivity. aircraft. South Korea is the first customer of the C-390 Millennium in Asia. Another milestone for the C-390 Program was the receipt of Full Operational Capability (FOC) certification by the Institute of Industrial Deve- lopment and Coordination (IFI). This certifies that the aircraft meets all design requirements and is capable of performing all missions for which it was designed. This is a significant mi- lestone as it allows the aircraft to operate at its full capacity. In another demonstration of its value, the C-390 Millennium won the public bidding process for the Large Transport Aircraft (LTA) II program. This program will provide the Republic of Korea Air Force (ROKAF) with new military transport In 2023, Austria and the Czech Republic also selected the C-390 Millennium as their new multi-mission platform and began negotiating contracts. The C-390 Millennium became the tactical transport solution of choice for 7 coun- tries: Brazil, Portugal, Hungary, the Netherlands, Austria, the Czech Republic, and South Korea. Regarding the A-29 Super Tucano Program, Em- braer announced the launch of the A-29N, a ver- sion dedicated to meeting the operational requi- rements of the NATO environment. Additionally, Embraer and FAB signed a Memorandum of Understanding (MoU) to study a technological upgrade package known as the Mid-Life Upgra- de (MLU) for the Brazilian Air Force fleet. As part of the F-39 Program, Embraer and Saab inaugurated the production line of the Gripen E fighter in Brazil at the Embraer facility in Gavião Peixoto, São Paulo. The companies also signed an MoU for collaboration in sales campaigns for the C-390 Millennium and Gripen. These are important steps in the technology transfer program and in the companies’ commitment to cooperate on new business opportunities. Regarding the Modernization Programs, the fifth and latest Early Warning and Control Aircraft (E- 99 AEW&C) was delivered to the FAB, conclu- ding the program’s progress to demobilization. 54 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS RADARS & GROUND SYSTEMS PARTNERSHIPS Throughout 2023, the Radar & Ground Systems business made progress in its projects in part- nership with the Brazilian Army (EB). The M200 Vigilante radar, which operates as a medium-range sensor for Air Surveillance and Early Warning applications, concluded the de- velopment phase and moved on to the technical and operational validation phase. At this stage, the initial tests were completed, including the equipment’s deployment to the Amazon on the Brazilian Air Force’s C-390 Millennium aircraft. Embraer successfully conducted the Factory Acceptance Test (FAT) for the M60 radar and delivered 4 radar units to the EB in Q4 of 2023. In 2023, a new project was initiated with the EB to develop a Counter-Battery Radar System, which will enhance the Army’s technical capa- bility and expand its strategic functionalities. In 2023, Embraer Defense & Security further expanded its partnerships, aiming to strengthen its presence in strategically important regions for its business. to jointly explore opportunities aligned with the Dutch Defense Industry Strategy, with a primary focus on the C-390 Millennium and A-29N Super Tucano. SAAB, Sweden - Memorandum of Understanding with the aim of developing joint business, prioritizing the C-390 Millennium in Sweden and Gripen fighters in Brazil and Latin America. Portugal - A memorandum of Understanding with four companies from the Technological and Industrial Defense Base of Portugal to develop and industrialize the NATO version of the A-29 Super Tucano (A-29N). NIDV, Netherlands - A memorandum of Understanding with the Netherlands Defense and Security Industries Association (NIDV) India - Through direct engagement with the local Defense Industry, Embraer Defense & Security began selecting partners in preparation for the MTA (Medium Transport Aircraft) Program selection process. The aim is to position Embraer and the C-390 Millennium as the preferred solution in this program and contribute to the Make in India and Atmanirbhar Bharat Abhiyaan (Self- Reliant India) initiatives. SAMI, Saudi Arabia - Memorandum of Understanding with the leading national defense and security company in Saudi Arabia, aiming to expand collaboration on defense projects, particularly around the C-390 Millennium. The focus areas are the establishment of a Regional MRO Center and a final assembly line for the C-390 Millennium, subject to the establishment of a C-390 aircraft acquisition contract. Aero Vodochody, Czech Republic - Memorandum of Understanding with Aero Vodochody, aiming to deepen cooperation around the C-390 Millennium. 55 55 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Atech focuses on complex systems, solutions for critical missions, and technologies to support decision-making. Its products and services are prominent in key programs of the Brazilian Armed Forces. LABGENE Program (Nuclear-Electric Generation Laboratory) of the Brazilian Navy: 2023 saw the complete delivery of the Ex- ternal and Internal Nuclear Detection System (SDNE and SDNI respectively). Tamandaré Class Frigates Program: 2023 saw a significant mi- lestone in the program’s development as integration and testing environments began being assembled for the Combat Manage- ment System (CMS). In addition, Pre-Interface Tests (IPT) were conducted between the frigates’ weapon systems and the CMS. In 2023, Atech signed major contracts with the Brazilian Air For- ce: in the Defense business, for the update and modernization of the air defense system (DACOM); in the Air Traffic Control Systems business, for the update, modernization, and expan- sion of the country’s airspace management systems. It also sig- ned a contract with AAI - India for maintenance and support of the SKYFLOW system in New Delhi. Atech is a strategic partner of Eve Air Mobility and applies its expertise in the development, implementation, and support of air traffic flow control and management systems to pave the way for the future of urban air mobility. Within the partnership, a contract was signed for the development of Phase 2 of the Urban Air Traffic Management (UATM) system, which will follow Phase 1’s delivery in 2022. Visiona is a joint venture between Embraer Defense & Se- curity and Telebras, aiming to become the leading company for space systems integration solutions in Brazil. During 2023, Visiona achieved significant milestones and sig- ned contracts to advance its consolidation in the space sys- tems integration market: Signed a contract with FINEP (Financier of Studies and Pro- jects) for a Technological Innovation Grant to develop a new very high-resolution observation satellite (VHR) worth BRL 220 million; Successfully launched VCUB1, the first Earth Observation and Data Collection satellite designed by the Brazilian national in- dustry, which reached space aboard SpaceX’s Transporter-7 mission. This project demonstrates Visiona’s capacity to con- ceive high-performance space systems; In the Remote Sensing business area, Visiona partnered with Telebras for the distribution of services to government entities. The Tamandaré Class Frigates Program, conducted by the Brazilian Navy and contracted by Emgepron - Naval Projects Management Company, along with SPE Águas Azuis (Special Purpose Company composed of Embraer, Atech, and Thyssenkrupp Marine Systems), is progressing according to its development plan. The first frigate (FoC - First of Class) celebrated its keel laying in March 2023 and, by the end of the year, surpassed the 50% completion mark. Two of the four contracted frigates are currently being manufactured. The launch of the first frigate, the keel laying of the second, and the start of the construction of the third are all scheduled for 2024. 56 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS Since 2004, all new Ipanema aircraft have been deployed operating exclusively with ethanol, in addition to hundreds of gasoline engines converted to ethanol, using the solution developed by Embraer and installed in some of the 1,200+ aircraft in operation. Embraer estimates that over 200 million liters of fossil fuel have been saved over the past two deca- des. The Ipanema aircraft was one of the highlights of Agrishow - International Agricultural Technology Fair - in Ribeirão Preto. As one of the largest agricultural fairs in the world, Agrishow is recognized as the center stage for major trends and innovations in agribusiness. LECTURES AND ADVISORY Embraer conducts Flight Safety Promotion lectures in all classes that train agricultural aviation pilots in Brazil for approximately 150 students in this sector in 2023. The company also offers the Ipa- nema Maintenance Course, helping to qualify pilots and mecha- nics to achieve the best possible performance from the aircraft safely. AGRICULTURAL A V I A T I O N Embraer’s agricultural aviation division delivered 65 Ipanema 203 aircraft in 2023, maintaining strong commercial activity in this business segment. The transaction volume was 18% higher com- pared to the same period last year. The company is a leader in Agricultural Aviation, certified by ISO 9001, ISO 14001, and OH- SAS 18001. Considered a technological symbol of Brazilian agriculture, Ipane- ma is the only one in the market certified by ANAC and produced in series to fly using biofuel (ethanol). It has been in operation for five decades, continuously evolving and meeting the strictest safety and efficiency requirements. Manufactured at Embraer’s facility in Botucatu, São Paulo, it reached the milestone of 1,600 units produced, maintaining national leadership with a 55% share. This is the fourth consecutive year of record sales of aircraft and parts, with a 300% growth compared to 2020 and four times hi- gher compared to the production average of the first five years since the launch of Ipanema 203 in 2015. 57 57 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS S E R V I C E S & SUPPORT Embraer Services & Support is a business unit focused on providing a comprehensive portfolio of solutions for operators of Embra- er aircraft and products in the Commercial Aviation, Executive Aviation, and Defense & Security sectors. The portfolio includes so- lutions in materials, pay-by-hour programs, maintenance, aircraft modifications, training, integrated support, digital services, and engi- neering services, among others. The business unit also includes OGMA, a subsidiary based in Portugal, which offers agnostic maintenan- ce, repair, and overhaul services for civil and military aircraft and engines, and Embraer CAE Training Services (ECTS), which provides training services. GLOBAL PRESENCE Through a network of over 75 owned and authorized service centers worldwide and dedicated customer support centers for each market, the Services & Support team comprises 4,000+ employees supporting 4,580+ Embraer Commercial, Executive, and Defense aircraft, as well as other original equipment manufacturer aircraft, engines, and radars. This team of specialists provides support to each customer, both in the air and on the ground, with a commitment to keeping their operations at their best levels of performance. CUSTOMER SATISFACTION Customer experience is essential for Embraer’s business success and strategy. Our philosophy is to offer and deliver a comprehensive portfolio of services and support solutions to all custo- mers, ensuring the best product availability with competitive operating costs. Overall results and customer satisfaction in exe- cutive jets kept Embraer at the top of the 2023 product support surveys, ranking first in Profes- sional Pilot Magazine and third in Aviation Inter- national News. Through constant monitoring and open commu- nication channels, the company understood the key needs of Commercial and Defense Aviation operators. Using a variety of tools and forums, including an annual satisfaction survey and In- tegrated Action Plans, we identified their com- petitive position and adjusted specific actions for continuous improvement in support. POOL PROGRAM Embraer provides support to airlines worldwide. With technical expertise and a component servi- ces network, the Pool Program enables significant savings in repair and maintenance costs while re- ducing the required storage space and resources for repair management and helping ensure the ex- pected levels of performance. Throughout the year, new contracts and renewals were signed in the Pool Program with operators such as Porter Airlines, SKS, Star Air, Marathon Airlines (Greece), Sky High (Dominican Republic), Royal Jordanian Airlines (Jordan), Fly Amelia, Na- tional Jet Express (NJE), a Rex Group company, Scoot (Singapore), LuxAir, among others. 58 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS E190 CONVERSION ECTS In early 2023, the first E190 started being converted into a cargo aircraft. Embraer invested in a dedicated MRO facility in São José dos Campos, SP, responsible for all passenger-to-cargo aircraft conversions. By late 2023r, the E190 Cargo was presented with its new paint scheme, and ground tests had commenced. C-390 MILLENNIUM SIMULATOR Embraer inaugurated the first flight simulator for the C-390 Millennium, the largest military aircraft produced in Brazil, in São José dos Campos, SP. The flight simulator provides pilots and crew with the opportunity to practice various flight procedures, including maneuvers and emergen- cies, safely and simulates adverse flight conditions. Embraer-CAE Training Services (ECTS), a joint venture between Embraer and CAE, is expanding its training capacity with the in- corporation of two new Full-Flight Simulators (FFS) for the Phe- nom 300. This initiative aims to meet the growing demand for pilot training for this aircraft model, both in the United States and Europe. The first simulator is scheduled to start operating in Q1 2024 at CAE’s headquarters in London, Burgess Hill, and the second simulator is expected to begin operations in Q3 2024 at CAE Las Vegas. This expansion reinforces ECTS’s commitment to offering high-quality training for aviation professionals and keeping up with the market’s demand growth. EXPANSION OF COMPANY-OWNED SERVICE CENTERS NETWORK IN THE US In late 2023, Embraer announced a significant expansion of its exe- cutive aviation maintenance services. This expansion includes ope- ning three new Maintenance, Repair, and Overhaul (MRO) facilities in Dallas Love Field (Texas), Cleveland (Ohio), and Sanford (Florida). The goal is to support the continuous growth of our executive jet customer base in the US. 59 ANNUAL REPORT 2023 IN DE X AB OUT EMBRAER FINANCIAL PERFORMANCE ESG INNOVATION BUSINES S UNITS BUSINES S UNITS SUSTAINA BILIT Y INDICATORS DIGITAL SERVICES One of Embraer Services & Support’s focuses is offering digital services that support the industry’s digital transformation, hel- ping to improve operational efficiency and sustainability. One of these advancements was presented to the market during the 2023 Paris Air Show: the new generation of the Aircraft He- alth Analysis and Diagnosis (AHEAD) system. The system helps airlines and customers implement digital predictive maintenance on their E-Jets fleets, using data to identify and predict potential maintenance needs. Monitoring helps identify patterns indicating possible adjustments or system degradation, offering opportuni- ties for preventive action and greater efficiency for the business unit’s customers. OGMA ANNIVERSARY In 2023, OGMA celebrated its 105th anniversary, leaving an im- portant legacy in the aviation industry. As an Authorized Mainte- nance Center (AMC) for Pratt & Whitney GTF engines since 2020, during this year, OGMA started heavy maintenance training for the PW1900G engine for Embraer E190-E2 and E195-E2 aircraft. Ad- ditionally, the Randstad Employer Brand Research 2023 ranked OGMA as the fifth most attractive company to work for in Portugal, ranking first in the aerospace industry. 60 60 ANNUAL REPORT 2023 INDEXES AND RATINGS We recorded the following evolution in the main ESG indexes and ratings: RATING 2021 2022 2023 BB - 4.0 BBB - 4.5 BBB - 5.3 - High - 36.6 High - 37.3 55 58 D - C B 54 C B- Climate Change Supplier Engagement In 2023, we adopted the 25by2025 initiative promoted by IATA, which aims to increase women’s representation in leadership positions and technical roles by 25% by 2025. Our company is also listed on the NYSE. Embraer is likewise listed on B3. Embraer is part of the Novo Mercado, the strictest sector of the Brazilian stock exchange. For the second year in a row, Embraer stood out during the National Innovation Award. Our company won the Innovation Management category and ranked top three in the Sustainability category. Embraer was ranked as the fourth most innovative company in the country by the Valor Inovação Brazil Award. Notable Program Excellence: Embraer Phenom 300E at the A&D Programs Conference, produced by the Aviation Week Network. Our company was awarded the ANEFAC Transparency Trophy, which recognizes an organization that sets the highest standards of integrity and accountability in business. The most notable result in these rankings was the advancement of the MCSI index score to - BBB 5.3 Embraer was also awarded the “Great Place to Work” certification in several countries, an important recognition of our commitment to a happy and healthy work environment. Our company makes yearly contributions to the Efficient Carbon Index promoted by B3 - Brazilian Stock Exchange. Embraer joined the UN Global Compact in 2008 and, in 2023, maintains its ESG approach aligned with the UN’s Sustainable Development Goals. 61 A P P E N D I X O F INDICATORS APPENDIX OF INDICATORS 2023 IND E X Click to go to the desired topic All pages of this file can be browsed: menus and pagination. 6 4 TECHNICAL REF ERENCES AN D M ATERIALIT Y 6 9 ENVIRONMENTAL INDICATORS 8 4 SOCIAL INDICATORS Technical References 6 5 Materiality 6 6 Energy 7 0 Safety, Health, and Well-being 8 5 Emissions 7 3 Talent Management 9 2 Water and Effluents 7 7 Waste 8 1 Diversity 1 1 1 Supplier Assessment 1 1 7 Local Communities 1 2 3 1 2 4 GOVERN AN CE IN DI CATORS Corporate Governance 1 2 5 Ethics & Compliance 1 3 0 Operational Safety and Product Quality 1 3 6 1 4 5 CON TENT SUMMARY GRI 1 4 6 SASB 1 5 1 TCFD 1 5 3 T E C H N I C A L R E F E R E N C E S AND MATERIALITY T E C H N I C A L REFERENCES This Embraer Sustainability Annual Report follows the following reporting references: TECHNICAL REFERENCES TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY Global Reporting Initiative (GRI): The complete list of material indicators covered in this report is available in the GRI Content Summary. Sustainability Accounting Standards Board (SASB): Embraer’s ESG performance information has been supplemen- ted with specific indicators for the aerospace sector. The list of indicators is available in the SASB Content Summary. Sustainable Development Goals (SDGs) and Global Compact Principles: The data presented refers to the period from January 1, 2023, to December 31, 2023 and covers 100% of Embraer S.A. employees. Exceptions re- garding the data coverage are duly described in the indicators where they occur. (GRI 2-2; 2-3) Embraer produces its Sustainability Reports annually The document is publicly available on its corporate website (esg.embraer.com), and the historical series can be accessed on the Investor Relations page https://ri.embraer.com.br/ou- tras-informacoes/relatorios-anuais/. (GRI 2-3) Our initiatives are aligned with global agendas, which bring together relevant challenges in society, government, and the aerospace sector. The main SDGs being considered are inte- grated into the GRI Content Summary. The list of the 10 Global Compact Principles is presented on page 72. Questions about this report can be sent to investor.relations@ embraer.com.br. (GRI 2-3) This report has not been subjected to independent auditor as- surance. (GRI 2-5) Task Force on Climate-Related Financial Disclosures (TCFD): Information related to the recommendations of this framework is available in the TCFD content summary. 65 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY MATERIALITY Embraer values relationships with all its value chain stakeholders. Dialogue and engagement with various stakeholders are ongoing processes for our company. The materiality process for defining material issues and its corporate sustainability agenda has been conducted by Embraer in a frequent and structured manner since 2013. The last process was carried out in 2022, following the guidelines of the GRI-3 standard from 2021. GRI 3-1) CONTINUOUS IDENTIFICATION AND IMPACT ASSESSMENT DEFINITION OF MATERIAL ISSUES FOR REPORTING Lists of material issue Embraer’s Context Survey of main themes and real and potential impacts Assessment of the importance of these themes Prioritization Sectoral Standards Benchmarking Business strategy Materiality survey with relevant stakeholders and Embraer’s executive committee Figure 1: Embraer’s Materiality Process 2022 (GRI 3-1) Engagement with relevant stakeholders 66 APPENDIX OF INDICATORS 2023 1234 TECHNICAL REFERENCES MATERIALIT Y MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY The materiality survey involved 700+ responses from 5 stake- holder groups: suppliers, customers, employees, investors and shareholders, and civil society. The company’s top leadership discussed and validated the material issues in a regular mee- ting of the Advisory Committee of the Board of Directors res- ponsible for People and ESG matters, the CPESG*. When comparing the list of material issues from this fiscal year with the previous materiality process in 2017, the most notab- le change is the inclusion of Support for Sustainable Aviation Fuels (SAF), which was prioritized by both stakeholders and Embraer’s executive committee. (GRI 3-2) MATERIALITY M A T R I X 5 4,5 s r e d l o h e k a t S 4 3,5 1 2 23 14 16 17 18 19 24 22 29 27 28 25 26 4 5 8 9 3 6 7 10 13 15 21 12 11 20 Learn more Advisory Committee of the Board of Directors 3 3,5 4 Executivos 4,5 5 Figure 2: Materiality Matrix 2022 (GRI 3-2) Topics prioritized by internal and external audiences Non-prioritized issues Materiality 2022 1 Product safety and quality 2 GHG emissions in product use phase 3 Anti-corruption and bribery practices 4 Hazardous waste management 5 Support for Sustainable Aviation Fuels (SAF) 6 Talent attraction and retention 7 GHG emissions in manufacturing processes 67 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY SUSTAINABLE DEVELOPMENT GOALS - SDGs Embraer has been a signatory to the UN Global Compact since 2008 and maintains its ESG strategy aligned with the Sustainable Development Goals. The main SDGs related to material issues are: 1 - No poverty; 4 - Quality education; 5 - Gender equality; 8 - Decent work and economic growth; 9 - Industry, innovation, and infrastructure; 13 - Climate action. Embraer addresses other SDGs according to its strategic plan and ESG agenda. The complete list is in the GRI Content Summary. 