Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product integrity
• Employee health and safety
• Animal welfare
• Water
• Climate change

Environmental Achievements

• Reduced water consumption in several plants through various efficiency measures (e.g., JBS Leather saved approximately 800,000 cubic meters of water; JBS USA pork unit in Louisville reduced water use by nearly 22% over three years).
• More than 80% of post-industrial waste generated in Brazil is sent for composting, recycling or reuse to generate energy.
• Achieved 96 points on a scale from zero to 100 in the Transparency (“Disclosure”) category of the Climate Change Program, up 13% compared to 2014. In the Performance category, it raised its level from C to B.

Social Achievements

• Launched “Academia Seara” for product testing and consumer insight.
• Launched Seara Social Food Truck, reaching approximately 5 million consumers on social networks and serving over 86,000 meals.
• Reduced absenteeism, turnover, and overtime in Brazil operations.
• Created the Corporate Compliance Office and reissued JBS’s Code of Ethics.

Governance Achievements

• Established a global management structure and four regional platforms.
• Created the Corporate Compliance Office.
• Published the Government Authorities and Public Officials Relations Policy.

Climate Goals & Targets

Environmental Challenges

• Low cattle availability and high heifer retention rates in the US.
• Appreciation of the US dollar and increased beef imports.
• Low poultry prices in the US and Mexico.
• Strong retail competition in the UK market and the appreciation of the pound against the euro.
• Challenging first half in Brazil due to lower cattle supply and international economic turmoil.

Mitigation Strategies

• Investments in modernization and expansion of facilities (e.g., US$225 million in distribution centers, US$70 million in Hyrum unit expansion).
• Diversification of product portfolio and sales channels.
• Focus on value-added products and ready-to-eat meals.
• Investments in process modifications and more efficient equipment.
• Strengthening of partnerships with suppliers and implementation of sustainable practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Environmental criteria for supplier selection (e.g., no deforestation, no slave labor).
• Novo Campo Program for sustainable livestock practices.
• Fornecedor Legal Program for environmental compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages due to climate change impacts on rainfall and agriculture.

Transition Risks

• New laws and regulations on climate change.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: BRC Global Standards, ISO 9001, ISO 17025, LWG, SMETA, YUM!, Global Gap, CFM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Seara DaGranja line (certified animal welfare, 100% vegetable feed, no antibiotics).

Awards & Recognition

• Best Marketing Award 2015 (Friboi campaign)
• Top of Mind Award
• National Entrepreneur Trophy
• Best Community Involved Business
• Bronze Supplier Award (Sysco)
• Brand Communication Award (Friboi)
• Truck Safety Awards
• Top Quality Brazil Award
• Melbourne Fine Food & Sidney Royal Fine Food Awards (Primo)
• Food Manufacture Excellence Awards (Moy Park)
• IoD Director of the Year Awards (Moy Park)
• Waitrose Supplier Award (Moy Park)
• IGD Awards (Moy Park)
• Irish Quality Food Award (Moy Park)
• Royal Society for the Prevention of Accidents (RoSPA) Award (Moy Park)
• EFQM Ireland Excellence Award (Moy Park)
• Meat & Poultry Processing Awards (Moy Park)
• Hazard Control Recognition Award (Iowa-Illinois Safety Council)

Environmental Metrics

ESG Focus Areas

• Product Integrity
• Team Member Health and Safety
• Animal Welfare
• Water and its Management
• Climate Change

Environmental Achievements

• Reduced waste volumes by 45% compared with 2015. This change was the result of 3,277,155.92 tons of waste that was disposed of in landfills by Pilgrim’s Mexico in 2015.
• Increased renewable energy share to 70% of total energy use from 62.6% in 2015.
• Reduced water consumption by 8% overall at Brazilian meat, leather, Seara and new business areas.

Social Achievements

• Launched the sustainable hamburger program in Brazil in partnership with McDonald’s, meeting a range of social and environmental criteria.
• Improved customer service levels at Seara by 30% compared with the previous year.
• Moy Park recognized by the Royal Society for the Prevention of Accidents (RoSPA) Food and Drink Health and Safety Award for the second consecutive year.

Governance Achievements

• Implemented Project SOX to adapt to Sarbanes-Oxley Act (SOX) requirements.
• Revised the Code of Conduct in Brazil to include 12 guidelines describing appropriate conduct.
• JBS stock listed on the B3 New Market in Brazil, a listing segment for companies with the best Corporate Governance practices.

Climate Goals & Targets

Environmental Challenges

• Rising grain prices increased pressure on feed costs throughout the year at Seara.
• Exchange rates affected JBS Mercosul’s operations in 2016.
• Economic crisis, high inflation and unemployment figures in Brazil affected domestic consumption.

