2021 Deloitte Global Resilience Report

Building the Resilient Organization | Brazil

 2021 DELOITTE GLOBAL RESILIENCE REPORT (formerly known as the “Industry 4.0 Readiness Report”)

Global summary
• In the wake of a tumultuous 2020, Deloitte expanded its fourth annual Readiness Report beyond the scope of Industry 4.0 digital technologies to explore the broader concept of resilience. Deloitte
surveyed 2,260 C-suite executives across 21 countries to understand how organizations were coping with the unexpected challenges they faced in the past year and tap their opinions about what
made their organizations more or less able to withstand disruption.
• The following deck examines how Brazil’s executives stand out from their global counterparts on key themes. We surveyed 133 executives in Brazil.

KEY GLOBAL FINDINGS:

Many global CXOs believe disruption is here to stay. Our research reveals that resilient organizations – those consisting of flexible, adaptable, long-term, innovative mindsets and cultures – are better
positioned to overcome disruptions and help usher in a “better normal” post pandemic.
— Resilient organizations outperform in times of disruption. Global leaders who said their organizations have done very well cultivating resilient cultures were about three times more likely than
those lacking resilient cultures to say they weathered the events of 2020 well compared to peers/competitors.
— 2020 accelerated resilience for some; exposed gaps for more. 2020 held organizations’ “feet to the fire” and was the prod many needed to fast-track technologies and processes. Yet, 66% of global
CXOs still don’t feel completely ready to lead and 70% said they don’t have complete confidence in their organizations’ abilities to pivot and adapt to disruptive events.
— Resilience is deliberate. CXOs may not know exactly which threats are looming and when, but they can design organizations that are more likely to withstand and prosper through disruptions.
Leaders of resilient organizations understand the below traits aren't immutable and don’t just occur organically. They require desire, effort, investment, and action to cultivate and maintain.

We identified five attributes of resilient organizations that enable and promote nimble strategies, adaptive cultures, and the implementation and effective use of advanced technology.
Businesses that can bounce back from unexpected challenges typically are:
Prepared. Most successful CXOs plan for all eventualities. Those organizations that successfully balance short- and long-term priorities feel they have pivoted effectively to adapt to the
events of 2020.
Adaptable. Leaders recognize the importance of having versatile employees, especially after a year like 2020. To that end, flexibility/adaptability was, by far, the workforce trait global
CXOs said was most critical to their organizations’ futures.
Collaborative. CXOs indicated the importance of collaboration within their organizations, noting that it sped decision-making, mitigated risk, and led to more innovation.
Trustworthy. CXOs understand the challenge of building trust. Those who are succeeding are those focusing on improving communication and transparency with key stakeholders and are
leading with empathy.
Responsible. There is broad acknowledgment that business has a responsibility beyond profit. CXOs who did very well at balancing the needs of all their stakeholders also felt their
organizations can quickly adapt and pivot in response to disruptive events.

© 2021. For information, contact Deloitte Global. 2

 2021 DELOITTE GLOBAL RESILIENCE REPORT

Brazil country profile

• We surveyed 133 executives in Brazil.

BRAZIL BUSINESS PROFILE: BRAZIL RESPONDENT PROFILE:

Number of Employees Annual Growth Job Title Age
(over the next year)
— <5K: 42% CEO 9% 2%
18%
— Negative: 23% 23%
— 5K to 9,999: 23% CIO
25-34 29%
— 10K to 19,999: 11% — 0% to 5%: 37% 35-44
CFO 8%
— 20K to 49,999: 12% — 6% to 10%: 27% 2%
45-54
— >50K: 13% — 11+%: 12% CTO 33%
55-59
COO 17%
60-69
Other CXOs
Revenue 33% 27%

27% 18% 25% 17% 14%

$500M to $999M $1B to $1.99B $2B to $4.99B $5B to $9.99B >$10B

Industry Gender

20% 23% 14% 4% 7% 34% 69% 31%

Consumer Energy, Resources & Industrials

Men Women
Financial Services Life Sciences & Health Care
Government & Public Services Technology, Media & Telecom

