Sustainability-Related Financial Disclosures – Climate Report (IFRS S1/S2)

Sustainability-related

financial information report

2024

Climate-related Disclosures

CBPS 01 and 02 | IFRS S1 and S2

Letter from the Administration

Lojas Renner S.A. is proud to present its first disclosure in accordance with the international IFRS S1 and S2 standards (CBPS 01 and 02), a symbolic milestone that reflects our commitment to transparency and to the integration of sustainability into our business strategy.

This is a special and meaningful moment, not only for our Company but also for the Brazilian and global markets, as we position ourselves at the forefront of adopting these new standards. Throughout our journey, we have firmly

believed that responsible and ethical practices are essential to ensuring the long-term resilience and competitive edge of the Company, aligning our values with the ongoing evolution of our processes.

This report is not just a formality, but a testament to our efforts to overcome challenges by paving a path of transformation and learning.

It marks the starting point of a journey toward continuous improvement in the maturity of our processes, systems, and reporting practices, with a commitment to progressively enhance the quality of the information disclosed, always aligned with the expectations of our stakeholders and the best practices.

We reaffirm our commitment to consistency, accountability, and transparency, and we invite everyone to read this report, which reflects Lojas Renner S.A.'s ongoing efforts to manage risks and seize opportunities in the context of climate transition.

Carlos Souto

President of the Board of Directors

Fabio A. Faccio

CEO

Risk management

Management structure .30 Climate resilience strategy .32 Transition plan .37

Metrics and goals

2030 Commitments .39

Leadership goals .41

Emissions inventory .42

Industry-specific metrics .44

Additional information

IFRS Content Index .45

Assurance letter .47

Approval .49

Glossary .50

‌Basis of preparation

Regulations

S2-03, S2-010

Judgments, Assumptions, Uncertainties, and Proportionality

Two years ahead of the deadline established by Brazilian legislation, the Company's sustainability disclosures were prepared in accordance with the following technical pronouncements issued by the Brazilian Sustainability Reporting Board (CBPS), which are equivalent to the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), as well as

resolutions of the Brazilian Securities and Exchange Commission (CVM):

• CBPS 01 / IFRS S1 - General Requirements for Disclosure of Sustainability-related financial information

  As provided for in the aforementioned standards, the preparation of this report involved the application of judgments and the use of assumptions subject to uncertainty, which are detailed in the table below.

  Topic Judgments and Uncertainties

street-level stores vs. shopping mall stores)

Identifying climate-related risks and opportunities Application of exposure factors based on vulnerability (e.g.,

Climate scenario analysis approaches

Selection of IPCC AR6 scenarios (RCPs and SSPs) and inclusion of geomorphological and vegetation cover variables

Amount or percentage of assets or activities vulnerable to

• CBPS 02 / IFRS S2 - Climate-related Disclosures

• CVM Resolutions:

• No. 193/2023 - provides for the compliance with CBPS 01 and 02

• No. 217/2024 - approves CBPS 01

  Climate-related metrics Measurement of scope 3 emissions

  physical and transition risks, as well as to opportunities

  Use of sector-specific emission factors (Higg Index and Ecoin-vent) and consideration of traceability uncertainties across the value chain

• No. 218/2024 - approves CBPS 02

• No. 227/2025 - updates Resolution 193

  Transition reliefs

  The Company has adopted the following transition reliefs, which are exceptions to full compliance proposed under IFRS S1 (CBPS 01), aimed at facilitating and encouraging adherence:

• Exemption from publishing this report simultaneously with the financial statements

• Disclosure limited to climate-related risks and opportunities (IFRS S2 / CBPS 02)

• Exemption from disclosing comparative information on climate-related risks and opportunities

  Organizational Boundary

  The information disclosed herein represents the entire Lojas Renner S.A. ecosystem in all countries where it operates throughout 2024 (January 1st to December 31st), aligned with the same operational boundaries used in the consolidated financial reporting and the greenhouse gas emissions inventory (GHG Protocol).

  Emissions reduction and circularity projects Scalability of more sustainable fiber alternatives

  ned metrics and assumptions

  Quantifying future financial effects Projection of future scenarios and estimates based on defi-

  Where applicable, the proportionality mechanisms of the standards were also adopted, allowing companies to use reasonably available information without incurring undue cost or effort, and to apply an approach compatible with their skills, capabilities, and resources.

  Functional Currency

  Sustainability-related financial information is presented in millions of Brazilian Reais (R$ million), the Company's functional currency, with balances rounded to the nearest thousand.

  Connections

  This report includes information that can be further explored in conjunction with the Financial Statements and the 2024 Annual Report.

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  01. Introduction

  ‌INTRODUCTION

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  STRATEGY

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  METRICS AND GOALS

  ADDITIONAL INFORMATION 4

  Materiality

  Context

  In accordance with IFRS S1 (CBPS 01, paragraphs 17 and 18), the following must be disclosed in this report:

  "Material information about sustainability-related risks and opportunities that could

  reasonably be expected to affect the entity's prospects.

  In the context of sustainability-related financial disclosures, information is considered material if its omission, misstatement, or obscuring could reasonably be expected to influence the decisions that

  primary users of general purpose financial reports make on the basis of those reports. These reports include both financial statements and sustainability-related financial disclosures

  and provide information about the specific reporting entity."

