8
SUSTAINABILITY

COMPLEMENTARY CONTENT

JBS is also attentive to other issues related to sustainability, such as energy and solid waste. It also implements initiatives aimed at strengthening its relationship with stakeholders. Although not classified as material issues by the “Materiality Matrix” (see link), they are also important issues that permeate the operations and corporate decision-making process.


Relationship with Stakeholders GRI G4-DMA

The relationships that JBS maintains with its stakeholders are important for the sustainability of its business. Building trust with the different audiences with which JBS interacts on a daily basis is a principle that guides the Company’s activities. Aware of its social role in the places where it operates, JBS has committed to contributing to social, economic and environmental development, as well as remaining open to dialogue, always respecting the local culture.

Institutional Commitments
GRI G4-15, G4-16

JBS participates in several important local and global forums discussing sustainability issues with organized civil society and other value chain participants. The company plays a leading role in several of the initiatives put forth by these organizations. Some examples:

The Global Roundtable for Sustainable Beef (GRSB) - A multi-stakeholder global initiative developed to continuously improve the sustainability of the global beef value chain through leadership, science, engagement and collaboration. GRSB works to ensure that all aspects of the beef value chain are environmentally sound, socially responsible and economically viable. JBS is a founding member of GRSB and serves on the Board of Directors and the Executive Committee.

Leather Working Group (LWG) - Geared to the leather industry, the LWG consists of international brands, tanneries, suppliers and retailers, and aims to promote sustainable environmental management practices appropriate for the industry. JBS Leather is a member of the Executive Committee and has 16 of its facilities certified by the initiative.

British Poultry Council (BPC) - Multi-stakeholder forum that serves as the voice of the poultry industry and as the link between its member companies and governments, regulatory bodies and other stakeholders. The BPC’s collaboration with leading scientists in the fields of poultry health and welfare ensures the safety of the food and drives best practices throughout the poultry industry. Moy Park is an active participant in the BPC committees and participates on the Board of Directors.

Sustainable Livestock Working Group (GTPS) - GTPS is made up of representatives of different segments that make up the bovine livestock value chain in Brazil. It aims to promote the development of sustainable, socially equitable, environmentally sound and economically viable livestock operations. JBS is part of the Board and participates in the “Development of the Sustainable Livestock Guide” and “Economic and Financial Incentives” committees.

U.S. Roundtable for Sustainable Beef (USRSB) - This initiative brings together diverse stakeholders focused on continuously improving the sustainability of the beef value chain in the United States. Promoting engagement with these audiences, it acts to support and communicate progress on this issue. JBS USA is one of the founding members and serves on the Board of Directors.

The Canadian Roundtable for Sustainable Beef (CRSB) - A multi-stakeholder initiative developed to advance sustainability efforts within the beef industry in Canada. This national forum is dedicated to connecting a network of local, regional and national leaders in the industry. JBS Food Canada is one of the founding members and serves on the Board of Directors.

Field to Market - This initiative seeks to create opportunities for continuous improvements in productivity, environmental quality and human welfare across the agricultural supply chain in the United States. It promotes dialogue throughout the industry, based on science and open to technological options. JBS USA is a member of this initiative.

Global GAP's Livestock Technical Committee - an internationally recognized group responsible for discussing and defining the animal welfare trends, requirements and parameters worldwide. JBS Foods is a member of the technical committee.

National Pact for the Eradication of Slave Labor Institute (InPACTO) - This initiative is focused on strengthening efforts to combat slave labor in Brazil. Since 2007 JBS has been a signatory to the National Pact for the Eradication of Slave Labor in Brazil. In 2014 JBS was the first company in the food sector to become a member of the Institute.


a. Clients and consumers

JBS seeks to establish channels for dialogue with its clients and suppliers, building strong and transparent relationships that allow it to anticipate market trends, improve the quality of its products and processes and fulfill the demands of consumers.


Trust, from start to finish GRI FP8

JBS’s constant concern for its customers took JBS Beef’s (Brazil) Friboi campaign to a level never before seen on Brazilian television. All stages of the production chain, from the responsible origin of the raw material, through the strict hygiene processes of operations and facilities, storage and transportation, to the moment of consumer selection, have been demonstrated with transparency through marketing and advertising initiatives.

Since the launch of the new campaign, in November 2015, TV stations, print media (newspaper and magazine), social networks and the JBS website, it is estimated that an audience of approximately 130 million people has been reached. The initiative’s strategy also included the reformulation of the Friboi website (see link). Released on the same date and featuring details on each step of the production chain, the website surpassed a million hits in the first two months. One of the highlights of the campaign was to show the consumer how the Company is positioned with regard to issues such as animal welfare and sustainability criteria, such as supply chains free of deforestation and slave labor.

