JBS S.A.

The company has established global near-term and net-zero targets for Scope 1, 2, and 3 emissions in accordance with the Science Based Targets initiative (SBTi) methodology, including FLAG targets. In its 2023 CDP Climate response, it reveals intentions to seek SBTi validation within two years. However, its 2023 Sustainability Report indicates a shift to pursuing environmental goals outside the SBTi framework due to newly introduced requirements for agriculture-based companies that altered the goal-setting process. Subsidiaries Pilgrim's Moy Park and Pilgrim's UK have already received SBTi approval for their emission reduction targets. Pilgrim’s Pride Ltd. commits to a 50% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030, based on a 2019 baseline, and plans to reduce Scope 3 emissions by 30% per tonne of product sold within the same period. Although the company discusses initiatives to reduce methane emissions through enteric fermentation and manure management, it has not set or disclosed a specific methane emission reduction target.

The company's subsidiaries' Science Based Targets initiative (SBTi) target has a temperature alignment of 1.5°C, though the geographic scope is limited. The company is committed to verifying near- and long-term targets for Scope 1, 2, and 3 greenhouse gas (GHG) emissions using science-based methodologies. These targets include reducing absolute Scope 1, 2, and 3 emissions by 42% by 2030 and by 90% by 2040, using a 2021 base year. Additionally, it aims to reduce absolute Scope 1 and 3 FLAG emissions by 30.3% by 2030 and by 72% by 2040, also from a 2021 base year. The company aims to achieve Net Zero by 2040. Although it initially sought validation through the SBTi, its 2023 Sustainability Report states that changes in SBTi’s requirements and methodologies for agricultural companies have led it to pursue its environmental goals independently of the SBTi framework. However, its Pilgrim's Europe business remains committed to setting a Net-Zero target for SBTi validation.

The company outlines its ongoing collaboration with farmers and stakeholders to reduce agricultural emissions and enhance food system sustainability. Central to its strategy is supporting farmers and ensuring a just transition towards sustainability. The company works closely with supplier partners throughout the value chain, offering technical and experiential support for greenhouse gas emissions reduction and the adoption of climate-smart practices. It engages 70% of its suppliers on climate issues through education and incentives. For instance, its Green Offices provide free technical support to livestock farmers in the Amazon to help them meet environmental standards and prevent deforestation, thus reducing greenhouse gas emissions. By the end of 2023, these offices have assisted 8,449 farms, producing approximately 3.4 million head of cattle, in complying with Brazil's Forest Code. This effort significantly furthers the company's sustainability goals in key production regions. Additionally, the company participates in global forums and associations to drive large-scale change across its complex supply chain.

The company supports supplier practices such as cover cropping, no-till farming, and soil amendments to improve soil structure, increase organic matter, and assist carbon sequestration. It has partnered with the Soil and Water Outcomes Fund, contributing $150,000 to engage growers across multiple states, and plans to launch a 10,000-acre pilot project in Indiana. To enhance grazing management and reduce greenhouse gas emissions, the company contributed $230,000 to Colorado State University AgNext research initiatives. These initiatives include a roadmap for achieving net-zero emissions in the U.S. livestock industry and developing science-based grazing management principles to support sustainable ranching. Additionally, the company's Pilgrim’s Europe Pork subsidiary is integrating livestock into arable rotations through its British Quality Plus welfare programme. This aims to improve soil health and increase crop productivity, reducing the need for synthetic fertilisers. It is unclear if these crops are used in feed production.

The company collaborates with partners throughout the value chain to enhance cattle production efficiency and reduce methane emissions. In the United States, it is among the funders of the US$5 million Food and Ag Research Greener Cattle Initiative over five years, supporting research to reduce enteric methane emissions from cattle. In 2023, funding was provided for three large-scale research trials on enteric methane. The company is exploring strategies such as improving animal diets by using high-quality forages and feed additives. In 2021, it partnered with the Instituto de Zootecnia to research feed additives that increase nutrient use efficiency and reduce methane emissions, leading to the creation of the Neutropec Animal Production Institute in 2022. So far, five feed additives have been tested, demonstrating reduced methane emissions and improved feed efficiency. The company also aims to optimise feed conversion to animal protein to decrease the carbon intensity of livestock and poultry production. It highlights that in the Brazilian Midwest, Dried Distiller Grains (DDG) serve as a valuable energy source for animals, shortening livestock lifecycles and reducing emissions.