© 2021. For information, contact Deloitte Global. 3

 2021 DELOITTE GLOBAL RESILIENCE REPORT

CXOs’ attitudes about the future and confidence in managing disruption

• Brazil executives are expecting occasional disruptions on this scale in the near future (similar to the rate of global executives).
• Brazil executives are particularly confident about their organizations’ ability to adapt and their own ability to lead through uncertainty - compared to their global peers.
• They’re somewhat less likely than their global counterparts to believe climate change is a crisis of a greater magnitude compared to the pandemic.

CXOs’ views of 2020: Is climate change a crisis of greater, lesser or similar magnitude compared to the COVID-19 crisis?

Brazil Global Brazil Global

55% 52%
38% 44%
36% 37% 34% 31%
25% 22%
9% 10%
3% 3%

The events of 2020 are rare and We are likely to see occasional We are likely to see regular, Greater magnitude Similar magnitude Lesser magnitude None of the above (don’t
disruption of this scale will not disruptions of this scale in the near ongoing disruptions on this scale in consider climate change a
occur again future the near future crisis)

% of CXOs who completely agreed with the statement, “I felt/feel my organization could/can % of CXOs who completely agreed with the statement, “I felt/feel ready to lead my organization
quickly adapt and pivot in response to disruptive events”: through any uncertainty or disruption that may arise”:
Brazil Global Brazil Global

56%
49%
36% 34%
32% 30%
21% 24%

Prior to 2020 During 2020 Prior to 2020 During 2020

© 2021. For information, contact Deloitte Global. 4

 2021 DELOITTE GLOBAL RESILIENCE REPORT

Prepared
• Like their global counterparts, Brazil executives who took specific actions PRIOR to 2020 (or are in progress), seem to be better weathering the events of 2020 compared to their peers (at a 2-3X factor
for some actions).
• Brazil executives indicate a higher percentage who claim they’ve done well/very well at balancing short- and long-term priorities.

% of CXOs who said their organizations are weathering the events of 2020 well/very well, as compared to their competitors/peers:
Done prior to 2020 or in Planning to do in the next 5 years Done prior to 2020 or in Planning to do in the next 5 years
progress (Brazil) (Brazil) progress (Global) (Global)
Key actions CXOs say their organizations have taken or plan to take

83% 17% Invest in new tech and systems that support remote working 68% 28%

76% 24% Provide employees with flexible working options to support work/life balance 64% 32%

Implement processes that enable the organization to easily redeploy workers to

71% 26% 56% 35%
different roles depending on need

75% 24% Have training or rotational programs to enable workers to reskill 56% 33%

67% 29% Diversify our supply chain across multiple vendors/partners 55% 33%

69% 27% Diversify revenue streams (e.g., create new products/services) 51% 39%

Increase use of advanced tech to enable organization to create new business models
65% 35% 50% 41%
and market opportunities

% of CXOs who said their

organizations have done well/very 65% 54%
well at balancing short- and long- BRAZIL GLOBAL
term priorities:
© 2021. For information, contact Deloitte Global. 5
 2021 DELOITTE GLOBAL RESILIENCE REPORT

Adaptable
• As it is for global executives, flexibility/adaptability is also the top desired workforce trait for Brazil executives, with tech savviness a close second.
• Those who have cultivated resilient cultures also tend to support flexible workforces much more than those who have NOT cultivated resilient cultures... even more so in Brazil than the overall global
average.