  Definition of Financially Material Aspects

  The definition of financially material aspects is the responsibility of the Company and results from judgments made by each business and segment, as the applicable standard does not establish limits nor specify particular situations (CBPS 01 B19). In this sense, the materiality judgments applied herein take into account:

• Specific facts and circumstances related to the Company and its business context

• Analysis of aspects related to the information's magnitude (quantitative aspect) or nature (qualitative aspect), or both

  Considering the characteristics and particularities of its business, Lojas Renner

  S.A. used the following reference points to define the financially material amount:

• Benchmark performance indicators for market analysis

• Historical information on decision-making

• The economic context of each reporting period

Market analysts' reports (sell side) were consulted to assess whether the amounts determined as financially material were within the ranges estimated by capital market participants when projecting the Company's results. Additionally, the Company evaluated to what extent these amounts would influence the assessments made by various market agents that monitor the Company.

Based on this methodology, the financially material amounts were approved by the Company's governance structure as follows:

Controllership Officer > Statutory Board > Audit and Risk Committee + Sustainability Committee > Board of Directors.

Lojas Renner S.A. emphasizes that this amount served as a benchmark to define the financial materiality for this report on financial information related to sustainability, as well as for financial statements or any other report disclosed to the market that includes financial information.

In this report, financial materiality was assessed in relation to climate-related risks and opportunities. Annually, through this report, whenever climate and sustainability risks and opportunities reach financial materiality, they must be disclosed. Additionally, even when they do not meet the financial materiality threshold, such risks and opportunities may still be disclosed qualitatively, in order to support report users' understanding and decision-making processes.

Time Horizon

The Company considers the financial impacts of climate change across three time horizons: short term (up to one year), medium term (over one to three years), and long term (over three to ten years). For the scientific purposes of its climate target, the long-term horizon extends to 25 years (2050).

For financial assessment purposes, the 10-year long-term horizon aligns with the impairment testing of assets and the feasibility evaluation of internal projects (corporate projects and new stores). However, for the purposes of this report, we have used the defined timeframe based on the time horizons mentioned above.

Furthermore, this time frame is also consistent with the business characteristics, in which physical stores, the main cash-generating units, undergo an investment maturation process with the full capture of their potential results within this period.

Projection of the Financial Impact of Risks

The Company conducted an analysis of risks and opportunities based on its risk matrices and business impact assessment, in order to determine which factors could potentially affect the measurement and evaluation of future cash flow impacts.

Practical Application

Although the financial effects of the risks and opportunities assessed here did not reach the threshold for financial materiality, their selection was based on the relevance of the context and the Company's response actions, in order to ensure transparency for readers and support their decision-making. Learn more about the risk selection criteria and their potential impacts on page 14.

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Summary of

financial effects

EFFECTS ON OPERATING RESULTS1 IN 2024

FUTURE EFFECTS ON CASH FLOW2 (10 YEARS)

Based on the analyses and studies of key risks and opportunities conducted by the Company, detailed from page 15 onward, Lojas Renner

S.A. has identified the following short-term (2024) and long-term (10-year horizon) financial effects for which measurable information was available.

It is important to note that the figures presented herein compile information already discussed throughout the chapters and calculated in 2024.

Therefore, additional financial data related

to the transition plan and identified risks and

USE OF LOW IMPACT RENEWABLE ENERGY

R$

34

SELLING MORE

SUSTAINABLE PRODUCTS

R$

˜

94

million

USE OF LOW IMPACT RENEWABLE ENERGY

424

R$

to

million

SELLING MORE

SUSTAINABLE PRODUCTS

488

opportunities are still being developed and will continue to be measured by the Company in the coming years.

The calculation methodologies are explained and detailed on the pages where the effects are further explored.

To access them, click on the risk and opportunity icons in the infographic beside this section.

Legend:

˜ million

R$

~ -10

million

FLOOD

R$

~ -18

million

HEAT WAVES

-85 to -99

R$

million

FLOOD

HEAT WAVES

-148 to -172

R$

million

LESS IMPACTFUL RAW MATERIALS

1 Result of the Company's main activities before financial result, income taxes, and other non-operating items.

2 Net cash flow from taxes, discounted to present value over a defined period.

‌Business model

Lojas Renner S.A. is the leading fashion and lifestyle ecosystem in omnichannel fashion retail in Brazil and one of the country's largest brands.

Lojas Renner S.A. Ecosystem

Founded in 1965

largest omnichannel fashion retailer in Brazil

• Target audience: 18 to 39 years old, from classes A-, B and C+

• 429 stores

Acquired in 2011

leader in home and decoration in Brazil

• Target audience: 18 to 39 years old, from classes A-, B and C+

• 103 stores

  Founded in 2013

  specialized in youth fashion

  • Target audience: 18 to 24 years old, from classes A-, B and C+

  • 135 stores

    Founded in 2016

    specialized in curve & plus size

  • Target audience: 25 to 45 years old, from classes A-, B and C+

  • 19 stores

    Founded in 2017

    financial institution that supports retail operations by offering convenience and building customer loyalty

    Acquired in 2021

    ecosystem fashion resale platform

• Target audience: B and C+ classes

• Online store

Acquired in 2022

digital platform for logistics and urban deliveries

Founded in 2022

investment fund that finances startups focused on transforming the chain with

innovations and good ESG practices

Lojas Renner S.A.'s role in the value chain of fashion, lifestyle, home, and decor stems from the design, planning, selection, and commercialization of products manufactured within its supplier network.

Although there is no production process conducted internally, the Company is responsible for the design and development of collections based on trends, consumer behavior, and data analysis, offering customers exclusive products and proprietary brands.