The company reports its emissions for FY2023 as: Scope 1 - 3,455,664 tCO2e, Scope 2 (location-based) - 1,545,135 tCO2e, Scope 2 (market-based) - 1,548,742 tCO2e, and Scope 3 - 151,531,147 tCO2e.

The company reports Scope 1 emissions from agriculture as 1,236,377 tCO2e in its 2023 CDP Climate response. Emissions linked to cattle products are reported at 2,188,717 tCO2e, and poultry products at 1,467,265 tCO2e, incorporating Scope 1 and 2 emissions from various business units, including Seara, JBS USA Pork, Swift Prepared Foods, Pilgrim’s UK, and JBS Australia Pork. Scope 2 emissions are market-based, but the company is currently enhancing its Scope 3 Land Use Change emissions calculations, so these are not included. However, Scope 3 emissions from purchased goods and services, including livestock, are reported as 134,773,305 tCO2e using GLEAM emissions factors. The company does not provide a detailed breakdown of emissions from animal farming or feed farming within its supply chain. The company discloses that its GHG inventory excludes emissions associated with land use change, as these calculations are under development. No evidence of current year disclosures on GHG emissions from land-use change was found.

The company responded to the CDP Climate Change questionnaire in 2023 and has obtained third-party limited assurances for its global Scope 1 and 2 GHG inventories from 2019 to 2022. Limited assurance audits are underway for its 2023 Scope 1 and 2 inventory and 2021 Scope 3 inventory, with results to be reported once finalised. The company plans to continue annual assurances of its GHG inventory and Sustainability Linked Bonds.

In FY2023, the company achieved a 16.5% decrease in total GHG emissions (Scope 1, 2, and 3) to 156,535,553 tCO2e, down from 187,559,356 tCO2e in FY2022. Over the period from FY2021 to FY2023, emissions fell by 7.8%, averaging an annual decrease of 3.9%. The company reports reductions in Scope 1 and 2 emissions from cattle, poultry, and pork compared to the previous year, but it does not clarify if this is due to absolute methane reductions or reduced feed emissions. Scope 3 emissions from purchased goods and services decreased from 159,582,433 tCO2e in FY2022 to 134,773,305 tCO2e in FY2023, with reductions likely linked to enteric fermentation in purchased cattle and grain and packaging purchases. For FY2023, Scope 1 emissions are reported at 3,455,664 tCO2e, Scope 2 emissions (location-based) at 1,545,135 tCO2e, Scope 2 emissions (market-based) at 1,548,742 tCO2e, and Scope 3 emissions at 151,531,147 tCO2e.

The company conducted a climate scenario analysis for its Brazilian value chain in 2021, considering RCP 4.5 and RCP 8.5 scenarios. However, there is no indication of plans to extend this analysis to other geographic locations.

The company identifies multiple climate-related risks, with varied levels of disclosure and mitigation. It recognises that changing precipitation patterns, unpredictable weather, and thermal stress pose risks to operations and the supply chain, including the production of raw materials and feed. To address these risks, it monitors the environmental footprint, including electricity and water consumption, through its Grain Purchasing Directory, which is also responsible for strategic commodities acquisition. The Risk Control Board manages commodity price exposures and works with the Risk Management Committee to propose mitigation strategies. However, there are no explicit measures addressing feed price volatility. The climate scenario assessment highlights increased heat stress, prolonged drought, and risks to animal welfare, especially in regions like the Pantanal and northeastern Brazil. In response, the company outlines management strategies such as feed supplementation, irrigation, species introduction in pastures, pasture rotation, and soil fertility management. Additionally, it plans to invest in at-risk regions and work with critical suppliers to mitigate these impacts. The company does not explicitly mention the risk of increased veterinary and medicine costs. Increased energy costs are acknowledged as a risk, with mitigation through renewable energy generation, including the Biolin energy plant supplying the Friboi production unit and selling excess energy to the grid. The company also has methane capture projects to convert it into clean fuel, with a target of achieving 60% renewable electricity use by 2030. Carbon taxation is identified as a likely challenge in the near future, with ongoing monitoring of relevant laws. To mitigate these transition risks, the company is investing US$1 billion in its decarbonisation strategy and US$100 million in R&D to reduce GHG emissions. It plans to implement internal carbon pricing within the next two years to reduce future costs related to carbon taxes. The company does not disclose the number of financially material events resulting from climate risks during the reporting period.

