Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Implemented a socio-environmental management system for more sustainable processes.
• Increased resources for control equipment to improve environmental management methods.
• Reduced organic load in effluent treatment by 98.54% in Araguaína.
• Recycled over 1,970 tons of solid waste.

Social Achievements

• Launched the "Minerva talking about Ranching" program to engage with suppliers.
• Implemented various employee training and development programs (School of Leaders, Family Budget, etc.).
• Reduced employee turnover from 5.59% in 2012 to 4.88% in 2013.
• Implemented health and well-being programs for employees and their families.

Governance Achievements

• Improved capital structure with liability management, decreasing Net Debt/EBITDA ratio.
• Received investment and financing from the IFC (International Finance Corporation), a member of the World Bank Group.
• Maintained high standards of corporate governance, complying with BM&FBovespa’s New Market rules.
• Revised Code of Ethics and Employee Manual to prevent undesirable situations.

Climate Goals & Targets

Environmental Challenges

• Client consolidation leading to increased purchasing power and lower prices.
• Risks associated with exports (exchange fluctuations, economic slowdown, tariffs, etc.).
• Indebtedness requiring significant cash flow for principal and interest payments.
• Outbreaks of cattle diseases affecting meat exports.
• Fluctuations in raw material (cattle) prices.
• Compliance with environmental standards and permits.
• Credit risks from clients and the market.

Mitigation Strategies

• Diversified client base and balanced growth in local and foreign markets.
• Spread exports to approximately 1,200 clients in 100 countries.
• Generated sufficient free cash flow to amortize debts until 2022.
• Rigorous cattle acquisition policy and veterinary inspections.
• Geographical distribution of industrial units to reduce risks and costs.
• Rigorous policy for acquiring cattle and obtaining certifications.
• Credit analysis department and client portfolio management, hedging policy.

Supply Chain Management

Supplier Audits: 4597 farms visited in 2013

Responsible Procurement

• Contracts with clauses on human rights, environmental compliance, and occupational safety.
• Geospatial monitoring system to identify purchases from responsible sources.
• Blacklisting of suppliers not complying with established criteria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 (B+ level)

Certifications: HACCP, BRC Food

Third-party Assurance: BDO RCS Auditores Independentes (Limited Assurance)

Sustainable Products & Innovation

• Nova Mesa beef line

Awards & Recognition

• Chico Mendes International Award (3 consecutive years)
• Five awards from Institutional Investor magazine

Environmental Metrics

ESG Focus Areas

• COVID-19 response
• Culture renovation
• Investments in innovation
• Sustainable beef practices
• Risk management
• Traceability and deforestation
• Animal welfare
• Climate change mitigation

Environmental Achievements

• 13.7% reduction in water consumption at plants in Brazil
• 7.6% reduction in water consumption at plants in other countries
• Zero net greenhouse gas emissions (scope 2) offset by I-REC certificates
• More than 38,000 metric tons of CO2e removed from the atmosphere by planted trees
• First reporting of scope 3 emissions

Social Achievements

• R$ 42 million invested in aid and support as part of our pandemic response
• Around 12,000 employees participated in Minerva’s cultural renovation program
• 30% reduction in occupational injury rates and 2,200 fewer lost days resulting from work injuries
• More than R$1.15 million invested in animal welfare training initiatives

Governance Achievements

• 100% of operations assessed for corruption risks
• More than 80% of people in senior and middle-management and other leadership positions trained on anti-bribery in Brazil
• 99% compliance in third-party audits (animal welfare)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on global beef market
• Sanitary incidents
• Adverse climate events
• Supply chain disruptions
• Deforestation
• Forced or compulsory labor risks in the supply chain

