JBS S.A.

The company plans to submit a detailed roadmap of emission reduction targets aligned with the SBTi by 2023. It has two near-term emission reduction targets approved by the SBTi for its subsidiaries, Pilgrim's Moy Park (well below 2°C) and Pilgrim's UK division (1.5°C) in 2021. It commits to reducing its Scope 3 emissions by 30% per tonne of product sold by 2030 from a 2019 baseline. It discloses that it will present to the SBTi a detailed roadmap to achieve the objective of being Net Zero by mid-2023, which includes an initiative to reduce enteric methane emissions from cattle on a global scale. However, no evidence was found that the company has a specific methane emission reduction target or is in the process of developing one.

The company's subsidiaries' SBTi target has a temperature alignment of 1.5°C. The subsidiary represents less than 30% of the company's overall revenue, so the geographic scope is specified and limited to certain geographies. It has committed to setting an SBTi-approved Net-Zero target. To achieve net-zero emissions by 2040, the company is required to develop a near-term 1.5°C target to reduce emissions and mitigate the remainder of emissions substantially. JBS reports to release its action plan to achieve this in 2023.

The company discloses that it plans to invest US$100 million by 2030 to assist suppliers in implementing regenerative farming practices, including carbon sequestration and on-farm emission mitigation technologies. It also supports an initiative providing cattle farmers with production and financial advice to adopt sustainable practices that reduce the net greenhouse gas emissions of cattle farming.

JBS USA has invested US$150K for the Soil and Water Outcomes Fund to drive carbon sequestration, among other things. The partnership will include a 10,000-acre pilot in Indiana. However, it does not disclose many details about the specific practices that lead to carbon sequestration or innovative practises that reduce or mitigate emissions produced from active feed farming.

The company has entered a partnership with DSM to trial a methane-reducing feed additive for cattle in the near future.

The company reported 4,675,368 tCO2 Scope 1 emissions, 1,399,521 tCO2 Scope 2 emissions, and 65,032,995 tCO2 Scope 3 emissions in 2021.

The company discloses CO2 emissions from enteric fermentation and manure management in Scope 1. It discloses the emissions from purchased goods and services, including enteric fermentation of purchased cattle. However, it does not break down emissions from animal farming in its supply chain (Scope 3). It reports its agricultural emissions in Scope 1. Also, it purchases cattle in Brazil and soybean meal in its poultry and hog supply chain. However, it does not disaggregate feed-related emissions for its supply chain (Scope 3). It declares that it has finished the Scope 3 calculation for operations in Brazil, initially ignoring the emissions related to land use change. However, no evidence was found that the company discloses its GHG emissions from land-use change.

The company responded to the CDP Climate Change questionnaire in 2022. The CDP Report contains data from Argentina, Australia, Brazil, Canada, France, Germany, Italy, Mexico, Netherlands, New Zealand, Puerto Rico, the United Kingdom of Great Britain and Northern Ireland, the USA, Uruguay and Vietnam. The company's GHG inventory for Scope 1 and 2 emissions has been audited by a third party.

The total greenhouse gas emissions of the company have increased from 67,301,256 tonnes of CO2e in FY2020 to 71,107,884 tonnes of CO2e in FY2021. The data represents an increase of 5.35% in 2021 compared to 2020. It also mentions that the scope of emissions data has been altered about the previous year. The company's intensity-based Scope 1 and 2 emissions have increased by over 12.79% since its base year of 2019. It states that its Scope 1 and 2 emissions for its livestock products have decreased by 4.6% overall, Pork decreased by 8%, and Poultry products increased by 2% compared to 2020. However, its reporting does not include supply-chain-related emissions nor explain if the emission disclosure includes manure management, as it only discloses enteric fermentation and fertigation.

The company has conducted a climate scenario analysis for its Brazilian value chain, considering the RCP 4.5 and RCP 8.5 scenarios. However, it does not mention its plan to expand its analysis to more regions where it operates.