The company reports that its capital allocation is influenced by climate-related risks and provides examples of investments in technologies to mitigate climate change. It has committed US$1 billion by 2030 for decarbonising its operations as part of its Net Zero commitment and will allocate US$100 million to research solutions like regenerative agricultural practices, soil carbon sequestration, and supplier farm technologies. In its 2023 CDP Climate response, the company identifies the potential financial impact of BRL 1,393,070,728 from the implementation of carbon taxes on its Scope 1 and 2 emissions. Additionally, it reports increased electricity costs due to climate-related "tariff flags," estimating an impact of BRL 597,204,537 for its Brazilian operations.

In its CDP Forests Report 2023, the company revealed that 6–10% of its procurement spend in Brazil goes toward purchasing soy for animal feed in pork and poultry production, relative to its overall revenue. The company sources soy exclusively from suppliers who have signed the Soy Moratorium, ensuring compliance with its criteria in the Amazon biome. However, it has not confirmed that all its soy is sourced from areas with no deforestation risk or from deforestation-free suppliers. Additionally, the company reported conducting a risk assessment of its soy supply chain. It acknowledges having suppliers in the Amazon but does not disclose details about other high-risk locations identified in the assessment.

The company is committed to zero deforestation and conversion in the Amazon for its soy sourcing. It states that 100% of the soy used in its Brazilian operations comes from suppliers who comply with the Amazon Soy Moratorium. In its 2023 CDP responses, the company disclosed that none of the soy purchased in 2022 came from the Amazon, but rather from other regions in Brazil. It has also committed to zero illegal deforestation for soy sourced outside the Amazon. Consequently, the soy sourced within Brazil is not covered by its Amazon-specific commitment but only by the zero illegal deforestation pledge.

The company has responded to the CDP Forest Questionnaire for 2023.

The company claims not to source animals from farms or suppliers involved in deforestation but does not ensure that all cattle come from areas with no deforestation risk across all business units. It conducts multiple annual risk assessments covering its full supply chain using internal methods, external consultants, national-specific tools, databases, and public information. The Amazon biome is deemed a high-risk area, yet the company does not provide detailed analysis of the risk assessments' results or a comprehensive list of other high-risk areas.

The company is committed to not purchasing cattle from ranches causing deforestation in the Amazon Biome and has advanced its target of zero illegal deforestation in other Brazilian biomes (Cerrado, Pantanal, Atlantic Forest, and Caatinga) from 2030 to 2025. This target applies to both direct and tier 1 indirect suppliers, covering 100% of the beef supply chain, and is limited to illegal deforestation.

The company discloses information to CDP Forests, covering all its operating locations.

The company procures soy in Brazil exclusively from suppliers adhering to the Soy Moratorium. Additionally, Seara, a subsidiary, has a policy of zero illegal deforestation in Brazil. However, the company does not disclose any support for soy producers in promoting deforestation-free production or improving traceability efforts.

In its CDP Forests 2023 report, the company disclosed that it sources soy solely from suppliers complying with the Soy Moratorium. Since 2017, the company has automated third-party due diligence processes, using software to assess risk categories, including third-party proxies, ensuring automatic approval or rejection based on reputational risks. Additionally, the company reports that 100% of its soy in Brazil is traceable to the production municipality. However, the level of soy traceability outside Brazil is unspecified, and the commitment does not include materials processed by third-party manufacturers.

The company has disclosed its support for a pilot project by the Soil Water Outcomes Fund, promoting sustainable farming practices such as no-till farming and cover cropping on a 10,000-acre farm in Indiana. However, the current status of its investment in the project is unclear.

In its Responsible Procurement Policy 2022, the company states that its beef business in Brazil does not acquire animals from farms involved in deforestation of the Amazon and Cerrado biomes, encroachment on indigenous lands, environmental conservation units, Quilombola community territories, or from areas embargoed by IBAMA. The company launched the Transparent Livestock Farming Platform in 2021, which allows cattle suppliers to register their own suppliers to comply with socio-environmental requirements. As of 2023, 62% of cattle processed by the company are enrolled, with a goal of 100% participation by 2025. By 2026, enrolment will be mandatory for direct suppliers. The company also offers technical support for pasture management to enhance productivity and profitability in regularised areas. To prevent deforestation in its supply chain, it collaborates with stakeholders on sector-wide strategies like the "Beef on Track" programme, in partnership with the Federal Prosecutor’s Office and the NGO Imaflora, to establish criteria for monitoring cattle suppliers.

