Marfrig Global Foods SA

The company has a validated Science Based Targets initiative (SBTi) target. It has committed to reducing absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 68% and Scope 3 emissions by 33% by 2035 from a 2019 base year, aligning to limit global warming to 1.5°C by 2035. It has committed to an SBTi Net Zero target, although it has not yet been validated. It includes Scope 3 emissions in its science-based target. It mentions that it sets a methane reduction goal for all Effluent treatment plants across all operations by 2035.

The company states that its SBT 1.5°C target covers its North and South American operations. It has committed to a science-based net-zero target with the Science Based Targets initiative (SBTi).

The company has promoted actions to engage and guide its cattle suppliers in measuring and managing greenhouse gas (GHG) emissions from cattle farming through sustainable livestock practices. It has partnered with EMBRAPA (the Brazilian Agricultural Research Company) to develop a low-carbon product. It has undertaken several initiatives to support and encourage low-carbon livestock farming practices, including developing appropriate pasture management and waste disposal techniques to reduce the release of gases into the atmosphere throughout its supply chain. These efforts aim to minimise the impact of Scope 3 emissions.

The company discloses that its feedlot in Uruguay sources Sorghum as a feed input and emphasises that Sorghum helps reduce erosion risk. It also highlights the significance of soil rotation and crop diversification in sorghum cultivation.

The company's Low Carbon Beef (CBC) product line, Viva!, produces beef following the criteria set by the "Carbon Neutral Brazilian Beef" programme. This programme utilises innovative crop-livestock-forestry farming practices to neutralise animal methane emissions during husbandry. It is encouraged for the company to disclose the requirements for farmers to adopt such systems and how it ensures that farmers have indeed adopted low-carbon practices. It also mentions that the facility utilises equipment based on "Steam Flake" technology in animal feed production. This technique involves pre-conditioning grains and subjecting them to steam treatment. The process promotes hydration of the grains, altering their structure and making them more easily digestible for confined cattle, thereby reducing the animals' greenhouse gas emissions. Additionally, it has initiated pilot projects with its suppliers to reduce methane emissions and expects to launch a line of beef cuts from low-carbon practices.

The company discloses its Scope 1, 2 and 3 emissions in the reporting year.

The company discloses its Scope 1 and 3 emissions from agriculture. The Scope 1 emissions are disaggregated by agricultural activity, including processing, slaughter, confinement (own cattle), and distribution. For Scope 3, it provides separate disclosures for emissions from enteric fermentation (cattle belching), purchase of raw materials from third parties (poultry, lamb, pork, and beef), purchase of inputs for feed (feed in feedlots), and transportation and distribution (upstream). It includes emissions from the feed in its Scope 3 emissions calculation. It mentions that the total volume of emissions at its confinement unit in Uruguay, which produces its own feed, was 23,500 metric tons of CO2-eq in 2022. It acknowledges that the Uruguay plant is only a part of its animal production, and most of the emissions from the feed are indirect, resulting from the feed given to sourced animals. It aims to establish parameters for calculating greenhouse gas (GHG) emissions resulting from changes in land use. However, it does not report emissions specifically for the current reporting period.

The company responded to the CDP Climate Change questionnaire in 2022. It states that third parties verify its Scope 1, 2 and 3 inventories.

The company reports an increase in its total absolute greenhouse gas (GHG) emissions by 2.29% between 2021 and 2022. However, it also says a reduction of 17.9% in the whole Scope 1 and 2 emissions in FY2022. However, the reductions in Scope 3 emissions are insufficient to meet the company's intensity-based reduction rate declared in the Science-Based Targets (SBT) target. It does not meet the absolute reduction rate defined for the sector, which is 3.03%. It observed a 1.61% reduction in emissions from the enteric fermentation and feed of cattle and waste management.

The company has conducted scenario analysis using RCP 4.5 and RCP 8.5 methodologies with a time horizon of 2040. The analysis focuses on the impact of changing precipitation patterns and a reduction in pasture quality (physical climate risks) on cattle ranches in different regions of South America. It also identifies several mitigation actions, such as increasing farmer awareness and exploring livestock production alternatives, in response to the identified risks and challenges.