The company identifies changes in precipitation patterns and extreme variability in weather patterns, and the resulting water scarcity as a business risk for its own operations and supply chain. It mentions how this can affect soy production and how it aims to mitigate this risk. It discloses that increasing temperatures will cause severe risks for the company's operations, and the region most impacted by this variable is the northeast of Brazil. Further, it discusses animal heat stress and mortality and plans to invest in the most at-risk areas and work with suppliers to mitigate risk. It recognises climate change impacts on rising energy prices as a business risk and discloses mitigating these by producing renewable energy. The company considers that carbon taxes are highly likely to become a problem for it in the medium term, and it states to have been closely monitoring carbon tax legislation in the countries where it operates. It also discloses mitigation efforts, as every JBS unit has GHG emission reduction projects that would reduce the amount of carbon tax to be paid in the future. In addition, it anticipates using internal carbon pricing in the next two years.

The company discloses that climate-related risks have influenced its capital allocation and provides examples of where it has invested capital in technologies to reduce climate change impacts.

The company states that it spends 6-10% of its procurement on the purchase of soy, which is used to produce animal feed for its pork and poultry production. Additionally, it discloses that this percentage only considers its Brazilian operations, which depend on soy from regions that may be at risk of deforestation. It discloses that it purchases soybean meal only from suppliers that are signatories of the Amazon Soy Moratorium, ensuring that its products are not linked to or contribute to the Amazon's deforestation. However, no evidence was found that the company is sourcing 100% of soy from areas with no risk of deforestation or that 100% of soy is sourced from deforestation-free suppliers. It discloses that it has conducted a risk assessment for its Brazilian operations, which covers its soy supply chain and acknowledges deforestation as a major risk. It mentions that it has soy suppliers in the Amazon but does not disclose all high-risk locations identified in its risk assessment.

The company discloses a zero net or gross deforestation target. Zero net deforestation allows for the clearance or conversion of forests in one area as long as an equal area is replanted elsewhere. The company discloses that for its Brazilian operations, 100% of its soy is sourced from suppliers in Brazil who follow the Soy Moratorium to ensure that no soybeans come from illegally deforested regions in the Amazon Biome. However, it is not clear if the company sources soy from other high-risk deforestation areas. It discloses its target to source 100% of its soy from zero gross deforestation/no deforestation by 2025 with a cutoff date of 2006.

The company's commitment to the soy moratorium only applies to soy sourced from the Amazon. Further, it is not clear if the company sources soy from other high-risk deforestation areas, such as the Cerrado, or whether it has a commitment in place for these other biomes. The commitment only applies to soy sourced by owned farms and does not include third-party suppliers.

The company states that it has achieved its target to only purchase soy from suppliers that are signatories to the Amazon Soy Moratorium. However, in its 2022 CDP response, the company does not disclose evidence relating to the progress on the same commitment, nor does it disclose the proportion of soy sourced in the current reporting period which meets this commitment. The company's CDP Forests questionnaire responses in 2022 only cover its Brazilian operations. The company discloses that it has operations in Brazil, Seara, North America, Australia and New Zealand, Europe, Mexico and Puerto Rico. Further, 49% of its revenue comes from the USA, 12% from Brazil and 4% from Australia and New Zealand. However, the company discloses limited information regarding JBS USA.

The company discloses that all cattle purchases in Brazil are made from suppliers not located in deforested areas. However, no evidence was found that the company sources 100% of its cattle from areas with no risk of deforestation. It conducts a risk assessment more than once a year regarding its cattle sourcing, covering its full supply chain. It has done this using internal company methods, external consultants, national-specific tools and databases and public information (IBAMA, MTE and INPE). The company has identified the Amazon biome as a high-risk area. However, it does not provide a detailed analysis of the results of the risk assessment and it does not provide a complete list of the other high-risk areas that the company sources from.

The company discloses its commitment to not purchase cattle from ranches responsible for deforestation in the Amazon Biome region. To mirror this commitment, the company also brought forward its target of zero illegal deforestation for other Brazilian biomes (Cerrado, Pantanal, Atlantic Forest and Caatinga biomes) from 2030 to 2025. This includes both direct and indirect suppliers and covers 100% of the beef supply chain. The target is only for illegal deforestation.

The company responded to the CDP Forests questionnaire in 2022 for its Brazilian operations. 49% of revenue comes from the USA, 12% from Brazil and 4% from Australia and New Zealand. However, the company does not disclose information regarding its beef operations in Australia which is also considered a high-risk deforestation area.