The company uses the JBS Geo-Monitoring System to track 100% of its beef suppliers in Brazil daily through satellite imagery and geo-referenced data. Additionally, its Transparent Livestock Platform, launched in 2021, utilises blockchain to monitor indirect suppliers, aiming for a deforestation-free supply chain by 2025. The company conducts annual audits of this system, reporting 100% compliance among direct suppliers. Non-compliant suppliers face a suspension of purchases until they meet the required standards, although it is unclear if this applies to indirect suppliers. While all cattle in Brazil are traceable to the fattening farm, the company has not yet achieved traceability for indirect suppliers, with data collection currently limited to direct cattle suppliers. Despite having data, it only discloses the sourcing location of 44.5% of its cattle, specifying 24.3% from North Brazil, 17.2% from South East Brazil, and 3% from North East Brazil. However, it does not disclose sourcing by Brazilian biome. In the reporting year, the company has been linked to deforestation in Brazil's Pantanal through the use of chemicals for land clearing.

In 2023, the company partnered with Pará state to implement mandatory cattle identification in the Amazon, aiming for full tagging by 2026. The company is investing $43 million to cover tag costs and support smallholder farms. The initiative also promotes regenerative practices and agroforestry to enhance biodiversity, combat deforestation, and improve local livelihoods.

The company assessed its operations for water-related risks using the World Resources Institute Aqueduct and World Wildlife Fund Water Risk Filter. It categorised global facilities by water risk levels as follows: Low (209), Low to Medium (61), Medium to High (45), High (21), and Extremely High (25). It operates in regions with varying water stress, including Australia, Brazil, Canada, Europe, Mexico, and the United States. For FY2023, the company reported total water consumption of 46,992,919 m3 and invested US$ 27 million in water-related operational efficiency. It has implemented precision irrigation systems, rainwater harvesting, water recycling techniques, new sterilisation technologies, and closed-vessel scalders. Each facility sets specific water-use goals and targets to ensure accountability and alignment with business policies. The 2023 Sustainability Report includes case studies on reducing water usage.

The company has not set a time-bound target to reduce total water consumption at its facilities for the reporting year. Despite committing to a 15% reduction in water use intensity by 2030, based on a 2019 baseline, it reports a 4% increase in water use intensity this year compared to the baseline.

In 2023, the company reported total water withdrawals of 251,941,972 m³, up from 211,819,436 m³ in 2022. This includes 106,366,267 m³ from surface water, 70,121,232 m³ from groundwater, and 75,454,473 m³ from municipal sources, with 1-10% sourced from areas of water stress. Water consumption increased from 45,964,890 m³ in 2022 to 46,992,919 m³ in 2023. The company invested US$27 million in water-related operational efficiency, with a decrease of 11.3% in water-related CAPEX from 2021 to 2022 due to a focus on wastewater and effluent treatment. It has detailed investments in water storage, rainwater capture systems, and automatic metering, and anticipates a 10% increase in CAPEX next year. Water-related OPEX rose by 6.4% compared to the previous year, with a projected further increase of 10%. The company's total water withdrawal, consumption, and discharge is audited by a third party, and it participated in the CDP Water Security questionnaire in 2023.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. It collaborates with the Soil Water Outcomes Fund on a test project in Indiana to promote on-farm conservation practices such as no-till farming and cover cropping across a 10,000-acre farm, a key area for its pork production.

In the company's CDP Water Security 2023 report, it is noted that 2.9% of its cattle products, 5.2% of pork products, and 8.1% of poultry products by mass are produced in areas with high or extremely high water stress. While suppliers are required to meet water-related criteria, these are not included in contracts, and it is unclear if they include water use reduction targets. Although there is a broader water intensity reduction goal for its operations, specific reduction targets for animal farming have not been disclosed. The responsible sourcing policy does not address water usage, but the 2023 Sustainability Report includes measures for managing water in animal farming, such as grazing and drought management plans. The company's 2023 CDP Water response outlines plans to update its materiality matrix and advance its Global Sustainability Strategy to achieve water reduction goals. It also intends to update its water risk analysis and conduct climate impact assessments on water availability. In Brazil, the Sustainable Water Management Program (PGSA) aims to develop integrated sustainability strategies, identifying critical facilities to prioritise actions like investment allocation and target setting to mitigate shortage risks. The Credit360 system allows the company to quantify production from water-stressed areas and monitor facilities facing water availability challenges, setting action plans as needed. The company briefly mentions partnering with supply chain stakeholders, conservation organisations, and the livestock community to protect biodiversity, sequester carbon, and regulate water. It is encouraged to expand on this in future reports. Incentives for improved water management practices include mechanisms like the Sustainability Index for poultry and pork suppliers, featured in a supplier awards scheme. Seara, a subsidiary, evaluates 100% of its poultry and pork supply chain via the Sustainability Index, assessing water use and other environmental practices. Seara accounts for almost 0.5% of the company's 140,000 global suppliers.