This represents a significant competitive advantage that, combined with the establishment of a solid and close supply chain (learn more on page 12), enables Lojas Renner S.A. to maintain control over product quality, exclusivity, and the socio-environmental impacts of the goods sold. It also allows for greater accuracy regarding financial margins, customer loyalty, and the building of brand identity within the ecosystem. Below, we present the links in the value chain for fashion and financial services, segments that accounted for approximately 96% of the Company's net revenue in 2024.

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Overview of the textile chain

Collection planning and development

Main raw materials

Natural

→ Cotton

Textile production processes

→ Spinning

→ Weaving and knitting

→ Processing

→ Clothing

→ Trimmings

Stores and e-commerce

→ Fashion and lifestyle products

Individual customers

Retail support financial services**

O

-O C

CH2 O

O

n

OH

Synthetic

→ Polyester

→ Poliamida

→ Renner Card

→ My Card (Credit Card)

→ Insurance

→ Personal Loan for Individuals

LEGEND

STAGES WITHIN THE BUSINESS STAGES OUTSIDE THE BUSINESS

Regenerated Artificial Materials***

→ Viscose

PRIORITIZED PHYSICAL CLIMATE RISKS*

FLOODING

HEAT WAVES WILDFIRES

METEOROLOGICAL DROUGHTS

PRIORITIZED CLIMATE OPPORTUNITIES

CHANGES IN CONSUMER BEHAVIOR USE OF LOW-IMPACT RENEWABLE

ENERGY

ADOPTION OF NEW TECHNOLOGIES

Distribution and Logistics

→ Distribution Centers

→ Logistics Operators

+ Third-party logistics operators

Fashion Resale

→ Collection, curation, and resale of second-hand garments

* Details on identification and prioritization are presented on page 14, with further information on risks starting on page 15.** Majority pertains to individual (retail) clients.

*** Viscose is a regenerated artificial fiber derived from a natural raw material (such as cellulose), which undergoes a chemical process to be transformed into a textile fiber. This terminology follows the ABNT NBR 12744 technical standard.

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S2-G5

1. ‌Governance Roles and responsibilities

   In 2005, Lojas Renner S.A. became the first publicly traded corporation in Brazil with 100% of its shares listed on the stock exchange. Since then, the company has continuously strengthened its robust system of practices, policies, and frameworks, ensuring that its strategy is executed responsibly, sustainably, and with a commitment to generating value for its shareholders.

   The Company also maintains a structured governance model for managing sustainability and climate-related risks and opportunities, integrating these considerations into its strategy and decisions regarding key transactions. Furthermore, it oversees the management of these risks and the implementation of related policies, as detailed below.

   Structure on 12/31/2024

   Board of Directors

   Audit and Risk Management Committee (ARMC)

Independent member and Chairman of the Committee Independent members who are members of

the Committee

Executive Board

CEO

The bodies responsible for sustainability and climate-related risks and opportunities are presented below, in hierarchical order.

Board of Directors (BoD)

Responsibilities related to the topic

As established in the Company's Bylaws, the BoD is responsible for approving the Company's risk management, periodically assessing risk exposure and the effectiveness of risk management systems, internal controls, and the integrity and compliance system. Additionally, the BoD is tasked with approving annual and multi-year budgets, strategic plans, expansion projects, and investment programs, as well as monitoring their execution.

Members' competence and skills

The BoD includes two members with experience and expertise in sustainability topics - André Vitorio Cesar Castellini and Andréa Cristina de Lima Rolim - supported by the Sustainability Committee (SC) and the Audit and Risk Management Committee (ARMC) in managing sustainability and climate risks.

Composed of Board members, the ARMC and SC are the bodies through which the BoD stays informed about sustainability and climate risks and opportunities, accessing the necessary skills and competencies to oversee related strategies and their development, as described below.

Information and reporting

To stay informed about sustainability and climate-related risks and opportunities, the Committees report to the BoD at frequencies defined in their bylaws.

The SC reports quarterly to the BoD on sustainability and climate-related risks and opportunities. The ARMC

Reports to the

ARMC

Risk Board

Administrative, Financial and IR Board

Controllership Officer

People and Sustainability Board

Part of the SC

Secretariat and

ensures that the BoD is aware of matters within its scope that may significantly impact the Company's financial position or business. Moreover, through its Chairman, the ARMC participates at least quarterly in BoD meetings to provide clarifications and report on its activities.

Senior Controllership Management

General Sustaina- reports to the SC

bility Management

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Audit and Risk Management Committee (ARMC)

Responsibilities related to the topic

As established in the Company's Bylaws, the ARMC is responsible for advising the BoD, evaluating quarterly information, interim and annual financial statements, overseeing internal audit and internal control activities, and assessing and monitoring risk exposures.

Members' competence and skills

According to the ARMC's internal regulations, each member's qualifications must include knowledge of the Company's risks and controls.

Information and reporting

To keep informed about sustainability- and climate-related risks and opportunities, the ARMC must meet ordinarily five times a year and extraordinarily whenever convened by its Chairman, on its own initiative, by request of any Committee member, or upon request of internal or independent auditors.

The ARMC also supervises Internal Audit activities, meeting separately with the head of Internal Audit whenever necessary, at least semiannually, to review matters deemed necessary by the Committee or internal auditors.

It is also responsible for ensuring that relevant issues, recommendations from internal auditors, and the corresponding action plans proposed by management are received, discussed, and properly implemented.

Finally, the ARMC is responsible for reviewing the Internal Audit plan proposed for the following year, ensuring it addresses key risk areas and is coordinated with the Independent Auditors.

Sustainability Committee (SC)

Responsibilities related to the topic

As established by the SC's internal regulations, the Committee is responsible for advising the BoD on all matters related to sustainability and climate, identifying, addressing, and managing

issues representing risks or opportunities that may materially impact the business, long-term results, stakeholder relations, and the Company's reputation.

