Social and Environmental Responsibility Policy

Introduction

NetZero is a global company specializing in the long-term removal of carbon dioxide from the atmosphere. We transform agricultural waste into biochar, a very stable form of carbon used as a soil amendment. NetZero's mission is to bring biochar at scale in the tropics, with the greater purpose of helping society build a more sustainable world.

Our main commitments are: (1) ensuring that we do not contribute to tropical deforestation, (2) maximizing the social and environmental co-benefits of our model, and (3) selling carbon dioxide removal certificates (CDRs) only to customers with very serious social and environmental commitments.

This policy sets out NetZero's social and environmental responsibility guidelines and objectives and provides a framework for the social and environmental management and assessment process, both aimed at achieving positive and consistent social and environmental performance, in all countries where we do business in.

Regardless of and consistent with this policy, NetZero commits to comply with all applicable local social and environmental laws and regulations as well as with internationally recognized social and environmental standards (such as IFC's Performance Standards).

Statements and Guidelines

NetZero declares that its operations aim at:

1. Combating climate change through measurable and certified long-term carbon dioxide removal, with reduction of greenhouse gas emissions as a co-benefit.
2. Strengthening sustainable agriculture, encouraging the reduction in the use of synthetic fertilizers, favoring the production of larger and better crops and expanding the sustainable disposal of agricultural residues.
3. Encouraging overall rural development, promoting opportunities to increase farmers' income, creating industrial jobs and providing access to renewable electricity sources generated in their production processes.

In addition, NetZero's social and environmental guidelines are:

• The identification of social and environmental risks associated with our business, at all stages of the life cycle, and the assessment of associated impacts, with a view to implementing effective social and environmental control standards in normal, abnormal, and emergency situations.
• The definition of social and environmental management programs with the objective of avoiding or minimizing adverse impacts on human health and the environment, avoiding or minimizing pollution resulting from project activities, promoting a more sustainable use of resources, including energy and water, and reducing greenhouse gas emissions related to its activities and operations.
• The monitoring and analysis of social and environmental results, to materialize the benefits or losses caused by its activities, and direct actions for continuity or route correction.
• The establishment, maintenance and strengthening of an organizational structure with defined functions, responsibilities, and authority to implement and manage the social and environmental guidelines of this policy.
• The constant engagement of stakeholders in NetZero's social and environmental performance, including the access to an external grievance mechanism, to create a solid, constructive, and receptive relationships with the communities.

Implementation and Training

This policy, its statements and guidelines must be implemented through specific rules and training in all countries where NetZero operates, with all employees and direct subcontractors, when applicable, and shall be monitored periodically to attest these principles and objectives are met.