The company has identified a reduction in pasture quality as a physical risk in the Midwest region of Brazil for cattle ranchers. Due to the reduced pasture quality, ranchers must supplement livestock feed and irrigate pastures, increasing production costs. It reports no evidence of significant financial or material losses to its operations caused by adverse climate events such as droughts, floods, or blizzards in 2022. To mitigate these risks, it is working on expanding pasture recovery programmes with its cattle suppliers in the surrounding regions. It is also developing a mitigation plan that follows robust policies and commitments to prevent conversion and deforestation. Additionally, it aims to support its supplier producers in adopting sustainable production practices on their properties and farms. It discloses that it is evaluating heat mitigation alternatives for the performance of cows in its fattening farm in Uruguay due to a drop in concert during the summer months. It recognises the importance of finding efficient solutions to the challenges related to the increasing costs of veterinary care and medications. It collaborates with cattle suppliers in Brazil and source farms to exchange successful practices. The company also provides guidelines on animal health to the direct and indirect suppliers. It implements animal health practices directly at the owned farms to reduce the need for treatments and the use of medications in confinement. It identifies changes to energy-related regulations as risks that could increase direct costs, including fossil fuel taxation and electric power pricing. Due to tariffs, it acknowledges that electricity bills are rising in its Brazilian operations units. It is implementing measures to secure input purchases at pre-established prices to adapt to potential price changes in energy resulting from climate change. It acknowledges the possible implementation of a carbon tax regulation and recognises that it could impact operational costs. It anticipates the need to employ additional measures to reduce emissions or pay for carbon taxation. It considers carbon taxation a likely occurrence in the short to medium term. To mitigate this risk, it monitors the environmental impacts of its direct operations and takes measures to minimise these impacts. It also explores the potential development of an internal carbon price to address emissions and incorporate the cost of carbon in decision-making processes. It discloses no evidence of adverse climate events with financial or material losses to its operations.

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

The company states that soy represents less than 2% of the total inputs purchased in its operations. However, cattle represent 71-80% of the company's procurement spend. The company does not disclose the amount spent by its suppliers on soy, and it does not disclose that all soy is sourced from 100% deforestation-free feed suppliers. It states that it has conducted a risk assessment of its supply chain and direct operations but does not disclose all high-risk locations.

Marfrig has a zero deforestation and conversion commitment with a target date of 2030 and a cut-off date of 2020. This commitment applies to both its direct operations and supply chain.

The commitment applies to all suppliers and sourcing regions. Marfirg states it is committed to having 100% of its supply chain - direct and indirect - free of deforestation, in the Amazon, by 2025, and in the Cerrado and other biomes, by 2030.

The company reports that 100% of the soy it purchases is verified as deforestation-free and it provides information on soy-related deforestation to the CDP (Carbon Disclosure Project).

The company states that its Verde+ initiative identifies 72% of direct producers in the Amazon Biome and 71% of direct suppliers in the Cerrado as being located in deforestation-free areas. However, the specific percentage of cattle sourced from deforestation-free areas is not disclosed. The Marfrig Verde+ Program aims to promote sustainability in the bovine products value chain, focusing on inclusivity and a deforestation-free supply chain. The company conducts assessments of forest-related risks for cattle products multiple times a year, using an established enterprise risk management framework. Through its socio-environmental risk map, the company identifies areas in the Amazon and Cerrado Biomes that are most vulnerable to deforestation. In 2022, the program is expected to cover 100% of the Brazilian territory, including the Atlantic Forest biome.

The company has set an interim target of achieving a deforestation-free supply chain for the Amazon Biome by 2025, and a target of 100% deforestation-free supply chain across its entire operations by 2030.

The company's commitment to deforestation-free cattle sourcing covers all sourcing regions that are at risk of deforestation and applies to both its direct cattle suppliers and its indirect suppliers.