To enhance its management of cattle suppliers, the company contributed to the creation of the Sustainable Cattle Farming Indicators Guide (GIPS), initiated by the Sustainable Cattle Farming Working Group (GTPS). This guide aims to integrate sustainability into meat production, covering areas such as Business Management, Communities, Workers, Environment, and the Value Chain. It includes Criterion 4.2, which focuses on efficient water use, consumption, reuse, treatment, proper disposal, and legal compliance.

The company reports incidences of non-compliance with water-related regulations in 2022, leading to fines and administrative proceedings. However, these fines are not considered significant, and the company claims to have complied with recommendations from relevant authorities, though specific fine amounts have not been assigned as proceedings are ongoing. It has conducted comprehensive water risk assessments using the World Resources Institute (WRI) Aqueduct and the World Wildlife Fund (WWF) Water Risk Filter, identifying operational areas in countries such as Australia, Brazil, Canada, Europe, Mexico, and the United States that experience high to extremely high water stress. The company has not set targets related to water quality or disclosed a goal to reduce wastewater volume.

The company tracks wastewater treatment parameters such as COD, BOD, and NH3 regularly to meet regulatory standards, but does not disclose the quality of the wastewater discharged. It reports a total discharge of 206,186,164 cubic metres globally in 2023, noting a 5.1% increase from the previous year. In Brazil, where 42% of its global water withdrawals occur, the wastewater data was audited by SGS in 2022 in accordance with the ISAE 3000 standard. The company also responded to the CDP Water Security questionnaire in 2023, achieving a score of B.

The company converts animal by-products from its processing facilities into value-added products like fertilisers and biodiesel through its Brazilian units, JBS Couros and JBS New Business group. Additionally, facilities in the U.S., Australia, and Canada convert tallow into renewable fuels. The company does not provide information on the quality of discharged water. It reports a 5.1% increase in the total volume of wastewater discharged, rising from 196,237,121 cubic metres in 2022 to 206,186,164 cubic metres in 2023.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company has invested $150,000 in the Soil and Water Outcomes Fund to promote carbon sequestration, water quality improvement, and conservation practices such as no-till and cover crops. This initiative, managed by AgOutcomes, offers financial incentives to farmers and focuses on a 10,000-acre pilot in Indiana to generate revenue opportunities and enhance soil health, water retention, and biodiversity. However, the company does not disclose information about pesticide use in its feed supply chain.

The company has implemented practices to convert methane gas from manure into renewable natural gas, exemplified by a renovated wastewater treatment lagoon at its Dalhart, Texas facility. This gas is sold to the California transportation fuel market. However, there is no indication of using this biogas to generate electricity on farms or detailed sustainable plans for the remaining slurry. The company is also trialling the integration of pigs onto the arable land of partner farmers, using manure as fertiliser in a free-range, outdoor system. The company states it conducts water-related risk assessments for its operations and supply chain, considering water quality. However, it only discloses information related to water scarcity, without discussing water quality results.

The company does not make site-specific nutrient management plans part of its supplier’s contractual agreement or its own farms management. Nor does it provide technical or financial support to suppliers or its own farms to develop nutrient management plans and improve manure storage.

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

The company adopts a region-specific approach to antibiotic use. In Australia, antibiotics are used solely for disease prevention, control, or treatment under veterinary supervision. Brazilian operations discourage prophylactic use, adhering strictly to veterinary guidance. In Europe, tracking systems and educational forums enhance antibiotic stewardship. In the United States and Canada, established quality assurance guidelines ensure responsible use. The company prohibits antibiotics for growth promotion across all species, allowing therapeutic use under veterinary supervision. In Australian beef production, antibiotics are limited to therapeutic or, exceptionally, prophylactic purposes. While U.S. poultry hatcheries have been antibiotic-free since 2016, this policy does not extend throughout the lifecycle or globally. Brazilian pork operations avoid antibiotics for growth promotion or routine prophylaxis, permitting therapeutic use when needed, whereas in the U.S., antibiotics are used solely for disease prevention, control, or treatment. Despite regional strategies to reduce unnecessary antibiotic use, the absence of a comprehensive, company-wide policy may lead to inconsistencies. Biosecurity measures, vaccination programmes, and nutritional supplements are implemented to minimise antibiotic need. In poultry operations, reduced stocking density improves welfare and reduces disease risk. Additionally, the company avoids routine mutilation practices in its pork and poultry production, thereby enhancing animal health and welfare.