68 APPENDIX OF INDICATORS 2023 E N V I R O N M E N T A L INDICATORS TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ENERGY Energy consumption within the organization (MWh) Source Type The units included for the development of indicators in this topic for 2023 are Ozires Silva, Eugênio de Melo, Botucatu, Gavião Peixoto, Sorocaba, EDE (ELEB), Taubaté, Belo Horizonte, São Paulo, Campinas, Atech, Le Bourget, Nashville, Fort Lauderdale, Melbourne, Jacksonville, Macon, and OGMA, representing approximately 98% of Embraer’s employees across all units. Data coverage increased with the inclusion, in 2023, of the Atech, Campinas, and Le Bourget units. The sources of data for purchased electricity consumption are supply invoices issued by utilities. Information and processes related to energy data consolidation are audited annually, internally and by a third party, under the Greenhouse Gas Inventory (Scope 2). LRQA do Brasil LTDA verified Embraer’s GHG inventory according to ISO 14064:2006. The verification was completed in March 2024 with a reasonable level of confidence. Renewable Fuels purchased and consumed Purchased electricity** Generated electricity*** Total renewable energy consumption Fuels purchased and consumed Non-renewable Purchased electricity 2021 739 29.868 - 30.607 158.397 139.702 2022* 1.168 14.404 34 15.606 151.757 142.658 (GRI 302-1) 2023 911 14.087 236 15.234 154.994 155.085 Total non-renewable energy consumption 298.099 294.415 310.079 Total energy consumption within the organization (MWh) 328.706 310.021 325.313 Data Coverage 93% 94% 98% * In 2022, the Évora unit ceased to be part of the scope; ** Purchased electricity: Biomass, solar, wind, small hydro derived from incentivized energy sources without origin certificate (free energy market) *** Generated electricity: Until 2021, generated electricity was shown together with purchased electricity. From 2022 onwards, this data will be published separately. Notes: (i) The OGMA units in Portugal and Sorocaba in Brazil use electricity from incentivized (renewable) sources. (ii) Self-generated electricity refers to generation for own use from photovoltaic panels installed in Ozires Silva and Gavião Peixoto. (iii) Renewable fuels include biomethane, ethanol, and SAF (Sustainable Aviation Fuel). 70 APPENDIX OF INDICATORS 2023 Total energy consumption within the organization was 5% hi- gher in 2023 compared to the previous year. Overall, this is due to increased production activities and the inclusion of the Ate- ch, Campinas, and Le Bourget units. Starting in 2022, there was a reduction in purchased renewable electricity, considering the termination of the contract for the supply of incentivized energy to the Botucatu, EDE, and Taubaté units. However, it is worth noting that, from the beginning of 2024, the company started to buy and use 100% renewable energy in all Brazilian units. TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Fuel consumption within the organization (MWh) (GRI 302-1) Source Renewable Fuel Hydrous Ethanol SAF - Sustainable Aviation Fuel Biomethane Total renewable fuel Diesel - Brasil Diesel BO Gasoline - Brazil Gasoline Aviation Gasoline Non-renewable LPG - Liquefied Petroleum Gas Natural Gas Aviation Kerosene Acetylene Propane 2021 2022* 2023 143 596 - 739 731 695 30 313 4 1.395 50.956 104.263 2 8 166 682 320 1.168 505 767 27 357 4 1.491 47.521 101.022 2 61 213 698 0 911 659 683 29 259 8 1.491 47.783 104.056 1 24 Learn More Atech, Campinas and Le Bourget Total non-renewable fuel 158.397 151.757 154.993 Total fuel consumption was higher in 2023 than in 2022 (about 2%), with most consumption remaining stable compared to the previous year. * In 2022, the Évora unit ceased to be part of the scope Notes: (i) Although conservatively categorized as non-renewable fuels, “Gasoline - Brazil” and “Diesel - Brazil” contain additions of renewable fuels (i.e., ethanol and biodiesel, res- pectively). 71 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY Fuel Consumption outside the Organization (MWh) (GRI 302-2) Energy Management (RT-AE-130a.1) Source Fuel Renewable Hydrous Ethanol Total Diesel - Brazil Gasoline - Brazil Non-Renewable LPG - Liquefied Petroleum Ga Natural Gas Aviation Kerosene Total Indicator 2021 2022* 2023 Total energy consumed (GJ) 1.183.214 1.115.955 1.170.276 % of the energy consumed by the Electricity Grid % of renewable energy 52 9 51 5 52 5 2021 1.825 1.825 20.142 741 17 0 2022* 3.095 3.095 23.022 1.227 22 0 9.068 28.875** 29.968 53.146 2023 4.820 4.820 24.986 1.978 25 0 50.420 77.409 Regarding scope 3, the increase in energy consumption from non-renewable fuels was mainly due to the increase in business air travel in 2023. As in 2022, the consumption of aviation kerosene in 2023, shown in the table above, does not consider the product usage category. *In 2022, the Évora unit ceased to be part of the scope. **Does not consider the estimate of aviation kerosene consumption relative to the product usage category. Note: (i) This table considers energy consumption from sources categorized as Scope 3. (ii) Although conservatively categorized as non-renewable fuels, “Gasoline - Brazil” and “Diesel - Brazil” contain additions of renewable fuels (i.e., ethanol and biodiesel, respectively). 72 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY EMISSIONS GREENHOUSE GAS EMISSIONS Since 2009, our company has conduc- ted its Inventory in accordance with ISO 14064—Part I. From 2020 onwards, Embraer has been consolidating our in- ventory globally across its main units, increasing data coverage and making emission-related information more re- presentative. The values reported for Scope 3 emis- sions include only the Brazilian units, except for emissions associated with the use of the product sold (aircraft) as well as emissions associated with activities related to energy and fuel pro- duction not included in scopes 1 and 2, which encompass all 18 Units. Three new units were included in 2023: Campinas and Atech (São Paulo) in Bra- zil and Le Bourget in France. The other units covered in the inventory are Ozi- res Silva, Eugênio de Melo, Taubaté, EDE, Botucatu, Sorocaba, Gavião Pei- xoto, São Paulo, Belo Horizonte in Bra- zil; Melbourne, Macon, Nashville, Fort Lauderdale, and Jacksonville in the Uni- ted States and OGMA in Portugal. This indicator covers 98% of the company’s workforce. The Greenhouse Gas Inventory was ve- rified by LRQA do Brasil Ltda, according to ISO 14064:2018. The verification was carried out with a reasonable level of confidence. Direct emissions increased by about 4%. This condition, similar to other en- vironmental indicators, reflects the sce- nario of increased productive activities in 2023 compared to 2022 and also the expansion of data coverage. Direct emissions (Scope 1) of greenhouse gases (tCO2e) Gas CO2 HFC N2O CH4 PFC-218 Total Biogenic Emissions 2021 38.007 6.497 266 17 0 44.787 100 2022* 36.504 4.846 230 19 0 41.599 172 *In 2022, the Évora unit ceased to be part of the scope. Notes: (i) The increase in biogenic emissions is explained by the increased use of renewable energy sources by Embraer. (GRI 305-1) 2023 37.322 5.670 253 19 0 43.246 123 73 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Indirect emissions (Scope 2) of greenhouse gases(tCO2e) (GRI 305-2) Other indirect emissions (Scope 3) of greenhouse gases(tCO2e) (GRI 305-3) Gas CH4 CO2 N2O Total 2021 2022* 2023 Gas 2021 2022 2023 16 20 18 CH4 1.122 1.341 2.071 30.327 17.840 17.385 CO2 11.238 15.617.363 18.170.055 24 25 22 N2O 161 202 281 30.367 17.885 17.425 Total 12.521 15.618.906 18.172.407 The CO2e emission factor from the Brazilian National Interconnected System decreased in 2023 compared to 2022. This scenario was responsible for the small reduction in Scope 2 emissions. Biogenic Emissions 1.421 1.985 2.888 Note: Except for categories associated with the use of the product sold (aircraft) as well as emissions associated with activities related to energy and fuel production not included in scopes 1 and 2, Scope 3 data are applicable only to Brazilian units and do not account for units abroad. *In 2022, the Évora unit ceased to be part of the scope. 74 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Scope 3 emissions by category (tCO2e) Category Purchased goods and services Employee commuting (home-work) Waste generated in operations Upstream transportation and distribution Business travel Use of sold product Activities related to fuel and energy not included in Scopes 1 and 2 2021 3.597 1.071 5.481 1.347 2.444 - - 2022 3.165 1.300 4.785 1.359 7.630 (GRI 305-3) emission factor considers the entire lifecycle of the fuel. 2023 3.377 1.520 7.415 1.462 13.199 Values were calculated considering the lifespan of the aircraft, the number of aircraft delivered in the reported year, and the average annual fuel consumption for each aircraft model. Intensity of direct emissions (Scope 1) 15.585.195 18.129.867 15.497 15.568 Total direct GHG emissions (tCO2e) Annual revenue (USD million) Total 13.940 15.618.906 18.172.408 Emissions per annual revenue (tCO2e/USD million) Data coverage 2021 44.787 4.197 10,67 93% Scope 3 coverage was significantly expanded in 2022: (i) Data coverage was maintained for the categories Purchased Goods and Services, Em- ployee Commuting (Home-Work), Operational Waste Generated, Upstream Transportation and Distribution, and Business Travel, considering only the Brazilian units. (ii) The category of emissions associated with the use of fuels and energy, not included in scopes 1 and 2, was included in all operational units considered in the inventory. This inclusion considered emission factors available in the lite- rature regarding the production processes of the energy consumed by the company. (iii) We likewise included Scope 3 emissions associated with the use of the product sold for commercial and executive aircraft. For accou- nting purposes, we considered the Technical Guide for Calculating Scope 3 Emissions - cate- gory 11 (GHG Protocol, 2022). We also calculated emissions from the product use phase, resulting from the consumption of aviation kerosene. The Intensity of indirect emissions (Scope 2) Total indirect GHG emissions (tCO2e) Annual revenue (USD million) Emissions per annual revenue (tCO2e/USD million) Data coverage 2021 30.367 4.197 7,2 93% The number of delivered aircraft was taken from Embraer’s financial report. Other information was estimated considering internal and external data on aircraft performance. The calculation methodology, as well as the entire greenhouse gas emissions inventory, was validated by a thir- d-party following ISO 14.064 guidelines. 2022 41.599 4.500 9,24 93% 2022 17.885 4.500 3,9 93% (GRI 305-4) 2023 43.246 5.200 8,31 98% (GRI 305-4) 2023 17.425 5.200 3,35 98% 75 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY OTHER ATMOSPHERIC EMISSIONS Data coverage for emissions of ozone-depleting substances considers the same 18 units cove- red in the Greenhouse Gas Inventory in 2023. The values reported in 2023 for NOx, SOx, and other significant atmospheric emissions refer to the following production units: Botucatu, EDE, Eugênio de Melo, Gavião Peixoto, Ozires Silva, Taubaté, Melbourne, and OGMA. VOC and particulate matter emissions were higher in 2023, considering (i) the inclusion of the OGMA unit, which was not considered in 2022; (ii) increased production activities, es- pecially the increased operating hours of paint booths. NOx, SOx, and other significant atmospheric emissions (t) (GRI 305-7) Ozone-depleting substance emissions - ODS (t) (GRI 305-6) Gas 2021 2022* 2023 HCFC-22 0,08 0,06 0,09 Gas NOx SOx Persistent Organic Pollutants (POP) Volatile Organic Compounds (VOC) Particulate Matter (PM) Total 2021 2022* 2023 HCFC-141B 0,03 0,02 0,02 57 4 0 89 55 205 53 1 0 78 37 170 42 2,3 0 202 60 306 HCFC-124 0 0 0 Total 0,11 0,08 0,11 Note: (i) Emissions in tons of CFC-11 equivalent calculated using the Ozone Depletion Potential (ODP), as adopted by the Montreal Protocol. Values obtained from: https://www.epa.gov/ozone-layer-protection 76 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY W A T E R A N D EFFLUENTS EFFLUENTS WATER At Embraer, environmental guidelines related to wastewater generation are: • Compliance with applicable legal, environmental, health, sa- fety, fire prevention, and emergency requirements related to the company’s business; • Pollution prevention and response, respect for biodiversity, and concern for climate change; • Promotion of technological development so that our products, processes, and equipment cause minimal impact. Data coverage for effluents is 87%, an increase of 1% compa- red to the previous year, and includes the units of Botucatu, EDE, Eugênio de Melo, Gavião Peixoto, Melbourne, Ozires Silva, Taubaté, and OGMA. In 2023, data coverage for water was 95%, an increase of 1% compared to 2022. The following Embraer units are considered for mat- ters related to water collection, recycling, and reuse: Belo Horizonte, Botucatu, Campinas, EDE, Eugênio de Melo, Fort Lauderdale, Gavião Peixoto, Jacksonville, Macon, Melbourne, Nashville, OGMA, Ozires Silva, São Paulo, Sorocaba, and Taubaté. Embraer employs several water conservation initiatives, including: • Reusing reverse osmosis reject in gas washers and reusing hygiene-purpose water to clean parts, both at F113, at the Ozires Silva Unit; • Reusing treated effluents by reverse osmosis in industrial processes at the Taubaté unit; • Using effluents from other organizations at the Melbourne unit for non-potable purposes; • Reusing treated effluents in cooling towers and gas washers at EDE; • Using rainwater in restrooms, gas washers, and floor washing in Botucatu. In units with implemented Environmental Management System, according to ISO 14001:2015, the environmental aspect of water consumption is accounted for when establishing environmental objectives, goals, and programs. 77 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Water withdrawal by source (m3) (GRI 303-3) 2023 saw a 4% in water consumption compa- red to 2022. Water withdrawal 2021 2022* 2023 In Brazil, the most representative units in terms of consumption are Ozires Silva in São José dos Campos, Gavião Peixoto, and Surface waters, including wetlands, rivers, lakes, and oceans 0 0 0 Botucatu, which represented about 58% of Groundwater 517.569 397.825 458.512 the company’s water consumption in 2023. The sites showed an increase in production operations, including those requiring water. Water consumption was 19% higher than in Water withdrawal by source Rainwater directly collected and stored by the organization 443 148 123 2022. Local utility companies supply or supply from other water utility companies 275.182 244.258 The OGMA unit in Portugal, which accounted 234.921 for about 13% of Embraer’s water consump- Effluent from other companies 81.156 88.925 66.550 Total water withdrawal by source 874.350 731.156 760.106 Data coverage 92% 94% 95% tion in 2023, showed a 21% less consumption due to a strategy of outsourcing water-con- suming processes. * In 2022, the Évora unit ceased to be part of the scope. Note: Water consumption from the local utility company, groundwater, and rainwater was lower in 2022, mainly due to the exclusion of Évora from the scope, as that unit ceased to be part of the Embraer group. 78 APPENDIX OF INDICATORS 2023 Water discharge (m3) Water discharge by destination TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Water discharge 2021 2022* Surface water Groundwater Seawater 84.306 71.107 0 0 0 0 (GRI 303-4) 2023 72.489 0 0 Water from third-parties (total) 293.699 299.694 242.942 Water from third parties sent for use by other organizations 0 0 0 Total water discharge Data coverage 378.005 370.800 315.431 86% 86% 87% * In 2022, the Évora unit ceased to be part of the scope. Note: Indicators (i) freshwater and (ii) other types of water will be monitored starting in the next reporting cycle. 79 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Total water discharge, separated by type (m3) (GRI 303-4) Recycled and reused water (m3) (CDP W1.2) DOMESTIC INDUSTRIAL 2021 258.251 119.754 2022* 271.755 99.045 2023 222.977 92.455 Water reused by the organization 2021 2022* 2023 Total quantity of reused water 38.082 16.761 17.228 Regarding domestic effluents, the units in Belo Horizonte, Bo- tucatu, Campinas, EDE, Fort Lauderdale, Jacksonville, Macon, Melbourne, Nashville, São Paulo, and Sorocaba are covered by the local utility company for domestic sewage treatment and discharge into the network. The amount of domestic effluents discharged is not accounted for in these units, and the treat- ment service is billed according to the volume of water provided by the same utility company. Embraer accounts for domestic effluents in units where inter- nal biological treatment is performed (Ozires Silva, Gavião Pei- xoto, Eugênio de Melo, Taubaté, and OGMA). In 2023, domestic effluents were 18% lower than in 2022. This is primarily due to the OGMA unit, which in 2022 represented about 46% of domestic effluent generation. Improvements were made to internal drainage systems in 2023, thus optimizing the redirection of rainwater. Embraer accounts for industrial effluents in units where inter- nal treatment in company-own effluent treatment plants is per- formed (Ozires Silva, Gavião Peixoto, Botucatu, EDE, Eugênio de Melo, Melbourne, Taubaté, and OGMA). The units of Macon, Jacksonville, Campinas, Sorocaba, Nashville, Fort Lauderdale, Belo Horizonte, and São Paulo do not generate industrial ef- fluents. The significant reduction starting in 2022 in the disposal of in- dustrial effluents is due to the removal of the Évora Unit from the scope. In 2023, the amount discharged was lower than the previous year due to the outsourcing of effluent-generating pro- cesses at the OGMA unit in Portugal. Recirculation index 4,4% 2,29% 2,3% The total volume of water reused by the organization increa- sed by 3% in 2023 compared to the previous year. From 2021 onwards, water use within the organization was lower due to the exclusion of the Évora Unit from the scope. In 2022, the Évora unit ceased to be part of the scope. * In 2022, the Évora unit ceased to be part of the scope. Note: Embraer accounts for domestic effluents in units that perform internal biological treatment. These are: Eugênio de Melo, Gavião Peixoto, Ozires Silva, Taubaté, and OGMA. Embraer accounts for industrial effluents in units that perform internal treatment in effluent treat- ment plants. These are: Botucatu, EDE, Eugênio de Melo, Gavião Peixoto, Taubaté, Melbourne, and OGMA. The units of Belo Horizonte, Campinas, São Paulo, Sorocaba, Fort Lauderdale, Jacksonville, Macon, and Nashville do not generate industrial effluents. 