About Sustainable Carbon & Comprehensive Sustainability

Who We AreSustainable Carbon is a co-developer of greenhouse gas (GHG) emission reductions projects for the international carbon market that bring substantial social, environmental and financial benefits to the stakeholders involved our projects.

Since 2008, Sustainable Carbon has validated over 33 projects and we have more in progress. From 2010 onwards, we plan to co-develop projects internationally, including projects in Chile, Colombia and Paraguay.

While the VCS Standard quantifies the reductions in GHG emissions, it is the SOCIALCARBON® Standard that really defines our work. Over the lifetime of our projects, the entrepreneurs who co-develop the projects with us use the revenues realized from the sale of credits to better the socioeconomic conditions of the local stakeholders.

Together with our partners and our clients, we harness harmful GHG emissions and turn them into a positive change agent to bring comprehensive sustainability to the communities and ecosystems on the frontlines of climate change.

Pictured: Açaí pits are a type of renewable biomass that are used as a fuel in some Sustainable Carbon projects in Brazil.

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To co-develop greenhouse gas emission reductions projects that sustainably improves socioeconomic and environmental aspects.

Our Mission

Pictured: A view from Iranduba in the Amazonian biome, Amazonas state, Brazil.

Sustainable Carbon has experience in renewable energy and biomass. We have co-developed projects with many companies to significantly reduce or neutralize their GHG emissions.

We help companies with their climate change strategy by conducting carbon inventories. By calculating how many GHG emissions companies emit on an annual basis, we can best determine what action to take: invest in more efficient machinery, better lighting, and/or water-reuse system, for example. To neutralize unavoidable emissions, companies can purchase Sustainable Carbon offsets that complement their Corporate Social Responsibility strategies. Sustainable Carbon offers comprehensive climate services that provide the solutions your company needs to cut costs and to have competitive edge, such as:

What We Do

• GHG emission inventories

• GHG emission reduction/neutralization strategies

• Project co-development

• Carbon credits commercialization

Pictured: Modified kilns at Sustainable Carbon ceramic projects utilize renewable biomass as fuel.4 5

Sustainable Carbon DifferenceSustainable Carbon´s business model is based on the fact that a profit does not have to come at the expense of the environment or a community´s well-being.

Using free market forces, Sustainable Carbon brings the benefits of the global carbon market to small and medium-sized businesses in developing countries. We are the link between our international clients who wish to neutralize their emissions and our fellow co-developers who want to do their part to mitigate climate change.

When companies neutralize their emissions, they increase their brand value, increase employee satisfaction and differentiate themselves from their competitors.

For our co-developers, the revenues from the carbon credits are invested to achieve social, environmental and economic goals outlined in the framework that the SOCIALCARBON® Standard provides.

With Sustainable Carbon credits, stakeholders of the project benefit. We call this:

Social

Finacial

HumanCarbon

Technological

Natural

Pictured: A female worker in front of the ceramic dryer at the Barro Forte Project in Pernambuco state, Brazil.

Stefano Merlin - CEO

“Sustainable Carbon projects benefit

local factories and help companies be

comprehensively sustainable. Bringing small

and medium-scale projects onto the onto the

global marketplace is truly innovative in the

carbon market.”

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Sustainable Carbon is the leading project developer for the voluntary market in terms of the number of the Voluntary Carbon Standard projects validated on the Markit™ Environmental Registry.

Over the past three years, we have co-developed projects with small and medium-sized business owners to drastically reduce their GHG emissions and bring social, environmental and economic benefits to their businesses and communities.

Sustainable Carbon is an expert in renewable energy. Our technical team has vast, on-the-ground experience with implementing fuel-switching projects, helping companies use renewable biomass instead of native forest timber or fossil fuels as an energy source for manufacturing products.

Sustainable Carbon Projects

Pictured: An employee holding a ceramic brick using biomass at the Lara Project in São Paulo state, Brazil.

