Minerva SA

The company does not currently have a science-based emission reduction target, though it plans to set one within the next two years. It also lacks a specific methane emission reduction target for animal farming.

The company targets a 30% reduction in Scope 1 and 2 intensity by 2030 and aims for net-zero emissions across Scopes 1, 2, and 3 by 2035. It operates 26 beef slaughter plants, four sheep slaughter plants, three industrial plants, 14 distribution centres, and 16 sales offices. Emissions from farming sourced animals are accounted for in Scope 3 emissions.

The company has initiated a low-carbon emission programme, Renove, through its subsidiary, My Carbon. This programme aims to align rural producers with initiatives supporting the adoption of regenerative agricultural practices. By 2030, the company intends to source at least 50% of its animals from suppliers involved in this initiative. The programme encompasses two main projects. The first is the Carbon Credit Origination Project, which generates carbon credits by transitioning selected ranches to regenerative practices. After technical assessments determine eligibility, tailored action plans promote best practices to achieve greenhouse gas reductions. The use of Measurement, Reporting, and Verification (MRV) tools ensures accountability and monitors progress. In 2023, ranches in Tocantins, Mato Grosso, and Minas Gerais, supplying five company units, advanced in adopting these practices. Future plans include auditing agricultural operations and providing technical assistance to increase low-carbon practice adoption. However, it is unclear if the project will expand beyond Brazil. The second project, Carbon Neutral Product Certification, develops emission reduction plans for agricultural properties and industries. My Carbon offsets residual emissions through investments in carbon credits from reforestation projects. Certification agencies conduct audits to ensure carbon neutrality from origin to final destination. In 2023, the project expanded in Brazil, certifying additional ranches and industrial plants. In Uruguay, 108 ranches achieved certification, with three industrial units renewing their status. Products from this initiative form part of the Zero Carbon Impact line, already exported to nine countries. Additionally, the company is incorporating carbon footprint management data into the Carbon on Track platform, developed by Imaflora.

To obtain the Carbon Neutral Product Certification, the company plans to gather data on emissions from participating ranches, identifying fertilisers, pesticides, and soil use as key sources. However, it does not detail plans to reduce emissions from pasture or feed farming and is urged to provide this information. The company is involved in a Carbon Credit Origination Project in Brazil, which includes initiatives such as pasture recovery, rotational grazing, and integrated systems like Crop-Livestock-Forestry Integration (ILPF) to address emissions from pasture and feed farming.

In 2023, the scope of the Carbon Neutral Product Certification project in Brazil and Uruguay was broadened, certifying more ranches and industrial plants. Products from this initiative are part of the Zero Carbon Impact line, introduced in 2023, and are already being exported to customers in nine countries. The company gathers data on agriculture operation emissions from participating ranches, identifying sources like herd race, age, sex, production system, and waste management. However, it has not detailed the specific measures it plans to use to reduce emissions from animal farming. Through the Carbon Credit Origination Project in Brazil, the company considers activities to reduce emissions, such as implementing Crop-Livestock-Forestry Integration (ILPF) and adding food additives in animal feed to mitigate enteric fermentation. In 2023, the company also joined the ILPF Network to promote widespread adoption of ILPF and agroforestry systems among rural producers.

The company reports Scope 1 emissions of 337,935 tCO2e, Scope 2 emissions of 56,534 tCO2e, and Scope 3 emissions of 21,461,246 tCO2e for FY2023. All Scope 2 emissions were offset through the purchase of International Renewable Energy Certificates.

According to its latest GHG inventory, the company reports that enteric fermentation by animals on supplier farms accounts for 97% of its Scope 3 emissions, while the same process at Companhia Sul-Americana de Pecuária (CSAP) feedlots contributes 12% to Scope 1 emissions. In 2023, the largest source of Scope 3 emissions was purchased goods and services, totalling 20,888,397 tCO2e, primarily due to enteric fermentation and cattle manure management, which mainly emit methane (CH4). Scope 1 emissions from enteric fermentation and waste management amounted to 45,908 tCO2e, and emissions from nitrogen fertilisers were 1,740 tCO2e. The company has not disclosed all emissions from feed production and is encouraged to do so. It reports land use emissions of 54,131 tCO2e but does not disclose emissions from land-use change explicitly.