Mitigation Strategies

• Developed alternative sourcing strategies and improved operational efficiency.
• Geographic diversity of operations helped to offset adversities in one market with output from another.
• Focused on operational efficiency and diversified operations to maintain positive operating margins in Australia.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Raw Material Procurement Policy (JBS Beef, Brazil)
• Technical and health visits before and during procurement (Seara)
• Supplier self-assessment questionnaires (Moy Park)
• Supplier Code of Conduct (JBS USA, planned for 2017)

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, major storms

Transition Risks

• New legislation and regulation

Opportunities

• Energy efficiency and renewable energy projects

Reporting Standards

Frameworks Used: GRI G4

Certifications: BRC, ISO 9001, ISO 17025, LWG

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Seara Gourmet, Hans, sustainable hamburger

Awards & Recognition

• Empresas Mais Award, Best in Agribusiness, 1,000 Biggest and Best Companies, Marketing Best Sustainability 2016, International Taste & Quality Institute (IQT) award, Best supplier of the year, Latin American Counsel Awards, Companies that Communicate Best with Journalists, Lide Food Industry Award, Ulster Business Top 100 Companies, UK Food and Drink Companies, UK Meat & Poultry Processing Awards, Food Manufacture Excellence Awards, British Safety Council (BSC) award, Moy Park’s Graduate Management Trainee Programme award, Marketing Best award for Social Food Truck, Marketing Best award for Social Action

Environmental Metrics

ESG Focus Areas

• Team Members Health and Safety
• Product Integrity
• Animal Welfare
• Water Management
• Climate Change

Environmental Achievements

• 12% reduction in overall water consumption in Brazil operations
• 6% reduction in water use intensity in global operations outside Brazil
• 2.8% increase in water reuse in Brazil
• 34% year-on-year increase in rainwater capture in Brazil
• 20% reduction in energy consumption (GJ)
• 16% reduction in operational waste volumes
• Pilgrim’s Moy Park achieved a 20% decrease in water usage

Social Achievements

• Created the Global Compliance Department, reporting directly to the Board of Directors
• Created the Global Food Quality and Safety Department
• Launched the Supply Chain Seal, certifying compliance with international standards
• Increased sales at Seara DaGranja by 85%
• Increased coastal shipping volumes by 45%
• Launched the JBS Ethics Line, an independent whistleblower hotline
• Improved third-party due diligence procedures, rejecting 13% of applicants

Governance Achievements

• Increased independent directors on the Board to 44%
• Created two new Board advisory committees: Related Parties and Governance
• Adopted a policy for Related-Party Transactions
• Restructured the Compliance area into a Global Department

Climate Goals & Targets

Environmental Challenges

• Market perceptions of liquidity loss in Brazil during the first half of the year
• Temporary impacts from the economic crisis in Brazil
• Raw material procurement risks, particularly in cattle sourcing

Mitigation Strategies

• Resumed normal production volumes in Brazil
• Achieved strong performance in global operations, offsetting challenges in Brazil
• Reached a stabilization agreement with local financial institutions in Brazil
• Implemented a four-pillar strategy: people, cash generation, reduced leverage, and preparing for prosperity
• Used satellite monitoring of cattle supplier properties to ensure responsible sourcing
• Implemented a sustainability program for integrated supplies to encourage best practices

Supply Chain Management

Responsible Procurement

• Satellite monitoring of cattle supplier farms
• Supplier Code of Business Ethics and Conduct (JBS USA)
• Environmental and social criteria for raw material purchases
• Third-party certifications (BRC, IFS, FSSC 22000, Red Tractor)
• Monitoring for forced labor and deforestation

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• New legislation and regulation

Opportunities

• Renewable energy investments
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards: Essential Option

Sustainable Products & Innovation

• Seara DaGranja antibiotic-free chicken
• Acres certified organic beef
• Sustainable Hamburger

Awards & Recognition

• CDP Water Leadership (A-)
• Food and Drink Health & Safety Award (Moy Park)
• Gold Fleet Safety Award (Moy Park)
• Investors in Zero Waste 3-star category award (Pilgrim’s Moy Park)
• CDP Forests A- for cattle and timber, B for soybeans

Environmental Metrics

ESG Focus Areas

• Team Member health and safety
• Animal welfare
• Product integrity
• Water Management
• Climate change

Environmental Achievements

• Invested over R$ 721 million in environmental improvements.
• Reduced greenhouse gas emissions by implementing energy efficiency measures (e.g., automation, LED lighting).
• Increased renewable energy share to 18% of total energy use.
• Reused 1.2 million tons of waste (53.58% of total waste generated) for composting, recycling, energy reuse, and cogeneration.
• Recycled the equivalent of 3.36% of all water captured globally.
• Invested over R$ 27 million in initiatives to reduce water usage and reuse water worldwide.

