BRF SA

The company discloses that it uses the WWF Water Risk Filter tool to analyse water vulnerabilities within its operations and across its supply chain. The aspects of water risks assessed include both water quality and quantity. The company has identified the following units as being in areas of water vulnerability: Rio Verde, Chapecó, and Concórdia in Brazil, and Bandirma and Izmir in Turkey.

The company discloses an average Biochemical Oxygen Demand figure from effluent discharge across its global operations, including production units, feed factories, hatcheries, and farms. However, it does not provide a figure on the percentage of operations whose average wastewater quality is within the IFC EHS guidelines or any other standard. The company also states that it assesses the concentration of phosphorous and nitrogen from effluents, but it does not disclose the concentration of nutrients in wastewater discharged into priority bodies. The company discloses that in the reporting year, 1,749 water samples were non-compliant with licenses, standards, or quality regulations. Overall, approximately 99.08% and 99.87% of the microbiological and physico-chemical samples, respectively, complied. The company also discloses the water-related OPEX and CAPEX for the last reporting cycle.

The company discloses the number of units which are located in areas of priority conservation and biological importance. However, it does not provide a discussion on the impact of nutrient pollution on these areas.

The company mentions that integrated pork and poultry suppliers are located within a maximum of 60 km of its processing units. The company has utilised the results from the assessment for its processing units and estimated that suppliers serving these units are also at risk from water-related issues. The number of suppliers estimated to be at risk of water vulnerability, based on this logic, is 2,477 suppliers. Regarding animal feed, while the company states that its supply chain is included in water-related risk assessments, it is unclear whether this includes feed suppliers.

The company stated that it recommends and encourages animal producers to reuse manure for electricity generation and as an organic fertiliser for agricultural crops, reforested areas and pasture for cattle. However, it is unclear whether the manure is used on crops within its supply chain.

BRF states that regulations are one aspect of water risks assessed using the WWF Water Risk Filter Tool. However, there is no evidence that the company discusses how the evolution of regulation could impact the risk assessment throughout the value chain.

BRF provides an average rate of compliance from its suppliers' socio-environmental responsibility system, whose criteria are based on legislation. Among other things, the checklist includes water withdrawal volume, waste storage and disposal, and treatment of effluents and manure. In the last reporting cycle, BRF assessed 6,645 integrated producers in Brazil for environmental impacts. The company mentions that 90% of integrated producers complied with environmental criteria, and it terminated its business relations with 0.32% of its integrated producers due to non-compliance. However, this percentage is not specific to pollution and includes other environmental and social criteria based on regional environmental legislation.

The company treats 100% of the effluents generated in its operations. The company discloses that in 2024, the total amount of waste and manure generated by its production chain (considering swine waste and poultry bedding) was approximately 10.3 million tons. The company mentions it encourages producers to implement innovative projects that involve reusing manure to generate energy. The company provides examples of integrated producers with biogas capture systems for manure. However, it is unclear what the total percentage of manure that receives some treatment is.

The company does not have a top-level target for water quality or animal waste management. The company states that it has unit-specific targets to reduce water consumption; however, it is unclear whether the company has site-specific targets related to water quality.

The company states that all swine manure and waste are treated in anaerobic lagoons, followed by fertigation in crop areas, according to a fertilisation plan developed by qualified technicians. However, it is unclear whether the company provides support to farmers in high- or medium-risk areas. The company discloses evaluating feed additives such as exogenous enzymes aimed at improving the digestibility of feed components in a few farms. BRF cites that this enhances nutrient absorption, thereby reducing the phosphorous and nitrogen excreted from animals.

The company does not disclose this information.

The company does not disclose this information.

The company does not disclose this information.

The company responded to the investor letter. It also responded to the engagement questions. The company did not meet with investors. It provided feedback to FAIRR´s assessment.