JBS also conducted a survey to understand the consumer interpretation of the message “trust, from start to finish,” which is the central theme of the campaign. The results showed that 35% of respondents make association with “strict controls over the production process,” which occurs daily in the Friboi production chain. Before the marketing initiative, the figure verified was 21%. GRI G4-PR5

The current Friboi campaigns have also sought to educate consumers about the correct use of products (cuts) and debunking myths related to beef.


QR Code on the products
The clients and consumers of the Friboi beef brand (JBS Beef Brazil) can learn the name and location of the farms that produce the raw material for fresh products. The information can be accessed via smartphones or the internet, in a rather simple manner:

  • Using a smartphone, simply scan the QR Code present on the packaging of JBS beef brands.
  • On the website www.confiancadesdeaorigemjbs.com.br, simply provide the production date and the Federal Inspection Service (SIF) number.

This initiative is part of the Trust from the Source program, specifically created to enable customers to quickly, simply and transparently determine the origin of the beef that they are eating.

Pilgrim’s Pride Corporation (JBS USA Poultry) also offers a similar solution. All of the products are accompanied by a code that allows them to be traced back to the origin. This mechanism, called FreshTrace™, complies with the requirements of the Food and Drug Administration (FDA). To find out about the origin of a product, simply enter the code in the web page intended for that purpose. Find out more by clicking here.


Client Support 2.0
All of JBS’s business units have channels of communication with clients and consumers.

For the operations in Brazil, social networks have established themselves as an effective relationship channel between companies/brands and customers. To take advantage of the opportunities that these channels offer, JBS Beef launched Client Support 2.0 in 2015. It is an innovative system of interaction with consumers as it allows the Company to offer an agile response that is based on the profile of the audience that makes contact. This chat tool, available at http://www.friboi.com.br/contato/ was integrated with the traditional Client Support system and is the result of a partnership between Digital Marketing at JBS Beef and the Quality area. The Company also has a toll-free customer service line (0800 11 5057).

In 2015, the Client Support system registered three questions by email regarding environmental issues: two seeking more information about the Company’s environmental responsibility projects and one asking about the certifications that JBS holds. All of the questions were answered by the Company. GRI G4-EN34

JBS Foods also has a Client Support system that receives more than 3,000 contacts per month via the toll-free line (0800 47 2425), e-mail and social networking. The Client Support system, which is also available at http://www.seara.com.br/fale-conosco/, produces all registries and maintains records to provide as much information as possible and contribute to the Company’s strategic decisions and improvements.



b. Community

Many of JBS’s activities are conducted in labor-intensive environments. As a result, the Company plays an important role in the communities in which it operates through the generation of jobs, contributing to the economic development of these localities.

In addition to this social and economic role intrinsic to its operations, the Company seeks to support initiatives aimed at educating children and young people, as well as providing training and social inclusion to people with special needs.


Germinare Institute
JBS is the main sponsor of the Germinare Institute, located in São Paulo/SP (Brazil) and created in 2009 by J&F Investimentos, the Company’s majority shareholder. The Institute offers free fulltime education. In order to develop leaders for the future, it complements the traditional curriculum with topics and activities aimed at encouraging entrepreneurship and the formation of business managers.

In 2015, the Institute had 530 students enrolled - adolescents and young people between 12 and 18 years of age, with its first high school graduating class composed of 72 students. Learn more about the Germinare Institute (here).

Student from Germinare Institute
Germinare Institute

Free, full-time education

Unique teaching, aimed at promoting a culture of entrepreneurship

530 students, aged 12 to 18

Special Chefs
JBS is one of the sponsors of the Special Chefs project, an initiative developed in Brazil that seeks to promote the social inclusion of young people with Down Syndrome through gastronomy. By promoting free workshops with renowned chefs who teach how to use the ingredients and execute a recipe, the project seeks to help the participants achieve autonomy, gain confidence and develop self-esteem and motor coordination.

Special Chefs has had a partnership with the Friboi brand since 2013, which contributes financial support, provides products and promotes initiatives created by the Institute. In 2015, Special Chefs served approximately 300 young people and was elected by the Brazilian Academy of Merit Honors unanimously as the “Best Social Responsibility Project of the Year in Gastronomy.” Friboi was also awarded the Social Responsibility award, as the project’s sponsor, supporting the Best Project of the Year. Learn more about the project.


