BRF SA

The company stated that it assesses water risks in the locations where it operates. The company outlined the regions where it has identified water risks, detailing the type of risk, primary risk driver and impact. It discloses the number of facilities that have major exposure to water risk, stating that it has prioritised the 6 units with the highest levels of vulnerability and disclosing locations. However, it does not specify regions that are currently at risk from water quality. The company provided details on the water vulnerability analysis tool it employs to assess water risks (Water Risk Filter, WWF) from a water quality and scarcity perspective. This assessment identified 114 sites out of more than 17,000 operational sites as having high water risk levels. However, the company has not provided details about which specific sites or regions are located in areas with high and medium water stress from a water quality perspective.

The company stated that it assesses water risks in the locations where it operates. The company outlined the regions where it has identified water risks, detailing the type of risk, primary risk driver and impact. It discloses the number of facilities that have major exposure to water risk, stating that it has prioritised the 6 units with the highest levels of vulnerability and disclosing locations. However, it does not specify regions that are currently at risk from water quality. The company provided details on the water vulnerability analysis tool it employs to assess water risks (Water Risk Filter, WWF) from a water quality and scarcity perspective. This assessment identified 114 sites out of more than 17,000 operational sites as having high water risk levels. However, the company has not provided details about which specific sites or regions are located in areas with high and medium water stress from a water quality perspective.

The company disclosed that it views biodiversity as a material topic. However, the company does not discuss how this drives its water quality assessments. The company discloses that it has 115 forestry production units and 196 farms in priority areas for conservation, adding further detail to the number of sites at different degrees of biological importance. The company does not disclose the ecosystems, biomes, or watersheds where these production units are located. This information is primarily focused on deforestation, and there is no direct mention of the impact of operations on nutrient pollution. In the past reporting year, the company disclosed a full list of its operating sites located in these areas and why each site was under pressure, including water issues. However, the company does no longer disclose this information.

The company mentions that all its pork and poultry suppliers are annually analysed through an environmental verification checklist, as part of the company’s Operational Excellence System (SEO). The company mentions it assesses the impact of its suppliers on water security, including water quality. It estimates that 186 suppliers (1-25%) have been identified as having a substantive impact. It is not clear whether the company also includes its international suppliers. The company discussed animal feed in relation to water-related risks, stating that feed sourcing is at risk from water vulnerability and is factored into production unit location. The company stated a metric for the percentage of animal feed sourced from regions with high or extremely high water stress, though it is unclear if the company discloses this from a water quality perspective as well.

The company stated that it recommends and encourages producers to use waste as an organic fertiliser. However, it seems this is related to livestock producers. It is unclear whether the company’s feed suppliers use the company’s manure as fertiliser.

There is no evidence that the company discusses how the evolution of regulation could impact the risk assessment throughout the value chain.

The company disclosed that is has a supply chain monitoring program, this is to ensure that its quality and sustainability standards are replicated by its suppliers around the world - this compliance check includes the Rural Environmental Registry (CAR), licenses, permits, legal requirements, solid waste management and disposal, and treatment of effluents and waste, among other items. However, it is unclear whether this monitoring system includes audits as well. BRF provides a rate from its supplier socio-environmental responsibility audit. Though, there is no evidence of specific events nor are there any statements relating to livestock suppliers.

The company discloses the volume of effluents from processing sites that have undergone primary, secondary and tertiary treatment. The company also stated that 100% of swine and poultry waste was treated prior to use in fertigation. The company mentions that swine waste is treated in anaerobic lagoons, followed by fertigation in crop areas, according to a fertilisation plan guided by competent technicians. However, it is not clear if the lagoons are covered. For poultry litter, temporary storage for fermentation is carried out, aiming at pathogen elimination and mineralization. The material is subsequently used as an organic biofertilizer in crop fields. The company does not disclose information about biogas production.

The company provided locations within its operations that are under high levels of water vulnerability - adding to this, the company then provided example cases and the responses in place to respond to the identified risks. There is limited evidence of targets tailored to sites or specific progression in disclosure.

The company stated that it does not maintain contracts with producers located in regions with high or extremely high baseline water stress. The percentage is unclear for medium-risk areas. The company mentions providing grants to producers in Brazil to mitigate water scarcity risks. However, it is unclear how the company supports livestock farmers to mitigate pollution risks. The company mentions part of the farmers environmental licensing includes the management and destination of the waste on the property. It recommends and encourages all the producers to use the animal waste as organic bio-fertiliser. However, there is no information about supporting downstream third party-arable farmers. The company has developed 'environmentally friendly feed' which reduces the quantity of nitrogen excreted by poultry and pork. The feed reduces nitrogen excretion from pork by 20-30%, and 12-13% for layer hens.

The company does not disclose this information.

The company does not disclose this information.

The company does not disclose this information.

The company provided a response to the investor letter. It also responded to the engagement questions. The company did not meet with investors and did not provide feedback to FAIRR’s assessment.