Social Achievements

• 99% of Brazilian Team Members received ethics and compliance training.
• Invested R$ 300 million globally in Team Member safety.
• Over 135,000 Team Members received Occupational Health & Safety training.
• 55% of staff received career development training.
• Launched JBS Without Frontiers program to support Team Members' professional growth and international experience.

Governance Achievements

• Established a global Compliance department reporting directly to the Board of Directors.
• Implemented a new Code of Ethics and Conduct and a Business Partner Code of Conduct.
• Ranked 1st in the transparency ranking for food sector companies with international operations in the 2018 Transparency International Brazil report.

Climate Goals & Targets

Environmental Challenges

• Rising soy meal and corn costs impacting Seara's operational performance.
• Supply chain disruptions due to the truck drivers' strike in Brazil.
• Decreased demand for chicken in the United States impacting Pilgrim's Pride.
• Climate events affecting some Pilgrim's Pride units.
• European drought affecting Pilgrim's Pride results in Europe.
• Rising poultry feed costs in Europe.
• Mexican and Chinese/Hong Kong tariffs on US pork products impacting JBS USA Pork.

Mitigation Strategies

• Seara focused on business profitability, increasing consumer preference, and investing in new product development.
• Pilgrim's Pride focused on internal improvements and customer service quality.
• JBS USA Pork focused on increasing export market share and profitability.
• JBS implemented long-term contracts with livestock breeders to improve price management and supply consistency.

Supply Chain Management

Responsible Procurement

• Supplier Qualification and Assessment program (annual audits based on GFSI criteria)
• Social and Environmental Monitoring System for cattle suppliers in Brazil
• Supply Chain Seal for Friboi's Brazilian suppliers
• Producer integration systems for poultry and pork suppliers
• Strict assessment of input suppliers in JBS USA

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 15 (Life on land)
• Goal 6 (Clean water and sanitation)

JBS's initiatives contribute to these goals through various programs and investments in renewable energy, waste reduction, water management, animal welfare, and responsible supply chain practices.

Sustainable Products & Innovation

• 1953 Friboi premium beef brand
• Seara 100% Natural chicken range
• Pilgrim's Pride organic chicken
• JBS Australia certified organic beef

Awards & Recognition

• Transparency International Brazil (Top ranking for food sector companies)
• Época-Reclame Aqui Award (Finalist for Seara and Friboi)
• RoSPA OHS Silver Award 2018 and RoSPA OHS Transport Safety Award

Environmental Metrics

ESG Focus Areas

• Product Integrity
• Social Responsibility
• Environmental Stewardship
• Animal Welfare

Environmental Achievements

• Reduced Scope 1 & 2 GHG emission intensity by 17% from 2019 baseline
• Achieved 36% renewable energy use
• Reduced water use intensity by 4% from 2019 baseline
• 8,449 farms brought into compliance with Brazil’s Forest Code requirements through JBS Green Offices
• 656,000 metric tons of tallow produced in JBS facilities in the U.S., Australia, and Canada were refined into renewable fuels

Social Achievements

• Provided more than 5.8 million training hours to improve team members’ professional skills
• Enrolled more than 1,400 team members and/or their dependents in tuition-free, higher education classes via JBS Better Futures
• Investigated and closed 100% of JBS Ethics Line cases
• Improved Global Safety Index performance by 59% from 2019 baseline

Governance Achievements

• Passed resolutions mandating periodic reporting of ethics and compliance performance to the JBS Board of Directors

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions accounted for 97% of total GHG emissions
• Deforestation in Brazilian cattle supply chains
• Water use increased by 4% from 2019 baseline

Mitigation Strategies

• Multi-layered approach to address deforestation including responsible sourcing policy, supply chain monitoring, technical assistance, multi-stakeholder engagement, and promotion of sustainable development
• Investments in water efficiency projects (US$27 million in 2023)
• Investments in projects to reduce Scope 1 & 2 GHG emissions (US$150 million since 2021)
• Partnerships to reduce agricultural emissions and combat global food insecurity

Supply Chain Management

Supplier Audits: Data not available in report

Responsible Procurement

• Global Code of Conduct for Business Associates
• Responsible Raw Material Procurement Policy
• Beef on Track Protocol

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Flooding
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Bioenergy production

Reporting Standards

Frameworks Used: GRI, SASB, CDP

Certifications: ISO 14001

Third-party Assurance: Third-party limited assurance for global scope 1 and scope 2 GHG inventories from 2019 to 2022

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through various programs and strategies outlined in the report

Sustainable Products & Innovation

• Biofertilizers
• Collagen products
• Biodiesel
• Plant-based products
• Cultivated protein

Awards & Recognition

• 2023 WorldStar global packaging award
• Newsweek’s ‘America’s Greatest Workplaces For Diversity’ and ‘America’s Greatest Workplaces For Women’ awards