Community involvement activities in Europe

  • Moy Park (JBS Europe) is committed to the social, economic and environmental development of rural communities in the areas where it operates. The Company contributes to initiatives geared to these communities through grants and support to The Prince’s Countryside Fund, which develops more than 120 projects in the UK, benefiting some 100,000 people.
  • The Moy Park units located in Grantham and Anwick, England, participate and support the “Feeding the British Future” program, created and managed by the IGD institution.. The initiative, aimed at training young people seeking job opportunities in the UK food industry, includes professional training programs and visits to production units. The food industry is the largest employer in the UK, employing over 3.7 million people, and the IGD program plays a key role in the fight against youth unemployment.


Community Involvement Activities in the United States

  • Each year, JBS USA supports several fundraising campaigns, including the United Way of Weld County, Relay For Life and the Weld Food Bank. Many business units are located in rural areas and are often the largest generators of employment opportunities. In addition, JBS also performs volunteer work and provides monetary donations for a number of institutions such as the “4-H youth development and mentoring programs” and “Future Farmers of America.” In 2015, for example, the cattle processing unit in Greeley, Colorado, sponsored the 100th home for the “Greeley Habitat for Humanity” with a donation of US$70,000. These funds were used to cover the costs of construction materials and labor. Many JBS team members also participated as volunteers during the construction of the house.
  • The JBS Pork plant in Marshalltown, Iowa, is part of the Can-Do project and collected approximately 1,500 items of canned food, instant noodles and bags of rice. The donations were passed on to the local food bank.

Special Chefs

c. Governments GRI G4-SO6

JBS is committed to adhering to the highest standards of integrity, ethics and transparency when interacting with government officials and public officials. To guide the conduct of team members and outsourced consultants who interact with the government in the performance of their duties, the Policy on Relations with Government Entities and Public Officials was published in Brazil in 2015. The document, which is applicable to operations in the country, establishes criteria and rules of conduct in the relations of JBS companies with government and/or public officials for meetings, the delivery and receipt of documents and other contact necessary to obtain licenses and permits, present claims, participate in bids and discuss matters relating to the JBS operations that depend on government action.

In all jurisdictions in which JBS operates worldwide, ethics and anti-corruption training is offered in order to ensure compliance with local laws.

GRI Appendix
Environmental Category
Aspect: Materials
Aspect: Effluent and Waste
Aspect: Products and Services

GRI G4-DMA
GRI G4-EN1: Materials used by weight or volume
GRI G4-EN2: Percentage of materials used that are recycled input materials


GRI G4-DMA
GRI G4-EN23: Total weight of waste by type and disposal method
GRI G4-EN25: Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention, Annex I, II, III, and VIII, and percentage of transported waste shipped internationally


Solid Waste
JBS manages and identifies waste reuse opportunities in its operations in order to minimize impacts to the environment and the surrounding communities through the responsible use of natural resources.

Volume of waste generated (tons)

JBS GLOBAL
2015
NON-HAZARDOUS 5,031.07 99.1%
HAZARDOUS 43.43 0.9%
TOTAL VOLUME 5,074,.51
 
1. Industrial/Sanitary Landfill – In-house 27.25 0.54%
2. Industrial/Sanitary Landfill – Third-party 4,007.97 78.98%
3. Compost 729.19 14.37%
4. Incineration 4.,15 0.87%
5. Recycling 241.02 4.75%
6. Energy Reuse 9.96 0.20%
9. Other 14.96 0.29%

More than 80% of post-industrial waste generated in Brazil is sent for composting, recycling or reuse to generate energy.

The solid waste management initiatives adopted at the Brazilian operations seek to reduce the volume of waste generated, reusing materials that can be recycled and disposing of that which must be discarded in an environmentally appropriate manner. The solid waste management actions are consistent with the requirements of the National Solid Waste Policy (PNRS), which establishes best practices, by contributing to the reverse logistics of postconsumer packaging, increasing the percentage of recycled materials and reducing the volume of waste going to landfill. As such, the following actions, among others, were conducted throughout 2015:

  • Full participation in the meetings of the National Sectoral Agreement, managed by the Business Commitment for Recycling (Cempre), which includes the participation of hundreds of companies in the consumer goods sector;
  • Support for recycling cooperatives (as part of the Sectoral Agreement), in order to contribute to the professionalization of the sector and thus increase the income of cooperative members. In 2015, JBS allocated approximately R$500,000 in actions related to the PNRS;
  • Partnership with Prolata Reciclagem, a nonprofit association made up of the value chain of steel can manufacturers in Brazil, which aims to ensure the recovery of steel and its reuse in the value chain; and
  • Reducing the volume of product packaging, through projects developed by the research and development areas.