The company states that it has supplier requirements on deforestation in its environmental policy, but this is not disclosed publicly. It also discloses that it has been improving the mapping approach of its international operations.

100% of the company's soy suppliers, in the Amazon biome, are in compliance with Soy Moratorium criteria. It discloses that its due diligence is integrated into the third-party registration process, and at the time of registration, the third parties listed in risk categories will be automatically evaluated, subsequently, being released or disapproved if negative reputational aspects are identified. The company has 100% soy traceability in Brazil back to production municipality or equivalent. However, this appears to be only for direct suppliers and the level of soy traceability outside of its Brazilian operations is unclear (e.g. USA and Australia). The company also discloses that this commitment does not include materials processed by third-party manufacturers.

JBS USA discloses its initiative to invest in a pilot project managed by the Soil Water Outcomes Fund to promote on-farm conservation practices, such as no-till and cover crops, on a 10,000-acre farm in Indiana. The statement appears to be futuristic, so it is unclear whether the company is currently investing in this project.

In its Responsible Procurement Policy 2022, the company outlines that it does not purchase animals from farms involved in deforestation of the Amazon and Cerrado biomes, invasion of indigenous lands, environmental conservation units, Quilombola communities territories or farms located in areas embargoed by the Brazilian Institute for the Environment and Natural Resources (IBAMA). In 2021, JBS launched the Transparent Livestock Farming Platform which allows cattle suppliers to register their own suppliers for compliance with social and environmental requirements in cattle farming. Cattle producers that sell animals directly to JBS provide a list of their animal suppliers on the platform, which are then assessed on social and environmental compliance using the same criteria as for direct suppliers, including deforestation. The assessment results are delivered directly to suppliers who are able to view the social and environmental compliance status of their entire supply chain.

The company has a supplier monitoring process. In Brazil, direct suppliers are monitored regularly in the Amazon, Cerrado, Pantanal, Atlântica and Caatinga biomes through satellite images. Its entire supplier monitoring system is audited annually by independent auditors and the audit results are published on the JBS website. By December 2021, 14.6% of the cattle processed by the Company in 2020 had been registered on the Platform, but it will require all suppliers to be registered by 2026. The company states that in Brazil, it monitors suppliers’ farms, using a geospatial system that can detect nonconformities and block purchases of raw materials from suppliers operating irregularly. If suppliers do not meet the company's supply standards (Responsible Purchasing Policy), suppliers will be suspended. To date, the company has debarred more than 14,000 cattle suppliers for non-compliance with its policies and standards. However, it does not discuss the same for indirect cattle suppliers. 100% of cattle in Brazil are traceable to the fattening farm. However, it does not yet have traceability of its indirect suppliers and it mentions that data collection and supplier information and analysis are currently limited. JBS aims to increase the traceability of its entire supply chain by 2025 and has invested in projects to assess its approach to direct and indirect suppliers. For example, JBS is working on blockchain technology to gain access to the consolidated analysis of its suppliers. The company has been linked to illegal deforestation in the Brazilian Amazon and Cerrado. Since 2019, 68 confirmed cases of deforestation linked to JBS have been reported by Mighty Earth and AidEnvironment, and 15 of those cases were reported in 2022.

The company states it will invest US$100 million by 2030 in research and development projects to assist producer efforts to strengthen and scale regenerative farming practices, including carbon sequestration and on-farm emission mitigation technologies.

The company conducts water risk assessments of its direct operations and supply chain, and as a result, the assessments identify areas with higher exposure to water-related risks. Additionally, it states that according to analyses of water stress risks conducted on operations in the USA, Canada, Australia, New Zealand, Europe and Mexico, the majority of its facilities have low-to-medium or medium-to-high risks. JBS Brazil conducts a water risk assessment which identifies facilities at the highest water risk. It identifies critical river basins using databases provided by the Brazilian National Water Agency (ANA) to quantify the water balance. The company discloses the areas and river basins where there are facilities with high water risk. The company discloses its 2021 water consumption. It also states that it has set objectives for reducing water usage in the production processes.

The company commits to reducing water consumption intensity by 15% by 2030 compared to the 2019 baseline. The company states that it was not able to reduce the water consumption intensity in 2021 due to increased sanitation measures.