The company records antibiotic use in specific regions, including Australia, Europe, and Mexico, but does not provide global data. It does not disclose the quantity of antibiotics used, broken down by type or class, or the reasons for their use during the reporting period. Additionally, there is no quantitative data disclosed, nor is there information on whether this data is audited by a third party.

The company endorses the Five Domains model for assessing and maintaining animal welfare standards throughout its operations. This model acknowledges animals' capacity for emotional experiences and establishes standards for their nutrition, environment, physical health, behaviour, and mental state. The company is committed to engaging and training employees in animal welfare across global operations and the supply chain. Training programmes, including regular refresher courses, are implemented for all staff involved in animal handling, focusing on compliance with the company’s Code of Conduct and animal welfare policies. There are clear disciplinary measures for violations, including potential termination for employees and suspending purchases from non-compliant suppliers. The company actively promotes animal welfare through research collaborations and development programmes across various regions and species. Noteworthy initiatives include the formation of the Animal Welfare Advisory Committee in 2023, comprising seven university experts to guide welfare programmes and set global improvement goals. Collaborative projects include automated bird behaviour monitoring systems with Queen's University Belfast and research with Rivalea to enhance pig welfare. However, some programmes are region-specific, limiting their overall impact.

The company has transitioned 86.5% of sows to group housing and maintains a broiler stocking density of 32.16 kg/m². All laying hens are housed in cage-free systems, with a goal of sourcing 100% cage-free eggs by 2025, having reached 46% in 2023. It avoids routine mutilation, using immunocastration for male pigs in its Seara operations and refraining from ear-notching 46% of pigs. No mutilations are performed on broilers. Although tail docking may occur under veterinary guidance, further improvements are warranted. The company limits long-distance animal transportation, with 73% of cattle transported for under 8 hours, poultry for less than 4 hours in 99.1% of cases, and pigs averaging 1.5 hours per trip, with 96.3% under 8 hours. Specially designed vehicles are used, and transport practices are regularly audited to ensure welfare. It ensures humane stunning prior to slaughter for 96.37% of cattle, and all turkeys and pigs at Seara facilities. Despite implementing the "Move Boi" system to reduce handling stress, 3.63% of cattle were not stunned due to religious requirements. The company reports environmental enrichment for 89% of pigs and all turkeys in its operations. Cattle benefit from pasture access and scratchers, while organic chickens have outdoor access. These measures are not yet widespread across all operations. The company uses the Nho Bento chicken breed, a slow-growing breed approved by the Better Chicken Commitment, in its organic operations but does not disclose breeds used across all poultry, pork, and beef production.

The company holds a range of animal welfare certifications across its operations. For poultry, Seara's broiler chicken units in Brazil are fully certified by PAACO auditors and meet Global GAP and Certified Humane standards, although these certifications only cover a portion of its global operations. In the pork segment, Seara's Brazilian operations are certified under Global GAP Integrated Farm Assurance and Certified Humane standards. European and U.S. operations comply with RSPCA, Red Tractor, Quality Meat Scotland, and Pork Quality Assurance Plus (PQA+) standards. However, the company does not confirm certification coverage for all its pork operations. For beef, 57% of Friboi sites are certified under the NAMI protocol. Additionally, certain product lines, like Aspen Ridge and Aberdeen Black, adhere to Certified Humane and Global GAP standards, respectively. However, these do not encompass the majority of global beef operations. In Australia, the company's feedlots are covered by the National Feedlot Accreditation Scheme (NFAS). In the U.S. and Canada, all cattle suppliers must declare compliance with recognised animal welfare programmes, such as Beef Quality Assurance (BQA).

In 2023, the company reduced its poultry housing density to 32.16 kg/m² from 32.84 kg/m² in 2022. Cage-free egg production reached 46%, with a target of 100% by 2025. Group housing for sows increased from 75.64% in 2022 to 86.2% in 2023, and 86.5% of pigs received environmental enrichment. Although all pigs are free from surgical castration and teeth clipping/grinding, ear notching was recorded at 46% in 2023.

