ABOUT THIS REPORT
This JBS S/A Annual and Sustainability Report is the first to be prepared using a global approach.

It covers the evolution of business in the economic, social and environmental contexts of the six business units of which JBS is comprised (JBS Mercosul, JBS Foods, JBS USA Beef, JBS USA Pork, JBS USA Poultry and JBS Europe), as well as the initiatives and performance registered from January 1 to December 31, 2015. GRI G4-17, G4-22, G4-23, G4-28, G4-29, G4-30

Since 2012, JBS S/A has voluntarily disclosed its information in accordance with the guidelines of the Global Reporting Initiative (GRI), and for the second consecutive year it is adopting the essential option of the G4 GRI Guidelines. This methodology provides indicators that can be used to present the performance of companies in a manner that allows for comparability of information over time and between different institutions, regardless of sector of activity and location of their operations. GRI G4-32

Some of the GRI performance indicators (environmental, social and economic) in this report do not include the global operations, due to some remaining differences among the companies with regard to the monitoring of indicators. These differences mean that some items do not yet have a history for these indicators. These cases are clearly identified throughout the document. GRI G4-22, G4-23

To submit comments, suggestions, questions or criticism regarding this document, contact us at annual.report@jbs.com.br . GRI G4-31



Materiality Matrix
GRI G4-18

The contents of this report provide the reader with information about the Company’s operations and performance in 2015, based on the following highly relevant aspects to the overall sustainability of the business and the Company’s key stakeholders: product integrity, employee health and safety, animal welfare, water and climate change.

These five issues were defined by consensus among the Sustainability Boards of the JBS Global operations based on the materiality matrix of each regional operation.

In Brazil, the Company revalidated its last materiality matrix, drawn up in 2014. This revalidation process was conducted in order to review the relevance of the issues with regard to the sustainability of JBS in Brazil.

The materiality process carried out in 2014 was supported with expert advice and its methodology included face-to-face interviews with key company executives that identified success factors for the business.

The success factors were the basis for the selection of stakeholders for each relationship category (suppliers, domestic and export market customers, government and civil society) who, through face-to-face or telephone interviews, had their needs and opinions identified. The criteria for selection of these stakeholders were high standards on issues of sustainability and a high level of legitimacy within its category. GRI G4-24, G4-25, G4-26 and G4-27

As a result, the matrix identified the following areas:


2015 JBS MATERIALITY MATRIX (BRAZIL)



Strategic Issues
  • 1. Transparency and reliability of information
  • 2. Animal welfare
  • 3. Food quality and safety
  • 4. Guarantee of origin
  • 5. Water
  • 6. Climate change
  • 7. Solid waste
  • 8. Competition

Other issues
  • 9. Biodiversity
  • 10. Energy
  • 11. Transgenetics
  • 12. Worker health and safety
  • 13. Food waste
  • 14. Consumers
  • 15. Health and nutrition
  • 16. Local development
  • 17. Consumer habits
  • 18. Labor rights
  • 19. Family agriculture
  • 20. Social investments
  • 21. Impacts on local and traditional communities

In the United States (which, in addition to the North American operations, serves as the headquarters for the Asia-Pacific region), the listed issues relate to environmental, social, economic and product liability aspects.



2015 JBS MATERIALITY MATRIX (NORTH AMERICA AND ASIA-PACIFIC)



Environment
  • A. Biodiversity
  • B. Emissions (air)
  • C. Emissions (water)
  • D. Energy use
  • E. Land management
  • F. Waste
  • G. Water use

Social
  • A. Animal health and welfare
  • B. Human Rights
  • C. Impact on the community
  • D. Labor rights
  • E. Employee health and safety

Responsibility for the product
  • A. Consumer health and safety
  • B. Consumer information and education
  • C. Technology in agriculture
  • D. Transparency in the value chain

Economic
  • A. Business ethics and integrity
  • B. Investments in the community
  • C. Transparency within the Company
  • D. Compliance with legislation
  • E. Local suppliers

In Europe, the Company’s performance on issues related to sustainability is guided by the principle of doing the right things, minimizing the impact of operations on the environment and working in partnership with stakeholders. Management of the business includes a commitment to act in a responsible and sustainable manner. To manage and minimize the impact of operations, the Company adopts initiatives to reduce energy use and greenhouse gas emissions, reduce water consumption and effluent discharges and recycle or prevent the need to deposit waste in landfills.



GRI Indicators

With the definition of material issues, the GRI indicators to be reported are defined and answered by professionals from different areas within the Company, who are responsible for the management of the actions reflected in our data.

The details of these indicators are available in the GRI G4 Content Summary.



LIMITS OF MATERIAL ISSUES G4-19, G4-20, G4-21

Material issue GRI-related material aspects Impact inside JBS (business units) Impact outside JBS (relationship markets) GRI-related indicators
Product Integrity Environmental supplier evaluations: Procurement practices; Assessment of supplier labor practices; Forced labor or labor analogous to slavery; Supplier human rights assessment; Supplier Evaluation re. Impacts on Society Customer health and safety; Consumer health and safety; Marketing communications Includes all JBS business units (production and sales) located in over 15 countries In-house, suppliers, customers and consumers EN32, EN33, EN34, FP1, FP2, LA15, HR6, HR10, HR11, SO9, SO10, PR1, FP5, FP6, FP7, PR6
Employee health and safety Healthy food at affordable prices; Occupational health and safety Includes all JBS business units (production and sales) located in over 15 countries In-house, third parties and suppliers LA5, LA6, LA7, LA8
Animal well-being Animal breeding and genetics; Livestock husbandry; Transport, Handling and Slaughter Includes all JBS business units (production and sales) located in over 15 countries Environment, raw materials, in-house, suppliers, customers and consumers FP9, FP10, FP11, FP12, FP13
Water Water Includes all JBS business units (production and sales) located in over 15 countries Environment, raw materials, in-house, suppliers, customers and consumers EN8, EN10
Climate change Economic performance; Emissions. Includes all JBS business units (production and sales) located in over 15 countries Environment, raw materials, in-house, suppliers, customers and consumers EC2, EN15, EN16, EN17, EN18, EN19