The company responded to the CDP Climate Change Questionnaire in 2023. Its GHG emissions data has been externally verified by Bureau Veritas.

The company’s total GHG emissions (Scope 1, 2, and 3) rose approximately 21% from 18,015,235 tCO2e in 2022 to 21,855,715 tCO2e in 2023. Over the period from FY2021 to FY2023, emissions increased by 27.8%, representing an average annual rise of 13.9%. Scope 3 emissions from purchased goods and services, primarily due to methane production from enteric fermentation and manure management, increased from 17,250,146 tCO2e in 2022 to 20,888,397 tCO2e in 2023. In 2023, the company's Scope 1 emissions were 3,379,345 tCO2e, Scope 2 were 56,534 tCO2e, and Scope 3 were 21,461,246 tCO2e.

The company has conducted a climate-related scenario analysis in accordance with TCFD guidelines in collaboration with a specialised consulting firm. This analysis assessed 27 facilities across six countries, including 26 processing assets and one live cattle export asset. Utilising IPCC scenarios (SSP1-2.6, SSP2-4.5, and SSP3-7.0), the analysis examined potential climate impacts ranging from optimistic to pessimistic perspectives. Additionally, NGFS scenarios (Net Zero 2050, Divergent Net Zero, and NDC 2020) were employed to evaluate transition risks and opportunities over medium- (2030) and long-term (2050) horizons, with a baseline comparison from 1995 to 2014.

In its TCFD report, the company identifies how extreme weather events, such as heat waves, cold spells, and droughts, can lead to agricultural production losses, impacting the feed supply and increasing livestock production costs. The company highlights that heat waves reduce pasture nutritional quality, requiring supplemental feed, while wildfires can affect crop development. It emphasises geographic diversification to mitigate these risks by reducing dependence on specific agricultural commodities and incorporating the "seller's option" clause in customer contracts. The company acknowledges several climate change impacts on the agriculture and livestock value chain, such as decreased productivity, higher animal mortality, and increased disease incidence. Extreme weather events can disrupt water availability and infrastructure, raising costs for both suppliers and meatpackers. It employs strategies like geographic diversification and has implemented firebreaks, fire suppression systems, and Fire Brigade training to address these concerns. An Emergency Response Plan is also in place for each industrial unit. The company discusses increased costs related to livestock health maintenance but does not specify mitigation strategies. Its climate scenario analysis highlights rising electricity costs driven by renewable energy volatility and increased fossil fuel dependency. To mitigate these, it has adopted energy efficiency measures, initiated clean energy projects, and uses electricity from renewable sources certified by Renewable Energy Certificates. Additionally, the company notes risks from potential trade restrictions and carbon taxes resulting from insufficient climate policies in certain countries. It offsets these by investing in energy efficiency, clean electricity generation, and ensuring renewable energy use across operations. The Renove Programme engages rural producers in regenerative agriculture to promote sustainable practices and reduce carbon emissions. The company does not disclose the number of financially material events related to climate risks during the reporting period.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company is committed to eliminating deforestation throughout its supply chain by 2030, using geo-referenced systems for monitoring direct suppliers in Brazil, ensuring 100% coverage in key biomes. Since 2021, this system has been expanded to other South American countries, achieving full monitoring in Paraguay and 100% in Colombia ahead of schedule. In Argentina and Uruguay, coverage has reached approximately 90% and 60% respectively. The company upholds strict socio-environmental standards, prohibiting illegal deforestation and exploitative labour practices. It has conducted forest-related risk assessments and participates in the Indirect Supplier Working Group (GTFI), utilising tools like Visipec and SMGeo Prospec to enhance traceability and ensure suppliers are environmentally and socially responsible. However, it has not explicitly identified the high-risk areas from which it sources.

The company commits to achieving zero illegal deforestation in its South American supply chain by 2030.

The company has responded to CDP Forests 2023.

