Annual and Sustainability Report | 2019
JBS Ambiental in Lins (SP)

Our Business
JBS Brasil

Sustainability:
Social responsibility

GRI 203-2

Community relations

With operations in over 120 municipalities in Brazil, JBS has relations with communities and respects the characteristics of each location. To gain a deeper understanding of this context, all of the social initiatives carried out by Brazilian units were mapped using a qualitative survey that showed the main needs in each region where the Company operates. Based on these results, the Company prioritized five areas on which to focus efforts and investments: Health, Education, Basic Conditions, Catastrophes and Others. Scoring criteria were also established to list good practices developed for the communities. With this, over 100 initiatives were identified at different levels of maturity, resulting in a comprehensive panorama of this local action.

One goal of the survey is to allow the strengthening of existing projects and the construction of an identity of institutional action. The results helped to provide the structure for the Good Deeds Are Good (Fazer o Bem Faz Bem) institutional program, whose first unified action was the 2019 Christmas Campaign. Over 75 municipalities were registered, with over 90 institutions benefiting, and between the total raised and JBS contributions, this resulted in more than 100 metric tons of food donated, helping around 6,600 families.

A total of R$ 16.3 million in funding was provided by JBS in Brazil for social investments in 2019.

Friboi

Friboi supports the Agro Against Cancer Campaign, created to raise funds for Hospital de Amor, in Barretos (SP) – considered the largest specialized cancer center in Latin America, serving over 4,000 patients daily, free of charge. In the campaign, Friboi serves as a channel1 for its cattle suppliers to participate in the program by donating R$ 1.00 per animal sold to the Company. This initiative earmarked over R$ 500,000 for the hospital in 2019. That is 57% more than the total raised in 2018. The number of participating livestock producers also rose: 44% more suppliers engaged in the campaign in 2019.

Instituto Chefs Especiais, another initiative supported by Friboi since 2013, promotes bringing together flavorful cuisine and social inclusion. This project offers cooking classes to people with Down Syndrome and encourages them to develop independence while learning new skills in the kitchen. The project currently serves 300 students annually. JBS contributes financial donations, product donations and classes.

In 2019, the Company sponsored the first São Paulo edition of the traditional Favelas Cup, the largest competition in the world among communities. This event is organized by Central Única das Favelas (CUFA) and produced by InFavela, with the goal of reinforcing social inclusion through sports.

*Source: https://www.friboi.com.br/pecuarista/campanha?id=5

Social Action – seedlings distribution to schools in Montenegro (RS)

JBS Couros

JBS Couros has operations in Brazil and eight other countries, with extensive local social activites.

In Vietnam, for example, the Company promotes social actions every year in the Dak Lak province, with the goal of distributing kits of basic staples to families and toys to kids, among other initiatives. In 2019, furniture built of recycled materials was donated to the province’s school and the school was painted by the leather unit employees.

At Argentina, a partnership with the prison system lets the Company send raw materials from its production to penitentiaries, where this material is turned into products that are donated to the Fire Department, regional hospitals, arts and crafts classes and the prisons themselves.

In Uruguay, JBS promotes a leather goods manufacturing workshop and academic support classes. The workshop is held at Company facilities and its target audience is team members and neighbors. Academic support classes are, in turn, aimed at the children of team members and students in the community neighboring the unit.

In Brazil, in Marabá (PA), the Company takes part in the city’s seedlings nursery through a partnership with the Secretariat of Agriculture. It provides 70% of its production of fertilizer, which comes from management of the unit’s solid waste. The nursery has an annual production capacity of over 1 million saplings, helping to maintain and preserve the region’s native plants, such as açaí and cupuaçu

 

Instituto Germinare

Instituto Germinare is a non-profit organization, with the goal of providing full-day high-quality education free of charge to students from 6th grade to high school seniors. There were 585 students registered in 2019, 39 of which concluded their cycle upon graduating at the end of the year, with a total of 270 students having graduated since the school’s activities began in 2010.

JBS Brasil is the biggest sponsor of Instituto Germinare, having invested nearly R$ 16 million in 2019. However, the Company provides more than financial support: in 2019, Company executives spent 2,273 hours tutoring the school’s students. On the other hand, 42 former and current Germinare students were hired during the year by JBS Brasil and Seara.

The school’s methodology supplements the traditional curriculum with activities geared toward entrepreneurship, including business manager training. Upon finalizing high school coursework integrated with professional training, students receive technical diplomas in Business Administration.

Ipumirim (SC)

Occupational health and safety

JBS works with responsibility in health and safety for its team members, partners, suppliers and stakeholders. The Company has a Self-Management Health and Safety Program (PSSAG) that contains standards and principles, applied at each production unit with the goal of standardizing procedures, processes and programs in accordance with occupational health and safety laws and best practices.

The Company remains committed to performing preventive exams and monitoring team members’ health. In addition, healthy habits and practices are encouraged through awareness campaigns, two of which are annual. JBS furthermore has ergonomics programs and quality of life initiatives inside and outside of the Company. Each year, two nationwide campaigns are held, with themes that are relevant to team health and safety, in addition to occasional campaigns at each plant.