80 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY WASTE Total weight of waste, separated by disposal method (t) (GRI 306-3,4,5 e RT-AE-150a.1) Type Disposal 2021 2022 2023 The data coverage for the waste generation indicator is 94% and includes the following facilities: Botucatu, Campinas, EDE, Eugênio de Melo, Gavião Peixoto, Ozires Silva, Soroca- ba, Taubaté, Fort Lauderdale, Jacksonville, Macon, Melbourne, Nashville, and OGMA. The management of solid waste meets local requirements, and shipments are accompanied by transport manifests. Data is reported periodically so that waste management agencies (ge- nerator, transporter, temporary storage, receiver, etc.) and regu- latory environmental agencies, when applicable, can audit or reject inconsistent shipments, among other actions. At sites with implemented Environmental Management Sys- tems, objectives, goals, and programs are established to reduce solid waste generation and/or reducing associated risks. Wi- thin the Management System, audits are also planned to verify compliance with legal requirements and operational conditions of companies contracted to transport and/or treat waste. * Methods exclusive to Portugal units. Reformulation note (GRI 2-4): In 2021, it was mentioned that the coverage included Fort Lauderdale. However, this unit was only considered starting in 2022. Landfill Recycling, recovery, and reuse Composting Incineration or direct burning (with energy recovery) Incineration or direct burning (without energy recovery) Hazardous waste Blend formulation of waste (for coprocessing) Biological treatment Physicochemical treatment Valuation* Elimination* Others 6 367 0 0 5 1.230 0 1.357 186 2.037 0 12 120 0 0 0 1.188 0 1.391 345 1.553 6 16 317 0 0 1 1.548 0 1.919 472 1.297 4 Total hazardous waste generated 5.188 4.615 5.574 81 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Total weight of waste, separated by disposal method (t) (GRI 306-3,4,5 e RT-AE-150a.1) Percentage of recycled waste (GRI 306-3,4,5 e RT-AE-150a.1) Type Total hazardous waste generated 2021 2022 2023 2021 2022 2023 Landfill 1.062 1.832 2.269 Total waste generated (t) 15.913 17.547 22.489 Recycling, recovery, and reuse 6.715 7.846 Composting Incineration or direct burning (with energy recovery) 274 845 9.163 367 % of hazardous waste recycled 332 1.240 2.933 % of non-hazardous waste recycled 7,1 70 28 69 33 63 Incineration or direct burning (without energy recovery) 1 0 0 Non-hazardous waste Blend formulation of waste (for coprocessing) Biological treatment Physicochemical treatment Valuation* Elimination* Others 510 230 0 1.087 2 - 730 254 0 691 8 1 1.087 425 0 582 7 83 Total non-hazardous waste generated 10.725 12.935 16.916 Methods exclusive to Portugal units. Data coverage 93% 93% 94% Waste generation data by disposal type is re- ceived, consolidated, and critically analyzed monthly by Embraer’s EHS area. Embraer classifies hazardous and non-hazar- dous waste in accordance with local regula- tions and standards. The following are considered as part of waste recycling: waste that undergoes a process of altering its physical, physicochemical, or bio- logical properties in order to transform it into inputs or new products; reuse of solid waste without its biological, physical, or physicoche- mical transformation; and reuse including the transformation of waste into a blend for co- processing purposes. Thus, the disposal cate- gories included in this scope are (i) recycling, recovery, and reuse, (ii) composting, and (iii) formulation of waste blends for coprocessing. 82 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY NUMBER OF REPORTABLE SPILLS; RECOVERED QUANTITY (RT-AE-150a.2) There were no reportable spills in 2023, accor- ding to SASB indicator guidelines (RT-AE-150a.2). Events that occurred and did not fit within this indicator’s criteria were reported to regula- tory environmental agencies. Such events were promptly contained and managed in accordance with the applicable local regulations. Starting in 2022, the formulation of waste blends for coprocessing (specific to Brazil) was included in the scope of recycled waste, considering specific legal foundations (CONAMA Resolutions No. 313/2002 and No. 499/2020) that categorize coprocessing under reuse/recycling/recovery. Coprocessing is de- fined as a final destination involving the processing of solid waste as a substitute for raw materials and/or fuel in the clinker production kiln system in cement manufacturing. The methods referred to as Valuation and Elimination are determined by specific legislation and are exclu- sive to OGMA in Portugal. The disposal type “others” includes hazardous waste generated at the United States units, classified according to local regulations as “Universal Waste.” The category of incineration or direct burning of non- -hazardous waste mainly consists of wooden waste generated in operations. These residues are proces- sed and transformed into biomass for use as energy. 2023 had more waste generated overall. The main causes were: (i) an increase in industrial production; (ii) an increase in the number of employees working in person, which increased the generation of waste from restaurants, pantries, and offices; and (iii) ex- pansion of works, especially in Melbourne and Ga- vião Peixoto. 83 83 APPENDIX OF INDICATORS 2023 S O C I A L INDICATORS TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY H E A L T H , S A F E T Y , A N D WELL-BEING (GRI 403-1) (GRI 403-2) Embraer strives for excellence in its occu- pational health and safety performance. Our company has a set of preventive practices to protect employees from occupational risks and accidents, providing a safe and healthy environment with the best work conditions. Educational and preventive actions are conti- nuously offered and directed by the MASS po- licy (Environment, Health, and Safety at Work), with global reach. The Integrated Management System covers all employees and partner companies (service providers) for Environment, Health, and Safe- Learn more MASS Policy Compliance Policy ty at Work – SIGMASS. The team consists of assistants, nursing technicians, occupational safety technicians, occupational safety engi- neers, coordinators, and the Global Head of Environment, Health, and Safety. Furthermore, establishing in detail the pro- cess of identifying and managing hazards, risk assessment, and systematizing the disclosure of obligations and prohibitions that must be known and complied with regarding safety and health at work are part of Occupational Risk Management (GRO), which is integrated into SIGMASS. Occupational safety indicators are assessed monthly and supervised by the company’s lea- dership, both in visibility meetings with the bo- ards and in meetings of the Board of Directors. The management model adopted in the Em- braer Business Excellence Program—P3E uses the SQDC concept (Safety, Quality, De- livery, and Cost), aiming to standardize and optimize our company’s operational and cost indicators. In addition to business excellence criteria, Embraer maintained the internatio- nal certifications ISO 14001 and ISO 45001 in 2023, ensuring the implementation of all tools provided in this requirement. This means that these certifications cover 82+% of Embraer’s operations. Employees and contractors can report dan- gers and hazardous situations through the SIGMASS channel. Communication in this channel is anonymous and founded upon Em- braer’s Compliance policy. 85 85 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Work-related injuries (GRI 403-9) Work-related injuries - Employees Unit 2021 2022 2023 Work-related injuries - Contractors Unit 2021 2022 2023 Total number of fatalities Fatality rate Total number of work accidents with lost-workday (excluding fatalities) The rate of accidents with lost-workday (excluding fatalities) Total number of mandatory reporting work accidents Mandatory reporting work accident rate N. i N. i N. i 0 0 13 0,41 13 0,41 0 0 23 0,71* 23 0,71* 0 0 25 0,69 25 0,69 Total number of fatalities Fatality rate Total number of work accidents with lost-workday (excluding fatalities) The rate of accidents with lost-workday (excluding fatalities) Total number of mandatory reporting work accidents Mandatory reporting work accident rate N. i N. i N. i - 0 5 0 0 8 * 0 0 6 0,34 0,64* 0,18 - - - - - - The rate of accidents with lost-workday by countries - Employees Unit 2021 2022 2023 The rate of accidents with lost-workday by countries - Contractors Unit 2021 2022 2023 Brazil United States Portugal Other countries Total i i i i i 0,09 0,80 0 0 0,16* 3,61* 1,94* 0 0,13 Brazil 2,2 United States 3,81 Portugal 0 Other countries 0,41 5,71 6,14 Total Note: Data were calculated according to Brazilian and OSHA regulatory standards and legislation in the countries where Embraer operates. Rates were calculated based on 1,000,000 hours worked. * Reframing note (GRI 2-4): Numbers reported in 2022 with asterisks have changed due to the reclassification of accidents in some countries and changes in HHT (Man Hour Worked) i i i i i 0,27 0,07 0 0 0,73 1,53 0 0 0,41 2,88 0 0 0,34 2,72 3,29 86 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY OCCUPATIONAL HEALTH AND SAFETY PROGRAMS (GRI 403-1, 403-2, 403-4, 403-7, 403-8, 403-9, 403-10) Embraer’s Occupational Health Program aims to provide occu- pational medical services at the company’s facilities and ensure work environment conditions are monitored, promoting both oc- cupational and clinical health and disease prevention. All employees are required to undergo periodic occupational exams, which are conducted on-site or at Embraer-accredited clinics. Additionally, the occupational physician must visit va- rious areas of the company without prior notice and together with the occupational engineering team to inspect employees’ working conditions. The company also has a process for hazard and risk assessment, which aims to prevent and mitigate impacts on employees’ health and safety. Embraer’s HSE team carries out this work. The participation of employees and non-employed workers is essential to build a safe environment for everyone. Employees are responsible for consulting on and understanding the hazards and control measures of the processes they work on, as well as requesting updates via SIGMASS whenever necessary. Embraer also has a formal health and safety committee made up of employees, the CIPA - Internal Accident Prevention Commis- sion, governed by Regulatory Standard NR5. 87 87 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY HEALTH AND WELL-BEING PROGRAM Promoting Health and Well-being (GRI 403-6) Number of participating employees Actions 2021 2022 2023 WELL-BEING WITH YOURSELF WELL-BEING WITH PHYSICAL ACTIVITY The Company provides a multidisciplinary team composed of nutritionists and psychologists to assist employees in achieving balance and quality of life. The purpose is to help employees who are overweight or obese or have chronic diseases such as hypertension, high cholesterol, dyslipidemia, diabetes, and heart disease and wish to lead healthier lives. The 30-minute gym is a method implemented by the Feeling Good Program in partnership with the Embraer Sports Association (ADCE) since 2011, which mainly aims for overall physical conditioning, working on cardiovascular capacity and muscular endurance simultaneously. The circuit training, whose duration gives the program its namesake: thirty minutes, consists of an average of sixteen exercises called stations on weightlifting machines and gym equipment (Swiss ball, dumbbells, trampoline, etc.); each station has a set time limit of fifty s, and a voice command determines the change of station. Feeling Good without Smoking Feeling Good without Drugs Feeling Good with Family Feeling Good with Yourself Feeling Good with Physical Activity Feeling Good Overall 3 26 40 211 348 160 18 23 125 556 1.011* 467 12 10 290 368 5.166 336 Vaccination Program* 24.682 27.000 23.241 Reintegration Program Embraer in Motion Prevention Livestreams 124 4.800 2.032 - 2.762 1.028 - 1.168 61 Notes: (i) The programs are offered to Brazilian employees, (ii) * This number inclu- des employees and their dependents. 88 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY WELL-BEING WITHOUT SMOKING WELL-BEING WITHOUT DRUGS WELL-BEING WITH FAMILY To support employees and their immediate dependents who want to quit smoking, our company offers a treatment that helps with quitting, combining medication (nicotine replacement to minimize physical symptoms of withdrawal) and psychological support (to strengthen the emotional structure and encourage changes in habits and behaviors associated with smoking). The treatment and medications are paid in full by the company. A group of qualified professionals, with the support of specialized institutions working on prevention and recovery from chemical dependency, is responsible for the treatment, which can be: Outpatient: with individual therapy with specialists and weekly meetings in the Embraer-exclusive Support Group; Inpatient: depending on the stage of the illness and if hospitalization is required, specialized clinics are available with a hospitalization period of thirty and forty-five days; Treatment for direct dependents: generally, the family of a chemically dependent individual requires support to better deal with addiction. Treatment is also offered to family members through support groups and one-on-one therapy. The Program covers 100% of the expenses of initial hospitalization and outpatient treatment. Designed to assist employees who are expecting children, our company has developed two special courses, namely: the prenatal course, held semi-annually online for soon- to-be mothers and fathers, and the paternity leave course, exclusive for employees who are soon-to-be fathers. Embraer grants maternity leave of one hundred and eighty days and paternity leave of twenty days. Additionally, the company also offers childcare assistance for employees during the first eighteen months after returning from maternity leave. 89 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY WELL-BEING Designed to take care of both the mind and body, this project offers free psychological counseling with immediate support. Digital Health: A mobile service where individuals assisted by the Bradesco Health plan have access to medical care through an app with registered professionals from across Brazil. Mindfulness and Self-care: Take time out of one’s day to take care of oneself. Fifteen minutes are entirely dedicated to self-care, with different types of activities. On-site medical and occupational care: Those who work 100% on-site or in a hybrid model can take advantage of this benefit. Occupational and Assistance Care is a medical clinic with a health team on standby to support employees in case of complaints, questions, or medical referrals. Kindness Livestreams: Kindness Livestreams are part of the livestream track at EMpower, focusing on topics related to nutrition, sleep quality, integrative medicine, and much more. Multidisciplinary Well-being Team: A team ready to listen and provide support to employees. Embraer provides a team that includes exclusive well-being support, a health care team, and assistance from medical and dental plan operators to provide the necessary support in day-to-day life. 24-hour standby: A phone line created to assist employees and direct dependents remotely and help them at any time in emergencies such as: • Funeral assistance to employees and direct dependents; • Work, traffic, and other accidents; • Authorization for emergency healthcare or dental care; • Emergency assistance to employees on a mission. 90 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY VACCINE BENEFIT DENTAL PLAN HEALTH PLAN Vaccines are effective and prevent and reduce the spread of diseases. To promote the health of our employees and their immediate dependents, Embraer offers the Vaccine Bene- fit, through which we contribute to 80% of the cost of some vaccines not offered by the government, as well as the annual flu vaccination campaign, which helped around 23,000 people in 2023. Embraer offers four types of dental plans for all employees and their legal dependents, with the basic plan (mandatory coverage) being 100% paid for by our company. Currently, this program covers 31,500 through dental plans. Embraer offers Regional and National health plans, with accommodation inwards and private rooms, for all employees and their legal dependents. The company covers 70% to 100% of monthly fees. In 2022, the plan covered 35,000 people. PHARMACY BENEFIT LIFE INSURANCE ON-SITE LABORATORY This benefit consists of predefined financial participation by Embraer in the purchases of prescription medications by employees and their direct dependents. Our company offers Collective Life Insurance to our employees and interns. With the aim of improving employees’ daily lives and encouraging them to keep up with their medical exams, the company offers the services of Laboratório Clínico Sabin at the São José dos Campos unit. 91 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY T A L E N T MANAGEMENT Average hours of training per employee by functional category and gender Men Women Men Women Men Women Total training hours 202.367 21.454 263.727 34.699 355.700 60.129 2021 2022 2023 Employee Training and Development (GRI 404-1) Operational Total employees in the category 5.304 499 5.908 719 6.805 1.007 2021 2022 2023 Average hours of training per employee by functional category and gender Men Women Men Women Men Women Total training hours 6.045 2.958 7.191 4.468 8.957 6.409 Administrative Total employees in the category Hours per employee in the category 325 18,6 226 13,1 335 21,5 228 19,6 335 26,7 230 27,9 Hours per employee in the category Total training hours Pilot Total employees in the category Hours per employee in the category 38,2 316 78 4 43 48 1 48 44,6 48,3 52,3 59,7 572 84 6,8 0 0 0 1.320 99 63 2 13,3 31,6 Total training hours 60.814 53.281 51.223 43.581 44.657 31,279 Total training hours 60.349 12.273 87.790 20.560 166.207 40.954 Professional Total employees in the category 1.391 1.056 1.588 1.169 1.691 1,244 Engineering Total employees in the category Hours per employee in the category 2.930 20,6 511 24 3.026 28,7 553 37,2 3196 617 52 66,4 Total training hours 10.398 5.877 12.599 11.102 16.160 11.415 Internship Total employees in the category Hours per employee in the category 387 26,9 253 310 23,2 40,6 236 47 357 45,3 250 45,7 Total training hours 29.577 4.565 24.522 5.332 22.154 5.397 Hours per employee in the category 43,7 50,5 32,3 37,3 26,4 25,1 Total training hours 68.899 7.090 87.886 8.996 116.452 13.475 Technical Total employees in the category 1.949 222 1.932 194 2.094 240 Hours per employee in the category 35,4 31,9 45,5 46,4 55,6 56,1 Total training hours 438.765 107.546 535.510 128.738 731.608 169.121 Leadership Total employees in the category Hours per employee in the category 815 36,3 120 38 797 30,8 148 36 827 164 Total Total employees in the category 13.179 2.888 14.016 3.247 15.404 3.754 26,8 32,9 Hours per employee in the category 33,3 37,2 38,2 39,6 47.5 45.1 92 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Investment in employee training and development (GRI 404-1) Investment in training and development 2021 2022 2023 Average hours per FTE of training and development Average expenditure per FTE on training and development (USD) 34 48 38 78 47 98 93 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY P E O P L E CYCLE Since 2020, Embraer has been working with the concept of the People Cycle. It encom- passes creating and monitoring individual priorities, performance evaluation, in-depth discussions with leadership regarding em- ployee performance and development, quality feedback between leaders and team members, and individual performance tracking. The Performance Evaluation process focuses on a culture of high performance and development, providing space for structured and evolutionary feedback and recognizing employees’ contributions and behaviors from the previous year. The process consists of the following stages: Performance Matrix: evaluates employees’ results and behaviors, positioning them on the performance matrix. People Review a meeting among leaders for in- -depth discussions on team assessments. ment of the process, providing feedback to the evaluated employee and informing their final position on the performance matrix. POTENTIAL ASSESSMENT AND SUCCESSION PLAN Before evaluations take place, leaders and employees are trained in the process stages to ensure everyone understands the matrix and knows how they will be evaluated. One of the major results of the Performance Evaluation process is the creation of Individual Development Plans for employees. Therefore, Embraer heavily invests in education, training, and development, always focusing on qualifi- cation and preparation to take on the challen- ges inherent to the company’s business and strategy. Throughout the year, there are several schedu- led conversations divided into: MID-YEAR TALK Held in June between leaders and team mem- bers, it tracks progress on Individual Results and Behaviors for the year. The Potential Assessment is a crucial stage of the people cycle, acting as a beacon to illuminate strategic decisions about employees. It’s a futu- re-focused practice that identifies and develops leaders with high potential to fill key roles aligned with the organization’s strategy. YEAR-END TALK Held between December 2023 and January 2024 between leaders and team members, it reviews Individual Results and Behaviors for the year, planning actions for the following year: • Sharing feedback from peers, clients, and partners throughout the year. • Alignment for the upcoming evaluation. • Discussing the past and planning for the • Focus on career actions and development. next year. • Reviewing the individual priorities of the em- Performance Conversation: the richest mo- ployee. 94 94 APPENDIX OF INDICATORS 2023 GRI 404-2, 404-3 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY C O R P O R A T E PROGRAMS (GRI 404-2) CULTURE FLIGHT The Culture Flight was a solution developed to leverage the evolution of cultural concepts alongside diversity themes for all employees. In 2023, over 16,000 employees worldwide were trained throu- gh the Culture Flight. It was a unique experience in gamified training models and we- binars conducted by 150 facilitators (leaders, HR teams, and other employees engaged with Embraer’s culture). It provided an opportunity to reinforce cultural pillars and encourage re- flections on the importance of diversity for the company and its people. Three hundred four classes were conducted, totaling over 760 hours of learning. Facilitators conducted 91 online classes and 213 in-person classes worldwide. This led to greater openness and acceptance of these themes, making people feel comfortable being themselves and expres- sing their ideas and opinions. Thus, it facilitated a more fertile ground for diversity, innovation, and, ultimately, better outco- mes for the company. SOFT SKILLS PROGRAMS Embraer has a Soft Skills Program focused on developing and enhancing the interpersonal and behavioral skills of employe- es, aligned with the company’s culture and strategy. By investing in soft skills, Embraer aims to improve team ef- fectiveness, employee satisfaction, and overall quality of the work environment, thus contributing to team engagement and commitment. This program involves specialized partner companies in Soft Skills topics such as Crescimentum, Eight Diálogos Transfor- madores, HSM, Intelligencia, LEAN, Movidaria, Rise, and SOAP. The topics offered are diverse, including Emotional Intelligen- ce, Creative Thinking, Decision-Making, the Future of Work, Career Management, Financial Planning, Time Management, Trust, Negotiation, Influence without Authority, Stakeholder Management, Customer Experience, Presentation Techniques, Agile Methodologies, Teamwork, Problem-Solving, Feedback, and Communication. In 2023, 140 classes were conducted, with 4,185 registrations and a 90.3% participation rate. 23,371 hours of training were conducted, with an estimated investment of over BRL 1.3 million. 