It is also tasked with guiding and establishing competencies for implementing measures necessary to eliminate or mitigate socio-environmental and climate risks, as well as deviations or violations of human rights and environmental standards.

Members' competence and skills

Besides the three SC members who must be BoD members, the BoD may appoint a fourth member, who may not be a BoD member, but has recognized experience and skills related to the Committee's areas of focus.

For the 2024 SC mandate, the Board appointed the Company's Director of People and Sustainability as the fourth member with expertise in the topic and elected a secretary with relevant experience and skills, the General Manager of Sustainability.

Information and reporting

To stay informed on sustainability- and climate-related risks and opportunities, the SC must meet ordinarily four times a year and extraordinarily whenever convened by its Chairman, on its own initiative, or by request of any other member.

The Committee may also request consultancy services, subject to prior BoD approval, invite management members to attend meetings, as well as employees with relevant information regarding matters pertaining to its responsibilities.

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‌Statutory Board of People and Sustainability

Responsibilities related to the topic

It is primarily responsible for implementing and monitoring strategies, policies, and actions aimed at promoting sustainable practices across all business areas, through the General Sustainability Management.

This management is responsible for proposing continuous updates to the business sustainability strategy, the work plan, and coordination with different areas to achieve targets, identifying sustainability and climate risks, creating mitigation plans, and qualifying and quantifying, in collaboration with the controllership team, the financial impacts on the business and society.

Information and reporting

The Statutory Board of People and Sustainability reports to the SC on the monitoring of sustainability and climate risk strategies and management through its Director, a SC member, and its General Manager, who acts as SC secretary.

Risk Directorate

Responsibilities related to the topic

It works alongside business areas in identifying, preventing, and managing major risks. The integration of Climate Risks into the Company's Global Risk Management takes place through coordination between risk themes identified in Company areas and the Risk Directorate.

Information and reporting

As provided in the ARMC's internal regulations, the Risk Directorate reports directly to the Committee through Internal Audit, preserving the independence of auditors and Loss Prevention and Compliance professionals.

Controllership Directorate

Responsibilities related to the topic

It works together with other areas in estimating and quantifying the financial effects of climate risks and evaluates their impact on the Company's financial statements on an ongoing basis.

Information and reporting

The Controllership Directorate reports quarterly to the Audit and Risk Committee for review and approval of accounting estimates, accounting matters involving risks, and financial statements. With the early adoption of CBPS 01 and 02, the Company began assessing the financial measurement of risks and opportunities, as well as their materiality from both quantitative and qualitative perspectives, participating in recurring agendas on this topic at the ARMC and SC.

Strategy supervision

S2-G1, S2-G2, S2-G7

Controls and procedures used by management and executive leadership to oversee climate issues are integrated into the Company's strategic planning.

On an annual basis, Lojas Renner S.A. holds a strategic alignment meeting that brings together the Board of Directors, Executive Board, and General Management, supported by consulting, where Strategic Drivers and Sustainability Pillars are defined for the upcoming cycle.

This process involves analyzing strengths, weaknesses, opportunities, threats, and trade-offs to build the Major Strategic Objectives, incorporating social, environmental, climate, and governance factors. From there, strategies for the year are developed, defining priority strategic projects and corporate and Board goals.

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1. ‌Strategy

   History

   S2-09

   In recent years, the integration of sustainability- and climate-related impact, risk, and opportunity management into the Company's business strategy has been consolidated as a competitive advantage. It has become a key driver for operational efficiency, enhancing the Company's ability to make more informed decisions, allocate resources effectively, mitigate risks,

   and ensure greater clarity and consistency in financial planning.

   2024

   2023

   2022

   2021

   2020

   2019

   2018

   The following is an overview of the progress made in Lojas Renner S.A.'s climate strategy and management, which positions the Company to accelerate the sector's transition in response to the challenges of climate change and to fulfill its value proposition of "Being the leading sustainable ecosystem in fashion and lifestyle."

   2016

   2015

   2014

   2013

   2010

   2008

   Creation of the Sustainability Committee within the scope of the Board

   of Directors.

   Entry into the B3 Carbon Efficient Index (ICO2) since its 1st year.

   Creation of the sustainability area.

   1st Inventory of Greenhouse Gas (GHG) Emissionswith third-party verification and Gold seal from the Brazilian GHG Protocol program.

   We began offsetting 100% of the greenhouse gas emissions

   generated in the previous year.

   Formalization of the 1st institutional Responsible Fashion strategy.

   Launch of the first cycle of public sustainability commitments 2018-2021.

   First assessment of climate-related risks, opportunities, and adaptation.

   Support for relevant initiatives: (i) Climate Commitment Program; (ii) the letter from the Brazilian Business Council for Sustainable Development (CEBDS) on Carbon Pricing; (iii) the United Nations' Business Ambition for 1.5°C; (iv) the Fashion Industry Charter for Climate Action, under the United Nations Framework Convention on Climate Change (UNFCCC); and

   (v) the Science Based Targets initiative (SBTi).

   Signing of the Brazilian Business Sector Statement: Business Movement for

   the Amazon, an initiative proposed by CEBDS.

   Signing of the Climate Neutrality Commitment proposed by CEBDS. Achievement of the voluntary goal to reduce absolute corporate

   CO2emissions by 20% compared to the 2017 baseline year.

   Adherence to the Net Zero Ambition letter from the UN Global Compact. Approval of Lojas Renner S.A.'s 2030 climate target by the Science Based Targets initiative (SBTi).