The materials used for the manufacture of postconsumer packaging in Brazil are broken down as follows:

Materials used in packaging (by weight or volume/renewable and non-renewable)
Plastic 15.40% Non-renewable
Paper/cardboard 83.77% Renewable
Metal 0.69% Non-renewable
Styrofoam 0.13% Non-renewable
Cellulose/Wood 0.01% Renewable
 
Primary and secondary packaging 23.5%
Tertiary packaging 76.5%

The Company’s solid waste management for operations in Brazil is handled by the unit’s environmental team, or by JBS Environmental, the business division that acts to manage, recycle and appropriately dispose of postindustrial waste, ensuring the traceability of waste throughout the process.

Plastics, metal, paper, hazardous and nonrecyclable materials collected by JBS Environmental had the following volumes managed in 2015:

VOLUMES MANAGED
MATERIAL (tons)
Plastics 5,202
Metal 8,045
Paper 3,713
Hazardous and non-recyclable 675

JBS Brazil Environmental (www.jbsambiental.com.br)last year managed more than 17,000 tons of JBS’s solid waste, a volume that represents more than 1,200 heavy trucks or 850 standardsize containers filled with material.

JBS Brazil Environmental also produced 3,258 tons of plastic resin at its plants. The recycled materials, besides generating plastic resins sold as raw material, were used to produce new products such as trash bags (3.6 million units in 2015), plastic bags, tarpaulins and customized products. All of the garbage bags used in the various units of JBS in Brazil are the result of the recycling process developed by JBS Environmental, allowing for a closed waste cycle.

Positive environmental impact through the recycling by JBS Brazil Environmental

  • With its recycled plastic in 2015, JBS avoided the consumption of 15,000 tons of oil, enough to supply 270 economy vehicles for a year.
  • The recycled resin production process consumes 70% less energy than the production of virgin resin. This resulted in a savings of 9,300 megawatt/hours, enough energy to power a town of 9,000 inhabitants for a year.
  • The amount of cardboard recycled is equivalent to 825 million A4 sheets, which is enough to circle the planet 18 times. The cardboard recycling prevented the cutting of 123,000 thousand trees and the consumption of 130 million liters of water, enough for 250 people to take one bath per day for 18 years.
  • By recycling plastic and cardboard, JBS stopped emitting 11,400 tons of CO2 into the environment.


Waste management at the North America and Europe operations
JBS USA, in partnership with its suppliers, has adopted new technologies and techniques that reduce the environmental impact of the packaging used for its products. There is an ongoing initiative for reducing the thickness of some packaging, resulting in a lower use of plastic resin and hence, less waste.

At Moy Park, none of the plants send waste to landfills. In a span of just four years, Moy Park has reduced the amount of waste sent to landfill from 80% to 0%. This is a remarkable achievement for the Company and further demonstrates its commitment to the best practices in sustainability.


Aspect: Energy
GRI G4-DMA
GRI G4-EN3: Energy consumption within the organization
GRI G4-EN6: Reduction of energy consumption

For its operations, JBS prioritizes the use of an energy mix from renewable sources. The Company continually invests in the purchase of more efficient equipment and has reduction targets for the energy consumption of its operations. JBS also includes best practices for energy consumption, such as turning off equipment and lights at night.

Throughout 2015, JBS’s global operations consumed 69,514,414 GJ of direct energy, i.e. energy for electricity generation, steam generation and thermal heating (stationary combustion), in addition to operating its own fleet of vehicles (mobile combustion). Of this total, 47.7% was generated by renewable sources.

Global energy consumption by source in 2015

Renewable Non-renewable
Total GJ - Direct Energy in 2015 33,131,302 47.7%
36,383,112 52.3%
69,514,414

Power generation
Reusing waste for energy - JBS Five Rivers (JBS USA) has developed a pilot project for a manure gasifier, a technology with the potential to replace part of the natural gas used in the boilers installed at the feed mills.

Biogás - Many of the JBS USA units use biogas produced by the Company’s wastewater treatment systems. One example is the pork processing plant in Marshalltown, Iowa, which recovers biogas from an anaerobic treatment pond (used for the treatment of animal waste).

Biomass - Moy Park (JBS Europe) has developed a biomass technology to be used as an alternative energy source to supply the heating systems used in the poultry processing units.

Cogeneration - In Brazil, JBS has the Biolins facility. Located in the Lins Industrial Park, the unit generates thermoelectric and steam energy using biomass waste from sugarcane industries and other activities, including sugarcane bagasse, sawdust, peanut and rice hulls and eucalyptus wood chips from waste in the region.