To achieve its goal of becoming deforestation-free by 2030, the company has set out to establish full traceability of its direct and indirect suppliers. It requires its direct suppliers to provide information about its indirect suppliers, allowing the company to verify the deforestation-free status of all suppliers throughout its supply chain. The company currently reports that it can monitor 100% of its direct suppliers. Marfrig is currently in the process of developing parameters and procedures to audit the Marfrig Verde+ processes and data. It has expressed its intention to submit the 2022 figures to a third-party review and plans to publish the results of this initial audit in the following year. The company also states that cattle sourced from the Amazon biome have been verified as deforestation-free by third-party auditors. Marfrig responded to the CDP Forests questionnaire in 2022.

The company's usage of soy in its direct operations is minimal, resulting in very few suppliers. It has implemented a supplier verification procedure for the acquisition of soy at its Uruguay plant, which involves using questionnaires to assess environmental and social indicators. Additionally, suppliers supplying the company's industrialised operations in Brazil undergo a comprehensive assessment of social and environmental requirements. They are approved based on the procurement program for managing raw materials, materials, and service providers.

The company states that during the soybean purchasing process, compliance with no-deforestation requirements is verified by completing an approval form by suppliers. It discloses that for its Uruguay operations, 74% of the total production/consumption volume of soy is traceable to its origins. However, for the industrialised operations in Brazil, where the soybeans purchased are of national origin, traceability is provided by suppliers who are signatories of the Soy Moratorium.

The company discloses that corn and sorghum used in the production of cattle feed are grown in agricultural rotations. Additionally, the company mentions that sorghum, due to its high soil coverage, helps reduce soil erosion.

The company considers environmental and social criteria when reviewing and selecting suppliers. To be approved and authorised as an animal supplier to Marfrig, a ranch must meet certain requirements, including adhering to good environmental conservation practices. The company's Marfrig's Verde+ initiative offers technical assistance to direct and indirect suppliers in areas such as intensification, restoration, and farm regularisation. The initiative aims to help producers transition to sustainable cattle-raising practices that balance productivity with conservation. The company also requires its direct suppliers to report on their own suppliers, thereby gathering information on indirect supply chains. Cattle breeders who do not comply with the necessary commitments are blocked from supplying the company. Additionally, the company provides its direct suppliers with access to its blockchain traceability platform, supporting them in tracing their own supply chains.

The company uses geospatial monitoring and has developed a Socio-environmental Risk Map to identify areas with high socio-economic risks in the Amazon and Cerrado Biomes, considering both direct and indirect suppliers. When high risks are identified, the company may request detailed information from producers to ensure compliance with social and environmental commitments related to sustainable cattle breeding. The company also utilises blockchain technology to track suppliers and verify incidents of deforestation using public data. The company states that if any non-conformity with its environmental criteria is detected through monitoring, the supplier is temporarily suspended from selling animals to the company until the issue is resolved. The company also supports cattle breeders in developing a corrective action plan to address the non-conformities and ensure compliance with the company's environmental criteria. Marfrig reports that it can currently monitor 100% of its direct suppliers. Its goal is to achieve full traceability of its indirect suppliers by 2025 in the Amazon biome and by 2030 in the other biomes where it operates. The company states that 72% of direct producers with ranches in the Amazon biome provide information about their own suppliers, who are considered the company's indirect suppliers. Similarly, 71% of direct suppliers in the Cerrado biome share information about their respective supply chains. According to a 2023 press release by Reporter Brasil, the company's suppliers are reportedly involved in activities that contribute to deforestation in the Amazon.

The company discusses the concept of Carbon Neutral Meat (CNM) under the brand Viva!, which involves breeding animals in systems that integrate cattle-raising and forests to neutralise methane gas emissions. They utilise techniques like Crop Livestock Integration (CLI) and Crop-Livestock Forest Integration to balance pastures and biodiversity. The company has partnered with the Brazilian Agricultural Research Corporation (EMBRAPA) to incentivise suppliers to adopt sustainable production and handling systems, including pasture rotation and integrated cattle-raising systems.