95 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY KNOWLEDGE PARTNERS PROGRAM The program boasts over 1,200 Knowledge Partners, responsible for 89% of the classes held at Embraer. Comprising professionals who believe in the power of learning, they disseminate knowle- dge and contribute to the innovation and sa- fety of Embraer’s people and products. This group plays diverse roles in knowledge ma- nagement, serving as training instructors, te- chnical leads developing and updating cou- rses, and content curators in the academies. To ensure the partners remain updated and engaged, several initiatives were undertaken in 2023: 1 - Engagement and Development: The launch of the Global Academy of Knowledge Partners, offering Soft Skills and Hard Skills content tailored to the partners’ roles. It aligns with Embraer’s Culture and Di- versity Pillars. 2 - Recognition Event: Over 800 people participated in a hybrid event featuring an exclusive lecture on Huma- nized Communication and Diversity. 3 - Partnership with Leadership: Conducting diagnostics with leadership to understand the program’s benefits and opportunities, involving leaders in identifying potential partners, and supporting the release of training. 4 - Content Management: Introduction of the Content Laboratory, a virtual environment enabling interactions between technical leads and instructors. It provides real-time visual management of training material updates, along with program governance, enabling monitoring of ins- tructor performance and content quality. EDUCATION INCENTIVE PROGRAM Launched in 2022, the program aims to pro- mote employee recognition and development through subsidies for postgraduate, MBA, master’s, doctorate, and post-doctorate cou- rses, both in Brazil and abroad, according to the business strategy. Applicable to all em- ployees with indefinite contracts across all Embraer units, in 2023, the program served 60 employees with a total investment of approxi- mately BRL 225,000. 96 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY LANGUAGE PROGRAM As a global company, Embraer offers a lan- guage program to accelerate its employees’ le- arning, invest in talent retention, and provide opportunities for employees who are assets to the company and contribute to inclusivity. This ensures that our people are increasingly ca- pable of contributing to international actions and projects with confidence and autonomy. In 2023, with classes and content maintained online (synchronous and asynchronous), there were 523 active students, 103 classes, and an investment of approximately BRL 3.6 million. INDIVIDUALIZED DEVELOPMENT PROGRAM WITH EXTERNAL PARTNERSHIP A solution to develop employees in new and specific market themes through external courses. Employees participate in “open” classes at national and international external institutions. The training area analyzes requested topi- cs, and when they become recurrent or add value to EMpower’s approved course portfo- lio, they are internalized. In 2023, it covered approximately 800 em- ployees across more than 350 institutions. INTERNSHIP DEVELOPMENT PROGRAM This program is designed to mentor and de- velop interns throughout their journey at Embraer. It encompasses all business units, providing greater exposure and expanding knowledge acquisition. Training is offered on topics connected to the company’s cultural pillars, soft skills, and Em- braer’s business vision. The aim is to retain and prepare future professionals not only te- chnically but also behaviorally. In 2023, there were 14 hours of training across 10 classes. In 2023, there were 14 hours of training across 10 classes. Interns undertake projects aligned with business needs, all of which undergo evaluation by leadership and teams. Seventy-nine projects were evaluated in 2023. 97 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ACADEMIES LEADERSHIP ACADEMY GRI 404; 3-3 The academies are designed to accelerate and enable both technical and behavioral skills in a customized manner for em- ployees, aiming to achieve the area’s strategy and ensure busi- ness competitiveness in the market. They are crafted by the people development department in conjunction with business experts and feature innovative solu- tions aligned with trends. They offer the best educational expe- riences while reinforcing the culture of learning. Considering that Embraer has a very clear and consistent strategic plan, leadership development is essential to create and execute this strategy. The Leadership Academy is built on pillars connected to Embraer’s strategy, focusing on Business, Culture, Diversity, People Cycle, and Mental Health. In 2023, there were over 26,000 hours of training for leaders, averaging 28 hours per leader, with a reach rate of 99.7% of the workforce and an investment exceeding BRL 1.2 million. The Leadership Academy also incorporates initiatives derived from the results of the GPTW engagement survey conducted in 2022, always connected to Embraer’s strategy. Among these initiatives, the Mental Health & Psychological Safety Training stands out. It is offered to the entire leadership in partnership with the Well-being department. This program reached 230 leaders with a 10-hour workload per class and aims to continue its programming in 2024. The development journey of the first leadership tier was also a focus in 2023, revisited to bring more agility, information, and support to new leaders. Another important theme addressed in 2023 is innovation. This theme serves as a basis for understanding the role of leadership in creating an environment conducive to innovation and exploring the IVR indicator. Additionally, the schedule was consistently maintained with development actions related to the People Cycle pillar, such as the Leader’s Laboratory addressing Feedback, Webinars on Career Conversations, and Training on Performance and Succession processes. The Leadership Academy caters to the specific demands of the areas and their businesses, primarily supporting team-building exercises and summits aimed at disseminating culture pillars and behaviors. The Successor and Potential Leader Development Plan is another focus area of the Leadership Academy, supporting development actions such as coaching and mentoring. 98 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ENGINEERING ACADEMY GRI 404; 3-3 In 2023, various learning solutions were im- plemented to meet both current and future engineering needs, focusing on strengthening aeronautical culture, accelerating employees’ soft and hard skills, establishing a systemic view of product development, maintaining knowledge management, and engaging peo- ple. The academic structure prioritized two pillars, soft skills and hard skills, which unfolded into various development paths and specific en- gineering programs, granting users autonomy and seamlessness in accessing synchronous and asynchronous content. All learning solu- tions were created with different educational methodologies, devised and delivered by 279 internal instructors, in addition to external ones. The learning culture was reinforced with the launch of the Engineering Academy page, making the dissemination of learning journeys even more accessible and fluid. Some engine- ering development initiatives include: 1 - ENGINEERING TECHNICAL MENTORSHIP PROGRAM Proving the importance of knowledge exchan- ge between generations for career maturity and readiness, another Technical Mentorship Program class concluded with 149 pupils and 99 mentors dedicating hours to studying 103 technical topics, directly impacting knowledge management. duct development: Engineering Strategy, Qua- lity, VSS, as well as EVE-subsidized areas. This encompasses over 45,000 hours of training conducted at different Embraer sites. The pro- gram’s training experience is evidenced by par- ticipants’ feedback, with an NPS (Net Promoter Score) of Excellence, an average instructor ra- ting of 9.8, and a content quality and applica- bility rating of 9.7. 2 - ENGINEERING KNOWLEDGE ACCELE- RATION PROGRAM (ACE) The ACE aims to train employees with up to 12 months at the company and new hires in 41 courses split into Culture, Aeronautics & Busi- ness, Engineering Excellence Manual, Integra- ted Product Development (IPD), Technical Con- cepts, Engineering Procedures and Tools, and Soft Skills pillars. Embraer’s expert multipliers deliver 100% of the training over 14 days. The program has already graduated 14 clas- ses and 515 people, with 99% of them in 2023, benefiting key areas impacting integrated pro- 3 - ELECTRONIC WARFARE SPECIALIZA- TION PROGRAM To meet the high demand for Electronic War- fare knowledge, focusing on various requests for knowledge expansion, especially in the Defense and security area, an investment of approximately BRL 250,000 was made in 2023 as an initiative to create the first class of the Electronic Warfare Extension Program (PEGE), aiming to train and develop qualified human resources. The program was conducted in partnership with the ITA (Aeronautics Institute of Techno- logy), offering an Electronic Warfare extension title to course participants. The theoretical classes were taught by both internal and exter- nal instructors, all with master’s or doctorate degrees, while all practical lessons were con- ducted by ITA professors and at the Electronic Warfare Laboratory (LabGE). In this first class, from March to November 2023, 24 employees were trained. Throughout the course, 16 situations were reported in whi- ch students had already applied their newly acquired knowledge to improve quality or ex- pand the portfolio of services and products offered by Embraer. In total, 24 employees were trained, with an average workload of 230 hours per participant and a total of 5,520 hours in the course. The NPS (Net Promoter Score) for Ex- cellence averaged 9.9 in instructor evaluations and 9.8 in content quality and applicability. 99 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY 4- SAFETY SPECIALIZATION PROGRAM - PE-SAFETY 5- SOFT SKILLS FOCUSED ON ENGINEE- RING Safety and Quality are inherent to Embraer’s essence. To that end, the company constantly seeks to expand the safety culture base within the organization, which is essential for preser- ving the integrity and continuously improving safety levels. In this regard, for over two deca- des, Embraer has supported the Safety Specia- lization Program: PE-Safety, whose objective is to train professionals from various company technologies to understand, apply, and promo- te fundamental concepts of Operational Safety within their daily activities. The classes are taught by internal instructors, with only one discipline conducted by an ex- ternal consultancy. Its last edition, number 16, graduated 30 professionals from January to October 2023. Fifty courses were taught, with a total workload of over 230 hours, allowing, in this context, the availability of 235 open slots for non-regular students who had the opportu- nity to attend classes of their interest. thinking, In 2023, the Soft Skills pillar prioritized the following themes: decision-making and cre- feedback and non-violent ative communication, the future of work, career management, and assertive communication. With a structured learning strategy, including synchronous courses conducted by external and internal instructors, conversations about applying Soft Skills in daily life, book learning development, and asynchronous training on the LinkedIn learning platform. Over 20 synchronous courses were conducted, with 790 registrations, totaling approximately 5,800 hours of training. This initiative highligh- ted actions like the “soft skills lovers,” who vo- lunteered to participate in this pillar of building educational strategies. 6- PRODUCT DEVELOPMENT FOCUS Throughout 2023, the Product Development pillar delivered nine development tracks spe- cific to technologies: Aeronautics, Structure, Materials, EMIT, Product Integrity, Software and Systems Integration, and a general product development track, concentrating on recom- mended or mandatory cross-cutting themes for all engineering employees, such as Innova- tion and Technology, Product Cost, Aeronauti- cal Culture, Product Configuration, Business, and Management, Technical Concepts, among others. In total, there are more than 3,000 le- arning solutions conceived in video lectures, articles, online and face-to-face courses, and podcasts. The structuring of tracks and knowledge ma- nagement movement enabled better integra- tion of engineering technologies, as people can access content from other technologies, evol- ving the view of the impact on the final product. 100 100 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY MY TECH ACADEMY The My Tech Academy aims to empower Em- braer employees with cutting-edge techno- logies to accelerate knowledge and agility in new solutions. In 2023, the goal was to shape transformation agents across various areas of Embraer. The numbers reflect the academy’s success: 59 topics were covered, with 81 sessions in- volving over 17,000 participants in training and events, directly impacting about 5,000 employees. CULTURE AND DIVERSITY ACADEMY Focused on strengthening Embraer’s diversi- ty, equity, and inclusion culture, live develop- ment sessions were conducted to contribute to sensitization, learning, and solidification of themes related to underrepresented groups: women, the LGBTQIA+ community, people with disabilities, and Black and Brown indivi- duals. LIBRAS COURSE Libras Workshop (Synchronous - real-time) In November 2023, the pilot class of the Li- bras (Brazilian Sign Language) Workshop was conducted for the human resources team, ai- ming to evaluate the content for inclusion in the Diversity Academy’s portfolio from 2024 onwards. The workshop aims to sensitize employees to key information regarding deaf individu- als and their social, cultural, and linguistic organization, understanding and producing signs, legislation, personal identification and greetings, and the presentation of the manual alphabet and numerals. Introduction to Libras Course (Online and Asynchronous) In 2023, an asynchronous Introduction to Li- bras course was developed. The material is structured into five modules: Introduction to Libras, Speaking Hands and Listening Eyes, Alphabet in Numbers, and Embraer Business Daily Routine. It was developed by a multi- disciplinary team committed to providing an increasingly diverse and inclusive work envi- ronment. Through this course, accessibility was possi- ble, which strengthened the capacity for lo- gical reasoning and expression for those who use it. It directly and indirectly enhances the communication skills of the employees, ena- bling them to identify, interpret, and commu- nicate through basic signs. The material, entirely developed with internal resources (from scripting to recording and editing classes), arose from a business need to meet the demands of other areas within the company. 101 101 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY MANUFACTURING ENGINEERING ACADEMY OPERATIONS ACADEMY Launched in August 2023, it is a set of programs covering the qualification and training processes of Manufacturing Engi- neering professionals. The aim is to develop teams for current and future challenges, increase readiness, and define strategic actions to eliminate potential gaps. In 2023, 41 training tracks were created for six technologies. Programs aimed at the company’s productive areas responsible for manufacturing and assembling aircraft. The goal is to pro- vide professionals with the qualifications and preparation to work safely and with quality. In 2023, the Qualification Program had about 235,000 participants in courses, totaling approxi- mately 450,000 training hours. One notable program within this academy is the Manufactu- ring Engineering Training Program (PCEM), created to diag- nose and develop current and future skills required by busi- nesses to promote knowledge management and the necessary readiness of people for the evolution of manufacturing engi- neering by 2025. Approximately 140 classes were held in 2023 with over 5,000 participants, developing both soft and hard skills. To form the skills needed for digital transformation, trai- ning tracks were created in 2023 focused on Future Aviation and Industry 4.0. Training will begin in the first quarter of 2024. Within the Academy, the following programs stand out: Qualification Acceleration Program: expanded in 2023 to the Ozires Silva, Eugênio de Melo, Taubaté, and Embraer Equi- pamentos units to optimize theoretical qualification for opera- tional positions. As a result, over 1,500 new professionals were qualified. Production Monitor Development Program: A soft skills track was created to develop behavioral, social, and emotional skills in these professionals, who work directly on the front line with operational teams, are technical references, and are one of the main sources of productive knowledge. 102 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY SUPPLY CHAIN ACADEMY LEAN ACADEMY BUSINESS UNIT ACADEMY Launched in 2021, it aimed to train concepts and best practices in supply chain management and shape attitudes to promote necessary process transformations and continuous evolution toward excellence. In 2023, training focused on supply chain management was strengthened, a topic of utmost importance to the business. Soft skills such as advanced negotiation with real cases from the area and elicitation techniques were also addressed. As a result, there were approximately 150 classes, with over 2,800 participants and about 240 hours of learning. One of the pioneering and cross-academies for all areas of the company. Its goal is to promote organizational learning and disseminate the LEAN philosophy that is part of Embraer’s strategic plan culture. In 2023, the LEAN leadership track was created. The Academy conducted over 41 courses, approximately 395 classes, and over 900 hours of training, involving about 20,300 participants. Additionally, Embraer has Dojo rooms, which are LEAN practical learning rooms, and in 2023, 184 classes were held with over 1,700 participants involving all Embraer sites. With the aim of enhancing employees’ knowledge, in 2023, the Materials Academy (VSS) was committed to training its employe- es, resulting in 50 hours of training, as well as live sessions and conversation circles, with 90% team participation, involving tech- nical and behavioral competence topics globally. The content was designed based on alignment between HR and focal points that curated content and identified topics for the areas. Additionally, internal instructors sought to speak on technical topics with other employees who wanted to understand the subjects more deeply. Throughout 2023, over 10 Team Buildings (internal and external) were held in the business unit areas to enhance integration, con- nection, and trust between leaders and team members. PROCUREMENT ACADEMY TECHNICAL MENTORING PROGRAM It aims to ensure the qualification of Procurement professionals based on the competencies required for each role to meet the needs of the business and Embraer’s strategy. The Academy has 27 development themes mapped in its tracks, with appro- ximately 1,300 participants and over 200 hours of training. Biannually, the team’s skills are mapped (Skill Matrix) to iden- tify people’s readiness in selected competencies for the area’s challenges. In 2023, conversation circles were started to boost and share theory in practice, and 31 training sessions based on business fronts were developed. These trainings will begin to be applied to work teams in 2024. This program aims to contribute to knowledge management through the sharing of tacit knowledge, impacting readiness, technical expertise in the area, and people’s careers. In 2023, the first cycle was held involving the Procurement, Supply Chain, Manufacturing Engineering, and My Tech academies. The program is available to all academies and can be applied as needed by each business. 