JBS discloses its global withdrawals by source for 2021/2022. The company discloses that 26-50% of water was withdrawn from water stress areas in 2021/2022. CAPEX increased by 120% in 2021 through investments to modernise and improve efficiency in the treatment of water and effluents. Further, it spent R$110.3 million on improvements in water usage and wastewater at operations in Brazil. It discloses that water-related OPEX was 125% higher than the previous reporting year. For the next year (2022), the trend is for investments to increase in OPEX, since JBS intends to reopen closed factories and open new factories. The company discloses that data related to water withdrawal and water discharge for its Brazilian operations have been audited by SGS. It responded to the CDP Water Security questionnaire in 2022. JBS also reports water withdrawals increased from the last reporting period.

The company does not disclose information relating to water scarcity risks in feed farming. However, the company discloses that increased water scarcity risk has been identified in its Parana basin and the Amazon basin, where its feed factory is located. Further, it discloses that according to studies, this region may have reduced water supply, leading to a reduction in water available for its operations. Despite this, the company does not refer to water use in its supplier code of conduct.

The company does not disclose information relating to the proportion of feed sourced from water-stressed areas. JBS USA discloses partnership in an initiative to invest in a pilot project managed by the Soil Water Outcomes Fund to promote on-farm conservation practices, such as no-till and cover crops. The company states that this will include trials on a 10,000-acre farm in Indiana, which is an important supply shed for the company's pork production.

The company reports that in 2021, 69% of cattle products, 32% of pork products and 17% of poultry products (by mass) were produced in areas with high and extremely high water stress. It states that most of its operations and suppliers are in Brazil and the USA for poultry, pork and hog farming, and it provides visits and technical assistance to integrated producers in the pork and poultry supply chains, focusing on water management and animal welfare principles. The company employs 500 field technicians to guide responsible production management, monitor hydrometers and ensure environmental law compliance. The company participated in the Sustainable Livestock Indicators Guide (GIPS), which covers themes such as efficient water use. A subsidiary, Seara, has developed the SuperAgroTech digital platform used to manage the operations of out-grower farms. In the platform, it is possible to analyse data about socio-environmental indicators, such as water consumption. A score is produced for each out-grower based on this information, which is used when extending credit and possible discounts.

The company discloses that it collaborated with Instituto Inttegra to create the Grade 10 Farm programme, which provides training for high-performance management, and that more than 120 suppliers took part in addressing environmental issues such as water management.

JBS reports that there were no incidences of non-compliance with water quality permits, standards and regulations. It discloses that 73% of its facilities have a low or medium-low water stress risk level and 2% are high-risk, according to its water criticality matrix. The company mentions that it uses the Aqueduct tool created by the WRI to inform this assessment and considers both quality and quantity. However, the specific locations of the facilities are not disclosed. No evidence was found that the company set a quality target in the last year.

The company states that wastewater discharge quality is regularly measured and monitored. However, it does not disclose the quality of wastewater discharged. It discloses the total volume of wastewater generated across all operations for the late reporting period. The company discloses that data related to water withdrawal and discharge is audited by SGS in accordance with the GRI Standards. JBS responded to the CDP Water Security questionnaire in 2022.

The company discloses that in 2021, 9.7% of the wastewater from processing facilities was used for fertigation. The company does not report data on the quality of its wastewater and as such, no comparison can be made. The total volume of wastewater increased in 2021.

The company does not disclose information regarding nutrient management in feed farming.

The company has invested in a partnership with Soil and Water Outcomes Fund, managed by AgOutcomes. The fund provides financial incentives to farmers who transition to on-farm conservation practices that yield positive environmental impacts such as carbon sequestration and water quality improvement. Practices such as no-till and cover crops are being trialled to improve soil health and to reduce impacts on water quality.

The company mentions that it is expanding the use of biodigesters to generate biogas from the waste collected in its own operations. In the current reporting period, the company has started two biodigester projects in Australia and Mexico and is looking to implement similar initiatives in Brazil. However, it does not mention that biogas is used to generate electricity on farms.