The company mentioned that most of its areas are in low water-stressed regions. It utilises WRI's AQUEDUCT tool to identify variables related to the quantity and quality of water available for its operations worldwide. The results of this assessment show that one unit in the United States has extremely high exposure, two units have high exposure, eight have medium to high exposure, and ten units have low to medium exposure to water stress. To manage water consumption in its direct operations, the company discusses several measures it has adopted. The company discloses total water consumption in 2022.

The company has set a goal to decrease the volume of water consumed in the production of each ton of product by 20% by the end of 2035, using the year 2020 as the baseline. In addition, the company discloses its progress towards its site-specific targets for slaughter and processing locations.

The company discloses water withdrawals by source for its operations in North and South America. It also discloses the volumes of water withdrawals by water-stressed areas. The company discloses that in 2022, it invested over R$ 70 million in enhancements related to water management at its units. This total represents a 175% increase in CAPEX from the previous year. OPEX increased by 12.5% increase compared to 2021. The company states that third parties audit the data collected on water usage across its operations. Marfirg has responded to the CDP Water Security questionnaire in 2022. It reports a decrease of 16.7% in water consumption compared to the previous year. However, it reported an increase of 5.48% in water withdrawal from the previous year due to increased production from its North and South American units.

The company briefly states that it considers water availability in the regions where suppliers are located when purchasing raw materials. Given that a large portion of Marfrig's beef supply relies on pasture-raised systems, the availability of productive grassland presents a significant risk. The company reveals that its Marfrig Club Program includes guidelines on natural resource management to regulate water availability in animal feed. The company mentions various recommendations, such as crop rotation, along with the preservation of springs and watercourses. The Program encourages water management practices on pastures for suppliers.

The company discloses water intensity per head of cattle and per ton of finished product. However, it does not provide information on the water intensity of the feed. While the composition of the feed was disclosed in 2021, no such information has been reported in the current reporting period. Marfrig does not disclose the percentage of raw material sourced from water-stressed areas in the current reporting period. It discloses that its feedlot in Uruguay sources sorghum as a feed input and states that sorghum reduces the risk of soil erosion. Additionally, the company claims that it undertakes agricultural rotations and crop diversification during sorghum cultivation.

The company mentions that it has engaged with its partners along the value chain to adopt best practices in water management. The Marfrig Club, Sustainable Practices Guide, includes recommendations for reducing water consumption in animal husbandry by encouraging producers to invest in animals with genetic traits that allow early slaughter. Additionally, the company lowers water consumption on farms and adopts practices to capture rainwater. It mentions providing technical assistance to suppliers through the Marfrig Club program to help enhance the suppliers' water management initiatives. In dialogues with suppliers, information related to water use is discussed, such as consumption volume, a consumption reduction plan, water-related events (such as lack of rain), and identification of risks. The information collected from suppliers serves as a supplement to the company's water risk assessment. Based on this information, it's possible to identify suppliers of operational units that are located in regions of water stress and to evaluate these suppliers' water management practices. Suppliers in need can then receive technical assistance through the Marfrig Club program.

The company reports that it engages with third parties to influence sustainable water management and it also engages with suppliers to ensure the availability and quality of water resources.

The company discloses that in 2022, it did not receive any fines, enforcement orders, or other penalties for regulatory violations related to water quality. Marfrig discloses a list of facilities where water stress, in terms of both quantity and quality, has been identified through a water-risk assessment. These facilities collectively represent 31% of the company's operating units. It aims to reduce the volume of wastewater generated in its operations by 15% by 2035.

The company mentions that it measures and monitors the quality of wastewater at 100% of its operating units. The company discloses the Biochemical Oxygen Demand (BOD) of water discharged and the volume of wastewater discharged in 2022. The company's effluent and water emissions data is audited by a third party and it discloses data related to wastewater in its 2022 CDP Water Security questionnaire.

The company discloses that effluents are treated and used as fertiliser on nearby farms or are incinerated to collect biogas, which helps to reduce its Scope 1 emissions. The company states that 17% of its facilities in Brazil already practice fertigation, and an additional 16% are in the process of developing such systems. It reports a significant improvement in its wastewater quality in the last reporting year. However, the company reported a significant increase in the volume of wastewater discharged in 2022.

