Navigator : renews highest rating among the world’s sustainable companies

Company aims to achieve carbon neutrality goal 15 years early

Navigator renews highest rating among the world's sustainable companies

Lisbon, Portugal, 9 December 2020: The Navigator Company has once again been given an "A" rating by the CDP (previously known as the Carbon Disclosure Project) in a world survey assessing company action on climate change, achieved by only 3% of companies evaluated throughout the entire world.

Navigator has been distinguished as a world leader in fighting climate change by the CDP, a non-governmental organization which evaluates the environmental performance of companies and cities, whose analyses are used by investors in their decision-making on sustainable investing.

For the second time running, the CDP has recognized Navigator for its action in the past year to reduce emissions, decrease climate risks and develop an economy with a low carbon impact, according to 2019 data published by the CDP.

Every year, thousands of companies provide data to the CDP on their environmental impact, risks and opportunities in order to assess them independently according to the CDP's rating methodology. The companies receive ratings of "A" through "D" for the efficiency of their response to climate change, while those failing to disclose or providing insufficient information are given a rating of "F". This year, the organization considered the applications of more than 5,800 companies as valid; of these, only 300 received the highest rating of "A".

Although its CO2 emissions account for only about 1% of Portugal's total, Navigator - as the nation's largest exporter of added value - is committed to achieving its carbon neutrality targets 15 years early (2035 instead of 2050). The company is the nation's first, and one of the first worldwide, to do so.

About The Navigator Company

The Navigator Company is an integrated forest producer, whose end products are pulp & paper, tissue and energy. Its operations are based at modern, large scale industrial units that use state-ofthe-art technology and are a benchmark for quality in the sector.

The Navigator Company produces pulp and paper from forests which are planted exclusively for this purpose. Every year, 12 million young plants start their lives in our nurseries. These nurseries are the largest in Europe, and produce 135 different species of trees and shrubs, most of which are not economically viable but are funded by Navigator in order to maintain diversity and ensure the species' continuity.

In 2019, the forests under The Navigator Company's management in Portugal represented a carbon stock equivalent to 5.3 million tons of CO2, excluding carbon retained in the soil. This stock has remained stable thanks to the sustainable management model followed by the Company.

The Navigator Company has made a formal commitment to achieving carbon neutrality at its industrial complexes in 2035, 15 years ahead of the targets set by the European Union and Portugal. This makes it the first Portuguese company, and one of the first in the world, to set itself this ambitious goal, for which it has earmarked total capital spending of €158 million, of which €24 million was already invested in 2019.

This commitment is the culmination of a sustainability strategy that has already won our company a place in the A-list of top performers published by the Carbon Disclosure Project (CDP), a global leader in the fight against climate change. The Navigator Company won recognition for its achievements in 2018 in cutting emissions, reducing climate risks and developing a low carbon impact economy, and was the only Portuguese company to score the highest grade, making it one of a select band of only five companies worldwide in the pulp, paper and forestry sector to receive this distinction.

The Company is Portugal's third largest exporter, accounting for approximately 1% of GDP and around 3% of all the country's exports of goods. It is also the Portuguese exporter generating the most National Value Added. In 2019, the Navigator Company recorded turnover of € 1.68 billion. Around 91% of the Group's products are sold outside Portugal and shipped to approximately 130 countries.

As a vertically integrated forestry group, Navigator has its own forestry research institute, which leads the world in the genetic improvement of Eucalyptus globulus. The group manages a vast area of woodlands in mainland Portugal, all of it certified under international schemes: FSC® (FSC C010852) and PEFC™ (PEFC/13-

23-001). It has production capacity for 1.6 million tons of paper, 1.6 million tons of pulp (of which 80% is integrated into paper) and 120 thousand tons of finished tissue. The Company accounts for between 4 and 5% of all electricity generated in Portugal. In 2019, 60% of the energy produced by Navigator at its four industrial complexes was obtained from biomass, making it the leading operator in this sector, producing approximately 52% of all energy derived from this ecological and non-fossil fuel in Portugal.

www.thenavigatorcompany.com

For more information, please contact:

Lift Consulting +351 21 466 65 00

Carla Rodrigues - carla.rodrigues@lift.com.pt| +351 915 193 379

Catarina Carneiro de Brito - catarina.brito@lift.com.pt| +351 914 310 661

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