   Adherence to the Brazilian

   business sector's Position Letter on the creation of a regulated carbon market in Brazil.

   Approval by the SBTi of the 2050 climate target and the revision of the Scope 3 climate target for 2030.

   Publication of the Climate Risk Guide. Participation in the presentation of the Brazilian business sector's Positioning on the carbon regulatory market to

   the Vice President of the Republic and the Minister of Development, Industry, Trade and Services (MDIC).

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   Overview

   ‌The diagrams on this page and the following page provide an overview of the key advances in the business strategy and their connections to the Company's climate resilience strategy. The resilience program (page 32) encompasses actions from the transition plan, which presents structural projects aimed at reducing emissions and achieving science-based targets, and the adaptation plan, which presents mitigation and adaptation measures for the risks presented.

   PROGRESS IN BUSINESS STRATEGY

   Based on artificial intelligence, each store receives an assortment more accurate to consumer trends.

Connecting advances to risk mitigation/ climate

resilience

Operational

gains

→ Back-of-house inventory in stores diversifies routes and mitigates logistical impacts resulting from potential adverse weather events. (page 19)

Logistics optimization reduces greenhouse gas emissions, supporting climate goals. (page 16)

→ Reduced need for increased production to achieve revenue and margin targets, generating less waste and raw material consumption, supporting the decarbonization of the chain. (page 16)

KEY: MITIGATED CLIMATE RISKS

FLOODS | HEAT WAVES | WILDFIRES | METEOROLOGICAL DROUGHTS

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PROGRESS IN BUSINESS STRATEGY

Close relationship and qualification of the supplier network

AI-driven collection development

Reference in Responsible Fashion

~70% of nearshoring suppliers have long-term relationships and are engaged in qualification programs, including the Excellence Program (innovation and productivity), the Compliance Acceleration Program, and the Responsible Network (ESG advancement). In addition, for the remaining 30%, the international supply chain, we maintain high standards, using third-party-certified methodologies and participating in coalitions that support the socio-environmental development of suppliers (such as Cascale and SLCP).

Proprietary AI forecasting model supporting trend capture and decision-making on the volume of each model and product to be produced.

Sustainability strategy and 2030 Commitments with pillars focused on transition in processes and products: connections that amplify (supplier network) and climate, circular and regenerative solutions (products, processes, services and infrastructure).

Operational

gains

Progress in Responsible Network suppliers, achieving:

Connecting advances to risk mitigation/

climate resilience

→ 47% of parts classified as low water consumption, mitigating the impact generated and suffered by the chain due to meteorological droughts. (page 21)

→ 58.6% supplied with low-impact renewable energy and 48.3% carry out their GHG Protocol inventories, supporting the necessary progress to achieve

the Company's Net Zero goal. (page 43)

→ Reduced need for increased production to achieve revenue and margin targets, generating less waste and raw material consumption, supporting the decarbonization of the chain (page 16)

KEY: MITIGATED CLIMATE RISKS FLOODS | HEAT WAVES | WILDFIRES | METEOROLOGICAL DROUGHTS

→ Greater energy efficiency through store automation and less impactful construction and renovation projects, mitigating financial impacts and supporting the decarbonization of operations. (page 16)

→ R&D efforts focused on alternative raw materials and circularity solutions (page 24), along with significant progress in the use of certified raw materials (cotton and viscose), aimed at reducing Scope 3 emissions and driving supply chain decarbonization. (page 43)

→ Assessment of vulnerability to climate-related events is now part of the decision-making process for new store locations, helping mitigate flood risk. (page 18)

→ Climate targets validated by the SBTi ensure that the Company's actions are aligned with the goals of the Paris Agreement, actively contributing to decarbonization both within the industry and across Brazil. (page 39)

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Climate risks

S2H3-2, S2H3-3, S2H3-10

The risk identification process is designed to identify, recognize, and detail the risks that could prevent the organization from achieving its objectives, in order to mitigate them and integrate them into relevant decision-making processes.

The definition of the reported climate risks followed a structured process, based on technical knowledge of the Company's context.

The methodology developed for risk prioritization was guided primarily by two documents: the COSO ERM 2017 - Aligning Risk with Strategy and

Performance framework, and the Guidance for Applying ERM to Environmental, Social and Governance (ESG) - Related Risks, which adapts the COSO ERM framework for ESG risk analysis.

This process aims to recognize and detail all factors that may prevent the Company from reaching its goals, in order to mitigate their effects and incorporate them into strategic decisions.

Prioritization

Once all potential risks were mapped and evaluated, an additional analysis was conducted to determine which of these risks are qualitatively material and relevant, using both quantitative and qualitative approaches, to compose the IFRS S1 and S2 report (CBPS 01 and 02).

Diagnosis

Since 2022, Lojas Renner S.A. has been building and updating a climate risk assessment covering both physical and transition

risks to which its operations and value chain are exposed. This has been carried out through a multidisciplinary approach, involving various departments and internal and external experts.

The assessment is based on global best practices, with methodology guided by COSO (ICF 2013 and ERM 2017) for impact assessment and by the IPCC's AR6 climate scenario modeling.

Preliminary Analysis

Starting from a list of climate risks with the greatest potential to affect Lojas Renner S.A.'s operations, employees and in-house experts with business knowledge conducted an analysis of the potential impacts and consequences of each risk.

Quantitative and Qualitative Analysis

Details of the methodology used for assessing the materiality of risks and opportunities can be found on page 4.