Given the events of 2020 and planning for the future, which of the following workforce traits % of CXOs--who said they have cultivated resilient cultures (well or very well) --indicating whether
have become most critical to your organization? (Select top 3) their organizations have implemented the following flexible workforce actions
Brazil Global Brazil Global

Flexibility & adaptability 57%

54% 77% 76%
Technological savvy 53% 69%
40% 65%

Creativity 33% 57% 57%

28%

Values that align with those of our organization 29%

30%

Empathy 24%
22%

Courage to challenge the status quo 23%

28%

Inclusiveness 21%
18% 7% 7%
4% 3%
Expertise & proficiency in the roles for which 21% 0% 0%
employees were hired 30%

20%
Already Done/ in No plans to do Already Done/ in No plans to do Already Done/ in No plans to do
Critical thinking 28% progress progress progress

Curiosity & growth mindset 17% Implement processes to easily Have training or rotational Provide workers with flexible
22%
redeploy workers when needed programs to reskill workers work options

© 2021. For information, contact Deloitte Global. 6

 2021 DELOITTE GLOBAL RESILIENCE REPORT

Collaborative
• Brazil organizations that removed silos before or during 2020 have done better weathering the events of 2020 than their peers who are planning to remove silos in the next 5 years.
• More Brazil organizations already put remote work technology in place before 2020 than their global peers, which perhaps led more of those Brazilian organizations to adapt and pivot quickly in
response to disruption (90%).
• Once the pandemic and lockdowns end, Brazil CXOs expect a similar percentage of their workforce to remain remote compared to global executives.

COLLABORATION WITHIN THE ORGANIZATION: TECHNOLOGY THAT ENABLES COLLABORATION:

% of CXOs in Brazil--who said their organizations have done well/very well weathering the Timeframe for having technology in place to enable remote work:
events of 2020 compared to competitors/peers--indicating whether they’ve removed
Brazil Global
organizational silos:

44% 42%
32% 33%
22% 23%

64%
Already done prior to 2020 Already done in 2020 or in progress Planning to do in the next 5 years

CXOs in Brazil who said they had invested in technologies and systems that support
90% remote working PRIOR TO 2020 and also said they could quickly adapt and pivot in
31% response to disruption (79% Globally)

Remote work will likely be much more common post-pandemic than pre-pandemic globally.

% of workforce who worked or are expected to work remotely:

Brazil Global

Removed silos before 2020 / Planning to remove silos in 55% 58%

in progress next 5 years
36% 32%
(Global 59%) (Global 33%) 23% 18%

Before the start of COVID-19 and At the height of pandemic-related Once the pandemic and lockdowns
© 2021. For information, contact Deloitte Global. ensuing lockdowns lockdowns have ended 7
 2021 DELOITTE GLOBAL RESILIENCE REPORT

Trustworthy
• Brazil executives follow the global trend on most physical/ emotional trust metrics but outperform for maintaining employee morale and providing mental resources.
• Brazil executives also trend higher for digital trust metrics, which has helped them succeed beyond the global average when it comes to weathering the events of 2020.

PHYSICAL AND EMOTIONAL TRUST:

% of CXOs who said their organizations have done well/very well in the following areas in 2020:

Brazil Global
79% 76% 74% 73% 73% 71% 70% CXOs in Brazil who believed they had kept their employees
63% 65% 59% 68% and customers safe and also said their organizations had done
well/ very well weathering the events of 2020 (65% globally)

Keeping employees Keeping customers Maintaining employee Maintaining trust Providing adequate
physically safe physically safe morale between leadership and mental health resources
employees

DIGITAL TRUST:
% of CXOs who said their organizations have done well/very well in the following areas in 2020: CXOs in Brazil who said their organizations had done
72% well/very well providing cyber threat detection,
Brazil Global remediation, and prevention and also said their
organizations had done well/very well weathering the
70% events of 2020 (69% globally)
61% 54% 54%

CXOs in Brazil who said their organizations had done

84% well/very well implementing ethical technologies and also
Providing cyber threat detection, Implementing technology solutions with ethical agreed somewhat/ completely that they adapted and
remediation, and prevention principles in mind pivoted well in response to disruptive events of the past
year (78% globally)

© 2021. For information, contact Deloitte Global. 8

 2021 DELOITTE GLOBAL RESILIENCE REPORT

Responsible
• Of the countries surveyed, Brazil executives rated their organizations the fourth highest at maintaining diverse workforces and second highest at fostering inclusive cultures.
• They are generally ahead of global executives when it comes to demonstrating authenticity.