According to the company's 2023 Sustainability Report, 58.10% of cattle purchased are raised on pastures, with the remainder in semi-confinement, full confinement, or through Intensive Pasture Termination. The company enforces strict environmental standards to ensure suppliers avoid embargoed areas and adhere to deforestation and indigenous land laws, requiring compliance with commitments such as the "Public Livestock Commitment" and the "Amazon Livestock Supplier Monitoring Protocols." We encourage the company to provide transparency on managing deforestation risks linked to soy in its supply chain, as it has not disclosed support for soy producers to encourage deforestation-free production or enhanced traceability efforts.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

The company does not discuss innovations or practices to move towards sustainable feed sources.

The company aims to achieve zero illegal deforestation in its South American supply chain by 2030. It enforces socio-environmental compliance upon partner registration and employs a risk analysis tool for all associates. As a signatory of the Public Livestock Commitment, the company is obliged to source cattle and related products responsibly within the Amazon biome. To address traceability challenges of indirect suppliers, the company participates in the Indirect Supplier Working Group (GTFI) and employs advanced tools like Visipec and SMGeo Prospec. Since 2021, these tools have improved the monitoring of cattle movement and socio-environmental compliance in the Amazon. The company also conducts training and outreach with suppliers, through workshops and events, to promote the use of these technologies and discuss sustainability and animal welfare.

The company has achieved 100% monitoring of its direct suppliers for illegal deforestation in Paraguay, Brazil, and Colombia. Over 90% of direct suppliers in Argentina and approximately 60% in Uruguay are currently under surveillance, with the aim to extend monitoring to all direct suppliers in Uruguay by 2025 and in Argentina by 2030. For indirect suppliers, the company is using the Visipec tool to develop action plans to mitigate deforestation risks in the indirect supply chain. In 2023, it evaluated 13,682 new suppliers for socio-environmental compliance, blocking 192 in Brazil and 12 in Colombia due to issues like illegal deforestation and encroachment on protected areas, representing 1.8% and 3.0% of new supplier bases in those countries, respectively. The company provides technical assistance to blocked suppliers, successfully reintegrating 521 into its Brazilian base. However, during the reporting period, the company was linked to deforestation. A Mighty Earth study identified that beef products in Brazilian supermarkets were sourced from company-owned slaughterhouses associated with deforestation in the Amazon and Cerrado.

By 2030, the company intends to source at least 50% of its animals from suppliers participating in the Renove Program, which advocates for regenerative agriculture. This initiative encompasses carbon-neutral product certification for a carbon-neutral supply chain and carbon credit origination through sustainable agricultural practices. Since 2023, the Zero Carbon Impact product line has been exported to nine countries. The carbon credit project works with stakeholders to transition traditional practices to low-carbon alternatives. The company discloses the results of its pilot projects.

The company has identified its Janaúba (MG) unit in Brazil as the only facility currently in a water-stressed area, accounting for 1-25% of its company-wide facilities, based on the WRI Aqueduct Water Risk Atlas tool. Although the Palmeiras de Goiás (GO) unit is not currently classified as water-stressed, there is future risk potential. In 2023, the company conducted water risk studies at its Carrasco, Canelones, and Melo (PUL) units in Uruguay to address potential impacts on water availability. It recognises water scarcity as a significant operational risk. The company disclosed a water consumption of 4,401,580 m3 in FY2023. It has enhanced water usage practices through the CMQ methodology, water recycling systems, plumbing updates, and pump automation, leading to a 24% increase in water reuse, from 2,212 m3/day to 2,735 m3/day, thereby reducing reliance on drinking water.

The company does not disclose a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.

In 2023, the company reported a total water withdrawal of 18,072,792 m3, comprising 13,353,346 m3 from surface water, 3,768,933 m3 from underground sources, and 950,512 m3 from third parties. Water consumption totalled 4,401,579 m3, broken down as follows: Brazil at 1,386,418 m3, Latin America at 2,946,944 m3, and Australia at 68,217 m3. Out of the water withdrawn, 614,916 m3 came from water-stressed areas, representing 3.3% of total withdrawals. The company increased its water-related CAPEX by 4.79%, with a 5% increase anticipated, and water-related OPEX also rose by 3.5%, with a similar expected trend. OPEX covers the costs of water collection operations and treatment plants. Absolute values increased by over 10% due to non-environmental costs, despite a percentage decrease from 2021. The company's water data was audited by Bureau Veritas, and it responded to the CDP Water Questionnaire in 2023. Between 2022 and 2023, the company disclosed an increase in water usage due to the installation of new equipment, particularly in the slaughter sector, with water withdrawals rising from 14,853,621 m3 to 18,072,792 m3, and consumption from 2,386,906 m3 to 4,401,579 m3.