The company reports that 96.37% of cattle at Friboi sites were stunned before slaughter with a captive bolt pistol, with 99.35% success on the first attempt. The remaining 3.63% were not stunned due to religious requirements. The average cattle transport time was 6.3 hours, with 73% of journeys under 8 hours. Dehorning is generally avoided, except in some dairy calves where anaesthesia is used. In 2023, 86% of sows in Seara's operations and 98% in Pilgrim's Europe operations were housed in group systems, aiming for 100% by 2025. All pigs are free from surgical castration and teeth clipping. Additionally, 86% of farms provide environmental enrichment materials for pigs. Seara maintained an average broiler housing density of 32.16 kg/m² in 2023, reducing to 30 kg/m² for select lines. All laying hens are cage-free, with Da Granja chickens having environmental enrichment. Nhô Bento chickens benefit from free-range environments with access to paddocks, adhering to the Better Chicken Commitment. All laying hens for broiler production are in cage-free systems, and the company aims to source 100% cage-free eggs for product ingredients by 2025. Currently, 46% of purchased eggs are from cage-free sources, although maximum stocking density, nest box, and dustbathing provision details are unspecified.

The company has a global policy aligned with the UN Guiding Principles on Business and Human Rights, committing to the respect of human rights.

The company reports that its subsidiary, Pilgrims Europe Pork, has conducted a human rights impact assessment (HRIA) of its pork and lamb supply chains in partnership with Co-op and Waitrose. However, the HRIA covers only a small part of the company's operations and lacks details such as risk mapping, ranking risks by severity and likelihood, or identifying potentially impacted stakeholders. The company does not disclose how it monitors and reviews respect for human rights or outlines next steps. To address child labour in subcontracted workforces, the company has decided to bring sanitation services in-house, with JBS USA and Pilgrim’s US having completed 100% and 63%, respectively, by the reporting year. Additionally, following the HRIA findings in Pilgrim's Europe Pork's supply chain, a Human Rights Action Plan has been initiated to address issues, including health and safety training and gender discrimination within the supply chain.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company prohibits child labour, forced labour, discrimination, and harassment, but does not disclose if it provides a living wage or sick pay to its employees. Additionally, the company does not disclose monitoring compliance for its policies through audits. The company expects its suppliers to prohibit child labour, forced labour, discrimination, and harassment, but it does not specify expectations regarding the promotion of fair wages.

The company regularly audits raw material suppliers for compliance with its production criteria, specifically addressing child and forced labour. However, it is unclear how compliance is monitored within its animal supply chains and across other regions. The company provides a grievance mechanism via a website and phone number, available to all stakeholders with an option for anonymity. It is not specified if stakeholders were consulted in its design. The company's ethics line is accessible to external stakeholders, including suppliers, and received 7,925 grievances in FY2023. While some categorisation is provided, health and safety issues are not separately identified.

The company holds OHSAS 18001 certification but only 15% of its workforce is covered by a certified or externally audited health and safety management system, indicating limited coverage. While it mentions having safety committees, it does not specify the percentage of facilities with health and safety committees including worker representatives. Furthermore, the company has not assessed antimicrobial resistance risk for its workforce.

In FY2023, the company reported a decrease in the total recordable incident rate for its JBS USA and Pilgrim’s U.S. operations from 3.77 in FY2022 to 3.33. The lost time injury frequency rate for its Australian operations rose from 12.98 to 16.17. Meanwhile, the DART rates were 0.04 for Mexican operations, 0.35 for European operations, and 2.95 for JBS USA and Pilgrim’s U.S. operations. The company provides safety index ratings for each region, with general improvements noted, although some injury metrics worsened in certain locations, except for JBS Brazil and Pilgrim's Europe, where all health and safety records improved. In terms of fatalities, the company reduced its total from 5 in FY2022 to 1 in FY2023. It reported zero fatalities across its operations in Australia, Canada, the USA, Europe, Mexico, Rigamonti, and Vivera in FY2023, with one fatality occurring in Brazil. In FY2022, it reported zero fatalities in Australia, Canada, Europe, and Mexico, three in Brazil, and two in the USA. The company disclosed a turnover rate of 38% for its Brazilian operations in 2023.

The company respects employees' rights to union membership and collective bargaining but does not disclose the unionisation rate or detail measures to support these rights. Its supplier code of conduct requires suppliers to respect workers' rights to unionise and bargain collectively.