The thermoelectric generating capacity totals approximately 28 megawatts of power per hour, which is sufficient to supply a city of 300,000 residents. Approximately 60% of this energy supplies the Beef and Leather plants at the Lins industrial complex in São Paulo state. The rest is distributed among the JBS units and also sold on the domestic market. Steam generation, in turn, exclusively supplies the JBS plants that are adjacent to Biolins.

Biolins alone generates energy equivalent to 8% of the total energy that is used by all of the JBS units in Brazil. In 2015, it received investments of R$48 million for a 50% expansion of its thermal power generation capacity, which will come into operation in 2016. The funds are being allocated for the installation of three new boilers and a more efficient turbine and generator set.

Energy purchasing - In 2015, approximately 78.5% of all of the direct energy consumed by the operations of JBS in Brazil came from renewable sources such as hydropower and the burning of renewable fuels such as sugarcane bagasse and reforested wood, among others. This figure rises to 96.6% with regard to stationary combustion. In addition to this, R$37 million was invested in retrofit installations, in order to reduce the consumption of energy, water and steam.

In 2015, the volume of plastic waste recycled by JBS Environmental was equivalent to 20% of the total used in all of the Company’s processes throughout Brazil.


Aspect: General
GRI G4-DMA
GRI G4-EN31: Total environmental protection expenditures and investments by type

Total amount invested surpassed

R$ 716.4 million in environmental protection.

Total amount invested of more than

R$188.6
million

in environmental improvements²

Investment of more than

R$527.8
million

in environmental management¹

¹ Personnel expenses, waste disposal, wastewater treatment, laboratory tests, fees and taxes and general maintenance (equipment, structural improvements).

² Wastewater treatment projects, solid waste management, air emissions, eco-efficiency projects (reduction in water consumption, reuse of waste for energy, recovery of by-products) and other (erosion and degraded area recovery, reforestation and operational improvements, among others).

Social category: Labor practices and decent work Aspect: Training and education
GRI G4-DMA
GRI G4-LA11: Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

JBS carried out the following training and education programs in 2015:

Trainee Program, adopted at the operations in Brazil and the United States. Lasting 18 months, this program offers young graduates the opportunity to grow professionally in the Company. In the United States, it was launched in 2015 and had 34 participants. More than 20,000 young people registered for the program in Brazil in 2015.

Internal Talent Program, which enables production team members to occupy supervisory positions. The program, which was also adopted in Brazil and the United States, lasts six months and selects team members who work in the production area units to prepare them to occupy supervisory positions. On average, 20 out of the 300 team members who enroll in Brazil are approved each cycle. Of these, 90% are approved at the end of the program to become supervisors. In 2015, 67 staff members were trained from JBS Beef, JBS Foods and JBS Leather. At JBS USA, the program was launched in 2015, and the first group was made up of 44 participants from the operations in the United States and Canada.

Internship Program, conducted by JBS USA between June and August (during the summer). In 2015, 147 interns participated in this program, assigned to production units or the corporate business department of Pilgrim’s and JBS in the United States and Canada.

Team Member Training
In 2015, JBS held its first Environment Week in Brazil. Designed as part of the celebrations of World Environment Day, celebrated on June 5, the event lasted three days and brought together more than 300 team members for several lectures on strategic issues for the sustainability of JBS. The program included presentations by experts on the following topics: waste management, the efficient use of water and energy, climate change, guarantee of origin and corporate transparency. Team members were also informed of JBS’s own initiatives in relation to such matters. Learn more about the initiative here.

JBS Foods, in turn, held the “1st JBS Foods Convention - Internal Market,” which was attended by more than 400 people, including executive officers, supervisors and managers from every unit. The event aimed to promote integration, foster knowledge, define action plans and engage the participants. The Company has also adopted other HR programs. These initiatives include “Coffee with Employees,” which is held monthly to strengthen the relationship between team members and managers, and the “People who get it done,” which seeks to recognize the positive attitudes and commitment among the Company’s team members.

Individual Performance Evaluation
JBS Brazil and JBS USA team member performance is monitored using a 360° evaluation system, a methodology that enables it to diagnose and analyze professional behavior, interpersonal relationships and the adherence of team member skills with JBS’s values. This evaluation applies to 100% of eligible team members hired before August 30 of each year and occupying the posts of specialist, supervisor, coordinator, manager, executive officer or president of a business unit, or working at the Company’s headquarters in São Paulo and Greeley, Colorado. In the last cycle, 5,712 team members in Brazil participated in this evaluation.