103 APPENDIX OF INDICATORS 2023 L E A R N I N G PLATFORMS TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY EMPOWER LEARNING LINKEDIN LEARNING In 2023, EMpower Learning was developed, an internally built platform designed to host various content organized into know- ledge pathways, guiding individuals in skill development (Soft Skills, Hard Skills, and Business) tailored to the needs of the Academies. The initiative stemmed from the need to migrate materials pre- viously managed by a vendor, strategically transitioning them in- ternally in 2023 to ensure better governance and use of financial resources. The outcome was enhanced sustainability for knowledge mana- gement, with over 6,000 pieces of content now available. These are structured into 84 knowledge pathways, featuring curated market materials and Embraer’s intellectual property. Transpa- rent management ensures the improvement and development of competencies for those part of strategic groups. Enabling lear- ning from anywhere, at any time, and in any way desired, this platform emerged to streamline processes and drive results. In 2023, LinkedIn Learning became part of the Learning Hub, aiming to encourage and empower individuals to pursue self- -development. Employees can set their learning objectives aligned with their roles and aspirations, enabling them to consume various con- tent at their own pace. The tool features an artificial intelligen- ce system that selects and recommends content for each indi- vidual based on preferences and market trends. Over 21,000 pieces of content (updated weekly) are available in more than 13 languages, including accessibility features. Many courses also offer certification. Licenses are provided through the “LEARNING PASS” model, where employees have the autonomy to request their license according to their learning focus and career stage. All leaders received licenses, promoting self-development and providing an opportunity to familiarize themselves with the tool and disseminate it among their teams. The launch was global and involved various employees and le- aders. Currently, there are over 4,200 active users on the pla- tform, with 5,000 hours of learning across more than 3,500 courses. 104 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY FUTURE OF WORK P R O J E C T Embraer’s work models currently favor the at- traction of talent, bringing profiles of profes- sionals to the organization that were previou- sly unreachable. It did not offer fully remote options until 2020. With broader and more flexible models, the- re has been an increase in diversity and re- presentation from various regions within the company’s operating countries. Professionals hired under the fully remote model testify that they have fulfilled the dream of working at Embraer, something they had never thought possible. In 2023, a new wave of studies was conduc- ted to revisit existing models with the aim of analyzing the current and future scenarios of the company, as well as market trends, to en- sure competitiveness and uphold established principles on this subject within the organiza- tion. Additionally, changes were made to the subsidy offered during the pandemic through the multi-benefit card to support employees working in hybrid and fully remote models. WORK MODELS In 2023, Embraer maintained its three work models initiated in 2022: ON-SITE: Five days on-site (production areas and production support) HYBRID: On-site + Remote (up to two days on-site ) 100% REMOTE: Five days remote Based on these three models, Facilities services and subsidies are provided to employees. 105 105 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY New Employee Hires (GRI 401-1) New Hires Total hires Percentage of hires out of total employees Unit N. % 2021 1.909 12,7 3.371 19,5 3.581 18.7 Brazil 2022 2023 Number and percentage of hires by gender Unit Number and percentage of hires by gender Unit 2022 2023 Women Men N. % N. % 858 25,5 2.492 73,9 938 26 2.642 74 United States Portugal Other countries Number and percentage of hires by age group Unit 2022 2023 < 30 years old 30–50 years old > 50 years N. % N. % N. % 1.598 47,4 1.567 46,5 206 6,1 1.770 49 1.657 46 154 4 Hires - STEM* Unit 2022 2023 Women Men N. % N. % 134 24 421 76 146 28 377 72 Revision (GRI 2-4): In the previous Annual Sustainability Report (2022), the following numbers were reported for STEM hires: women 199 (26%) and men 561 (74%). The correct numbers, after review by the HR team, are provided in the table above. 106 2022 2.831 84 497 14,8 2 0,06 41 2023 3.084 86 442 12 7 0 48 N. % N. % N. % N. APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Employee Turnover (GRI 401-1) Turnover Unit 2021 2022 2023 Number and percentage of turnover by age group Unit 2022 2023 The total turnover of employees Percentage of turnover out of total employees Voluntary turnover of employees Percentage of voluntary turnover out of total employees N. % N. % - 1.347 1.295 < 30 years old 10,6 - 5,4 8,1 956 6,0 7,4 773 4,41 30-50 years old > 50 years old N. % N. % N. % 243 18 902 67 202 15 287 22 803 62 205 16 Number and percentage of turnover by gender Unit 2022 2023 Number and percentage of turnover by country Unit 2022 2023 Women Men N. % N. % 245 18,2 254 Brasil 19 United States 1.094 1.033 81,2 80 Portugal Other countries N. % N. % N. % N. 888 65,9 427 31,7 1 0,1 31 909 70 345 27 2 0 39 107 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Return to Work and Retention after Maternity/Paternity Leave Return to work and retention after maternity/paternity leave Unit 2022 2023 Return to work rate of employees who took maternity/paternity leave, by gender Women Men Total N. N. N. 3.011 13.706 16.717 3.285 Women 13.420 Men 16.705 Total (GRI 401-3) 2022 2023 95,6 96,7 96,4 97,3 96,7 96,8 % % % Total number of employees who took maternity/paternity leave by gender Unit 2022 2023 Total number of employees who returned to work after the end of maternity/paternity leave and remained employed twelve months after their return to work by gender Unit 2022 2023 Women Men Total N. N. N. 114 390 504 74 366 440 Women Men Total Total number of employees who returned to work after the end of maternity/paternity Unit 2022 2023 Retention rates of employees who took maternity/paternity leave by gender Women Men Total N. N. N. 109 377 489 72 354 Women Men 426 Total N. N. N. % % % 174 702 876 64 329 393 2022 2023 91,1 95,1 94,2 90,1 92,7 92,3 108 APPENDIX OF INDICATORS 2023 Employees Number of employees Number of permanent employees Number of temporary employees Number of employees without guaranteed working hours Number of full-time employees Number of part-time employees *Gender as specified by the employees themselves. Number of employees Number of permanent employees Number of temporary employees Number of employees without guaranteed working hours Number of full-time employees Number of part-time employees TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Female Male Other* Not disclosed Total (GRI 2-7) 3.754 3.396 358 0 3.450 304 15.404 14.895 509 0 14.973 431 21 21 0 0 21 0 0 0 0 0 0 0 Brazil United States Portugal Other countries 16.705 15.878 827 0 16.401 304 2121 2.118 3 0 2.121 0 22 16 6 0 22 0 331 300 31 0 331 0 19.179 18.312 867 0 18.444 735 Total 19.179 18.312 867 0 18.444 735 We consider all employees, including interns and apprentices hired directly by the company, when de- termining the number of employees. EMBRAER, ELEB, and EVE from all countries were considered. Data from affiliates ATECH, VISIONA, and OGMA were not con- sidered. For the number of temporary employees, only those hired for a fixed term, interns, and apprentices were considered. For the number of part-time employees, all employees with less than 8 hours of work per day were considered. In 2023, the company had 2,184 workers who were not employees but whose work was controlled by Embraer. The most common types of workers in this category are associated with cleaning and maintenance, restaurant services, property security, information technology ser- vices, logistics, and tool engineering. (GRI 2-8) 100% of employees are represented by an independent union or covered by collective bargaining agreements. (GRI 2-30) 109 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY BENEFITS (GRI 401-2) Embraer offers a comprehensive benefits package that covers 100% of its employees worldwide, with minor variations due to market practices and the local reality of the country or region where it operates. In Brazil, where more than 85% of its workforce is located, the benefits offered by the company include: Health Plan, Dental Plan, Life Insurance, Private Pension, Restaurants at operational units, Meal allowance, Food allowance, 180-day maternity leave and 20-day paternity leave, flexible working hours, alternative work models such as 100% remote and hybrid, daycare assistance, pharmacy benefit, vaccine benefit, executive check- ups, Gympass, Language Academy, Education Incentive Program, Embraer Cooperative, APVE - Association of Embraer Pioneers and Veterans, and ADC - Embraer Class Sports Association. Additionally, the company also has a robust well-being program, described on page 92 of this report. 110 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY DIVERSITY Diversity in Governance Bodies (GRI 405-1) Composition of Governance body Unit 2021 2022 2023 Women Men < 30 years 30-50 years > 50 years Total number of people % % % % % N 15 85 0 8 92 13 15 85 0 8 92 13 9 91 0 9 91 11 111 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Workforce Composition by Gender and Functional Category (GRI 405-1) Employee Diversity Gender 2021 2022 2023 Employee Diversity Gender 2021 2022 2023 Administrative Engineer Internship Leadership Women (%) Men (%) Not disclosed (%) 41 59 - 40 59 0,2 Total number of people 549 563 Women (%) Men (%) Not disclosed (%) 15 85 - 15 85 0 41 59 0,2 566 16 84 0 Total number of people 3.441 3.615 3.812 Women (%) Men (%) Not disclosed (%) 41 59 - 43 57 0 Total number of people 640 546 Women (%) Men (%) Not disclosed (%) 13 87 - 16 84 0 Total number of people 935 945 41 59 0 607 16 84 0 991 Operational Pilot Professional Technical Total Women (%) Men (%) Not disclosed (%) 9 90 - 11 89 0,4 12 88 0,2 Total number of people 5.803 6.627 7.630 Women (%) Men (%) Not disclosed (%) Total number of people Women (%) Men (%) Not disclosed (%) 1 99 - 79 43 57 - 0 100 0 84 42 58 0 2 98 0 101 42 58 0 Total number of people 2.447 2.757 2.935 Women (%) Men (%) Not disclosed (%) 10 90 - Total number of people 2.171 Women (%) Men (%) Not disclosed (%) 18 82 - 9 91 0,05 2.126 19 81 - 10 90 0 2.335 20 80 0,1 Total number of people 16.067 17.263 19.179 112 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Workforce Composition by Age Group (GRI 405-1) Women in Leadership (GRI 405-1) Employee Diversity Unit 2021 2022 2023 Women in leadership (%) 2021 2022 2023 < 30 years 30 - 50 years > 50 years % % % 15 74 11 19 69 12 20 67 13 Women’s participation in the total workforce Women’s participation in all management positions, including junior, middle, and senior management Ethnicities and Other Minorities (GRI 405-1) Women’s participation in junior management positions, i.e., first-level management Workforce Composition - Ethnicities and Other Minorities (%) 2021 2022 2023 Women’s participation in senior management positions, i.e., up to two levels away from the CEO or comparable positions Asian Black or African American White Indigenous Not disclosed People with Disabilities 2 13 85 - - 5 2 13 71 0,05 14 5 1,5 15 70 0 13 4 Note: For people with disabilities, only data from units in Brazil were considered. Women’s participation in management positions in revenue-generating roles (e.g., sales) Women’s participation in STEM-related positions (science, technology, engineering, and mathematics) 18 13 15 13 8 17 19 16 17 15 0 17 20 16 18 13 0 18 Note: (i) The total women’s participation in management positions in revenue-generating roles is calculated from the previous report (2022 fiscal year) only for women in management positions (junior to senior). (ii) Embraer counts positions that have the word “sales” and intends to refine this parameter in the future to encompass other revenue-generating functions. 113 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Gender Pay Gap The proportion between the base salary received by women and that received by men Administrative Engineer Internship Leadership Operational Pilot Professional Technical Gender Pay Gap Indicator The average gender pay gap Median gender pay gap Average bonus difference Median bonus difference (GRI 405-2) % 2022 2023 % % % % % % % % 86 90 100 87 74 - 89 74 87 89 100 82 72 64 90 71 (GRI 405-2) Unit Difference between male and female employees % % % % 10 0 12 5 Note: Data coverage (% FTEs): 95% (apprentices, interns, and EVE employees were not considered). 114 APPENDIX OF INDICATORS 2023 COMPENSATION POLICIES APPLIED TO MEMBERS OF THE HIGHEST GOVERNANCE BODY AND SENIOR EXECUTIVES (GRI 2-19) Embraer currently implements the Management Remuneration Policy covering all directors and the Executive Remuneration Policy covering all executives, with their latest revisions appro- ved by the Board of Directors on October 26, 2018, and Novem- ber 11, 2021, respectively. Both policies aim to attract and retain highly qualified profes- sionals who are aligned with the company’s principles, values, and shareholder objectives. To achieve this, the company ba- ses its policies on monitoring the external environment and annually comparing compensation practices with benchmark markets composed of competing companies in the segments in which Embraer operates, Brazilian multinational companies, publicly traded companies, or those with a similar remunera- tion strategy to Embraer’s. TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Statutory Board: Short-Term Incentives (“ICP”): Total remuneration values are planned annually based on market research with companies of equivalent size, complexity, and challenges to Embraer. Through these surveys, the com- pany seeks not only to define the values practiced but also the proportionality of their components (Fixed and Variable Com- pensation, Short and Long Term). The company prioritizes re- taining qualified executive directors by aligning their interests with those of its shareholders. Additionally, the aim is to ensu- re that executives who effectively contribute to the company’s better performance and its securities participate in the outco- me of their contribution. Fixed remuneration: It is defined annually based on market references. The Board of Directors adjusts these values as necessary each year. Benefits: Group life insurance, health insurance, and private pension on the same terms offered to Embraer employees. Board members are entitled to variable remuneration and are eligible to participate in short-term incentive plans as a reward for achieving goals that support Embraer’s short-term strategy. Long-Term Incentives (“ILP”): Board members are eligible to participate in long-term incen- tive plans, which, through phantom shares* and the Stock Op- tion Purchase Program, reward executives for achieving goals that support the company’s medium- and long-term strategic objectives. Board of Directors: Board members receive a fixed monthly fee, and they are of- fered, optionally, group life insurance and health insurance, provided they assume all associated costs. There is no variab- le remuneration for this body. It is understood that exclusively paying a fixed remuneration to Board members aims to align with best market practices. 115 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY PERFORMANCE INDICATORS (GRI 2-19) Performance indicators taken into account for determining shor- t-term variable remuneration include (i) annual assessment of the “Action Plan,” an instrument agreed upon with each statu- tory and non-statutory director annually containing Embraer’s intended results for that year and the planned actions for each, so that such results are achieved; and (ii) the overall performan- ce result of the company. Thus, the ICP and ILP remuneration vary according to the com- pany’s economic and operational results. The ICP is impacted by evaluations of individual Action Plans, while the ILP is related to the appreciation of company shares and performance goals established specifically in the Plan. In the Short-Term Incentive, the amount to be distributed to executives each fiscal year is linked to their respective indivi- dual Action Plans, and the calculation will vary directly with the achievement of the defined results therein. The content of the Action Plan is reviewed annually through the Business Planning cycle and approved by the company’s Board of Directors. Therefore, each executive is annually evaluated based on the achievement of their specific Action Plan, and this result in- fluences their short-term variable remuneration. PROCESS FOR DETERMINE COMPENSATION (GRI 2-20) Embraer’s remuneration practices and policies consider cur- rent legislation and general market practices or by segment, as well as the country and region where the company operates. The definition, implementation, and/or alteration of benefits undergo market analysis and economic/financial feasibility studies, as well as their impact on Embraer employees’ remu- neration packages. The Board of Directors annually evaluates the company’s remu- neration policy upon recommendation of the People and ESG Committee, which has this topic as a recurrent agenda item in its meetings. ANNUAL TOTAL COMPENSATION RATIO (GRI 2-21) The ratio between the total annual remuneration of the highes- t-paid individual in the organization and the average annual to- tal remuneration of all employees (excluding the highest-paid individual) in 2023 was 54 times, excluding the Long-Term In- centive (ILP). 116 116 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY SUPPLIER A S S E S S M E N T (GRI 3-3) Supply Chain Management at Embraer is led by highly qualified professionals, aiming to connect the company’s business needs with global suppliers. This management seeks to generate value within the highest standards of ethics, transparency, and com- pliance. Embraer has a large and complex supply chain, with over 5,000 suppliers in 62 countries. The company has a Global Purcha- sing Policy that establishes guidelines for the procurement of goods, services, and product industrialization. Additionally, the company has a Supplier Code of Ethics and Conduct and other internal policies that define requirements for issues such as pri- vacy, treatment of confidential information, competition laws, anti-corruption practices, money laundering prevention, diversi- ty, social, and environmental requirements. Embraer seeks to ensure that its procurement processes are ba- sed on integrity and equality, aiming for the highest standards of quality, value generation, and reduced risk for the company and society. Business partners are also periodically subjected to reputational verification processes and risk monitoring. The company also complies with all applicable laws related to the import and export of goods and services. It is important to highlight that only the Procurement and delegated areas can make contracts in accordance with the Global Purchasing Policy, ensuring a fair, transparent, and equitable process for all parti- cipating companies. Embraer has a Global Supplier Management Procedure, which covers product development to after-sales service, following Compliance standards and Embraer Business Excellence crite- ria, focusing on continuous improvement, ethics, environmental sustainability, safety, and health. The Supplier Management area is responsible for ensuring the good performance of suppliers in meeting contractual conditions and cost management, mo- nitoring metrics, and creating action plans for non-compliant suppliers. In 2023, Embraer launched the OneChain program, which brou- ght a series of innovations and digital transformation of the company’s current Supply Chain processes and systems. The program will ensure more simplicity, agility, and standardization for Embraer’s entire supply chain, aligned with our culture pillars and simplification initiatives. 