Climate Change Data

BRF S.A.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:14%
Carbon Intensity:0.093 tCO2e/ton produced in 2023

ESG Focus Areas

  • Food safety
  • Quality and safety of the products
  • Human rights and labor relations
  • Ethics, integrity and compliance
  • Animal welfare
  • Health, wellbeing and safety
  • Attraction, development and retention of employees
  • Management, transparency and tracking of the supply chain
  • Climate change, water and energy

Environmental Achievements

  • Reduced total scope 1 and 2 emissions by 21% compared to the 2019 baseline.
  • Reduced water consumption by 8.4% compared to the 2020 baseline.
  • Achieved 100% traceability of grains from direct suppliers in the Amazon and Cerrado biomes, and progressed to 77% of indirect suppliers.
  • Started the operation of a wind farm, increasing self-production capacity to 14% of the electricity matrix.

Social Achievements

  • Achieved 100% animal welfare certification in all poultry and swine slaughter units in Brazil.
  • Reduced absenteeism by 21%.
  • Invested R$ 77.1 million in natural resources, animal welfare and traceability.
  • 12% decrease in the frequency of accidents.
  • 81% reduction in severity in accidents with employees.

Governance Achievements

  • Ended a lengthy discussion of facts related to the Carne Fraca and Trapaça Operations by signing a Leniency Agreement.
  • Implemented new transactional controls, revised the risk matrix, and developed new training programs.
  • Improved transparency in transactions with public entities and reviewed policies and procedures of the Compliance Board.
  • Ensured that 100% of employees received training on topics related to the Transparency Manual.

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2040.
Medium-term Goals:
  • Increase by 50% the electricity sourced from clean sources by 2030.
  • Reach 30% of women in top leadership positions by 2025.
  • Invest R$ 400 million in communities by 2030.
Short-term Goals:
  • Reduce water consumption by 13% by 2025.
  • Certify 100% of manufacturing units in animal welfare by 2025.
  • Ensure traceability of 100% of purchased grains in the biomes where we operate by 2025.

Environmental Challenges

  • High interest rates, high levels of indebtedness and default in Brazil.
  • Geopolitical challenges and uncertainties.
  • Stricter trade barriers in key export markets.
  • Risks associated with non-compliance with applicable data protection laws.
  • Outbreaks or fears of outbreaks of exotic animal diseases.
  • Health and food safety risks.
  • Cyclical nature and volatility affecting the prices of commodities.
  • Water scarcity throughout the production chain.
Mitigation Strategies
  • Implemented BRF+, an efficiency plan, to improve operational performance and capture efficiency gains.
  • Reduced inventories while raising the level of service for customers.
  • Adjusted pork production to meet specific regional demands.
  • Implemented a comprehensive approach to data protection and cybersecurity, including technologies, policies, and contingencies.
  • Implemented strict biosecurity measures across all links of the chain.
  • Established a Quality Policy and corporate standards to ensure food quality and safety.
  • Closely monitor industry movements and commodity volatility.
  • Adopted guidelines for measuring water vulnerability, monitoring consumption, and rationalizing water usage.

Supply Chain Management

Responsible Procurement
  • BRF Partner Code of Conduct
  • Sustainable Grain Procurement Policy
  • Sustainability Checklist for integrated producers

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in temperature and rainfall patterns
  • Droughts and natural disasters
  • Water scarcity
  • Changes in average temperature impacting animal welfare
Transition Risks
  • Regulatory changes, such as carbon pricing or taxation
  • Changes in legislation for greenhouse gas emissions
Opportunities
  • Development of energy-efficient products
  • Investments in self-producing parks of energy from clean sources

Reporting Standards

Frameworks Used: GRI Standards (2021), Integrated Reporting Framework of the IFRS Foundation, SASB

Third-party Assurance: KPMG and Instituto Totum (limited assurance)

UN Sustainable Development Goals

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

The report aligns its commitments and actions with the Sustainable Development Goals (SDGs) and the United Nations Global Compact.

Sustainable Products & Innovation

  • Plant-based carbon neutral chicken
  • Cauliflower wings
  • Vegetable nuggets
  • Vegetable protein nuggets

Awards & Recognition

  • Reclame AQUI Award
  • Love Brands 2023
  • Effie Awards Brasil 2023
  • Green Label Industries Seal
  • 30% Club Award
  • Expressão de Ecologia Award
  • Coller FAIRR Protein Producer Index
  • Brazilian GHG Protocol Program Gold Seal
  • Corporate Animal Initiatives Monitor (MICA) Gold category
  • ISE
  • ICO2
  • Theo chatbot award