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 has not disclosed the water intensity of feed within its supply chain. It purchased 35,428 kilos of feed for corrals in seven out of eight slaughtering units in Brazil, with 11.11% of suppliers located in water-stressed areas. An assessment using the WRI's Aqueduct Water Atlas tool identified six suppliers (66.67%) in low/medium-risk areas, two (22.22%) in high-risk areas, and one (11.1%) in an extremely high-risk area. The company invests in regenerative agriculture through its Renove program, which primarily focuses on reducing emissions rather than addressing water scarcity risks.

In its CDP response, the company reported that 1-10% of its agricultural commodities, specifically cattle products, originate from water-stressed areas. It identified its Mirassol do Oeste slaughtering unit in Brazil as the only facility in such an area, processing 168,472 cattle, which constitutes 9.79% of its total slaughter in 2022. While the company acknowledges in its 2022 CDP water response that water is utilised on suppliers' farms for animal watering and cleaning, and anticipates increased reliance on reused water, it lacks a sustainable agriculture policy addressing water use in supply chains. It does not clarify water management practices within these chains. Although the company reports progress in collaborating on water-related actions with stakeholders, signifying the theme's importance, it has not established a formal programme incorporating water into its value chain. Furthermore, it confirms that it does not currently engage with its suppliers on water-related issues.

The company does not disclose having established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company reports no fines or penalties for water-related regulatory infractions in its CDP Water 2023 submission. It states that its effluent treatment monitoring and optimisation actions comply with local legislation in each country of operation. According to the World Resources Institute's Aqueduct Water Risk Atlas, only the Janaúba unit in Brazil is in a water-stressed area. The company sets environmental targets aligned with local regulations, focused on parameters such as BOD, COD, solids, nitrogen, temperature, turbidity, oils, and greases, but provides no specific details. It also aims to reduce its effluent indicator (m3/TFP) in its Brazilian and Latin American divisions.

The company discloses a total wastewater discharge of 13,907,354.60 m³ in 2023, with 10,469,966.87 m³ to surface water, 2,612,934.13 m³ to underground water, and 824,453.60 m³ to third-party water. However, it does not disclose the quality of the discharged wastewater. The data is audited by Bureau Veritas. Additionally, the company has responded to CDP Water Security 2023.

The company uses treated effluent for fertigation in pastures, reducing nitrogen fertiliser use and supporting a circular economy. In 2023, 19% of Brazil's treated effluent was used in fertigation systems at specific units. Minerva Biodiesel produces biofuel from cattle by-products using domestic technology developed with Brazilian universities. The company's water discharge increased by approximately 11.6% from 12,466,980.60 m³ in 2022 to 13,907,354.60 m³ in 2023. However, it does not provide wastewater quality data for comparison.

The company invests in recycling treated effluents for use in fertigation systems, irrigating green spaces and pastures near its industrial units. Although the supplier code of conduct does not specifically address nutrient management, it does state that trained staff monitor manure application in fertigation. However, the company does not require feed to be purchased only from suppliers or produced with a nutrient management plan. The company leads a carbon credit origination project under Brazil's Renove Program, collaborating with cattle ranchers, input providers, financiers, and technology companies. This initiative aims to transition livestock management to regenerative practices, improving efficiency and reducing carbon emissions. Strategic plans include best practices such as pasture recovery, rotational grazing, integrated systems, and feed additives. The company mentions that proper fertiliser management to prevent eutrophication is part of its programmes. However, the company has not established a partnership with a third party for input into its sourcing or farming strategy, including nutrient pollution or fertiliser use.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.