Sustainable Carbon is differentiated as we use two standards in all of our projects.

We rely on the Voluntary Carbon Standard (VCS) 2007.1 to develop the carbon aspect of its projects. The VCS is the most widely trusted carbon-accounting standard and its use ensures the environmental integrity of the credits produced.

To bring the social, environmental and economic benefits to the communities where we develop projects, Sustainable Carbon uses the SOCIALCARBON® Standard. VCUs tagged with SOCIALCARBON® are eligible under the ICROA Code of Best Practice. Sustainable Carbon is the largest developer of SOCIALCARBON® projects. The Standard:

• Counts on the active participation of our local partners to transparently assess our projects’ lifelong sustainability.

• Is applied to ensure our projects demonstrate continual improvement on six resources: social, human, financial, natural, technology and carbon.

A Designated Operating Entity, or DOE, is the term for an organization that is accredited by the United Nations Framework Convention on Climate Change (UNFCCC) to certify that a GHG emission reductions project is generating carbon credits and, in our case, also bringing demonstrable social, environmental and economic co-benefits to the project. Sustainable Carbon contracts either the TÜV NORD Gruppe or Bureau Veritas Certification to validate and verify our projects.

We register all of our Voluntary Emissions Reduction (VER) credits on the SOCIALCARBON® Registry on the the Markit™ Environmental Registry, the world´s largest environmental registry. It is a global online platform that helps provide transparency and credibility to environmental markets by:

• Attaching a serial number to each project to prevent double-counting of credits.

• Allowing viewers to see all the documents that pertain to the project.

Standards

Designated Operating Entities

Markit™ Environmental Registry

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Here is the sustainability assessment from one of our projects, Nascente Ceramic factory located in Panorama, São Paulo state, Brazil.

Project DescriptionNascente ceramic factory is a small facility that produces structural ceramic products for the local market. The ceramic is located within the Cerrado biome, an important and fragile ecosystem in Brazil. The ceramic’s use of wood from this region contributed to the progressive increase of deforestation in the Cerrado, unbalancing an ecosystem that has remarkable biodiversity and cultural significance.

Nascente was one of the pioneers in ceasing the use of wood as a source of fuel for its production line and instead has switched to renewable biomasses like sugar cane bagasse, sawdust and peanut shells. This helps promote the conservation of the Cerrado and dramatically reduces Nascente’s GHG emissions.

Project AssuranceThis project applied the Small Scale Methodology: Category AMS-I.E: Switch from Non–Renewable Biomass for Thermal Application by the User – Version 01 from February 01 of 2008 onwards, approved by the UNFCCC. It was validated and verified by TÜV NORD, a DOE accredited by the UNFCCC, in accordance with VCS 2007.1 and SOCIALCARBON® Standards. To ensure reliability and transparency, the issued credits are registered on the Markit™ SOCIALCARBON® Registry.

GHG Emission ReductionsIt has been estimated that approximately 90,450 tons of CO2e will be reduced during the ten year crediting period of this project.

Case Study: Nascente Project

Pictured left to right: Clay bricks left to dry naturally, Employees at Nascente Ceramic, Biomass inserted into the fuel-efficient kiln, Quality control procedures at Nascente.

SOCIALCARBON® Standard & the Nascente ProjectThe SOCIALCARBON® Standard monitors the improvements of a project over time providing assurance and evidence of its contribution to sustainability. The SOCIALCARBON® application consists of monitoring the project in six crucial areas of sustainability. The SOCIALCARBON® Hexagon graphically represents Nascente´s six sustainability indicators at its baseline scenario (Point Zero, 2007), the first verification period (Point 01, 2008) and the latest verification period (Point 02, 2009).