Prioritization Outcome

As a result of this process, four climate risks were identified as material, due to their potential to impact the Company's business and influence the economic decisions of users of financial reports: heatwaves, floods, meteorological droughts, and wildfires.

The risks, their potential effects and the various initiatives developed by Lojas Renner S.A. to mitigate their occurrence

are discussed in the following pages.

Based on the Company's analysis, the estimated negative financial impact of this risk on future cash flows (net of taxes) is presented below:

Short Up to 1 year R$ 7 to 8 MM

Medium 1 to 3 years R$ 13 to 15 MM

Long 3 to 10 years R$ 44 to 51 MM

1.4.3 Conclusion

Lojas Renner S.A. concludes that both the measured current effects and the projected financial impacts do not represent material financial risks. However, the Company considers the risk to be relevant and continues to monitor it closely, while actively implementing mitigation and adaptation strategies.

The Company concludes that both the measured current effects and projected future impacts are not financially material.

Nonetheless, it considers the risk to be relevant due to the increasing recurrence of such climate events, which highlights the importance of continuous risk monitoring and response actions, especially as new store locations are evaluated regionally.

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3. Meteorological droughts

Given the importance of the supply chain as a critical part of the Company's operations, this risk is considered material, and ongoing monitoring and responsive actions are necessary.

In Lojas Renner S.A.'s judgment, no changes are expected in performance, financial position, or cash flow that would require new investments for managing this risk in the short, medium, or long term. Furthermore, no accounting adjustments are anticipated for the next fiscal year.

In the judgment of Lojas Renner S.A., no changes in performance, financial position, or cash flow are expected that would require new investments in risk management strategy in the short, medium, or long term. There is also no indication of the need for accounting adjustments for the upcoming fiscal year.

The Company considers the risk relevant due to the strategic importance of the Cabreúva DC, which is the main distribution center in its operations, and its location in a region that may be subject to wildfire outbreaks.

Therefore, the Company believes it is essential to disclose its risk response measures to provide transparency on its preparedness.

‌Opportunities S2H3-2, S2H3-3, S2H3-10

Increased sales of more sustainable products

Transition Plan

Potential impact on Financial Statements:

• Accounts receivable (BP)

• Net goods revenue (DRE)

• Sales expenses (DRE)

Financial impacts

Current: ~ R$ 94 MM in the operational result

Future: R$ 223 MM to R$ 256 MM

on cash flow

Context

The study showed that, in light of the worsening effects of climate change, a portion of the population is becoming more aware of and concerned with climate issues, as well as with environmental and social responsibility. In this context, Lojas Renner S.A. may experience increased demand for fashion products aligned with the circular economy chain, offering lower emissions compared to conventionally sold products in the Brazilian market.

Company performance

Less impactful products

Since 2018, the Company has been offering less impactful products and services - an initiative embodied by Re - Responsible Fashion (Renner) and YC Change (Youcom), which identify products made with

raw materials or processes that generate lower environmental impact and greater value throughout the supply chain. By 2030, Lojas Renner S.A. has committed to investing in the development of circular and regenerative textile raw materials, ensuring that 100% of its key raw materials are more sustainable.

Circularity

The Company adopts pre-consumer circularity initiatives through the Rede Responsável (Responsible Network) program, which qualifies suppliers, and post-consumer initiatives through Jeans For Change

(Youcom) and Ecoestilo (Renner), allowing customers to discard unused garments in stores. Since 2021, the Company has also operated in the resale of used clothing and accessories, promoting circular fashion through Repassa, an online secondhand store.

By doing so, it expands its presence in the fashion and lifestyle ecosystem while offering a service that encourages conscious consumption and extends the life cycle of garments.

To further amplify circularity, in 2024, Lojas Renner S.A. published a Circular Fashion Guide, initially shared with its Product team and later made public for suppliers and the broader market. The guide presents key concepts on the topic, tools, references, and practical tips for incorporating circularity from the early stages of product design.

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Results in 2024

406thousand

clothing items diverted from landfills through Repassa's actions.

13.8ton

of clothes reinserted into the production cycle collected at Ecoestilo.

5.4ton

of clothing reinserted in the production cycle collected in Jeans for Change.

Through these initiatives, the Company has reduced waste generation and the demand for virgin raw materials, lowering the emission intensity per garment produced.

Reputation

Reinforcing the relevance of the topic, in 2024, employees and executives from various levels and areas had part

of their variable compensation tied to the goal of being recognized as a sustainability leader in the perception of customers, partners, and the market at large.

Since 2021, customer perception has been monitored in two ways:

• Renner Brand Monitoring: Conducted quarterly, this survey includes specific questions regarding the perception of

  the brand as more sustainable in the eyes of consumers, with 7% of the questions focused on sustainability. Since the beginning of this measurement, results have remained positive, with a high percentage of brand promoters.

• Weighted Index for the Renner, Youcom, Camicado, and Ashua brands: Calculated annually based on a national survey of customers and non-customers, this index measures how many people identify brands from the ecosystem as "more sustainable and socially responsible." In this survey, the Company consistently achieves a positive perception index, being the brand most spontaneously remembered in relation to sustainability.

Financial impacts

To measure the financial impacts of the opportunity linked to increased sales of products with sustainable attributes, a technical financial study was conducted based on sales data and a consumer perception survey.

Initially, the total revenue from the sale of apparel items in 2024 was analyzed. From that total, the portion corresponding to products with sustainable attributes, made from recycled or

certified raw materials, was identified, and the percentage share of such items within the total sold was calculated.

Next, a 2024 consumer survey was taken into account, which highlighted the weight customers place on sustainability and social responsibility as decisive factors in their purchasing decisions.

