KPMG Financial Risk & Actuarial Services Ltda.
Rua Arquiteto Olavo Redig de Campos, 105, 6o andar - Torre A
04711-904 - São Paulo/SP - Brasil
Caixa Postal 79518 - CEP 04707-970 - São Paulo/SP - Brasil
Telefone +55 (11) 3940-1500, Fax +55 (11) 3940-1501
To the Board of Directors, Management and Stakeholders
Raízen Energia S.A.
São Paulo - SP
We have been engaged by Raízen Energia S.A. (“Raízen” or “Company”) to apply limited assurance procedures on the sustainability information disclosed in Raízen ́s 2017/2018 Annual Report, which comprise the period from April 1st, 2017 to March 31st, 2018.
Responsibilities of Raízen’s Management
The Management of Raízen is responsible for adequately preparing and presenting the sustainability information in the 2017/2018 Annual Report in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards and the internal controls determined necessary to ensure this information is free from material misstatement, resulting from fraud or error.
Independent auditors’ responsibility
Our responsibility is to express a conclusion about the information in the 2017/2018 Annual Report based on a limited assurance engagement conducted in accordance with Technical Communication (TC) 07/2012, which was prepared based on NBC TO 3000 (Assurance Engagements Other Than Audits and Reviews), both issued by the Brazilian Federal Accounting Council - CFC and equivalent to international standard ISAE 3000, issued by the International Federation of Accountants and applicable to Non-Financial Historical Information. These standards require compliance with ethical requirements, including independence ones, and the engagement is also conducted to provide limited assurance that the information disclosed in the Raízen’s 2017/2018 Annual Report, taken as a whole, is free from material misstatement.
A limited assurance engagement conducted in accordance with NBC TO 3000 (ISAE 3000) consists mainly of questions and interviews with the Management of Raízen and other professionals of the Company involved in the preparation of the information disclosed in the 2017/2018 Annual Report and use of analytical procedures to obtain evidence that enables us to reach a limited assurance conclusion about the sustainability information taken as a whole. A limited assurance engagement also requires additional procedures when the independent auditor acknowledges issues which may lead them to believe that the information disclosed in the 2017/2018 Annual Report taken as a whole could present material misstatement.
The selected procedures were based on our understanding of the issues related to the compilation, materiality and presentation of the information disclosed in the 2017/2018 Annual Report, on other engagement circumstances and also on our considerations regarding areas and processes associated with material sustainability information disclosed where relevant misstatement could exist. The procedures consisted of:
- Engagement planning: considering the material aspects for Raízen’s activities, the relevance of the information disclosed, the amount of quantitative and qualitative information and the operational systems and internal controls that served as a basis for preparation of the information in the Raízen’s 2017/2018 Annual Report. This analysis defined the indicators to be checked in details;
- Understanding and analysis of disclosed information related to material aspects management;
- Analysis of preparation processes of the 2017/2018 Annual Report and its structure and content, based on the Principles for Defining Report Content and Quality of the GRI Sustainability Reporting Standards;
- Evaluation of non financial indicators selected:
- Understanding of the calculation methodology and procedures for the compilation of indicators through interviews with management responsible for data preparation;
- Application of analytical procedures regarding data and interviews for qualitative information and their correlation with indicators disclosed in the 2017/2018 Annual Report;
- Analysis of evidence supporting the disclosed information;
- Visits to Raízen’s units and offices for application of these procedures, and items (b) and (c);
- Analysis of whether the performance indicators omission and justification are reasonable to be accepted associated to aspects and topics defined as material in the materiality analysis of the Company;
- Comparison of financial indicators with the financial statements and/or accounting records.
We believe that the information, evidence and results we have obtained are sufficient and appropriate to provide a basis for our limited assurance conclusion.
Scope and limitations
The procedures applied to a limited assurance engagement are substantially less extensive than those applied to a reasonable assurance engagement. Therefore, we cannot provide assurance that we are aware of all the issues that would have been identified in a reasonable assurance engagement, which aims to issue an opinion. If we had conducted a reasonable assurance engagement, we may have identified other issues and possible misstatements within the information presented in the 2017/2018 Annual Report.
Nonfinancial data is subject to more inherent limitations than financial data, due to the nature and diversity of the methods used to determine, calculate or estimate these data. Qualitative interpretation of the data's materiality, relevance and accuracy are subject to individual assumptions and judgments. Additionally, we have not examined data related to prior periods, evaluated the adequacy of the company ́s policies, practices and sustainability performance, nor future projections.
Based on the procedures carried out, described earlier in this report, we have not identified any relevant information that leads us to believe that the information in Raízen’s 2017/2018 Annual Report is not fairly stated in all material aspects in accordance with the Standards for Sustainability Reporting of the Global Reporting Initiative - GRI (GRI-Standards), and its source records and files.
São Paulo, June 21st, 2018
KPMG Assessores Ltda.
Eduardo V. Cipullo
Accountant CRC 1SP135597/O-6
KPMG Financial Risk & Actuarial Services Ltda.
Ricardo Algis Zibas