Contribution to Sustainability

• Social: Good employee benefits, including food staples

• Human: Safety equipment & practices in place

• Financial: Production increased from previous year

• Natural: Complies with local environmental regulations

• Technological: Kilns improved with quality control procedures

• Carbon: Successful disclosure to stakeholders of the carbon project

Point ZeroPoint 01Point 02

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As a developer of GHG emission reductions projects, we provide: Premium CreditsThe added SOCIALCARBON® Standard to our projects means that truly substantial social, environmental and economic benefits are sustainably brought to communities throughout South America.

Guaranteed NeutralizationThe carbon credits have already been generated and independently verified by UN-accredited verification organizations, called Designated Operating Entities (DOEs).

Lower RiskProjects with two standards means twice the number of validation and verification procedures audited by the DOEs, ensuring the credits exist, the biomass is sustainably sourced and socioenvironmental goals are being achieved.

TransparencyOur credits are listed on the Markit™ Environmental Registry where anyone can see any aspect about our credits, from project documents (PDDs, validation, verification, SOCIALCARBON® reports etc.) to who retired the credits.

Sustainable Carbon credits, with their social and environmental aspects, complement businesses’ sustainability and CSR strategies. Neutralizing unavoidable emissions with our credits bring comprehensive benefits, such as:

Strong Brand RecognitionSeveral reports on sustainability indicate that CEOs believe that promoting sustainability is ‘extremely’ or ‘very’ important to build and maintain brand reputation. Acquiring Sustainable Carbon offsets that both neutralize and complement a company´s sustainability strategy, ensures shareholders benefit from a reputable brand.

Product/Service DifferentiationNeutralizing unavoidable emissions that result from manufacturing or day-to-day business is a way to communicate to stakeholders that they acknowledge their impact on the environment and are taking responsibility. Conveying this to customers differentiates companies from their competitors and increases value to the bottom line.

Employee SatisfactionPeople increasingly want to work for companies that make a profit and a difference. Strong sustainability portfolios help attract and retain the top-talent that drives successful businesses.

Our Carbon Credits

Benefits of Offsetting

Once climate mitigation strategies are in place and carbon credits are purchased, Sustainable Carbon will help communicate the sustainability initiative to stakeholders.

To help capitalize on the investment, we can provide such services as:

• Certificate of Offset

• One-on-one sustainability communication consulting

• Project videos from where the emissions reductions take place

• Company press release to inform your stakeholders about your initiatives

• Logo on the ‘Social Stand’ at the project site

• Opportunity to engage with the project

Communication Service

Pictured: A safety technician controlling the production process at the Kitambar Project in Pernambuco state, Brazil.

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Sustainable Carbon SolutionAt Sustainable Carbon, we can find the right climate change solution for you. Contact us to find out more about how we:

• Develop and maintain projects with extra socio-environmental benefits to positively impact the lives of the people involved and the surrounding communities.

• Provide real emission reductions using UN-accredited, third-party validators.

• Provide transparency to all our projects through the Markit™ Environmental Registry.

• Engage with reputable, international organizations that promote sustainability.

• Offer premium credits that deliver strong financial and human resource benefits for your company.

Pictured: View of the Caatinga biome at the Bom Jesus Project, Pernambuco state, Brazil.

Contact us

Phone: +55 (11) 2649-0036Fax: +55 (11) 2649-0042Email: info@sustainablecarbon.comWeb: www.sustainablecarbon.com

Rua Borges Lagoa, 1065, Conj. 144, Vila Clementino, CEP: 04038-032,São Paulo, SP, Brazil

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Sustainable CarbonRua Borges Lagoa, 1065, Conj. 144, Vila Clementino, CEP: 04038-032,

São Paulo, SP, Brasil

Phone: +55 (11) 2649-0036Fax: +55 (11) 2649-0042

Email: info@sustainablecarbon.com

www.sustainablecarbon.com

The front imgae shows employees at the Kitambar Project in Pernambuco state, Brazil. All images used in this material (excluding pages 2 & 3) were taken from Sustainable Carbon project sites. All rights reserved.