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 has established an antibiotics policy that limits antibiotic use to therapeutic purposes, prohibiting their use for growth promotion, prophylaxis, and metaphylaxis. This policy is enforced through supplier contracts. By 2040, it aims to eliminate prophylactic and metaphylactic antibiotic use in 80% of its global supply chain. Although the company lacks a specific antibiotic policy for beef, its general policy applies to beef production, with antibiotic-free protocols in certain lines, such as Organic and Grass-Fed. It strictly prohibits the routine use of HPCIAs by itself and its suppliers. To reduce antibiotic dependency, the company maintains a stocking density of ≤30 kg/m² for 42.14% of broiler chickens, bans mutilation procedures such as wing trimming, and promotes environmental enrichment. For cattle, confinement is limited to 8-10% of their lives with 16-20 m²/animal, and breeding hornless cattle eliminates dehorning. Regarding pigs, 57.67% of suppliers have adopted tattoo identification, and 47.65% use immunocastration over surgical castration. Milk suppliers provide comfortable resting substrates for 21.76% of the supply chain. For eggs, 100% of suppliers avoid debeaking, and 0.5% employ environmental enrichment. The company also supports cattle vaccination within its supply chain.

The company provides detailed data on antibiotic use in its beef cattle supply chain. In 2023, 48% of the supply chain was mapped, showing 36.2% of suppliers reported antibiotic use for clinical treatment, 6% for prophylactic purposes, and 2.2% for metaphylactic purposes. The company differentiates the types and doses of antibiotics used, classifying them into critically and highly important categories as per WHO guidelines, with quantities of 254.9 mg/kg and 84.8 mg/kg, respectively. Antibiotic usage is attributed to health issues such as respiratory diseases and rumen acidosis. Instead of a reduction, an increase in antibiotic use was reported, with clinical use rising from 24.4% in 2022 to 36.2% in 2023. Prophylactic use increased from 3.1% to 6%, while metaphylactic use slightly decreased from 2.5% to 2.2%. The percentage of untreated animals remained at 3.5% each year. The rise in usage is linked to enhanced monitoring and data collection, improving supply chain mapping from 33.5% in 2022 to 48% in 2023. In 2023, 10.4% of the beef supply chain was sourced from organic, antibiotic-free production, adhering to European Community Regulations and the US National Organic Program (NOP), which prohibit antibiotic use. Compliance with these standards is verified through external audits across all relevant units in South America.

The company affirms its commitment to animal welfare through a statement aligned with the Five Freedoms, highlighting the importance of animal well-being. It has implemented a comprehensive training programme to uphold animal welfare standards for both internal staff and external stakeholders, such as cattle truck drivers and farm managers. In 2023, the company conducted 230 training sessions for 1,614 employees, totalling 417.15 hours of training. Additionally, 3,494 third-party individuals, including ranch hands and ranchers, received 1,999.75 hours of training across 718 sessions. This marks a significant improvement from 2022, with the number of trained employees doubling and third-party training tripling. The company enforces its animal welfare policy through a defined consequence policy, including disciplinary actions for non-compliance such as contract termination and barring future contracts until compliance is shown. Technical visits and corrective actions are conducted when irregularities are identified, reinforcing its strict approach to animal welfare compliance. The company invests in various research and development initiatives to enhance animal welfare. In 2023, it invested over US$806,485 in infrastructure improvements, technology integration, and training programmes. Efforts include projects like artificial intelligence for monitoring animal welfare indicators, optimising corral conditions for cattle comfort, and partnerships with research institutions and NGOs to advance welfare practices.