In 2019, total investments in health and safety in Brazil were over R$ 169.7 million.

To promote the health and well-being of its team members, JBS develops measures to prevent occupational accidents and diseases. One indicator of the efficacy of these actions has been a drop in the number of team members with leave registered with the Social Security system for this reason. In 2019, there was a reduction of 18.9% at JBS Brasil.

Human Resources department also develops legal training to comply with Regulatory Standards and the Specialized Services in Safety Engineering and Occupational Medicine (SESMT). In 2019, the SESMT worked significantly with the It’s Time to Take Care campaign, focusing on mental health. A variety of inhouse events were developed at businesses to instruct team members not to avoid seeking help, showing the Company’s support for employees and, by doing this, reducing rates of absenteeism across the entire process.

In addition to leaders contributing to raising team member awareness of safety on a daily basis, by being present and holding frequent dialogs focused on team behavior, the SESMT works to monitor team members day-to-day.

At each unit, the size of the SESMT depends on the degree of risk and number of team members. Teams are made up of safety engineers and technicians, physicians and occupational nurses, as well as ergonomists.

Among the safety tools used by the Company, the following deserve mention:

  • DDS: Health and Safety Dialog is one way to raise awareness among team members to foster prevention of accidents and the occurrence of occupational diseases. It is aimed at alerting team members to the safety procedures that must be followed by all workers involved. This is done daily, in each sector at units.
  • Behavioral Audit: an assessment of deviations in team member behavior in relation to safe practices in performing their activities. A discussion is held with the team member who has committed a deviation in an effort to warn them about working safely and of the possibility of accidents occurring. Deviations are immediately corrected.

Itapiranga (SC)

Other important authorities in governing health and safety at the Company include:

Internal Commissions for Prevention of Accidents (CIPAs)
CIPAs commission members are elected by employees and Company representatives. The CIPAs observe and show risk conditions in the workplace, requesting mitigation and control measures or even neutralization of existing risks, discussing accidents that occurred and asking for measures to keep these situations from being repeated.

Emergency Brigade
Present at every JBS unit, emergency brigades are made up of volunteer team members, who receive training and education to act in a variety of emergency situations.

Safety Committee
A multidisciplinary committee whose members include top leaders, the goal of which is to discuss key actions, accidents, indicators and other topics related to team member health and safety. Meetings are held monthly at each unit and at the corporate level.

Incident Investigation
For investigation of serious accidents, a committee is formed with the participation of the SESMT, leader/team member (when possible), witnesses and CIPA members. The main goal is to create a program of prevention to reduce or eliminate risks in the work routine. After investigating the causes of the incident, preventive measures can be applied to all business units.

In order to guarantee that these principles guide every activity and all team members, in Brazil, the Company has a Health and Safety Policy, which lists the five basic principles in its commitment to stakeholders.

The five principles of the Health and Safety Policy:

  • Motivate, inform, develop, train and qualify team members, making them responsible for ensuring and promoting a healthy and safe working environment;
  • Anticipate and prevent accidents, understanding that all accidents can be avoided;
  • Seek to continually improve processes, machinery and equipment, promoting control actions to eliminate or minimize incidents;
  • Ensure compliance with legal requirements, the Self-Management Health and Safety Program, and other items applicable to health and safety;
  • Build and disseminate a culture of Health and Safety as a value by leading through example, individual responsibility and shared vigilance.

Amparo (SP)

Training and control

Through investment in training and education, the Company works to prevent risks and remedy the impacts caused by accidents. Activities follow the guidelines set forth in Regulatory Standards (NRs) published by the Ministry of Labor and are monitored daily by leaders in the workplace. In 2019, 93,000 team members received health and safety training, and “safe behavior” was one of the themes most discussed during the year.

Audits are based on laws and internal procedures. Any nonconformance is monitored by the safety committees at the local level and by the corporate committee (whose members include all business unit HR directors and managers from the Specialized Services in Safety Engineering and Occupational Medicine – SESMT). These committees analyze information from all of the divisions; additionally, audits are done by the Ministry of Labor and regular independent audits are carried out by the Company’s customers.

Indicators are monitored by JBS daily, with periodic analyses of data and constant evaluation of each operating unit’s performance as a form of control. The Company closely monitors accident frequency and severity rates. Although rates at JBS are comparable to market rates and the Frequency Rate has fallen, the Company continues to make efforts to lower these numbers, particularly those related to severity.

In 2020, the Company will implement a predictive system that uses artificial intelligence, in order to warn of possible accidents that may occur. A pilot project was implemented in 2019 at JBS Couros.

Likewise, JBS monitors action plans and checks on any pending matters related to legal nonconformance found in safety inspections as well as mandatory training indicators for each job.

Team members with leave registered with the Social Security system: in 2019, the total reduction in Brazilian operations was 18,9%.

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