SUPPORTING EMPLOYEES:
CXOs in Brazil who said their organizations had done CXOs in Brazil who said they believed their organizations had
well/ very well creating inclusive cultures and also said done well/ very well employing a diverse workforce and also
85% their organizations had done well/ very well creating 76% said their organizations had done well/ very well creating agile
agile cultures (76% globally) cultures (73% globally)

SUPPORTING SOCIETY:
CXOs rated how well their organizations have done honoring societal commitments: CXOs rated how well their organizations have done honoring environmental commitments:

Brazil Results: Brazil Results:

1 (Not well at all) 2 3 4 (We did okay) 5 (Very well) 1 (Not well at all) 2 3 4 (We did okay) 5 (Very well)
5% 24% 22% 47% 2% 8% 23% 23% 44%

Global Results: Global Results:

1 (Not well at all) 2 3 4 (We did okay) 5 (Very well) 1 (Not well at all) 2 3 4 (We did okay) 5 (Very well)
2% 7% 28% 32% 29% 1% 8% 31% 35% 24%

DEMONSTRATING AUTHENTICITY:
% of CXOs--who said their organizations are cultivating resilient cultures--indicating whether they excel (do well/ very well) in the following authenticity areas:
Brazil Global
81% 78% 74% 69% 80% 73%

5% 3% 4% 6% 2% 6%

We have a reputation for DO NOT have a reputation We have done well HAVE NOT done well We have a reputation for DO NOT have a reputation for
valuing employees for valuing employees demonstrating a commitment to demonstrating a commitment to helping the community helping the community
© 2021. For information, contact Deloitte Global. transparent ESG transparent ESG 9
 2021 DELOITTE GLOBAL RESILIENCE REPORT

CXOs’ perceptions of top societal issues

• Climate change was the top issue for both Brazil and global executives, but gaps in education and income inequality are also important in Brazil.
• Brazil executives trend higher than the global average on environmental-sustainability efforts and activities to correct for systemic bias.

Which of the following societal issues do you believe will be the most critical for business to Top-five actions organizations in Brazil have already done or are currently doing as part of their current environmental
tackle over the next decade? (Select top 3) sustainability efforts:
Brazil Global
Brazil Global

Climate change & environmental 48% 41% 40% 33% 38% 35% 35%
sustainability 47% 27% 32% 31% 28%

Gaps in education, skills and training 45%

39%
Implement technologies Train employees to be Design products or Address environmental Encourage or require
Income inequality & distribution of wealth 45%
37% to track sustainability in more environmentally services in more sustainability at one or partners to meet
operations sustainable sustainable ways more board meetings sustainability criteria
Health care issues & disease prevention 38% during the year
42%

Systemic bias and inequality 32% Top-five actions organizations in Brazil have already done or are currently doing as part of their efforts to alleviate
31% systemic bias and inequalities within their organizations or beyond:
Resource scarcity 26%
26% Brazil Global

Supply chain issues 26%

30%

18% 53% 49% 47%

Food insecurity/hunger 19% 44% 45% 44%
37% 33% 34% 30%
Immigration & displaced populations 11%
18%

Sexual harassment 10% Fire employees for racist Put in place specific hiring Drop business partners Track and work to alleviate Put in place/expand a
8% comments or actions and retention goals to and suppliers for racist pay gaps across our supplier diversity program
become a more diverse comments or actions organization ties within
organization your
© 2021. For information, contact Deloitte Global. 10
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its
member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and
omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our global network of member firms and related entities in more than 150 countries and territories (collectively,
the “Deloitte organization”) serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 330,000 people make an impact that matters at www.deloitte.com.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this
communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.

No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be
liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication.

© 2021. For information, contact Deloitte Global.