Mitigation Strategies

• Crisis plan to protect employees and maintain operations
• Investments in pandemic response (R$ 42 million)
• Geospatial monitoring of cattle suppliers (9.6 million hectares in the Amazon, more than 2 million hectares in the Cerrado, more than 3.6 million hectares in the Gran Chaco)
• 100% of supplier properties in the Cerrado monitored
• 100% of direct suppliers monitored in Brazil and Paraguay
• 154 direct suppliers block-listed for social and environmental nonconformities
• Pilot monitoring systems for indirect suppliers
• Terms of Adjustment of Conduct (TAC) with the Federal Prosecution Office of the State of Pará
• Public Livestock Commitment
• National Pact for the Eradication of Slave Labor
• Strengthened traceability systems
• COVID-19 safety protocol

Supply Chain Management

Supplier Audits: 100% of direct suppliers in Brazil and Paraguay; pilot project for indirect suppliers

Responsible Procurement

• Public Livestock Commitment
• National Pact for the Eradication of Slave Labor
• Terms of Adjustment of Conduct (TAC)
• Geospatial monitoring
• Supplier screening against forced labor blocklists

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Shifts in rainfall patterns
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Changing customer behavior

Opportunities

• Development of energy-efficient products
• Building a low-carbon livestock value chain

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, ISE, FAIRR, BBFAW, CDP

Certifications: BRCGS, NAMI, Organic Beef, Halal

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 6
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 16

The report maps material topics to the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Social responsibility-certified biodiesel

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Beef
• Product Traceability
• Combating Deforestation
• Occupational Health and Safety
• Animal Welfare
• Food Quality and Safety
• Ethics and Compliance

Environmental Achievements

• Achieved net zero emissions in its electricity mix (scope 2) with 100% of electricity coming from renewable sources.
• Reduced absolute electricity consumption by 4.84% in Brazil.
• Reduced absolute water consumption by 7.42% in Brazil.
• Recycled 6,000+ metric tons of waste.
• Composted 60,000+ metric tons of waste.
• Expanded scope 3 emissions accounting to include cattle raising on ranches.
• 100% compliance in all supply-chain audits with respect to social and environmental criteria in Brazil and Paraguay.
• Achieved 100% geospatial monitoring of cattle sourcing in Paraguay.

Social Achievements

• Launched the 'Estar Bem' (Be Well) program for employee well-being, including telemedicine, nutrition services, and psychological support.
• Administered over 11,000 influenza and H1N1 vaccines.
• 99% of employees in Brazil and 97% in other countries received at least two COVID-19 vaccine shots.
• Invested over R$ 43 million in supporting workforce and communities.
• Reduced employee turnover from 44% to 22% between 2018 and 2021.
• Implemented the Carcass Yields Program (PEC) engaging 718 ranchers and assessing 239,898 head of cattle.

Governance Achievements

• Named to the Brazilian stock exchange B3’s Corporate Sustainability Index (ISE) in 2022.
• Maintained a robust risk management framework.
• Trained over 3,700 employees on anti-corruption policies.
• No legal proceedings or investigations on corruption, bribery, or fraud.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic.
• Market volatility.
• Logistical constraints in global supply chains.
• China's ban on Brazilian beef.
• Declining purchasing power and unemployment in the domestic market.
• Indirect supplier monitoring.
• Climate change related risks (physical and transition risks).

Mitigation Strategies

• Stringent health protocols and employee diligence.
• Geographic diversification strategy.
• Beef Desk to optimize allocation of assets and market targeting.
• Investment in technology for monitoring and traceability (Visipec, SMGeo Prospec).
• Renove program to engage cattle suppliers in low-carbon practices.
• Joint venture with Amyris for sustainable packaging and preservatives.
• Decarbonization assessment and roadmap development.
• Risk management framework and committees.

Supply Chain Management

Supplier Audits: 100% of direct suppliers in Brazil and Paraguay audited for social and environmental compliance.

Responsible Procurement

• Geospatial monitoring of suppliers to prevent illegal deforestation and other violations.
• Supplier Code of Conduct (in development).

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events affecting commodity cycles, production costs, and supply chain.

Transition Risks

• Carbon regulations, market shifts, and material shortages.