This information was used to estimate the potential gradual growth in sales of more sustainable products, based on customer preferences and consumption behavior.

From these inputs, the positive effects of this trend on future cash flows were projected, considering incremental revenues linked

to the increased share of products made with sustainable raw materials within the total apparel offering, aligned with the targets set out in the Transition Plan (page 37), net of cost of goods sold and variable expenses.

The resulting amounts were projected across short-, medium-, and long-term horizons, and the flows were discounted to present value using the Company's Weighted Average Cost of Capital (WACC) of 13.8% per year.

Current financial impacts

For the fiscal year ended December 31, 2024, the Company estimates that the operating profit resulting from the sale of more sustainable products amounted to approximately R$ 94 million.

Future financial impacts

Based on the study, the projection of the estimated positive financial impact of this opportunity on the Company's net (after-tax) cash flow is presented below:

Short Up to 1 year R$ 11 to 12 MM

Medium 1 to 3 years R$ 34 to 39 MM

Long 3 to 10 years R$ 178 to 205 MM

Judgments and Uncertainties

To estimate the financial gains resulting from the shift in consumer behavior toward more sustainable products, the main judgment involved the interpretation of opinion survey data, which consistently indicate the relevance of sustainability in purchasing decisions.

The projection assumes the continuation of this trend, as reflected in the consumption profile identified within the business. Nevertheless, there are inherent uncertainties, such as potential changes in consumer

preferences over time, which call for periodic reviews of the assumptions adopted.

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Use of low-impact renewable energy

Transition Plan

Potential impact on Financial Statements:

• Suppliers (BP)

• Operational expenses (DRE)

Financial impacts Current: ~ R$ 34 MM in the operational result

Future: R$ 201 MM to R$ 232 MM

on cash flow

‌

Context

The use of renewable energy presents opportunities for reducing operational costs, both by minimizing exposure to carbon pricing scenarios, through the reduction of indirect GHG emissions, and by enabling procurement in the free energy market, where low-impact renewable energy is traded. This is particularly advantageous in the context of rising unit costs of electricity (R$/MWh) in the regulated market.

Company performance

Since 2018, Lojas Renner S.A. has publicly committed to consuming energy from low-impact renewable sources - such as solar, wind, and small hydroelectric plants (PCHs) - which are characterized by low greenhouse gas emissions. In 2021, by combining energy consumption from the free market and the purchase of traceable certificates of sustainable renewable energy, the Company reached 100% renewable electricity consumption and committed to maintaining this level.

To ensure the continued achievement of this target, the Company secured long-term contracts with low-impact generators in the free market and encouraged investment in such ventures.

In 2017, Renner launched a pilot project to generate solar energy, supplying electricity to four stores in Rio de Janeiro. The following year, the Company implemented its first solar power plant. Currently, Renner operates three solar plants located in Vassouras (Rio de Janeiro), Brasília (Federal District), and Pantano Grande (Rio Grande do Sul), which together provide a total of 2.83 MWh/year.

In 2021, the Company invested in the construction of a wind farm in Tacaratu (Pernambuco), developed by Enel, signing a Power Purchase Agreement (PPA) to secure 105,400 MWh/ year of wind-generated electricity for a period of 15 years. Additionally, it acquires International

Renewable Energy Certificates (I-RECs) for other stores and corporate offices within the group.

Results

In 2024, energy expenditure intensity (R$ spent/R$ net revenue) decreased by 2.0% compared to 2023, totaling R$0.0148 spent for every R$ of net revenue.

During the year, Lojas Renner consumed 2,083 MWh of solar energy, 57,530 MWh of hydroelectric power through small hydroelectric plants, and 105,400 MWh of wind energy.

The cost/investment ratio was considered zero, as prices were negotiated at an average discount of 24% compared to conventional grid-connected energy.

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Financial impacts

To measure the financial impact of this opportunity, the Company first identified the total number of units with potential for

procurement in the free market, considering their share of the store network.

The calculation compared the cost of contracted MWh in the free market with its conventional equivalent, deducting eligible tax credits in both scenarios to determine the net expense impact.

Subsequently, free cash flow was estimated for each scenario, and the net gain from contracting in the free market, relative to conventional energy, was calculated. The amounts were updated using the indexation mechanisms provided in the contracts for the next ten years and discounted to present value using the Company's WACC (13.8%).

Current financial impacts

For the fiscal year ended December 31, 2024, increased use of renewable energy sources had a positive effect

on the Company's operating results, totaling approximately R$ 34 million.

Future financial impacts

Based on the study conducted, the projected positive financial impact on the Company's cash flow (net of taxes) is presented below:

Judgments and Uncertainties

The calculation of the financial impact of the renewable energy opportunity is subject to judgment and uncertainty, as it involves the analysis of scenarios and external variables. Renewable energy prices in the free market are established through contracts and offer price predictability; however, they may be subject to regulatory or legal changes in the sector's rules, which could

influence and affect the estimated financial benefit.

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Use of new technologies

Transition Plan

Potential impact on Financial Statements:

• Property, plant and equipment (BP)

• Operational expenses (DRE)

• Depreciation (DRE)

Context

In addition to meeting the growing demand for responsible practices, the use of technologies - such as circularity solutions in stores, automation systems for efficiency, and logistics process

optimization tools - also creates opportunities to enhance customer experience, reduce costs, and strengthen competitiveness.