The company encourages the reuse of treated wastewater via fertigation for agricultural crops. However, no evidence was found that the company makes site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms' management. JBS discloses financial investment to upgrade existing lagoons in order to store manure and capture emissions more effectively. However, from JBS' disclosure, it seems that the goal of this investment is to reduce on-farm methane emissions as opposed to reducing nutrient pollution stemming from animal farming sites. Despite this, the company states that it has participated in constructing the Sustainable Livestock Indicators Guide (GIPS), which provides guidance to improve the management of pollution by livestock suppliers.

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.

The company possesses an antibiotics policy guiding the utilisation of antibiotics primarily for disease prevention, control, or treatment rather than for growth promotion, emphasising administration under the supervision of licensed veterinarians. It mandates record-keeping of antibiotics usage and implements monitoring and training programmes to assure compliance and suitable animal welfare. It also commits to measures that mitigate disease risks and reduce reliance on antibiotics, such as implementing biosecurity protocols and vaccination for all new cattle, and incorporating nutritional supplements like probiotics into their practices. The firm also attempts to lessen procedures like tail docking and castration, and maintains a lower animal density in poultry breeding operations. Notwithstanding, it has yet to establish a uniform group-wide antibiotics policy, as evidenced by diverse strategies across its subsidiaries and a lack of clear statements or proofs from established mandates and third-party auditing confirming comprehensive compliance across all operations. This indicates a region-specific approach to antibiotics management.

The company oversees antibiotic usage in its direct operations and supply chains but does not publicly disclose this specific data.

The company commits to the Five Freedoms and mandates animal welfare training for both employees and suppliers. Performance indicators are used to assess the entire value chain. JBS USA ensures department-specific training for new employees and yearly refresher courses for those involved in livestock and poultry handling. The company has policies in place for terminating employment or discontinuing supplier contracts if animal welfare policies are violated. Moreover, JBS USA collaborates with international universities to enhance animal welfare.

The company maintains 43% of its chickens at low stocking densities and commits to cage-free egg procurement in its Seara division by 2025. It avoids routine mutilation, such as debeaking in chickens, and has shifted to immunocastration in pigs. Animal transit times are optimised, exemplified by Friboi's average 4.9-hour travel time. Controlled Atmospheric Stunning is deployed in US pork facilities, and environmental enrichment measures are in place. However, the commitment to avoiding close confinement is inconsistent across operations; there is no explicit stance against dehorning cattle, and details regarding stunning policies for cattle and broilers and specific environmental enrichment in pork operations are undisclosed.

The company's Seara operations hold Global Good Agricultural Practice (Global GAP) certification, and its beef cattle from Aspen Ridge and Aberdeen Black comply with Certified Humane Farm Animal Care Standards and GAP standards, respectively. In the United States and Canada, it mandates cattle suppliers to adhere to government regulations and recognised certifications such as Beef Quality Assurance (BQA). The company mandates that its U.S. hog suppliers obtain Pork Quality Assurance Plus (PQA+) certification. For its UK production sites, it requires suppliers to hold certifications aligned with Royal Society for the Prevention of Cruelty to Animals (RSPCA), Red Tractor, or Quality Meat Scotland (QMS) standards. The company discloses that its Seara operations are accredited with Global Animal Partnership (GAP) Animal Welfare and Certified Humane standards. However, the applicability of these certifications to its other poultry operations is not disclosed. The company's Seara division holds Global Good Agricultural Practices (GAP) and Certified Humane certifications. In Europe, suppliers to Pilgrim's UK facilities are subject to third-party audits and must comply with the Royal Society for the Prevention of Cruelty to Animals (RSPCA), Red Tractor, or Quality Meat Scotland (QMS) standards. However, it does not specify the proportion of operations that meet these standards outside UK.

The company notes advancements in animal welfare, including a transition to 54% cage-free egg sourcing, 43% of birds housed at densities under 30 kg/m2, cessation of beak trimming for all broilers, a standard 6-hour rest period in darkness, and improved chick transport monitoring. However, it only provides data for 2021 and omits details on the progress of beef and pork welfare.