The company reports that 84.10% of animals purchased in 2023 were raised free from confinement with full pasture access, including 10.63% in semi-confinement and 2.18% under Intensive Pasture Termination, marking a 20% improvement from the previous year. The company has set targets to eliminate or reduce routine mutilations, aiming for 45% of beef and 15% of dairy cattle not to undergo dehorning by 2025. All broiler chickens are free from wing clipping, and by 2026, all eggs will come from hens not debeaked. In the pork supply chain, 57.67% of suppliers have halted mutilation for identification, 47.65% use immunocastration over surgical castration, and 57.67% have stopped teeth clipping. However, only 7.05% of suppliers have ceased tail docking. The company enforces a policy limiting live animal transportation to under 8 hours for cattle, pigs, sheep, and dairy animals, and under 4 hours for broilers and laying hens, covering 96.88% of its supply chain. Compliance includes 84.28% of cattle and 42.7% of broiler chickens. Performance incentives are tied to these goals to reduce transport-related stress. For humane slaughter, 90.04% of animals in the global supply chain undergo pre-slaughter stunning, including 93.39% of cattle, 100% of broiler chickens, and 67.61% of pigs. However, 6.60% of cattle are not stunned due to religious requirements. The company employs electronarcosis, electrocution, and CO2 systems to minimise suffering. The company applies environmental enrichment techniques throughout its supply chain. For beef cattle, 25.62% of suppliers offer enrichment such as artificial shade and foraging opportunities. In the pork supply chain, 35.31% provide materials like hay bales for natural exploration. For poultry, 13.61% of suppliers use enrichment like scattered hay bales. Additionally, the company is committed to excluding breeds with traits linked to anatomical or metabolic disorders. It has mapped 100% of its internal cattle chain and 83.20% of its supplied beef chain to ensure such breeds are absent.

The company ensures that all production comes from industrial units certified in animal welfare. Its units in Brazil, Paraguay, Uruguay, Colombia, and Argentina are certified under the North American Meat Institute (NAMI) Protocol, with a 99.97% compliance rate, verified by Professional Animal Auditor Certification Organization (PAACO) auditors. In Australia, operations achieve 100% compliance under the Australian Livestock Processing Industry Animal Welfare Certification System (AAWCS). In Uruguay, 7.10% of purchased animals are certified under the Global Animal Partnership (GAP) Step 4, where cattle are pasture-raised for at least 75% of their lives. Additionally, Colombian production is certified under the Colombian Beef - Grass Fed seal, ensuring entirely pasture-raised cattle. Although the company’s beef operations are certified by NAMI, AAWCS, and GAP Step 4, the GAP Step 4 certification applies to only 7.10% of beef from Uruguay. This Tier 1 certification covers a small portion of the company's operations.

The company reports progress in animal welfare, with improvements across several metrics. In its supply chain, the percentage of animals raised in confinement decreased from 33.9% in 2022 to 15.9% in 2023, while those raised on pasture increased from 66.1% to 84.1%. Additionally, animals raised in semi-confinement reduced from 15.9% to 10.6%, and those on intensive pasture termination decreased from 5.5% to 2.1%. In its own operations, the percentage of animals raised in confinement fell from 23% in 2022 to 17.8% in 2023.

The company has implemented measures to address welfare risks in its beef operations, including limiting transport times to a maximum of 8 hours for 84.2% of its live cattle and ensuring that 93.3% are effectively stunned before slaughter. Additionally, 84.1% of cattle are raised in pasture-based systems, although not universally during the growing season. As of 2023, the company has mapped 32.5% of its live cattle supply chain for dehorning practices, with 31.2% of cattle remaining free from dehorning. Furthermore, 83.2% of its beef supply chain has been mapped, revealing that 82.3% of animals are not subjected to dehorning.

The company is a member of the UN Global Compact, indicating its commitment to upholding internationally recognised human rights.

The company assesses human rights risks, particularly those related to slave labour, within its supply chain, focusing on direct cattle suppliers. It uses a risk analysis tool for all business partners and evaluates suppliers using human rights, social, environmental, and integrity criteria. In 2023, 192 suppliers in Brazil and 12 in Colombia were barred from business dealings due to non-compliance with socio-environmental policies. In Brazil, cattle suppliers are also assessed for human rights and slave labour practices. The company mandates its suppliers to prohibit child and forced labour and will terminate contracts or blacklist those that fail to comply. However, it does not provide details on identifying or assessing human rights risks within its own operations, including human rights due diligence, or how it would address identified risks. The company's operations undergo SMETA audits and social and environmental evaluations. It conducts stakeholder engagement to understand its impacts and promote human rights protection, improving communication channels and establishing a support program for cattle ranchers in Brazil. The company also holds workshops in Paraguay and addresses child labour risks through events, workshops, and technical field visits within its 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 discrimination, child labour, forced labour, and harassment but does not commit to paying a living wage or sick pay to its workers. It undergoes annual audits by SMETA and Rizepoint, assessing its social responsibility, health, safety, and environmental conservation practices. The Code of Ethics extends to suppliers.