The company states that in Uruguay, grain producers are legally obliged to submit a 'Responsible Land Use and Management Plan'. It is noted that approximately 84% of the company's raw material for its feedlot in Uruguay is sourced from internal Uruguayan suppliers. However, the company does not provide specific details about its approach to other operations or regions.

The company discloses that its feedlot in Uruguay sources Sorghum as a feed input and emphasises that Sorghum helps reduce erosion risk. The company also highlights the significance of soil rotation and crop diversification in sorghum cultivation. However, it remains unclear whether the sorghum sourced by the company actively contributes to more diverse crop rotations

The company states that the manure from its confinement facility in Uruguay is fermented and utilised as fertiliser in nearby farms and in the community. However, the company does not disclose similar activities for its supplied animals. It also mentions that it is currently developing a project to use solid residues, such as manure, as a source of energy generation. However, it appears that this project has not yet been implemented by the company at present.

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

The company discloses that it transports manure from its feedlots to grain farmers without any charge. It specifies that the grain farmers are located within a 25km radius of the feedlot. However, the disclosure does not provide clarity on whether these areas are nutrient-poor. This fertiliser is also made available for community involvement and participation in various activities. However, it should be noted that this initiative is not directly related to community engagement regarding the impacts of manure-related pollution.

The company commits to prohibiting the prophylactic use of veterinary drugs and adheres to WHO guidelines by listing Highest Priority Critically Important Antimicrobials (HPCIAs) not recommended for use in animal production. Additionally, it advocates following the official vaccination schedule to prevent infectious diseases, a commitment reinforced through employee training on animal welfare. This policy is implemented across its supply chain.

The company discloses a decrease in the percentage of animals treated with antibiotics at its Uruguay facility, from 3.48% in 2021 to 3.23% in 2022. It also reports 0.290 mg of antibiotics used per kilogram of slaughtered animal in 2022. However, this represents a slight increase from 0.234 mg/kg in 2021.

The company commits to the Five Freedoms in its stand-alone animal welfare policy, which is applicable globally. It provides annual training for professionals involved in livestock handling and outlines a breach-handling process that includes corrective measures and potential sanctions. The company is involved in animal welfare research in Brazil and Uruguay and plans to implement 5-Step® Global Animal Partnership (G.A.P.) standards for certain Uruguay-based cattle suppliers by 2023. However, research and collaborations are confined to operations in Brazil and Uruguay.

The company commits to adhering to recommended stocking densities and is against extreme animal confinement. It does not perform routine mutilations and prioritises suppliers that share this practice. The company also commits to limiting cattle transportation to eight hours or less; 77% met this goal in 2022. All slaughter units employ humane, stunning methods, and most animals are raised in enriched environments. However, it does not disclose specific breed types by species farmed within its supply chain and operations.

The company's Uruguay operations produce certified organic beef in compliance with the USDA organic standard. The company disclosed that in 2021, certified organic products constituted 0.019% of its total beef production. It has not updated organic production in the current reporting period.

The company reports on animal welfare progress and commits to time-bound targets for cattle transportation and slaughterhouse auditing. It also commits to cage-free eggs by 2025.

The company reports that 77% of animals are transported in less than or equal to eight hours and employs humane stunning methods for all slaughter except those for religious activities. It commits to providing an enriched environment featuring 20 m² density, open space, and rest areas.

The company states that to safeguard fundamental human rights within its direct and outsourced operations, it adheres to the international standards recognised by the International Labour Organization (ILO). The company is also a signatory to the UN Global Compact.

The company provides sufficient information on its supply chain human rights due diligence process, stating that it identifies, assesses and monitors areas of risk in its supply chains. The company also actively monitors human rights risks at the supplier level, specifically forced and child labour, through geospatial monitoring tools and a socio-environmental risk map. The company states that it will terminate relations with suppliers in the event of irregularities. For its operations, the company conducts compliance risk management using a compliance risk matrix to ensure adherence to its code of ethics. However, it does not sufficiently specify how this compliance risk matrix has been applied to human rights risks or whether it has identified areas or stakeholders within its operations that may be exposed to human rights risks. Regarding risk mitigation, the company mentions that it offers training to employees that covers various topics, including issues related to harassment and respect for human rights. Specifically, 15,000 employees in North and South America have participated in these training courses. However, the company does not discuss how it engages with suppliers to mitigate risk and remediate stakeholders in its value chain.

