BRF SA

BRFS3:BZ BRBRFSACNOR8
Key Information
HQ:
Brazil
Market Cap:
$1.35bn
Primary Markets:
Asia, LATAM, MENA



Company Information

Company Summary

BRF SA is one of the largest producers of fresh and frozen protein foods in the world, employing over 13,000 integrated producers to grow its animals. BRF has invested in shares of COFCO Meat (an operation valued at $20 million), which maintains 47 pig farms, two slaughter plants and two processed meat plants in China. As a result, BRF now holds 1.99% of the capital of the state-owned company, China's leader in agribusiness.
BRF SA

Revenue

Total revenue:

$9.0bn

Revenue by Geography

Revenue by Protein

Revenue by Product Type

Note: This financial breakdown is based on Annual reports released in 2022, containing, in most cases, FY2021.


Disclosures

CDP ScoresLast Reviewed: 11/10/2023

CDP ClimateCDP ForestsCDP Water
YesYesYes

Science Based Target InitiativeLast Reviewed: 03/10/2023

Target classificationStatusDate
1.5°CCommitted2021

Coller FAIRR Protein Producer Index

Analysis Overview

Index-Radar-2023
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins

Analysis Breakdown

Risk Score

53/100
Medium Risk



Greenhouse Gas Emissions

56/100

Scope 1, 2 & 3 Target
65/100
Type of Target
0/1.25
Strength of Target - Non-SBT
1.75/2
Strength of Target - SBT
1.5/1.75
Source(s): Integrated Report 2022, page 9, 63, 103; SBTi; Science Based target Initiative Webpage

Innovation on GHG Emission Reduction
20/100
Innovation to Reduce Agriculture Emissions
1/1
Feed Farming Innovation
0/2
Animal Farming Innovation
0/2
Source(s): BRF CDP Climate 2022, page 35; Integrated Report 2022, page 105

Quality of GHG Inventory
80/100
Quality and scope of GHG inventory Completeness
1.5/1.5
Feed & Animal Farming Emissions
1/2
Transparency of GHG Inventory
1.5/1.5
Source(s): BRF CDP Climate 2022, page 57, 68, 69; Integrated Report 2022, page 105, 151

Emissions Performance
70/100
Overall Emission Performance
3.5/5
Source(s): Integrated Report 2022, page 104, 105

Climate-related Scenario Analysis
45/100
Climate-related Scenarios Analysis Conducted
0/1
Disclosure of Analysis Results on Material Risks
1.25/3
Disclosure of Financial Material Events & Alignment of CAPEX
1/1
Source(s): BRF CDP Climate 2022, page 4, 13, 15, 16, 34; Integrated Report 2022, page 28, 31



Deforestation & Biodiversity

39/100

Deforestation/Conversion-free Target - Soy for Animal Feed
30/100
Risk Assessment to Identify High-risk Locations
0/0.5
Strength of Deforestation Commitment
1/2
Regional & Operational Coverage of Commitment
0.25/1.25
Transparency - Progress Against Commitment
0.25/1.25
Source(s): BRF CDP Forest 2022, page 6, 18, 19; Integrated Report 2022, page 59, 90

Engagement, Monitoring & Traceability - Soy for Animal Feed
48/100
Supplier Engagement
0.25/1.25
Compliance monitoring & Traceability
2.15/3.25
Feed Innovation
0/0.5
Source(s): BRF CDP Forest 2022, page 54; BRF's Grain Sustainable Purchasing Policy 2021; Code of Conduct for Business Partners 2020, page 4; Integrated Report 2022, page 84, 86, 89



Water Use & Scarcity

42/100

Water Use & Scarcity in Facilities
77/100
Monitoring Water Consumption & Withdrawals
0.71/0.75
Target to Reduce Water Consumption & Withdrawals
0.5/1
Disclosure & Performance of Water Risks in Facilities
2.61/3.25
Source(s): BRF CDP water 2022, page 20, 21, 25, 29, 55; Integrated Report 2022, page 107, 108, 135, 149, 151

Water Use & Scarcity in Feed Farming
25/100
Supplier Engagement in Water Use in Feed Farming
0.25/2.5
Disclosure of Water Risks in Feed Farming
1/2.5
Source(s): BRF CDP water 2022, page 10; BRF's Grain Sustainable Purchasing Policy 2021; Integrated Report 2022, page 107, 135

Water Use & Scarcity in Animal Farming
25/100
Supplier Engagement in Water Use in Animal Farming
1.25/3
Disclosure of Water Risks in Animal Farming
0/2
Source(s): BRF CDP water 2022, page 16; Integrated Report 2022, page 107; Water Webpage



Waste & Pollution

35/100

Wastewater at Facilities
58/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
0.73/1.5
Transparency on Water Pollution Risks
1.68/2
Performance on Wastewater Quality & Volume Discharged
0.48/1.5
Source(s): BRF CDP water 2022, page 18, 20, 21; Integrated Report 2022, page 103, 108, 133, 151

Nutrient Management in Feed Farming
5/100
Supplier Engagement in Nutrient Pollution Risks
0.25/4
Innovation to Improve Nutrient Management in Feed Farming
0/1
Source(s): Integrated Report 2022, page 111; Work Fronts Webpage

Manure Management in Animal Farming
41/100
Disclosure of Pollution Risks from Manure
0.85/1.25
Supplier Engagement in Manure Management
1.2/1.5
Innovation to Improve Nutrient Management in Animal Farming
0/2.25
Source(s): Integrated Report 2021, page 183; Integrated Report 2022, page 111