117 117 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY NEW SUPPLIER SELECTION (GRI308-1 e 414-1) 100% of new suppliers were selected based on key criteria and committed to fully com- plying with the clauses described in the “So- cio-Environmental Specification” annex, whi- ch is an integral part of the supply contract, which also determines that new suppliers must comply with and meet environmental, occupational health and safety, and social responsibility legal requirements applicable to their business sector, including obtaining licenses and certificates, if applicable in their legislation. The main phases of the selection process PRE- QUALIFICATION (LONG LIST) Compliance Requirements: Due Diligence Block List Red Flag Trade Compliance (screening and restricted countries) Supplier Code of Conduct Company Size and Geographic Location Confidentiality Agreement Financial Health and Business Compliance with Conflict Mineral Requirements ESG Environmental and Social Governance EHS Health and Safety Governance Manufacturing Management Engineering Management After-Sales Management QUALIFICATION Quality Management Supply Chain Management Cybersecurity and data protection Foreing Trade Pre-Qualification: • Manufacturing Management Potential suppliers are identified to partici- pate in the BID (Long List). Criteria such as company experience, aeronautical certifica- tion, performance in other Embraer Programs, Compliance aspects (Due Diligence (reputa- tional and integrity), Red Flag, Blocklist, Trade Compliance (screening and restricted coun- tries)), and acceptance of the Supplier Code of Conduct are considered. Additionally, at this stage, the Confidentiality Agreement is signed to ensure the confidentiality of information between the parties. Qualification: At this stage, technical-commercial propo- sals are evaluated as well as Cybersecurity. Additionally, a risk assessment of potential suppliers is conducted, considering aspects such as: • Financial Health of the business • Compliance with Conflict Minerals require- ments • Engineering Management • After-sales Management • Quality Management • Supply Chain Management • Cybersecurity, data protection • Foreign Trade Selection: For the selection of suppliers, Embraer consi- ders the criteria mentioned in the pre-qualifi- cation and qualification processes, as well as other factors, following Compliance standards and Embraer’s Business Excellence criteria, with a focus on continuous improvement, ethics, environmental sustainability, safety, and health. At this stage, Embraer and the se- lected suppliers sign a supply contract to es- tablish the commitment between the parties. SELECTION Spend Analysis, Business Relevance, and Geographic Location Compliance Requirements: Due Diligence Block List Red Flag Trade Compliance (screening and restricted countries) Business Excellence Supply Contract • ESG Environmental and Social Governance • EHS Health and Safety Governance 118 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ASSESSMENT OF NEGATIVE ENVIRONMENTAL IMPACTS IN THE SUPPLY CHAIN (GRI308-2) RESTRICTIONS ON MATERIALS DUE TO ENVIRONMENTAL REGULATIONS sments are made based on internal criteria, which evidence whether there are negative impacts to be avoided and/or corrected. In 2023, Embraer hired the CDP (Carbon Disclosure Project) to conduct the first mea- surement of the carbon footprint of its most strategic suppliers, thus contributing to a better understanding of Embraer’s Scope 3 emissions. Based on this measurement, emis- sion reduction projects will be collaboratively developed to contribute more structurally to reducing negative environmental impacts and influencing the aerospace sector, its custo- mers, suppliers, and users. Regarding the use of materials containing substances restricted by environmental re- gulations, Embraer has a dedicated manage- ment team, DIPAS - Integrated Development of Environmentally Sustainable Products. The team monitors the evolution of environ- mental legislation, collects information on restricted substances present in articles throughout the supply chain, identifies their use in products and manufacturing processes; it also directs identified applications to Pro- duct Engineering for analysis and execution of mitigation plans and manages the develo- pment plan for alternatives, so that products and processes do not pose occupational or environmental risks throughout their lifecycle. This ensures product sustainability for custo- mers in different countries, as well as occupa- tional and environmental integrity throughout the aircraft’s operation, maintenance, and end-of-life. All supply, service, and product industrializa- tion contracts have socio-environmental re- quirements, which the parties involved must comply with and implement. The mandatory presentation documents and notifications to Embraer are described in the contracts between the parties, being accepted by su- ppliers. Through its supply chain, the supplier must comply with applicable environmental legisla- tion, such as the European REACH regulation, CEPA, TSCA, and other relevant guidelines that may affect Embraer’s products. It must also ensure compliance with applicable envi- ronmental legislation, including subcontrac- tors. Through applicable regulations, asses- * Registration, Evaluation, Authorization and Restriction of Chemicals ** Canadian Environmental Protection Act *** Toxic Substances Control Act. 119 119 APPENDIX OF INDICATORS 2023 ASSESSMENT OF NEGATIVE SOCIAL IMPACTS IN THE SUPPLY CHAIN (GRI 414-2) The quality and safety of Embraer’s products are essential to the business. The company is committed to delivering products that meet or exceed applicable industry government stan- dards, promoting safety and quality to the end customer. With this in mind, Embraer strives to ensure that the supply chain is committed and aligned with social and environmental issues. Embraer requires that the supplier adhere to the company’s social norms, not use or allow others to use child or enslaved person labor, nor adopt or allow others to adopt unacceptab- le labor practices. As part of the social impact management pro- cess, the company has established the “Con- flict Minerals” clause in contracts, where the supplier reports the origin of minerals contai- ned in the products provided by them and their subcontractors to Embraer in accordance with TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY applicable American law (Dodd-Frank Act). The company continuously works to elimina- te social impacts from its activities; thus, one initiative was to become an integral part of va- rious global Conflict Minerals programs, such as the Aerospace Industries Association (AIA), International Aerospace Environmental Group (IAEG), and the Responsible Business Allian- ce—Responsible Minerals Initiative (RBA-RMI). Annually, the company conducts due diligence on its supply chain to identify if any of its pro- ducts originate from conflict zones. Additional information is available in the 20-F report. SUPPLIERS WHERE THE RIGHT TO FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING MAY BE AT RISK (GRI 407-1) The agreement with suppliers contains clau- ses requiring them to comply with legal obligations and the principles of the Global Compact, to which Embraer is a signatory, en- suring that the right to freedom of association and collective bargaining is respected. Suppliers are continuously monitored during the contract period, and a social assessment is revalidated every two years. The Helpline is another tool to ensure these rights, guaran- teeing that anyone can report any potential violation. MANAGEMENT OF CRITICAL MATERIALS IN THE SUPPLY CHAIN (RT-AE-440a.1.) Embraer has a vast and complex supply chain worldwide. Critical suppliers are identified through two important matrices, the com- bined result of which allows the company to define the best strategy to assess and monitor potential risks. Learn more Supplier Requirements Ethics & Compliance 120 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY External risk monitoring 1. Strategic Matrix: Internal risk monitoring Risk Assessment Tools: Risk assessment tools allow Embraer Following the same concept as the Kraljic Matrix, suppliers Embraer has a robust SO&P process that directs supply strate- to cover risk analysis, evaluation, and control holistically across are classified according to the complexity of the products and gies to mitigate shortages and a Supplier Management Program different criteria, such as: services provided to Embraer and the total spend over the con- (F4G) based on 4 pillars: • Natural Risks • Geopolitical and Economic • Financial, Business • Environment/Health/Safety • Quality • Engineering • After-sales • Manufacturing • Supply Chain tract’s life. This information is combined with the level of im- pact on Embraer’s business. The result is the identification of critical and strategic suppliers. 2. Risk Matrix: This matrix provides a two-dimensional framework that better estimates the supplier’s vulnerability versus its impact on Em- braer’s business. The company can identify critical suppliers that will require greater control. 3. Contracts: Embraer ensures its suppliers comply with the risk analysis process and environmental and health requirements through contractual clauses based on the Company’s Code of Ethics and Conduct. These clauses establish the supplier’s obligation to comply with specific sector legislation, environmental stan- dards, and human rights norms. • Performance • Cost & Efficiency • Business Growth • Partnership 121 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY c. Executive meetings: Quarterly meetings between senior Embraer leadership and Su- ppliers, where performance monitoring results are presented and action plans are discussed. This forum also allows for discussing process improvement, competitiveness, and sustaina- bility across the supply base. LOCAL SUPPLIERS (GRI 204-1) 18% of the purchasing budget of important operational units in the 2023 cycle were allo- cated to suppliers located in Brazil. Important operational units are defined as productive plants located in Brazil: São José dos Campos, Botucatu, and Gavião Peixoto. Stock Strategy: For identified critical mate- rials, long-term planning is shared with su- ppliers to mitigate shortages in the production line. Supplier management: Supplier manage- ment is carried out based on three major fronts: a. Embraer’s purchasing team developed a program that promotes the integration of all stakeholders and sustainable monitoring of supplier performance evolution. b. Leadership Meetings: Weekly meetings with Embraer directors and related areas for pre- sentation of the scorecard, dashboard, and supplier action plan. 122 122 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY L O C A L COMMUNITIES (GRI 413-1) The table below presents the key results of the work carried out by Instituto Embraer and Embraer Foundation in 2023. Instituto Embraer (Brazil) and Embraer Foundation (United States) Number of organizations supported by Instituto Embraer and Embraer Foundation Volunteers engaged worldwide Volunteer hours dedicated [hours] High School Program (Brazil only) Number of graduates from both Embraer high schools since 2002 Number of Embraer high school students accepted into public or private universities with 100% scholarship University students benefited by the scholarship fund (cumulative) University students benefited from the Revoar program 2021 2022 36 895 8.145 2020 4.440 84% 768 - 43 1.296 5.891 2021 4.760 75% 768 - 2023 37 1.421 12.468 2022 5.000 86% N/A** 21 * Data were collected on March 30, 2024. ** The Scholarship Fund Program has been discontinued. In its place, the Revoar Program was created, which offers financial support, mentoring, and learning pathways to students graduating from Embraer schools and the public school in Gavião Peixoto. 123 123 APPENDIX OF INDICATORS 2023 G O V E R N A N C E INDICATORS TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY C O R P O R A T E GOVERNANCE (GRI 3-3) As a publicly traded corporation, Embraer adheres to corpo- rate governance processes and policies that comply with the regulations of the markets where it trades its shares (NYSE in the United States and B3 in Brazil). It prioritizes transparency, integrity, and balance in strategic decision-making. Integrated into the Novo Mercado, the most demanding seg- ment of the Brazilian stock exchange, the company operates a capital model without a controlling shareholder or control group. Embraer’s policies support the expected standards of behavior, chiefly reflected in its Code of Ethics and Conduct. All policies and procedures require employees and business partners to act in accordance with all applicable laws and re- gulations, as well as the company’s internal guidelines. Aiming to meet the highest levels of Corporate Governance, Embraer has adopted policies recommended by the “Best Go- vernance Practices Code,” such as the Extra-Audit Services Hiring Policy, Risk Management Policy, Trading and Disclosure Policy, Board of Directors Nomination and Training Policy, Rela- ted Parties Policy, and Remuneration Policy. These policies are published on Embraer’s Investor Relations website, ensuring transparency about the company’s information. Moreover, the company is associated with significant gover- nance forums, including the Brazilian Institute of Corporate Governance (IBGC), the Brazilian Association of Public Com- panies (Abrasca), the National Institute of Investors (INI), and the Brazilian Institute of Investor Relations (IBRI). The Anti-Corruption Policy is also a key reference document for the company, establishing guidelines to ensure, beyond com- pliance with legislation, proper management of business rela- tionships with both third parties and our collaborators, preven- ting conflicts of interest, as well as principles for donations and sponsorships, offering and receiving gifts and entertainment, and conducting business with third parties. 125 125 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY GOVERNANCE STRUCTURE AND COMPOSITION (GRI 2-9) The main bodies of Embraer’s Management are the Board of Directors and its three Ad- visory Committees (Strategy and Innovation Committee, Audit, Risks and Ethics Com- mittee, and the People and ESG Committee), in addition to the Fiscal Council and the Executive Board. Board of Directors Shareholders’ Meeting Audit, Risk, and Ethics Committee** People and ESG Committee** Strategy and Innovation Committee** * Fiscal council - Independent body - Article 43 of the Articles of Incorporation ** Committees - Advisory bodies to the Board of Directors - Article 34 of the Articles of Incorporation Fiscal Council* Executive Board 126 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Currently, the Board of Directors consists of 11 members, 8 of whom are independent, all wi- thout executive functions at Embraer, serving two-year terms with the possibility of re-elec- tion. The Brazilian Government, holder of a special class share (Golden Share), appoints 1 effective Director and 1 substitute, and the employees nominate another 2 Directors and their respective substitutes, one member and their substitute by CIEMB – Embraer Employe- es Investment Club, and the other, and their substitute, by non-shareholder employees of the company. During this reporting period, the Board of Di- rectors is composed of 10 men and 1 woman, with 8 members being Brazilian residents in Brazil, 1 Brazilian residing in the USA, and 2 Americans residing in the United States. The substitutes are 2 men and 1 woman. The Di- rectors and Committee members have relevant professional experiences in different sectors, notably in the aeronautical industry, innovation and technology, ESG, and finance. Members of the Board of Directors may hold CEO or Board member positions in other com- panies, provided there is no conflict of interest. to the Board of Directors without decision- -making power: Strategy and Innovation Com- mittee, Audit, Risks, and Ethics Committee, and People and ESG Committee. Though wi- thout decision-making authority, these com- mittees analyze issues within their purview and recommend decisions to the Board. The Advisory Committees are composed of at least 3 and at most 5 members. The composi- tion and internal regulations of each commit- tee are available through this link on Embraer’s Investor Relations website. conducting the company’s business in accor- dance with the Strategic Plan and Action Plan, both approved by the Board of Directors. CHAIRMAN OF THE HIGHEST GOVERNANCE BODY (GRI 2-11) All Committees report the matters discussed in their meetings at the subsequent ordinary meeting of the Board of Directors. The Chairman of Embraer’s Board of Directors is an independent member who does not hold a high executive position within the company. Not just for the chairman, but as a rule at Em- braer, no Board member may occupy the posi- tion of Executive Director of the company, as stipulated in article 27, § 5 of the Articles of Incorporation. Furthermore, the Board of Directors’ meeting schedule includes periodic discussions on ESG topics, such as visibility and discussion of environmental issues and climate change, and Governance and Compliance training on rele- vant subjects for Board members. The Audit Committee reports directly to the General Meeting and is responsible for over- seeing administrative management, reviewing managerial activities, and financial statements. The company has three advisory committees The Executive Board, in turn, is responsible for 127 127 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ROLE OF THE HIGHEST GOVERNANCE BODY IN OVERSEEING IMPACT MANAGEMENT DELEGATION OF RESPONSIBILITY FOR IMPACT MANAGEMENT (GRI 2-12) (GRI 2-13; 2-16) The company’s Articles of Incorporation and the internal regulations of the Board of Direc- tors provide for the main competencies of the Board, which include (a) setting the overall direction of the company’s business, (b) elec- ting and removing the company’s directors; (c) overseeing the management of the company’s directors; (d) reviewing the quarterly results of the company’s operations; (e) reviewing the Management Report and the accounts of the Board, resolving on their submission to the General Meeting; (f) summoning indepen- dent auditors to provide any necessary cla- rifications about the company; (g) approving the annual and multi-year budgets, strategic plans, expansion projects, and investment programs of Embraer, as well as monitoring their execution, among others. The supervision of the Board of Directors is carried out through the meetings of the body, which are held ordinarily eight times a year or extraordinarily whenever necessary through the reporting of Advisory Committees and on topics deemed relevant by the Board of Direc- tors, in addition to those already included in the recurring agenda of meetings. According to Article 7, I of the internal regu- lations of the Board of Directors, it is the res- ponsibility of the Board of Directors to identi- fy, supervise, and monitor the risks to which Embraer is exposed, whether financial, legal, fiscal, operational, commercial, or others. As a consequence, approving Embraer’s Enterpri- se Risk Management Policy and reviewing it as necessary, monitoring its implementation, and ensuring the existence of a crisis mana- gement plan that allows the company to over- come them safely. It is the responsibility of the Board of Direc- tors: (a) the election; (b) monitor and evaluate the performance of the CEO of Embraer, as well as the other directors, according to Ar- ticle 7, II of the Internal Regulations of the Board of Directors. The Board of Directors, composed of a minimum of 4 and a maximum of 11 members appointed by the Board of Di- rectors, is responsible for managing the com- pany, following the guidelines established in the Strategic Plan and the Action Plan appro- ved by the Board of Directors. The relevant topics of interest to Embraer are brought to the attention of the members of the Board of Directors at the meetings of the body. The Board of Directors meets ordinarily eight times a year or whenever deemed ne- cessary to address extraordinary issues. The most relevant crucial concerns are brought to the Board of Directors ordinarily through the analysis of the company’s risk map and with the visibility of internal audit as a mechanism for identifying crucial concerns, and extraor- dinarily whenever necessary. 128 128 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY CONFLICTS OF INTEREST (GRI 2-15) According to Article 30 of the company’s Articles of Incorpo- ration, no one with a conflicting interest with the company may be elected unless exempted by the General Meeting. Additio- nally, an annual survey is conducted through a report filled out by Board members and external members of Advisory Commit- tees to mitigate any existing conflicts of interest. The Meeting Manual and Reference Form disclose Board members’ participation in other companies’ boards or Advi- sory Committees, cross-shareholding with suppliers and other stakeholders, and the existence of related parties. Embraer has no controlling shareholder. ROLE OF THE HIGHEST GOVERNANCE BODY IN SUSTAINABILITY REPORTING (GRI 2-14) The People and ESG Committee assists the Board of Directors in analyzing, recommending, and monitoring the company’s socio-environmental strategy. It discusses major ongoing pro- jects, Embraer’s ESG timetable, and its challenges and goals. Committee members approve sustainability reporting, the ma- teriality process, and the definition of material topics. Additionally, the Committee also advises on corporate gover- nance matters, director goals, and compensation, including rules of organization and routine of the Board, as well as the adoption of best practices. It analyzes, recommends, and mo- nitors the company’s culture evolution strategy, administration of long-term incentive programs, and transfer of company re- sources to employee associations. These charitable, recreatio- nal, and private pension entities are subjects of deliberation by the Board of Directors. The company also analyzes the internal controls process through controls with oversight by the res- ponsible department reporting to the Audit, Risks, and Ethics Committee, as well as the Board. 129 129 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY E T H I C S A N D COMPLIANCE MECHANISMS FOR SEEKING ADVICE AND RAISING CONCERNS OPERATIONS ASSESSED FOR CORRUPTION- RELATED RISKS (GRI 2-25 e 2-26) (GRI 205-1) The Compliance Department at Embraer operates with an independent structure, reporting directly to the Audit, Risks, and Ethics Committee, alongside a structured whistleblowing channel available 24/7 in the languages of the countries whe- re the company operates. This enables any individual, whether employees or not, to raise doubts or concerns. Furthermore, the area’s governance has been structured to cre- ate the roles of Compliance ambassadors and agents in various areas of Embraer so that employees from these areas, who are periodically trained on Compliance topics, can also provide su- pport. In addition, the Code of Ethics and Conduct and other related policies are freely and easily accessible through the company’s intranet, establishing the main guidelines to be observed. Any concerns regarding Embraer’s business conduct can be brought to the Compliance area itself or through the widely pu- blicized and available whistleblowing channel - Helpline - as mentioned above. The channel prioritizes anonymity, confiden- tiality, and non-retaliation against good-faith whistleblowers. As part of its Compliance program, the company conducts risk assessments in all business areas and functions every two ye- ars through external consulting. The results of these assessments, as well as the respective ac- tion plans, are shared with CARE. During periodic assessments conducted by the Compliance Department, identified risks are appropriately addressed ac- cording to their potential impact. When applicable, these risks are shared with the relevant au- thorities along with pertinent recommendations, aiming for dis- cussion and implementation of mitigation measures, which are continuously monitored. The total number and percentage of operations assessed are confidential and, therefore, will not be disclosed in this report. 