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

The company commits in writing to prohibit child labour, forced labour, discrimination, abuse and inhumane treatment and requires suppliers to do the same. The company's operations undergo an annual SMETA 4 Pillar independent audit, covering key policy areas, including forced labour, child labour, abuse and discrimination. However, the company does not commit to promoting fair wages and does not provide a sufficient paid sick leave policy that covers all its employees.

The company does not explicitly state whether it conducts supplier audits targeting the selected policy areas of child labour, forced labour, discrimination, abuse and inhumane treatment. The company has implemented an anonymous helpline that allows employees and those in the supply chain to report behaviour and practices that do not align with the principles outlined in the Code of Ethics and Conduct. The company mentions its intention to issue a satisfaction survey to employees in 2023 to gather feedback on the grievance mechanism. However, there is currently no evidence indicating that the company involved employees or their representatives in the design or evaluation of the reporting channel during the reporting period. The company received a total of 470 grievance complaints in South America and 52 complaints in North America. The company provides an explicit categorisation of all the grievances it acquired in 2022, including categories such as health and safety, violations of workers' rights, and sexual harassment, among others.

The company commits in writing to provide a safe work environment that protects the health of its employees but does not mention whether its health and safety management system has a certification, such as ISO 45001. The company also discloses that 100% of its industrial plants in Brazil, Chile, Uruguay, and the US, and 80% of its plants in Argentina have a health and safety committee with workers' representatives. Furthermore, the company emphasises that it does not use or promote the use of antibiotics by employees and carries out awareness-raising initiatives geared toward employees in the production plants about the risks of indiscriminate use of antibiotics.

In 2022, the company reported that 10,951 days were lost due to injury across its operations. Whereas, in 2021, 16,544 days were lost due to injury, demonstrating a year-on-year improvement in days lost. The company also reports a decrease in the fatality rate from 2 fatalities in 2021 to 1 fatality in 2022. In addition, the company provides turnover rates for different locations, age groups, gender categories, and disaggregated by seniority level.

The company acknowledges and respects all its employees' rights to freedom of association and collective bargaining and expects suppliers to do the same. It also discloses the unionisation rates by region. The unionisation rate is 75.54% in Argentina, 65% in Uruguay, 58% in the United States, 38% in Brazil and 0% in Chile. The company provides specific details on supporting workers' rights in most countries. For example, Brazil ensures that union collective bargaining agreements cover all employees. It facilitates the dissemination of information about unions and collective bargaining through bulletin boards and provides spaces for union membership campaigns. Similarly, the company offers employees physical space and time to participate in elections or assemblies in Argentina.

The company mentions that collective bargaining agreements cover 100% of its employees in Brazil. In Argentina, this coverage extends to 80.57% of employees, while in the United States and Uraguay, they cover 58% and 80% of employees, respectively. The company also provides the distribution of its employees across different labour contract types for its operations in North and South America. No data for collective bargaining agreements in Chile is disclosed.

The company discloses that all its units in Argentina, Brazil, Chile, Uruguay, and the United States are certified by the HACCP and BRC with A or double-A ratings. Furthermore, two processing units in Brazil have IFS certification, and one plant in Argentina has received FSSC 22000 certification. However, the total portion of GFSI-certified facilities is not disclosed, nor can it be inferred. It encourages suppliers to obtain GFSI certification and reports that approximately 53.4% of its Brazilian suppliers hold certifications from programs accredited by GFSI certification. However, the total number of suppliers is not specified, so it remains unclear. All input suppliers who do not have GFSI certification and Social and Environmental Protocols Certifications or Audit Reports undergo on-site audits or evaluations based on appropriate documentation, depending on their risk classification and performance history.

