JBS S.A.

The company mentions it uses the Sustainable Water Management Program (PGSA) to identify risks in Brazil and the WRI Aqueduct tool to inform this assessment in the other countries where it operates. The company has conducted a water stress risk assessment, including water scarcity and quality. 73% of its facilities have a low or medium-low water stress risk level, and 2% are high risk. From a water quality perspective, the company does not disclose the risk level by biome, ecosystems or watersheds for all its operations.

The company states that wastewater discharge quality is regularly measured and monitored. However, it does not disclose its average wastewater discharge quality. In its 2021 CDP Water questionnaire, JBS Brazil reports no incidences of non-compliance with water quality permits, standards, and regulations. The company does not disclose information about its other operations.

In the engagement call with FAIRR, the company mentioned that its biodiversity priorities change depending on the country, as each geography has its own challenges, such as deforestation in Brazil. However, the company does not discuss areas of high biodiversity value where it operates and the impact of nutrient pollution on these areas. In the engagement call with FAIRR, the company mentioned that its strategy for waste and pollution differs by geography. The company adjusts its strategy depending on the regulations and the type of operations it owns.

The company only includes farms over which it has direct control in its risk assessments. In its response letter to the engagement, the company says that it has progressed to covering non-integrated producers in some regions, such as the UK. The company mentions that it has incorporated the water risks associated with its customers, including animal feed (corn and soy), in developing new solutions for managing water footprints and water risk analyses in its facilities through the PGSA Program. The company discloses a few areas in Brazil where it has identified risks to animal feed production due to increased water scarcity. However, the company does not provide information for other regions.

The company does not disclose information in its publicly available reports. In the engagement call with FAIRR, the company mentioned that there is a good overlap between manure production and feed growers in the turkey-growing regions.

The company does not disclose information.

The company does not disclose information.

The company is expanding the use of biodigesters to dispose of organic waste and produce biogas across its operations in different countries. In the engagement call with FAIRR, the company mentioned it has installed methane digesters across all its facilities and farms where it has direct control. Regarding geographic coverage, the company said that about 90% of its US facilities have lagoons and coverage to capture biogas, while in Australia, it´s almost half of the facilities. The company mentioned that most facilities have implemented this waste management process in Brazil. The company partners with composting companies, transforming organic waste, such as manure, into compost that can be used in crop fields. In the engagement call with FAIRR, the company mentioned that the remaining organic nutrient content from biogas production is sold as organic fertiliser. In Brazil, the company has a new business, Campo Forte, which produces fertiliser using organic waste from JBS Group´s units.

In Brazil, the company mentions that the Sustainable Water Management Program is used to identify facilities, which includes its own farms, slaughterhouses and animal feed factories, where it needs to prioritise setting targets to reduce exposure to water shortage risks. In the US, the company mentions that its approach to water stewardship is defined at the corporate level and units set targets to guarantee compliance with permits, laws and regulations. The company discloses it must consider EPA´s listing of impaired waterways/watersheds, which the company says often dictates strict management control practices in waste management activities. Whether this entails target setting in operational areas of high water quality risk beyond compliance is unclear.

In its response letter to the engagement, the company mentions different initiatives where it engages to support farmers to improve their on-farm conservation practices. However, it seems these initiatives don´t aim to support downstream third-party arable farmers in the sustainable use of the company´s manure to minimise pollution risks. The company also mentions working with upstream and downstream suppliers to identify opportunities and further control. It discloses that it has worked for years with vendors to identify a sustainable approach to recovering nitrogen and phosphorus and transporting it to areas of need. The company mentions that this idea has not materialised because of business and technology restraints. The company discloses in its response letter that JBS USA has issued a Request for Proposal (RFP) for one facility seeking proposals to combine biogas production with nutrient recovery. In Mexico, its Pilgrim´s subsidiary has a strategy to develop a joint venture with specialised companies that produce biofertilisers. Concerning diet adjustments, Pilgrim´s UK has developed a diet for its owned pigs to minimise the phosphate loads generated from pig waste.

In Brazil, the company has a new business, Campo Forte, which produces fertiliser using organic waste from JBS Group´s units. In its response letter to the engagement, the company mentions Pilgrim´s UK is conducting commercial-scale R&D trials on insect meal inclusion to porcine diets in the EU.

The company has invested R$ 134 million to launch its Campo Forte business.

The company does not disclose information.

The company provided a timely response to the investor letter. It also responded to the engagement questions and met with investors within the engagement period. The company did not provide feedback on FAIRR´s assessment.