130 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY COMMUNICATION AND TRAINING ON ANTI-CORRUPTION POLICIES AND PROCEDURES (GRI 205-2) All members of the Board of Directors and the Executive Bo- ard - Advisory Committee of the Board of Directors received training related to anti-corruption and related topics in 2023. Communication of the Code of Ethics and Conduct occurs through the company’s main official channels, in addition to the company’s intranet and external website. The respective training is mandatory for all employees, with a minimum accep- tance rate of 95% by the company. Furthermore, leadership and employees are trained and informed on anti-corruption topics (namely Bribery & Corruption, Ethics & Compliance, Conflict of Interest, and Corporate Governance) as defined in the annual Compliance training and communication plan. The Global Anti-Corruption Policy is available to employees through the intranet and the company’s website. As part of the company’s third-party Due Diligence process, which is an integral part of the hiring flow, business partners who may pose potentially relevant corruption risks receive a copy and declare to have read and understood the Code of Ethics and Conduct. CONFIRMED CASES OF CORRUPTION AND MEASURES TAKEN (GRI 205-3) There were no cases of corruption during the reporting period. TOTAL AMOUNT OF MONETARY LOSSES RESULTING FROM LEGAL PROCEEDINGS ASSOCIATED WITH INCIDENTS OF CORRUPTION, BRIBERY, AND/OR ILLEGAL INTERNATIONAL TRADE (RT-AE-510a.1) In 2023, the company had no monetary losses related to legal proceedings associated with incidents of corruption, bribery, and/or illegal international trade. 131 131 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY DISCUSSION OF PROCESSES TO MANAGE BUSINESS ETHICS RISKS THROUGHOUT THE VALUE CHAIN The final assessment issued by the Complian- ce Department will result in the effective hi- ring and/or establishment of the business. It may recommend mitigation measures for the business areas and the inclusion of anti-cor- ruption compliance clauses in the company’s contracts. Finally, the Compliance Department imple- mented the FlyRight portal (Lextegrity), a tool that integrated and complemented the com- pany’s Compliance processes, such as thir- d-party due diligence, Know Your Customer (KYC), hospitalities, donations, sponsorships, and conflicts of interest. (RT-AE-510a.3) The company has a robust third-party due diligence procedure, including customers, su- ppliers, business partners, and government entities. The level of scrutiny in the process is esta- blished depending on the degree of risk the third party represents (risk-based approach) and considers various factors, such as expo- sure to public agencies, the company’s powers of representation, the countries in which it operates, the payment structure, the type of activity to be conducted, the existence of ad- verse media, and existing lawsuits. The process is conducted and independently supervised by the Compliance Department, with the support of Compliance Agents in each business area, who may request addi- tional information and documents about the third party whenever necessary to conclude its assessment. External consultants may be hi- red for additional and/or more in-depth analy- sis in more sensitive situations or geographies with limited access to information. CASES OF DISCRIMINATION AND CORRECTIVE MEASURES TAKEN (GRI 406-1) Embraer received two discrimination cases through the company’s official whistleblowing channel (Helpline) in 2023, which were inves- tigated as substantiated with consequent dis- ciplinary measures. COUNTRIES WITH HIGH CORRUPTION RISK (RT-AE-510a.2) Revenue from countries classified as “E” and “F” according to Transparency International’s Government Defense Anti-Corruption Index in 2023 was approximately USD 524.142 million and approximately USD 14.130 million, respec- tively. 132 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY COMPLIANCE WITH LAWS AND REGULATIONS (GRI 2-27) During the reporting period, no fines or monetary sanctions were imposed on Embraer for significant cases of non-com- pliance with laws and regulations. PARTICIPATION IN ASSOCIATIONS (GRI 2-28) Embraer is engaged in a wide range of associations and trade organizations in the countries where the company operates and its major markets. Among the main organizations with which Embraer is associa- ted, we can highlight the institutional role of the Brazilian Aeros- pace Industries Association (AIAB), Brazilian General Aviation Association (ABAG), American Chamber of Commerce in São Paulo (AMCHAM-SP), Brazil - United States Business Council (CEBEU), Brazil - China Business Council (CEBC), Portuguese Chamber of Commerce in Brazil, Brazil Network of the Global Compact, International Air Transport Association (IATA), Aeros- pace Industries Association of America (AIA), General Aviation Manufacturers Association (GAMA), Aviation Working Group (AWG), and the US Chamber of Commerce, among others. 133 133 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY D A T A SECURITY NUMBER OF DATA BREACHES; PERCENTAGE INVOLVING CONFIDENTIAL INFORMATION (RT-AE-230a.1) Embraer employs cybersecurity solutions and procedures to ensure the most suitable and applicable treatment, collection, and availability of data and information used by its corporate systems, business processes, and products. These procedures and mechanisms are based on market best practices (such as frameworks like NIST 800 Special Publica- tion and ISO27001/2) and undergo regular reviews to ensure their ability to detect, control, and respond to potential global cyber threats. However, these results are not publicly disclosed. Throughout the year 2023, Embraer did not experience any data leaks with confidential information. DESCRIPTION OF THE APPROACH TO IDENTIFYING AND ADDRESSING DATA SECURITY RISKS IN COMPANY OPERATIONS AND PRODUCTS (RT-AE-230a.2) Embraer establishes guidelines regarding the methodology to be used for vulnerability management in the Information Se- curity area. Its use allows for taking appropriate measures to eliminate res- pective vulnerabilities before they can be exploited. Vulnerability management is a continuous and transparent process carried out by the Information Security team. Using scanning solutions and digital auditing of systems and applications, the process is responsible for providing, in the Configuration Management Data Base (CMDB) configuration items, the vulnerabilities identified in the various layers that make up the corporate systems. Scans are scheduled to be performed daily, with mechanisms to avoid impacts on operations. To meet the company’s critical monthly routines, scanning is performed less intrusively, avoi- ding overloads on critical systems. results, analyze critical cases, and address their treatment. These results are confidential and not publicly disclosed. The process of managing corrections and updates (Patch Ma- nagement and Update Process), which is under the IT infras- tructure area’s responsibility, aims to coordinate and execute updates to corporate systems. The process should be organized by listing vulnerabilities ba- sed on configuration items, with the classification of necessary updates ordered by criticality based on the CVE (Common Vul- nerabilities and Exposures) severity metric. For each severity level, the IT Infrastructure area must prioritize the application of updates and corrections within a service-le- vel agreement timeframe. In events detected in vulnerability management, the IT Infras- tructure team has the prerogative to take remediation actions without prior notice. The scan results should generate visibility into the company’s situation, centralizing results in the CMDB. Representatives from all IT management areas hold weekly meetings to report These actions are linked to the objective of maintaining busi- ness operation levels and ensuring the company’s availability, integrity, and confidentiality. 134 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY CYBERSECURITY GOVERNANCE AT EMBRAER (GRI 3-3; 418-1) SUBSTANTIATED COMPLAINTS CONCERNING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA Embraer’s Cybersecurity Governance is composed of the following members of the Executive Committee: (GRI - 418-1) In 2023, Embraer did not have complaints related to privacy violations by employees and customers, nor did it have leaks, thefts, or losses of customer data. The company has a dedicated structure that manages data privacy issues throughout the Embraer group through the composition of a multidisciplinary team under the supervision of the DPO - Data Protection Officer. 1. CEO - Chief Executive Officer 2. CFO - Chief Financial Officer 3. CISO - Chief Information Security Officer 4. Vice President of Defense & Security at Embraer 5. Legal and Compliance Vice President / Data Protection Officer (DPO) 6. Vice President of Engineering 7. TEMPEST (CEO - Cybersecurity Specialist) - Embraer affiliate company The Cyber Committee meets monthly, and the CISO has the autonomy to convene the committee when necessary. Additio- nally, there are meetings of the Board of Directors and CARE to discuss the Cybersecurity Agenda with updates and decisions on Cyber Risk. 135 135 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY O P E R A T I O N A L S E C U R I T Y AND PRODUCT QUALITY EMBRAER OPERATIONAL SAFETY PROGRAM (GRI 3-3; RT-AE-250) The Operational Safety Program, designed to establish gover- nance for security initiatives and reviews of indicators for all company operations (projects, manufacturing, maintenance, and air traffic control), focuses on continuously increasing safety in products and operations. It is chaired by the Senior Vice Presidents of Engineering, Operations, and Services and Support. Security-related risk management actions are presented mon- thly at the company’s board meeting, where senior leadership participates. Additionally, the matter is overseen by the com- pany’s CEO and Board of Directors in previously established visibility meetings. Board of Directors CEO ESC Embraer’s Operational Safety Committee VP Engineering VP Operations VP Services and Support Design Committees Operation Committees Maintenance and Flight Operations Committees Embraer’s Operational Safety Program 136 APPENDIX OF INDICATORS 2023 OPERATIONAL SAFETY GOVERNANCE TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY ppliers, authorities, and other aircraft manu- facturers for the exchange of safety data and lessons learned. Additionally, periodic inter- nal surveys on safety culture are conducted to assess areas where actions will focus on improving safety awareness. (RT-AE-250a.3) In 2023, ANAC (National Civil Aviation Agency) issued twenty airworthiness directives (ADs) involving the following products: ERJ170, ERJ-190, EMB-550, EMB-200, EMB-505, and EMB-145. All ADs are publicly available, and the latest information can be found on appropriate regulatory websites. Embraer’s commitment and guidance to se- curity actions for all employees are present in the company’s Security Policy. This policy is approved by Embraer’s CEO and all senior vice presidents and is available to all employees. The policy is reinforced in training sessions and events promoting a safety culture. Since 2003, internal operational safety com- mittees have been established to address risk management. These committees perio- dically review all safety reports received from employees, customers, suppliers, aviation authorities, and other stakeholders related to Embraer. For each of these reports, the associated risk is evaluated according to ae- rospace industry standards and Embraer’s standards, validating proposed actions and managing them to completion. In addition to the risk management described above, Embraer assigns specialists to support authorities in all investigations of accidents and incidents involving its products. The goal is to enhance product safety by identifying contributing factors and defining recommen- dations to prevent future events. Safety is a fundamental part of the culture, promoted through various initiatives: internal training on product safety and safety culture, internal safety conferences, participation in external safety events with customers, su- 137 137 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY SAFETY FIRST AND QUALITY ALWAYS Embraer manages performance through SQDC indicators (Safety, Quality, Delivery, and Cost). It is no coincidence that Safety and Quality come first. The company believes that focusing on Safety and Quality is essential for process excellence, ensuring on-time delivery and the best cost for all stakeholders. Quality has a dedicated board that ensures a 360-degree view of all company processes, from production units to corporate, from new product development to customer operations, including the supplier base. Embraer believes that culture is a key factor in excellence in quality. To continuously deve- lop and reinforce a culture of quality, various initiatives are undertaken, such as bi-weekly team discussions, dedicated Quality weeks at production plants, visual communication campaigns reinforcing safety and quality atti- tudes and principles, and an online event for the entire company’s Operational Safety and Quality Week. In 2023, the event featured se- ven interactions, including lectures and case studies, with over 1,200 employees participa- ting at Embraer. To further foster the theme of Safety and Quality in the company, various actions were promoted throughout the year, such as eight weeks on Foreign Object Elimination (FOE) distributed among the sites, the Global Quali- ty Week, a Culture Event in the operations vice presidency focused on leadership, a week on accident prevention reports in all units, and the LEAN Transformation Week focusing on quality. The company listens to customers to unders- tand their needs and always seeks to exceed expectations. The efforts invested in conti- nuously improving processes and delivering quality to customers led the company, in 2023, to be recognized in the Executive Avia- tion segment, according to customer satisfac- tion surveys published by AIN (Aviation Inter- national News) and PRO PILOT magazines. Position Source: AIN Product Support Survey 2023 Overall Score Source: AIN Product Support Survey 2023 Survey Period: May - June Position Source: Pro Pilot 2023 Corporate Aircraft Product Support Survey Overall Score Source: Pro Pilot 2023 Corporate Aircraft Product Support Survey Survey Period: May - July 2022 - 1st 3RD 8,00 2022 - 8,03 1ST 2022 - 2nd 7,76 2022 - 7,81 138 APPENDIX OF INDICATORS 2023 AINPRO PILOT TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY EMBRAER’S QUALITY MANAGEMENT SYSTEM Embraer’s Quality Management System com- plies with the requirements of various autho- rities, regulatory bodies, and certifying entities and undergoes periodic audits. In 2023, a total of 33 external audits were conducted across units in Brazil and abroad, ensuring the mainte- nance of its certifications. EMBRAER’S EXCELLENCE SYSTEM Launched in 2007, the Embraer Enterprise Excellence Program - P3E - aims to initiate, promote, and sustain cultural transformation through the LEAN philosophy, striving for excellence in its processes, services, and products. The program operates on the basis of the Embraer Excellence System, which consists of four key elements: understanding strategy, integrated management, process excellence, and individual empowerment. When put into practice, these elements foster value generation and the consolidation of organizational culture among stakeholders. Going beyond merely relying on the four elements, the Embraer Excellence System disseminates the LEAN philosophy comprehensively throughout the organization via Excellence Manuals. These manuals encompass LEAN concepts, methods, and tools tailored to specific processes. Key topics covered include LEAN fundamentals, 5S (organization), TPM (asset and resource reliability), KAIZEN (continuous improvement), Visual Management, Value Stream Mapping (VSM), and Shop and Office Floor Management. Focusing on productivity gains and waste elimination, the Embraer Excellence System ensures the standardized implementation of improvements, ingrained organically within the company through intensive training facilitated by the LEAN Academy. By 2023, this effort had resulted in training 15,000 employees, alongside communication initiatives and recognition within the Embraer LEAN community. 139 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY PRODUCT TESTING At Embraer, inspections, tests, and trials are conducted throughout product development and manufacturing, aligning with company procedures and regulatory requirements to en- sure the safety, quality, maturity, performance, and reliability of its products throughout the aircraft lifecycle. During new product development, Embraer conducts testing and trial campaigns aimed at certifying the aircraft design with regulatory authorities. Preparation and quality planning stages for serial production are also executed, including supplier readiness to deliver quality. In the serial production stage, the Embraer Quality System, through its procedures, en- compasses inspection processes and test exe- cution for manufactured products. Preparation and quality planning stages for se- rial production are also conducted, encompas- sing the readiness of suppliers to deliver with quality. In the serial production stage, the Embraer Quality System, through its procedures, antici- pates the application of inspection processes and the execution of tests on the products un- der manufacturing. Finally, as the final step in aircraft manufactu- ring, Embraer conducts ground and flight tests on the finished product to ensure quality and compliance with requirements. Additionally, the product acceptance stage by customers is integral to the delivery process for each manufactured aircraft, involving inspec- tions, tests, and flights conducted with custo- mer oversight. Embraer is immersed in Industry 4.0, with one technological innovation being the Integrated Automated Testing System, which sends sig- nals and activates various aircraft systems, conducting hundreds of tests. Each interface undergoes testing, validation, and data logging, ensuring the quality of the production process. Watch the video 140 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY PRODUCT QUALITY EDUCATION AND TRAINING PROGRAM - EMBRAER TRAINING Employee readiness stands as one of the cornerstones of Em- braer’s Excellence Model. At Embraer, it is mandatory for 100% of employees to engage in predetermined areas (both operational and non-operational) to undergo operational qualification (customized content as per process needs), quality (general content on excellence), and safety (regulatory content as per legislation) training. These pieces of training commence during the onboarding of new employees and continue throughout their careers with pe- riodic refreshers and new knowledge requirements. The Quality Management System ensures that individuals are duly qualified to perform their roles, ensuring excellence in task execution. Embraer hosts corporate training programs, academies, and learning platforms with dedicated courses spanning various areas, allowing employees to engage in exclusive learning ex- periences, predominantly focusing on product quality. Training is delivered through various learning formats to ensure robust skill development and enhancement of both hard and soft skills. Below is an overview of what one of the learning platforms offers: Class Course taught by an instructor in a face-to-face or hybrid format. On-line Interactive training, accessible at any time by the employee. Auto Instruction and Read&Sign Material available for online reading, accessible at any time. On the Job Training Practical training conducted in the workplace with a Mentor. 16.112 EMPLOYEES TRAINED IN 2023 449.947 HOURS OF TRAINING IN 2023 235.141 PARTICIPATION IN TRAINING IN 2023 787 DIFFERENT COURSES DELIVERED IN 2023 Further information can be found in the training and development box (capacity and education). 