MATERIALITY

Internal Consultation

The internal consultation involved our global senior management, and it was carried out through:

• Direction: CEO and all members of the Executive Board and other Directors appointed pursuant to the bylaws.
• Board of Directors: Two board members, one being independent.
• Managing Directors: Five directors representing the countries that have the greatest socioenvironmental and economic impact for the company: USA, China, South Africa, Mexico and Germany

Consultation with Stakeholders

The consultation sought to understand the perspectives and perceptions of the main stakeholders from different countries, who are an essential part of the process to identify our material issues. The stakeholders consulted were:

• Employees: Members of the six countries in which WEG has the greatest socio-environmental and economic impact (Brazil, USA, China, South Africa, Mexico and Germany). They were chosen by the respective Managing Directors of each country.
• Investors: 10 global investors.
• Customers: 10 global customers.
• Suppliers: 10 global suppliers.
• Local community and organized civil society: 5 social entities.
• Trade associations: 5 trade associations.

Form of Consultation

The consultation process was online.

Result

To apply the consultation, 18 topics relevant in the context of sustainability were identified. Within this scope and with the possibility of including new topics, we carried out a consultation with internal staff and the main stakeholders. The action was intended to identify the aspects with capacity and potential to affect our value generation, impacting our strategy, governance and performance. And the result will be used as an important source for planning and aligning our report with our stakeholders’ expectations and demands.

The consultation process classified the following aspects:

Next Cycle

The next materiality cycle is scheduled for the second semester of 2021.

Relation of Material Topics to Capitals:

• Financial Capital: Inovation and technology
• Intellectual Capital: Inovation and technology
• Human Capital: Ethics and integrity; Health and safety at work
• Social and relatioship capital: Ethics and integrity; Investor relations; Customer relations.