In 2023, the company reports that 79% of its employees in Australia, 86% in Brazil, 89% in Canada, 72% in Europe, 34% in Mexico, and 57% in the U.S. and Puerto Rico were covered by collective bargaining agreements. The company employed 268,752 permanent employees, 748 temporary employees, and 1,346 non-guaranteed hour employees globally in FY2023. However, it does not disclose data on its use of subcontracted labour.

The company reports that 80% of its global facilities are GFSI-certified, with 79.16% being regionally specified. Friboi has launched the Supply Chain Protocol to ensure food safety, aligning with global standards like BRC and EU regulations. This includes a five-step certification process with external audits, and all Friboi units in Brazil comply, being audited annually by the Brazilian Certification Service (SBC). However, this protocol is applicable only in Brazil, and there is no mention of its application within JBS USA. Therefore, it appears that up to two-thirds of suppliers are GFSI-certified overall.

The company reports that in 2023, 73.3% of its global facilities were audited and certified by GFSI-recognised schemes, with additional internal audits and inspections conducted by its FSQA team. However, it does not disclose corrective action rates for non-conformances. The company has implemented a paddock-to-primals traceability system for its King Island Beef brand, uniquely allowing customers to trace beef cuts back to the individual farmer, thereby enhancing transparency and consumer-producer connection. This system, a first at this scale in the Australian beef industry, is not yet stated as being applied across all operations.

The company reports that it conducted three product recalls in 2023 and has a standardised operating procedure in place for managing such events, including promptly tracking and removing recalled products from distribution channels. It complies with government regulations and informs customers accordingly. However, the company does not disclose details about disposal procedures, whether recalls were voluntary, the significance of their outcomes, related costs, legal proceedings, or preventative and corrective actions undertaken.

The company does not disclose the number or locations of market bans for the reporting year, nor was any information on market bans relating to food safety detected through media screening.

The company has established a Socio-Environmental Responsibility Committee to advise the Board of Directors on sustainability risks and opportunities. This committee, responsible for overseeing sustainability-related matters, comprises seven members, six of whom are on the board. In 2019, the company conducted a materiality assessment, identifying four critical themes: Product Integrity, Social Responsibility, Environmental Stewardship, and Animal Welfare. Despite conducting follow-up surveys, it has not reviewed these material issues since 2019. The company does not have board members with expertise in sustainability, food safety, or product development and innovation.

The company states that its COO's compensation is linked to emissions reduction targets, but does not specify the percentage of variable compensation tied to these targets. The company engages with several industry associations, including the US Roundtable for Sustainable Beef and InPACTO, which focuses on preventing and eradicating forced labour in Brazil. It lists memberships with various trade associations such as the National Chicken Council, American Meat Science Association, Australian Meat Industry Council, Confederação Nacional da Indústria, and French Meat Federation. In its CDP Climate 2023 report, the company claims a commitment to aligning its engagement activities with the Paris Agreement's objectives. However, it provides evidence only of its Net-Zero commitments and transition plan, without detailing a system for conducting engagement activities in line with its climate policies.

The company has collaborated with Colorado State University to establish a Global Food Innovation Center focused on improving food safety, meat sciences, animal welfare, education, training, and equipment testing. Additionally, it is investing in a Feedlot Innovation Center to address environmental issues and enhance animal welfare and productivity. However, the company does not disclose whether it benchmarks its sustainability and innovation efforts against peers.

The company notes a rising interest in plant-based proteins, particularly among millennials, due to health and environmental concerns regarding animal-based meat. The Beef North America segment, encompassing North American beef processing and European plant-based operations, generated $23.3 billion in net revenue for FY2023. However, this data is not disaggregated by product, and revenue from alternative protein product lines in other business areas is not disclosed. The company has not set a timebound target for diversifying protein sources.

The company is expanding its plant-based product offerings by acquiring Netherlands-based Vivera, the third-largest plant-based producer in Europe, thereby enhancing its presence in over 25 countries. It is also launching products under the Incrível! brand in Brazil and the Richmond brand in the UK and Ireland. In 2021, Incrível! became a standalone business unit offering 100% plant-based, GMO-free products enriched with iron and vitamin B12. By 2023, the company became the leading producer of plant-based products in Brazil and ranked third in Europe. The company has invested in making cultivated protein production commercially viable over the past three years. It acquired BioTech Foods, a Spanish company, in 2021 and invested in Brazil’s first R&D Centre for Cultivated Protein and Food Biotechnology.