141 APPENDIX OF INDICATORS 2023 TYPES OF EMBRAER TRAININGTRAINING DATA TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY In addition to the initiatives above, there are training sessions in the form of webinars. These sessions have a more specific focus but reach a broader range of companies per session. In 2023, five webinars were conducted, with participation from over 100 suppliers, both domestic and international. The topics covered included Problem Solving, the FOE Program (Foreign Object Elimination), Commitment to Quality, civil liability, and Prevention of Quality Documentation-Related Issues. SUPPLIER QUALITY MANAGEMENT SUPPLIER TRAINING Tier 1 and 2 suppliers* are required to have AS9100 certification and comply with the requirements outlined in EQRS (Embraer Quality Requirements for Suppliers). The supplier ensures the maintenance of AS9100 certification through audits conducted by third-party companies and monito- red by Embraer. Compliance with EQRS is periodically reassessed by Embraer Quality. As part of a robust regulatory system, Embraer annually rein- forces the quality requirements to be met by its entire supply chain through EQRS – Embraer Quality Requirements for Su- ppliers, which are additional requirements to those existing in the AS9100 standard – Requirements for Quality Management in Aerospace Industries, mandatory certification to become an Embraer supplier. Additionally, suppliers producing parts according to Embraer’s specifications (Build to Print) must have their processes qualified by Embraer auditors, as per the requirements defined in EQRS. If a supplier utilizes special processes in their manufacturing, regar- dless of their level in the supply chain, they must also have NA- DCAP certification for each existing special process, maintaining this certification through the annual NADCAP audit cycle. The quality of all products and raw materials received by Embraer and its suppliers (tiers 1, 2, and 3) is verified during the material re- ceiving stage. This verification occurs through test reports sent by suppliers or manufacturers of the material in question, certifying that the necessary tests for quality verification have been perfor- med and approved according to technical specifications. Additionally, some products and raw materials are retested by Embraer in its laboratories according to specifications defined in technical standards by Product Engineering. In addition to EQRS, Embraer also provides the EPPAP Manu- al – Embraer Production Part Approval Process, containing 17 Quality tools to be applied during the development or modifi- cation of a product, aiming to ensure preparation for Quality. Both guidelines are conducted through the read-and-sign mo- dality and can also be conducted interactively, in person, or online. Another important initiative is disseminating the LEAN philo- sophy and continuous process improvement through supplier training in the KAIZEN methodology. These training sessions take place in the OJT (On the Job Training) format, where Em- braer guides suppliers on how to identify and resolve issues in practice by conducting KAIZEN projects together. In 2023, 43 projects were carried out in collaboration with 28 national and international companies. *Tier 1 - direct supplier; Tier 2 - supplier of the supplier; Tier 3 and beyond - successively 142 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY PREVENTION PROCESS FOR COUNTERFEIT PARTS (RT-AE-250a.2) Preventing the use of counterfeit or unautho- rized parts at Embraer involves various pro- cesses within the company with established practices and procedures. The cornerstone of prevention lies in training and cascading requirements throughout the company’s processes in supplier contracting, part procurement, product design, receipt, and treatment of non-conforming products. Employees undergo training to raise aware- ness about identifying suspicious parts, and protocols for handling existing non-confor- ming products are utilized in the event of oc- currences of such materials. Contract When contracting a supplier, the requirement regarding counterfeit parts is communicated through the purchase order or contract. In the contract, this requirement is incorporated into the quality system certification standards re- quired of suppliers (AS9100, AS9120). Engineering For suppliers without certifications, the requi- rement is included in the purchase order for all products acquired by Embraer, along with technical and documentary specifications. Procurement The procurement department must purchase products according to project specifications and qualified suppliers according to Embra- er’s product structure. The supplier qualification process includes procedures that verify compliance with tech- nical requirements and the quality manage- ment system requirements. Suppliers’ performance is periodically evalua- ted, and risk management is practiced. Cri- tical points that require further assessment (audits) or action plans focused on specific problems are identified. Distributors are also approved according to specific procedures and can only deliver pro- ducts from approved manufacturers descri- bed in the purchase order. In the aircraft certification process, compo- nents must also undergo a specific certifica- tion campaign. The equipment undergoes testing and must have a certificate of conformity, as well as the laboratory configuration and the test proce- dure used. All certification artifacts are approved by the certification authority or its representatives. These artifacts constitute the technical data necessary to obtain the aircraft-type certifica- te. Each aircraft is produced by a production organization certified according to the type certificate. A new or modified component can only be ins- talled in a certified aircraft if it complies with all the steps mentioned above, following the design modification procedure. As a member of the Material Review Board (MRB), product engineering is also responsible for disposing of equipment non-conformities, ensuring they meet applicable requirements. Product Engineering can also issue requests for stock re-inspection for updates, returns, tests, or visual inspections. It is also possible to request quality to include equipment limitation notes that restrict their use in flight, delivery to the customer, or other. Receipt To receive products, Embraer establishes spe- cific inspection standards for each type of material. These standards include physical and docu- mentary characteristics (certificate of con- formity, test report) that must accompany the product, ensuring traceability to the source of supply. Upon receipt, the material identification, pa- ckaging conditions, quantities, delivered do- cumentation, and approved supplier in the system are verified, i.e., the information is ve- rified to ensure that the delivered product me- ets the specifications of the purchase order. In some situations defined in the receipt standards, products or samples are sent to laboratories for tests that prove compliance with specified technical requirements. When excess parts are received, they are scrapped if the supplier does not update the documenta- tion to ensure traceability. 143 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS ESG INDICATORS CO NTENT SUMMARY Non-conformities Treatment (product and process) When suspicious or counterfeit parts are identified, the material is segregated into qua- rantine, following the same process as for tre- ating non-conforming products. In the case of identifying non-conformities in processes related to handling counterfeit parts, corrective actions are initiated to con- tain the recurrence of the problem and ensure a definitive solution. Parts for scrap disposal have their disposals strictly controlled to prevent misuse in the production process. Training Employees are offered training through the EmPower system on the impact of counterfeit parts in the aeronautical industry and preven- tion. Practices carried out by Embraer are also im- plemented in specific procedures in the areas. 144 144 APPENDIX OF INDICATORS 2023 C O N T E N T SUMMARY G R I C O N T E N T SUMMARY General Contents GRI STANDARD CONTENT TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Statement of Use EMBRAER - Empresa Brasileira de Aeronáutica S.A. reported the information cited in this GRI content summary for the period from January 1, 2023, to December 31, 2023, based on GRI Standards. General Contents CONTENT GRI 2 Sustainability Report Additional References GRI 1 used GRI 1: Foundational 2021 2-16 Communication of critical concerns Page 130 2-1 Organization details 2-2 Entities included in the organization's sustainability report 2-3 Reporting period, frequency, and point of contact 2-4 Information restatements 2-5 External verification Sustainability Report Additional References Page 06 of the 2022 Annual Report Page 65 Page 65 Page 65 Page 65 2-6 Activities, value chain, and other business relationships - Management Report 2-7 Employees GRI 2: General Contents 2021 2-8 Workers who are not employees 2-9 Governance structure and its composition Page 109 Page 109 Page 125 2-10 Appointment and selection for the highest governance body - 2-11 Chair of the highest governance body 2-12 Role of the highest governance body in supervising management's impacts 2-13 Delegation of responsibility for impact management 2-14 Role of the highest governance body in sustainability reporting 2-15 Conflicts of interest Page 127 Page 128 Page 128 Page 129 Page 129 Policy for Appointment and Training Internal Board Rules GRI 2 2-17 Collective knowledge of the highest governance body 2-18 Assessment of the performance of the highest governance body - - Organizational Structure Policy for Appointment and Training Internal Board Rules 2-19 Compensation policies Page 115 Internal Board Rules 2-20 Process for determining compensation 2-21 Proportion of total annual compensation 2-22 Statement on sustainable development strategy 2-23 Policy commitments 2-24 Incorporation of policy commitments 2-25 Processes for addressing negative impacts 2-26 Mechanisms for advice and raising concerns 2-27 Compliance with laws and regulations 2-28 Participation in associations 2-29 Approach to stakeholder engagement 2-30 Collective bargaining agreements Page 116 Page 116 - - - - Page 130 Page 132 - - Page 91 Internal Board Rules Sustainability CDP - C12.3 - Engagement Corporate Procedure 146 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Material Topics GRI 3 Anti-corruption Measures GRI 205 GRI STANDARD CONTENT Sustainability Report GRI 3: Material Topics 2021 3-1 Process for defining material topics Page 05 3-2 List of material topics Page 05 Additional References Page 66 Page 67 SDGs Addressed GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed 205-1 Operations assessed for corruption- related risks Page 66 GRI 205: Anti-corruption 2016 205-2 Communication and training on anti- corruption policies and procedures Page 67 205-3 Confirmed cases of corruption and actions taken Page 68 Page 130 Page 131 Page 131 16 16 16 Economic Performance GRI 201 GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed Energy 201-1 Direct economic value generated and distributed Pages 12 to 14 of the 2022 Annual Report Results Center Pages 11 and 13 GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities arising from climate change 201-3 Obligations of defined benefit plans and other retirement plans 201-4 Financial assistance received from the government - - - CDP - C2. Risks and Opportunities C3. Business Strategy Report 20-F Report 20-F 8,9 13 8, 9 GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 3: Material Topics 2021 3-3 Management of material topics Pages 16 to 18 of the 2022 Annual Report Page 14 and 18 GRI 302: Energy 2016 302-1 Energy consumption within the organization 302-2 Energy consumption outside the organization Page 09 Page 11 Page 70 Page 72 7, 8, 12, 13 7, 8, 12, 13 Purchasing Practices GRI 204 GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 204: Purchasing Practices 2016 204-1 Proportion of spending on local suppliers Page 57 Page 122 8 147 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Water and Effluents Waste GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 3: Material Topics 2021 3-3 Management of material topics Page 16 GRI 303: Water and Effluents 2018 303-3 Water withdrawal 303-4 Water discharge Page 17 Page 18 Page 77 Page 78 Page 79 6, 8, 12 6 Emissions GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 3: Material Topics 2021 3-3 Management of material topics Page 12 Page 73 305-1 Direct (Scope 1) greenhouse gas (GHG) emissions 305-2 Indirect (Scope 2) greenhouse gas (GHG) emissions from purchased energy 305-3 Other indirect (Scope 3) greenhouse gas (GHG) emissions Page 12 Page 73 3, 12, 13, 14, 15 Page 13 Page 74 3, 12, 13, 14, 15 Page 13 Page 74 3, 12, 13, 14, 15 305-4 GHG emissions intensity Page 13 and 14 Page 75 13, 14, 15 GRI 305: Emissions 2016 GRI 3: Material Topics 2021 3-3 Management of material topics Page 20 Page 81 306-3 Generated waste Pages 20, 21 and 22 Pages 81, 82 and 83 3, 6, 12, 14 ,15 GRI 306: Waste 2020 306-4 Waste not intended for final disposal Pages 20, 21 and 22 Pages 81, 82 and 83 3, 11, 12 306-5 Waste destined for final disposal Pages 20, 21 and 22 Pages 81, 82 and 83 3, 6, 11, 12, 14 ,15 Supplier Environmental Assessment GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 3: Material Topics 2021 GRI 308: Supplier Environmental Assessment 2016 3-3 Management of material topics Page 52 308-1 New suppliers selected based on environmental criteria 308-2 Negative environmental impacts of the supply chain and measures taken Page 54 Page 54 Page 117 Page 118 Page 119 Employment GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed 305-6 Ozone-depleting substance (ODS) emissions Page 15 Page 76 3, 12 305-7 NOX, SO, and other significant atmospheric emissions Page 15 Page 76 3, 12, 14, 15 401-1 New hires and employee turnover Pages 41 and 42 Pages 106 and 107 5, 8, 10 GRI 401: Employment 2016 401-2 Benefits offered to full-time employees not offered to temporary or part-time employees Pages 30 and 45 Pages 91 and 110 5, 8 401-3 Maternity/paternity leave Page 43 Page 108 5, 8 148 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Health and Safety at Work GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed Training and Education GRI 3: Material Topics 2021 3-3 Management of material topics Page 24 Page 85 GRI 3: Material Topics 2021 3-3 Management of material topics - 403-1 Occupational health and safety management system Page 24 to 26 Pages 85 to 87 8 403-2 Hazard identification, risk assessment, and incident investigation Page 24 to 26 Pages 85 to 87 3, 8 403-3 Occupational health services 403-4 Worker participation, consultation, and communication on health and safety at work GRI 403: Health and safety at work 2018 403-5 Worker training in health and safety at work - - - - - 403-6 Promotion of worker health Page 27 Pages 88 and 89 403-7 Prevention and mitigation of health and safety impacts directly linked to business operations Page 26 Page 87 - - 8 3 8 403-8 Workers covered by an occupational health and safety management system Pages 24 to 26 Pages 85 to 87 GRI 405: Diversity and Equal Opportunities 2016 403-9 Work-related accidents Page 25 Page 86 3, 8, 16 404-1 Average training hours per year per employee Pages 31 and 32 Pages 92 and 93 4, 5, 8, 10 GRI 404: Training and Education 2016 404-2 Programs for employee skill enhancement and career transition assistance Page 33 Page 95 8 404-3 Percentage of employees receiving regular performance and career development evaluations Page 32 Page 92 5, 8, 10 Diversity and Equal Opportunities GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed 405-1 Diversity in governance bodies and employees Pages 46 and 48 Page 111 5, 8 405-2 Ratio of basic salary and remuneration received by women and men Page 49 Page 114 5, 8, 10 149 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Non-Discrimination GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed Supplier Social Assessment GRI 3: Material Topics 2021 3-3 Management of material topics Page 66 Embraer Compliance Program Page 130 GRI 406: Non- discrimination 2016 406-1 Cases of discrimination and corrective measures taken Page 70 Page 132 5, 8 Freedom of Association and Collective Bargaining GRI 3: Material Topics 2021 GRI 414: Supplier Social Assessment 2016 3-3 Management of material topics Page 52 Page 117 414-1 New suppliers selected based on social criteria Page 54 Page 118 3, 6, 11, 12 414-2 Negative social impacts of the supply chain and measures taken Page 55 Page 119 3, 6, 11, 12 GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 407: Freedom of association and collective bargaining 2016 407-1 Operations and suppliers where the right to freedom of association and collective bargaining may be at risk Page 55 Page 120 8 Customer Privacy GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed Local Communities GRI STANDARD CONTENT Sustainability Report Additional References SDGs Addressed GRI 413: Local Communities 2016 413-1 Operations with engagement, impact assessments, and development programs aimed at the local community Page 58 5, 8, 10 GRI 3: Material Topics 2021 3-3 Management of material topics Pages 71 and 73 GRI 418: Customer Privacy 2016 418-1 Proven complaints regarding privacy violations and customer data loss Page 73 16 150 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY S A S B CONTENT SUMMARY Energy Management Data Security Metrics Code Sustainability Repor Additional References Metrics Total energy consumed; percentage of grid electricity; percentage renewable RT-AE-130a.1 Page 11 Page 72 Number of data breaches; percentage involving confidential information Description of the approach to identify and address data security risks in the company's operations and products Code Sustainability Repor Additional References RT-AE- 230a.1 RT-AE- 230a.2 Page 71 Page 134 Page 72 Page 134 Hazardous Waste Management Metrics Code Sustainability Repor Additional References Quantity of hazardous waste generated; percentage of hazardous waste recycled RT-AE-150a.1 Pages 20 and 21 Pages 82 and 83 Number and aggregate quantity of reportable spills; quantity recovered from reportable RT-AE-150a.2 Page 22 Page 87 151 151 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY Product Safety Metrics Code Sustainability Repor Additional References Metrics Code Sustainability Repor Additional References Supply of Materials Number of recalls issued; total units recalled RT-AE-250a.1 - Description of risk management associated with the use of critical materials RT-AE-440a.1 Page 56 Page 120 Number of counterfeit parts detected; percentage avoided RT-AE-250a.2 Page 82 Page 143 Number of Airworthiness Directives received; total units affected RT-AE-250a.3 Page 81 Page 137 Total monetary losses resulting from legal proceedings associated with product safety RT-AE-250a.4 In 2023, the company did not incur monetary losses related to product safety. Fuel Economy and Emissions in Product Use Phase Business Ethics Metrics Code Sustainability Repor Additional References Metrics Code Sustainability Repor Additional References Revenue from alternative energy-related products RT-AE-410a.1 In 2023, approximately 24% of the company’s net revenue came from more sustainable products. Total amount of monetary losses resulting from legal proceedings associated with corruption, bribery, and/or illicit international trade incidents RT-AE-510a.1 Page 69 Page 131 Revenue from countries classified as "E" or "F" on the Government Defense Anti- Corruption Index by Transparency International RT-AE-510a.2 Page 70 Page 132 Description of the approach and discussion of the strategy to address fuel economy and greenhouse gas (GHG) emissions of products RT-AE-410a.2 Page 82 Page 15 Description of processes to manage business ethics risks across the value chain RT-AE-510a.3 Page 70 Page 132 152 APPENDIX OF INDICATORS 2023 TECHNICAL REFERENCES MATERIALIT Y ESG INDICATORS CO NTENT SUMMARY CO NTENT SUMMARY T C F D CONTENT SUMMARY Recommendations Recommended disclosures Sustainability Report Additional References Governance a) Describe how the Board oversees climate-related risks and opportunities. b) Describe the Board's role in assessing and managing climate-related risks and opportunities. a) Describe the climate-related risks and opportunities the organization has identified in the short, medium, and long term. Strategy b) Describe the impacts of climate-related risks and opportunities on the organization's business, strategy, and financial planning. c) Describe the resilience of the organization's strategy, considering different climate change scenarios, including a 2°C or less scenario. a) Describe the processes used by the organization to identify and assess climate-related risks. Risk Management b) Describe the processes used by the organization to manage climate-related risks. c) Describe how the processes used by the organization to identify, assess, and manage climate-related risks are integrated into the organization's overall risk management. a) Report the metrics used by the organization to assess climate-related risks and opportunities according to its strategy and risk management process. Pages 60 to 65 Pages 125 to 129 - - - - - - C1.1a, C1.1b C1.2, C1.2a C2.3a, C2.4a C2.3a, C2.4a, C3.1, C3.3, C3.4 C3.2, C3.2a C2.1, C2.1a, C2.1b, C2.2, C2.2a C2.1, C2.2 C2.1, C2; 1b, C2.2 C4.2, C9.1 Metrics and Targets b) Report greenhouse gas emissions from Scope 1, Scope 2, and, if applicable, Scope 3, and the related risks. c) Describe the targets used by the organization to manage climate-related risks and opportunities, and the performance against the targets. Pages 12 to 15 Page 16 of the 2022 Annual Report Pages 73 to 76 Page 15 C6.1, C6.2, C6.3, C6.5, C6.10, C7.1, C7.1a, C7.2, C7.3, C7.3a, C7.5, C7.6, C7.6a C4.1, C4.1a, C4.1b, C4.2a 153 APPENDIX OF INDICATORS 2023 embraer.com 4 2 0 2 R A M 

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