The company achieved 100% compliance with the Monitoring Protocol for Cattle Suppliers of the Amazon through audits of its Brazil and Paraguay operations, specifically concerning modern slavery. Additionally, third-party audits in Paraguay confirmed 100% compliance with International Finance Corporation guidelines, which address child and forced labour for suppliers. The company's grievance system, Minerva Connection, managed by a third party, is accessible to all employees for reporting misconduct or breaches of the Code of Conduct, with the option for anonymity. However, it is not disclosed whether stakeholders were consulted in its design. The Code of Conduct also permits both internal and external stakeholders to file complaints, outlines available grievance mechanisms in every country of operation, and ensures anonymity in reporting. In 2023, the company received 254 reports from internal stakeholders and 54 from external stakeholders, but it does not provide a breakdown of the complaints by category.

The company asserts its commitment to safeguarding employee health and safety and aims to prevent occupational injuries. It states that all direct and third-party employees are covered by occupational health and safety management systems, although it is unclear if these systems have recognised certification. The company discloses that all operational sites have health and safety groups with worker representatives. However, it has not provided information on assessing or discussing antimicrobial resistance risk within the workforce.

In 2023, the company reported the rate of accidents with serious consequences per million hours worked as 0.79 in Brazil, 12.99 in Latin America, and 14.59 in Australia. The rate of mandatory reporting accidents was 9.66 in Brazil, 19.81 in Latin America, and 48.46 in Australia. For FY2022, the accident with leave rate was 0.80 in Brazil, 14.43 in Latin America, and 14.03 in Colac and Sunshine. The company also disclosed the accident rate without leave for FY2022. An updated injury reporting indicator format in 2023 has rendered direct comparison with previous data incompatible. The company reported one fatality in both FY2022 and FY2023. Turnover rates are reported as 30% for men and 35% for women, with additional data by age group but not by seniority.

The company states that it respects freedom of association and recognises unions as legal representatives of workers. However, it discloses no unions in Colombia in FY2023 and does not provide the unionisation rate for most of its operations. The company mentions respecting freedom of association in its Code of Ethics, applicable to its entire value chain, including suppliers. Any breach of this code by a supplier may lead to termination of the relationship. However, the company does not disclose measures taken to support workers' rights.

In 2023, the company reported a collective bargaining agreement coverage of 100% in Australia, Brazil, and Uruguay, 93% in Argentina, 39% in Paraguay, and 0% in Colombia, with an overall coverage of 86%. In Brazil, apprentices and employees with irregular working hours are excluded from these agreements. The company recorded a workforce of 23,528 permanent employees and 470 temporary employees in 2023. Except for 109 non-guaranteed hours workers in Brazil and 13 part-time workers in Australia, employees are full-time. Overall, the company employs 163 non-guaranteed hours workers. However, it does not disclose information on subcontracted labour.

The company discloses that its food units in South America and Australia (Colac and Sunshine) are BRCGS-certified for food quality and safety, recognised by the Global Food Safety Initiative (GFSI). Most of the company's food manufacturing sites hold BRCGS certification, with full certification in Brazil, Colombia, Paraguay, and Uruguay, and 80% in Argentina. Additionally, a proportion of the company's suppliers have GFSI certification, including 50% in Brazil and Colombia, 28% in Argentina, and 10% in Paraguay. However, the company does not require GFSI certification from all its suppliers.

The company conducts internal risk assessments and verification procedures, supported by external audits from the Departamento de Produtos de Origem Animal (DIPOA) and customer audits. In the reporting year, independent auditors completed 21 audits in South American units, resulting in successful renewal of food safety certifications. The company employs a PDCA (Plan, Do, Check, Act) cycle for corrective and preventive actions. Non-compliance issues prompt a root cause analysis, with findings reviewed by senior management and department representatives. Objectives, such as risk assessment and hygiene protocols, are reviewed annually or as needed, resulting in a corrective action rate of zero. All products undergo labelling to ensure full traceability from origin to consumer. The company has incorporated QR codes on its 'Estancia 92' and 'Minerva Angus' products, providing consumers with information on sustainable sourcing, animal welfare practices, quality standards, and eco-efficiency.