The company enforces an eight-hour transit policy for cattle and employs a hydraulic push system for humane slaughter. It has transitioned from surgical to immunocastration and states that 43% of its poultry have stocking densities below 30kg/m². It utilises the Nhô Bento breed and offers perches and environmental enrichment for poultry. The transition towards cage-free sourcing is underway, with 54% of eggs being cage-free as of 2021. However, the company lacks transparency on stunning methods, dehorning policies, and suitable environments for cattle. It uses gestation crates post-insemination and does not disclose information on tail docking or specifics of environmental enrichment for pork. Disclosure gaps on poultry stunning practices and details about laying hen stocking densities and nest boxes also exist.

The company states that it respects human rights in accordance with the UN Guiding Principles on Business and Human Rights.

The company's operations in the UK, Pilgrim's UK, have undergone a human rights impact assessment (HRIA). In response to findings from the HRIA in the company's UK operations, it has implemented a Human Rights Action Plan to raise awareness of issues such as health and safety training and gender discrimination in the company's supply chain. Furthermore, the company will continue with ongoing worker visits to maintain high human rights standards. However, the HRIA is limited to the company's UK operations, which account for a minority of its total revenue. Furthermore, the company does not include details of the assessment, such as risk mapping, ranking risks by severity and likelihood or identifying potentially impacted stakeholders. Also, the company does not disclose how it monitors and reviews respect for human rights and identifies the next action steps.

The company acknowledges that child labour risks were found in its supply chain. However, the risks in question were identified by a third party and not through the company's human rights due diligence or assessment process.

The company commits in writing to prohibit child labour, forced labour, discrimination and harassment and asks the same of its suppliers. However, the company does not disclose if it promotes fair wages across all its operations or in its suppliers.

The company conducts audits covering forced labour in its cattle supply chain in Brazil. However, it does not be clarified if the company audits for other human rights policies or how it monitors compliance in pork and poultry supply chains and other regions. The company discloses a website and phone numbers for reporting grievances open to all employees and stakeholders. There is a choice for the complainant to remain anonymous through the online channel. However, the company must mention consulting stakeholders when designing these grievance mechanisms. In 2022, the company received 5,743 grievances through its ethics hotline but does not fully categorise these.

The company commits in writing to provide its employees a healthy work environment and safe working conditions. The company lists an OHSAS 18001 in its list of certifications but does not specify the scope of this certification. The company also has local safety committees that monitor non-compliance with health and safety procedures. However, it does not disclose the number or percentage of facilities with a health and safety committee composed of worker representatives.

The company reports a recordable incident rate of 3.13 and 3.77 for its Brazil and US operations, respectively. It also reports a lost time injury frequency rate of 1.98 in its Australian operations and a DART rate of 0.04 and 0.94 for its Mexican and European operations, respectively. Furthermore, it discloses a safety index rating (the number of severe accidents per hour of procedures) for each region it operates. The company's injury rates have improved for over 75% of its operations, but some operating areas, such as Australia and Mexico, have yet to improve their injury rates. The company reports seven fatalities in 2021 but does not disclose data for the current reporting year.

The company respects its employees' right to join trade unions and participate in collective bargaining but does not disclose the unionisation rate. The company also expects its suppliers to respect the right of workers to form or join a union or bargain collectively. However, the company does not discuss its actions to support these rights.

The company states that it respects its employees' rights to bargain collectively and that the proportion of its workforce covered by collective bargaining agreements is 94% in Brazil, 57% in the US, 97% in Canada, 70% in Mexico, 61% in Europe and 75% in Australia and New Zealand. It also discloses the distribution of the workforce across all existing contractual agreements, including permanent, temporary, non-guaranteed hours, full-time and part-time. However, this does not include employees in JBS Canada or Pilgrim's Food Masters.

The company discloses that 100% of its natural processing facilities in the United States, Canada, Europe and Australia and 71% of Mexico operations have been audited and certified by the GFSI. It discloses that it has 446 certifications and audits in Brazil, yet it does not explicitly tell the number or portion of GFSI-certified facilities. Due to the majority of operations and facilities being GFSI-certified in the United States, Canada, Europe, Australia and Mexico, it can be inferred that up to two-thirds of global sites are GFSI-certified. All USA suppliers are required to pass either GFSI or British Retail Consortium (BRC) audits or equivalent certifications. However, the same is not disclosed for JBS Brazil. Therefore, it can be inferred that up to two-thirds of suppliers are GFSI-certified.