The company discloses that its units undergo audits conducted internally or by third parties, with different time frames specified. In Argentina and Uruguay, internal audits are quarterly and third-party audits are annual. In Brazil, respective audits are monthly and annually. In Chile, third-party audits are annual and roughly seven audits are conducted internally annually. In the US, the number and frequency of audits are not disclosed. However, 100% of plants were submitted to a third-party audit in the reporting year. Additionally, units are audited by government agencies in the countries where they operate. The sites also undergo audits by agencies from other countries, both online and in person. In 2022, all plants obtained certification and submitted action plans within the maximum deadline of 24 days set by the certifying agencies. The certifying agency validated all identified non-conformities, and the company ensured a 100% corrective action rate. Further, it has an online platform that allows consumers to trace the origin of their purchase.

The company provides a detailed description of its product recall system, specifically for Brazilian operations. Here, it maintains a dedicated group responsible for exchanges and recalls, comprising representatives from production, sales, purchasing, quality control, and legal affairs departments. These members undergo training to handle products-related emergencies, and each individual is fully aware of their responsibilities. It also outlines the procedure once a recalled product is returned to the factory gate. Furthermore, it mentions that the recall procedures for all countries in Latin America follow the same guidelines, with customisations based on specific country requirements. It reports zero food safety recalls across South and North America in 2022.

The company states that there were no market bans related to food safety issues within its global operations in 2022.

The company has a sustainability committee that advises the company's board. The committee holds regular meetings with the board to report on the progress and outcomes of sustainability practices. In addition, the company has reviewed and reformulated its materiality matrix compared to the previous year. The current materiality matrix comprises the topics of sustainable livestock farming, climate change, biodiversity, animal welfare, water resources cycle, food quality and safety, safe and inclusive work environments, business and geographic diversification, business soundness, transparency and integrity. The board approves the materiality matrix of directors. The company also disclose board-level expertise in sustainability, food safety and innovation.

The company states that ESG metrics are linked to the variable remuneration of board members. The company only discloses percentages related to achieving water reduction and quality targets. The company actively seeks dialogues with various initiatives and participates in sector-wide efforts to enhance sustainability practices. These efforts primarily focus on climate change, animal welfare, pollution, antibiotics, and alternative proteins. The company also discloses its membership in trade associations and coalitions. It has also made a public commitment to accelerate actions to combat deforestation within its supply chain, aligning with the objectives outlined in the Paris Agreement. However, the company clarifies that it is not directly engaged in lobbying activities on climate change.

The company highlights its priorities for driving innovation throughout the business, which include leveraging new technologies, developing new plant-based products, and pursuing diversification. Furthermore, in 2022, the company acquired two startups that offer solutions focused on enhancing the management of activities related to food e-commerce. It also uses new cattle-handling technology to improve animal welfare and work routines. In addition, the company states that it utilises various benchmarks, including the Coller FAIRR Protein Producer Index and the FOREST 500, among others, to understand its performance and progress in the industry.

In addition to the increasing demand for plant-based products, the company acknowledges that production in this sector generates fewer adverse environmental impacts. In alignment with its commitment to contributing to environmental sustainability and mitigating the effects of its activities, it has updated its Materiality Matrix to include alternative protein activities. Its portfolio diversification strategy encompasses plant-based foods and sustainable livestock farming products. However, it must provide a specific timebound target to support or achieve this strategy. Further, it does not report sales/revenue linked to alternative protein sources.

The company operates through its PlantPlus Foods unit, a joint venture established with Archer Daniels Midland Company (ADM. It is headquartered in the US but manufactures products from its plants located in the US and Brazil. In 2022, it expanded its product portfolio to offer four new 100% plant-based items: hamburgers with "piranha" and rib flavours, shredded chicken, and Tuscan sausage. These unique choices come to existing products marketed since 2021, including kibbes, meatballs and ground beef. Further, in 2022, it acquired two plant-based protein companies: Canadian Sol Cuisine and North American Hilary's (combined, the deals cost US$ 140 million). It also disclosed that it has made investments to scale up its production of alternative proteins and support academic research in this space.