The company outlines its procedures for identifying and assessing the impact of non-compliant products and uses labelling to facilitate product recognition during a recall. It also maintains a customer service channel for inquiries and complaints. However, it does not detail its product recall system. The company reports zero product recalls in the reporting year.

The company reports no market bans during the reporting period.

The company has established a Sustainability Commission, comprising board members, to decide on environmental, social, and governance matters. It also has a Sustainability Advisory Board, including board members and independent sustainability experts, to assist senior management in defining sustainability practices and monitoring outcomes. In 2023, the company completed a materiality study with a specialised consultancy using the European Sustainability Reporting Guidelines (ESRG). This study identified key ESG topics of importance to stakeholders, informing the company's two-year sustainability strategy, encompassing ethics, integrity, compliance, environmental management, sustainable livestock, biodiversity, climate change, employee health and safety, social responsibility, consumer well-being, animal welfare, and market impacts. Senior leadership and the Board were involved, with the Sustainability Commission endorsing the final matrix. The company discloses that two independent sustainability experts serve on its Board-level Sustainability and Innovation Advisory Board. Its board members possess educational backgrounds from the Food Research Institute or experience in food production companies, although their expertise in food safety is uncertain. One executive director, Sérgio Mr. Saraiva Castelo Branco de Pontes, has expertise in Innovation, Technology, and Strategy.

The company does not disclose whether it offers variable remuneration based on sustainability performance for executives. The company is involved in several sectorial initiatives to enhance sustainability and best practices within the beef industry. It participates in associations such as the Brazilian Beef Exporters Association (ABIEC), the Global Roundtable for Sustainable Beef (GRSB), and Mesa Brasileira da Pecuária Sustentável, focusing on sustainable beef practices and animal welfare. The company also engages with organisations like the UN Global Compact and the National Pact for the Eradication of Slave Labour (InPACTO) to promote ethical practices and human rights. The company, a member of ABIEC, holds a seat on the Board and is actively involved in the sustainability committee. It is encouraged to provide a comprehensive list of its trade association memberships. The company has not aligned its policy engagement with limiting global temperature rise to a maximum of 1.5 degrees. However, it claims that its commitment to the UN Global Compact and support for the UN Sustainable Development Goals ensures alignment of its policy engagement activities and sustainability strategy.

As part of its innovation strategy, the company is investing in corporate venture capital, including funding Bluebell Index, which focuses on creating digital environmental assets to help farmers adopt low-carbon farming practices. The company also notes its position in the Coller FAIRR Protein Producer Index, explaining its relative risk level among the 60 companies evaluated.

The company acknowledges that its reliance on animal-based foods is a crucial business concern due to rising public and customer interest, as well as supply chain safety and sustainability. It is working to reduce dependency on animal-origin foods and identifies protein diversification as a significant opportunity in its sustainability strategy. In 2023, the company allocated 0.32% (3,740 tonnes) of its production to non-animal products, with soy milanesa sales increasing from 102 tonnes in FY2022 to 124 tonnes in FY2023. Its website highlights various diversification strategies, including venture investments like The Every Company, creating plant-based protein products such as Swift soy milanesas, and increasing promotion of products such as olive oils and potatoes. It is also reformulating products to include more non-animal proteins. However, the company does not publish a timebound target for diversifying its protein sources with alternative proteins.

The company offers plant-based meat alternatives, including milanesas, under its Argentine brand, Swift. These products, made from breaded soy, are available in plain or stuffed varieties alongside Swift's animal protein products. The company is expanding its product line with plant-based proteins, olive oil, potatoes, and other non-animal products, with plans to further grow these offerings in 2023. It aims to reduce dependence on animal-based foods by investing $30 million in startups focused on protein diversification and related technologies. Notable investments include $4 million in 2020 in The Every Company, which specialises in animal-free protein through fermentation, and $5 million in 2022 in Liv Up, which develops healthy ready meals focused on protein diversification. The company reports having well-defined strategies to reduce reliance on animal-based foods through protein diversification and product line innovation.