The company conducts regular internal audits relating to food safety and quality and annual independent audits on all production units in Brazil, USA, Canada, Europe and Australia and 86% of operations in Mexico. Its 2021 Sustainability Report acknowledges SASB-recommended disclosures for food safety, including the corrective action rate associated with non-conformance. However, no response to these SASB disclosures was found, and the company provides various reasons for the omission of subsidies, including JBS USA and JBS Couros. In 2020, it launched the Origin project, which improved the traceability process to provide consumers with complete information about the product by scanning a QR code on the packaging. In Australia, it also has a traceability program that links customers with the individual farmers who raised the livestock for the specific cut of beef.

The company states that it has thorough systems in place for product recalls and ensures that all impacted products are tracked and taken out of distribution. Moreover, it informs customers that it adheres to government guidelines. However, it does not disclose other vital aspects, such as disposal procedures. It reports that zero product recalls occurred in Brazil in 2021. However, a pathogen-related incident occurred in Australia, and two incidents involving allergens were reported at Pilgrim's Moy Park. No further information is disclosed. Due to confidentiality clauses, JBS USA does not disclose the number of recalls in the reporting year.

The company does not disclose information on any market bans in the reporting period, and none were detected in the media screening relating to food safety.

The company has established the Socio-Environmental Responsibility Committee, which advises the board of directors regarding the risks and opportunities in sustainability initiatives. The committee has overall responsibility for dealing with all sustainability-related issues. It contains five members, three of whom are on the board of directors. Furthermore, the company must disclose board-level expertise in sustainability, food safety or innovation.

The company discloses that its COO receives remuneration linked to emissions reduction targets but does not disclose the percentage of variable compensation related to them. The company actively participates and collaborates with work groups and associations that promote the advancement of sustainability. For example, it is affiliated with the Sustainable Livestock Breeding Work Group, the Brazilian Business Council for Sustainable Development and the Coalition Brazil Climate, Forests and Agriculture. The company also engages with InPACTO, a group aiming to promote the prevention and elimination of slave labour in Brazil. In addition, the company discloses details of its trade association and coalition memberships and commits to guide its engagement activities in line with the objectives of the Paris Agreement.

The company's Global Food Innovation Center, a collaboration with Colorado State University (CSU), is a teaching and research unit dedicated to enhancing food safety processes, meat sciences, animal welfare, educational and training actions and testing equipment. However, the company does not disclose how it benchmarks itself against peers in sustainability and innovation.

The company mentions that alternative proteins are conducive to its strategy of diversifying proteins and keeping up with new consumer trends and expected population growth. However, it must still set a timebound target to diversify protein sources. It discloses the 2021 revenue from its 100% plant-based business, Vivera. However, it does not disaggregate by product. Further, it does not disclose data on the revenue generated from alternative protein product lines across its many other businesses and is encouraged to do so.

The company is one of the world's major food producers and operates in the plant-based protein area. Seara, its frozen and plant-based food segment, has launched 138 innovative products within categories for the domestic and international markets in 2021. Under Seara, it launched Incrível, the first complete range of 100% plant-based meat substitutes in Brazil, offering hamburgers, diced chicken, chicken fillets, minced beef, beef steaks and beef slices. Further, JBS-owned business Pilgrim's offers various plant-based products via several brands. However, in 2022, JBS USA announced the closure of its plant-based meat business, Planterra Foods, after two years of ownership and having just launched a product line in Asia. The firm had developed a portfolio of plant-based foods made from fermented mushrooms through the company's "OZO" brand, including hamburgers, frankfurters and meatballs. In a statement, the company indicated that it will instead concentrate its efforts on its plant-based activities in Brazil and Europe. JBS entered the cultured protein market by acquiring a Spanish business, BioTech Foods, in 2021. It also intends to construct Brazil's first R&D centre for Cultured Protein and Food Biotechnology. This centre will create innovative strategies to accelerate, scale up and bring down the prices of cultured protein production to market it. It will invest USD 100 million in the two initiatives. In 2021, it also acquired Vivera, Europe's third-largest plant-based producer, to strengthen its global alternative protein offering. The start-up company develops and produces a diversified portfolio of plant-based product substitutes for meat for major retailers in over 25 European countries.