Company performance

Environmental management system

Lojas Renner S.A. has adopted an environmental management system that covers 100% of its operations, with a focus on reducing waste generation and water and energy consumption. This system also ensures compliance with environmental regulations, clearly defines roles and responsibilities,

monitors key indicators, and guides the implementation of corrective actions to promote continuous improvement.

This system is verified through internal audits conducted by the socio-environmental compliance team (covering 40% of operations) and third-party external audits (covering 60% of operations).

Lower-impact construction and renovation

The Company holds certifications that attest to best environmental practices in its building projects:

• Headquarters certified with LEED (Leadership in Energy and Environmental Design) Gold;

• Cabreúva DC certified with LEED Gold;

• Four stores certified with LEED (1 Silver and 3 Gold);

• One store certified with BREEAM (Building Research Establishment Environmental Assessment Method); and

• DC in São José (SC), representing 20% of operations, certified with NBR ISO 14001.

Since 2014, guided by the principles of these certifications, the Company has adopted a construction model for 100% of new store openings based on a simplified structure that consumes less material and electricity. This model has enabled significant reductions in itens such as plaster and wall putty per m².

Beginning in 2018, the Company also started incorporating circular economy principles into new store constructions, renovations, and furniture development, aiming to

optimize material usage, reduce waste generation, and favor materials with higher recyclability potential.

In 2021, Renner became the first Brazilian retailer to launch a store designed for eco-efficiency and minimal environmental impact. This circular store, located in Rio de Janeiro, was developed based on BREEAM principles and achieved LEED certification. The store combines circularity with digital transformation to offer a unique customer experience.

Through a Life Cycle Assessment (LCA), the Company developed design and execution models and approaches that enabled significant reductions in resource and material consumption, minimizing environmental impacts throughout the store's life cycle:

• Reuse of over 90% of construction waste;

• Reduction of over 35% in wood usage, achieved by using optimized modular furniture made with more durable materials and timeless aesthetics, as well as prioritizing sustainable, recycled, and recyclable materials in renovations;

• Reduction of over 50% in water consumption;

• 100% recyclable mannequins sent for reverse logistics and remanufacturing with the supplier; and

• High-efficiency equipment with automated lighting control and motion sensors.

As a result, the model enables a 24% reduction in the store's global warming potential. Over a 20-year period, the avoided CO2emissions from construction and operations are equivalent to planting three thousand trees and maintaining them, equivalent to restoring 1.5 hectares of Atlantic Forest.

Since 2023, this has become the standard model for all new store constructions.

Results

By 2024, the Company's portfolio included 54 stores built under the lower-impact construction model (12.6% of all Renner stores).

Financial impacts

The Company has not disclosed quantitative information on the potential future financial effects of this opportunity, due to the lack of centralized data on the subject. As such, the proportionality mechanism was applied.

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‌Decision-making

Project Definition

Lojas Renner S.A. has a dedicated area responsible for managing the portfolio of projects that require investment, in accordance with the priorities defined during the Company's semiannual strategic alignment.

When planning major structuring projects, one of the aspects considered in the decision-making process is the project's alignment with the Company's public sustainability and climate commitments.

The greater the project's contribution to these commitments, the more points it receives in the prioritization matrix, which is later presented to the Committee for implementation approval. This Committee is composed of the Company's Statutory Officers and the Chief Executive Officer.

Investments in innovation and venture capital

RX Ventures, which oversees and guides the Company's innovation and venture capital acquisitions and investments, takes sustainability and climate-related criteria into account when assessing potential investees.

To this end, it identifies the investee's differentiated practices regarding these themes, as well as any potential risks and negative impacts, through compliance due diligences conducted prior to investment.

Fifteen sustainability topics are evaluated, including the potential investee's greenhouse gas emissions management, and the findings are attached to the investment memorandum, which supports the decision-making process.

Additionally, RX Ventures adopts exclusion criteria that disqualify businesses whose core activities fall into critical segments: economic activities that raise serious ethical, legal, environmental, or reputational concerns, such as weapons and gambling.

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1. Risk management

The Company has a dedicated structure that is directly connected to senior management to ensure the effectiveness of risk management procedures, as well as the consistency of its policies and practices with the risk tolerance of its shareholders.

Its risk management practices are aligned with leading national and international standards in Internal Audit, Compliance, and Loss Prevention, such as those

set by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), The Institute of Internal Auditors (IIA), and the Loss Prevention Foundation.

Management structure

4 members with experience* in Risk Management and Auditing:

Carlos Souto |Fábio Pinheiro |Osvaldo Schirmer |Jean Zarouk

The ARMC is the body responsible for overseeing and monitoring risk management and audit processes, composed of three independent members of the Board of Directors, including at least one specialist in corporate accounting.

Reporting to the Board of Directors is conducted quarterly, as defined in its Internal Regulations and Bylaws (learn more on page 8).

It is worth noting that the Chair of the SC is currently a member of the ARMC, which ensures visibility and adequate oversight of the matter in both Committees.

Risk Department

The Risk Department works closely with the business areas to map and identify key risks, reporting relevant issues to the ARMC. Also reporting directly to the CEO, this structure guarantees the independence of Internal Audit and ensures that the Loss Prevention and Compliance departments have direct access to the ARMC and senior management.

The integration of Climate Risks into the Company's Global Risk Management occurs through a structured process that ensures the consolidation of risks identified in the departments and reported to the Risk Department.

In April 2025, Juliana Rozenbaum Munemori and Adriano Cives Seabra were appointed to the ARMC in place of Osvaldo Schirmer and Fabio Pinheiro.

*According to Corporate Sustainability Assessment (CSA) criteria: performance in operational areas of Risk Management or Finance and Financial Risk Assessment.