Antibiotics

75/100

Policy on Antibiotics Use
100/100
Policy on Antibiotics Use
5/5
Source(s): Integrated Report 2022, page 101

Disclosure of Quantity of Antibiotics Used
50/100
Disclosure of Quantity of Antibiotics Used
2.5/5
Source(s): Integrated Report 2021, page 185; Integrated Report 2022, page 101, 151



Animal Welfare

53/100

Animal Welfare Policy
79/100
Welfare Policy
1.75/2
Key Welfare Issues
2.2/3
Source(s): Commitment to Animal Welfare 2015, page 2, 3, 4; Integrated Report 2022, page 59, 63, 96, 97, 98, 99, 100

Assurance & Certification
50/100
Auditing & Assurance by an Animal Welfare Organisation
1.48/4
Public Reporting on Welfare
1/1
Source(s): Integrated Report 2022, page 97, 98, 100; Monitoring, Control And Management Webpage; Production Chain: Monitoring, Control And Management Webpage

Performance on Key Material Risks
31/100
Performance on Key Material Welfare Risks by Protein
1.53/5
Source(s): Integrated Report 2022, page 99, 100; Our Practices Pork Webpage; Our Practices Poultry Webpage



Working Conditions

57/100

Human Rights
45/100
Strength of Policy
1/1
Due Diligence Process
1/3
Evidence of Remediation
0.25/1
Source(s): Human Rights Policy 2021, page 3, 6; Integrated Report 2022, page 21, 22, 24, 87, 127

Fair Working Conditions
57/100
Policy for Direct Operations
1.6/3
Monitoring & Discosure
1.25/2
Source(s): Code of Conduct for Business Partners 2020, page 2, 3, 4, 5; Human Rights Policy 2021, page 1, 4, 7; Integrated Report 2022, page 23, 86

Safety & Turnover Data
50/100
Committee representation of workers
0.5/2
Disclosure of safety and turnover data
2/3
Source(s): Health, Safety and Environment Corporate Policy 2019, page 1; Integrated Report 2022, page 70, 72, 141

Freedom of Association
76/100
Strength of Policies
1.9/3
Disclosure of Collective Bargaining Metrics
1.9/2
Source(s): Code of Conduct for Business Partners 2020, page 3; Human Rights Policy 2021, page 1, 5; Integrated Report 2022, page 117, 137



Food Safety

55/100

Food Safety System
75/100
Certifications
2.5/3.5
Performance
1.25/1.5
Source(s): Integrated Report 2022, page 29, 30, 36, 37, 134; Sadia Bio Webpage; Traceability Webpage

Product Recalls & Market Bans
35/100
Product Recall Systems
1.25/3
Performance
0.5/2
Source(s): Form 20-F 2022, page 4; Integrated Report 2022, page 7, 35



Sustainability Governance

67/100

Assessment of a Company's Sustainability Governance
67/100
Board Sustainability
1.25/2
Incentives & Policy Engagement
1.6/2.5
Innovation & Benchmarking
0.5/0.5
Source(s): BRF CDP Climate 2022, page 33, 92; Board, Council and Committees Webpage; Integrated Report 2022, page 3, 4, 5, 6, 7, 42, 43, 57, 63, 104, 145



Alternative Proteins

55/100

Diversification of Products to Alternative Protein Sources
55/100
Existing product portfolio
0.25/2.5
Investing for future growth
2.5/2.5
Source(s): Form 20-F 2022, page 67, 68, 130; Integrated Report 2022, page 61, 67; Plant Plus News_2

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Working Conditions Engagement

Analysis Overview

WC-Radar
Grievance Mechanisms Economic Incentives Distribution by Contract Type Oversight of Governance Structure Support Worker Representation Engage Workers on Industry Trends

Analysis Breakdown




Health & Safety

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Grievance Mechanisms - Availability & Access
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Grievance Mechanisms - Effectiveness & Evaluation
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Grievance Mechanisms - Categories & Reporting
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Grievance Mechanisms - Channels for H&S and Worker Rights
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Grievance Mechanisms - Resolution Process
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Economic Incentives - Sick Pay Entitlement
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Economic Incentives - Other Economic Incentives
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Fair Working Conditions

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Distribution by Contract Type
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Oversight of Governance Structure
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Worker Representation

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Support Worker Representation - Internal & External Structures
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Support Worker Representation - Restrictions Under Law
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Support Worker Representation - Operations in China
N/A
Support Worker Representation - Collective Bargaining
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Engage Workers on Industry Trends - Impact assessment on Employees
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Engage Workers on Industry Trends - Workforce Engagement
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Engage Workers on Industry Trends - Just Transition
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Waste & Pollution Engagement

Analysis Overview

Waste-Pollution-Radar
Risk Assessment Value Chain Coverage Risk Mitigation Circularity Company Engagement

Analysis Breakdown




Risk Assessment

Good
Coverage of water quality risk assessment
Transparency and disclosure of water quality indicators
Recognition of nutrient pollution risk on biodiversity



Value Chain Coverage

Poor
Inclusion of upstream feed and livestock suppliers in risk assessment
Downstream use of manure by animal feed suppliers
Acknowledgment of regulatory risks
Transparency on non-compliance from suppliers



Risk Mitigation

Poor
Biogas generation and organic fertilisers from animal waste
Target-setting for water quality
Support to third-party suppliers



Circularity

Poor
Pilot projects around nutrient circularity
Disclosure of investment in circular solutions
Targets to increase share of manure under circular initiatives



Company Engagement

Good
Level of company engagement with the coalition

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