Opportunities

• Water consumption reduction, renewable energy use, carbon credit trading, alternative proteins.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations, Coller FAIRR methodologies, BBFAW, CDP, ISE and ICO2 of the B3, UN SDGs, UN Global Compact

Certifications: BRCGS, NAMI, ISO 14001 (in process), Renewable Energy Seal of Approval, Eureciclo

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15

Initiatives contribute to these goals through sustainable beef production, responsible resource management, renewable energy use, job creation, and combating deforestation.

Sustainable Products & Innovation

• Organic beef
• Organic leather
• Biodiesel

Awards & Recognition

• Renewable Energy Seal of Approval
• Eureciclo label

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 100% renewable electrical matrix
• Reached 100% monitoring of direct suppliers in Colombia, six months ahead of schedule
• Received the Gold Seal in the GHG Protocol for the third consecutive year
• Received the Renewable Energy Seal for the third consecutive year
• Obtained the International Sustainability and Carbon Certification (ISCC) for biodiesel production
• First full traceable leather export to China
• Sold over 1.2 million carbon credits
• 19% of treated effluent intended for fertigation

Social Achievements

• 100% of employees covered by an occupational health and safety management system
• Over 97,000 training hours (including 2,700 in animal welfare)
• Over 22,000 children and adults impacted by social responsibility actions
• Over 27 tons of protein donated
• US$ 1,097,000 invested in social responsibility programs
• Achieved GPTW (Great Place to Work) seal for all Brazilian operations

Governance Achievements

• Improved ESG strategy ranking to 1st in the "Most Honored Company" ranking in the Food & Beverages sector by Institutional Investor
• 100% compliance in audits of the Monitoring Protocol of Cattle Suppliers in the Amazon and the Public Commitment for Cattle Ranching Brazil
• 100% compliance in third-party audits in Paraguay, in accordance with the guidelines of the International Finance Corporation (IFC)
• Renewal of BRCGS Food Safety Certification across all units in South America
• Became members of the Ethos Institute and joined the Business Pact for Integrity and Against Corruption (Clean Company)

Climate Goals & Targets

Environmental Challenges

• Unpredictable and volatile international markets
• Imbalances in global beef supply and demand
• Constraints on North American production
• Challenges in measuring Scope 3 GHG emissions (28,000 data points)
• Complexity in implementing decarbonization projects

Mitigation Strategies

• Implemented changes in governance structure
• Leveraged business management tools
• Geographic diversification strategy
• Investments in expanding company operations and integrating Australian operations
• Standardized processes and acquisition of a new unit in Uruguay
• Developed emission reduction plans for participating agriculture production properties and industries
• Offsetting residual emissions by investing in carbon credits from tree planting and forest conservation projects

Supply Chain Management

Supplier Audits: 100% of direct suppliers in Brazil, Paraguay, and Colombia monitored. Approximately 90% coverage in Argentina and over 60% in Uruguay.

Responsible Procurement

• Agricultural Commodities and Livestock Products Purchase Policy
• Business Partners Code of Conduct
• Geo-referenced monitoring systems
• SMGeo Prospec application for indirect supplier assessment

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Cold waves
• Flooding
• Meteorological droughts
• Strong winds
• Wildfires

Transition Risks

• Changes in consumer preferences
• Removal of subsidies/increased taxes
• Increased cost of credit
• Trade barriers
• New regulatory requirements
• Increased climate litigation
• Stigmatization of the agricultural sector

Opportunities

• Development of energy-efficient products
• Carbon credit generation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, Coller FAIRR Protein Producer Index, BBFAW, CDP, ISE, ICO2

Certifications: BRCGS, ISO 17025, ISCC, Eureciclo, AAWCS, GAP Step 4

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• 1, 7, 8, 12, 13, 15, 17

Initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

• Zero Carbon Impact product line
• Fully traceable leather

Awards & Recognition

• European "Sustainable Food Awards"
• Institutional Investor's "Most Honored Company" ranking (1st place)