BRF SA

BRF reports that its grievance mechanism, "Transparency Channel", is accessible 24/7 and in multiple languages across the company's operating locations via telephone, email, or its website. The channel allows employees and third parties to make anonymous reports.

BRF discloses that it has continued its Integrity Ambassadors programme to raise awareness of the company's ethics and integrity guidelines. While not directly stated in its 2023 reporting, the company's public disclosure in 2022 confirmed that these ambassadors promote the improvement of the company's grievance channel. Additionally, the company's Integrity System regularly undergoes independent, third-party audits, which include responses to grievance cases through the Transparency Channel as a key performance indicator.

The Transparency Channel platform indicates that individuals can choose from 27 categories when filing a case. However, BRF disaggregates the grievance cases it received for 2022 across six categories only: fraud involving clients, discrimination, robbery, theft or embezzlement, fraud involving suppliers, harassment, and others. Of the 3,338 cases it received in 2022, 75% (2,495) of these reports fell into the ‘Others’ category. The company does not define what is included in this category, which limits the oversight of investors and other stakeholders of potential risk areas identified by employees within the company’s operations.

While BRF does not include health and safety as a category in its public reporting, it is included as a categorisation option available to users of the Transparency Channel. It is also apparent from the Transparency Channel that users can report issues related to worker rights under categories including sexual harassment, moral harassment, discrimination, and violation of labour laws.

The company discloses that its Compliance Department is responsible for investigating all reported grievances. Any grievances concerning the Compliance Department are investigated by the company’s Board and the Audit and Integrity Committee. The process involves the following steps: 1. A preliminary analysis to review the evidence. 2. Referral of the case to outside consultants if necessary. 3. A multidisciplinary committee reviews substantiated reports to determine appropriate disciplinary measures. BRF reports resolving 3,841 cases in 2022.

BRF does not report on its paid sick leave policy.

BRF provides employees with variable remuneration based on performance indicators agreed upon by senior management. However, it is unclear what would typically be included in these performance indicators and which employees are eligible.

BRF discloses the total size of its workforce and provides the distribution of temporary versus permanent and full-time versus part-time contract types by gender and region. Additionally, the company reports the size of its refugee workforce. However, the company does not report data on the size of its subcontracted workforce.

BRF discloses that the Board receives reports relating to the Transparency Channel, the progress of grievance investigations, making the company a more attractive workplace, and material business risks. Further, the Sustainability Committee of the Board of Directors monitors the company's ESG progress. However, it is unclear what specific labour metrics the Board receives every quarter.

Board-level representation The company does not report having employee representation at the Board level or alternative approaches to elevate worker voice to inform Board-level decision-making. Internal committees BRF discloses that it has worker committees designed to prevent accidents and an Internal Occupational Accident Prevention Commission (CIPA). The CIPA comprises elected employees and other individuals who meet monthly with senior management on health and safety risks and measures to prevent accidents. The CIPA is said to have “full autonomy” to propose improvements and take action when risks are identified. Dialogue with trade unions BRF discloses that 100% of its workforce in Brazil, Australia, Chile, and Oman is covered by collective bargaining agreements and represented by unions, indicating that the company has undergone constructive dialogues with these unions. Further, the company reports it had no recorded cases of operations or suppliers in which workers' rights to exercise freedom of association or collective bargaining may have been violated, but it does not expand on how it determined this or ensures it is maintained.

BRF discloses that it is increasing its production capacity in the Middle East but does not report on alternative approaches to elevate worker voice in locations where freedom of association is restricted under law, such as in its operations in Abu Dhabi and Saudi Arabia.

BRF discloses that 100% of the workforce in Brazil, Austria, Chile and Oman are covered by collective bargaining agreements but does not provide metrics for other geographies. BRF does not disclose whether the terms of collective bargaining agreements are extended to all workers at a given plant, regardless of their contact type, union status or involvement in the bargaining process.

Automation The company reports investing R$ 18.4 million in automation technologies related to water measurement from 2021 to 2022. It also reports developing automation solutions for drying grains at 14 of its Brazilian facilities, which reduced grain drying time by 15% and labour costs by 60%. The company does not disclose whether it has conducted an assessment to understand the impact of automation on its workforce. Climate risk BRF has formally committed to setting near-term climate mitigation targets and a net-zero target with the SBTi. BRF is a member of the Business Ambition for 1.5°C campaign. The company has a Net Zero by 2040 target that has not yet been approved by the SBTi. However, BRF has not conducted a formal risk assessment on how its climate mitigation strategy may impact its workforce.

BRF discloses consulting workers for its materiality assessment. It also reports conducting socio-environmental impact evaluations as part of its community consultation process in 2022. However, the company does not disclose how and with what frequency it engages workers or their representatives in discussions about its automation and climate change strategy.

The company does not publicly support a Just Transition in the food sector.