The Company relies on a computerized system that manages environmental and sustainability indicators at production units, such as water usage, effluent generation and analysis, energy consumption, steam generation, waste generation, transportation, gas coolants, production data and indicators on greenhouse gas emissions, among other items. Data is periodically entered into this system by teams at each unit. This allows for oversight of plant performance and listing of goals to reduce the Company’s consumption and generation of waste, making better management possible so as to create plans to prevent and reduce environmental impacts.

The Environmental Management System is audited internally and is based on ISO 14001 specifications. The Campo Grande II (MS) unit is certified in this standard, which it uses to develop the environmental stewardship tools applied to all Friboi production units, according to the needs of each unit. JBS Couros uses the requirements of LWG certification and its Kind Leather program as its base. All JBS Couros team members undergo environmental training at least once a year.

In 2019, in order to take another step forward in managing and increasing the transparency and reliability of information supplied to the market, water consumption, energy consumption, greenhouse gas emissions (scopes 1 and 2) and production data were audited by SGS, a Swiss company that is a world leader in inspection, verification, testing and certification, according to standards established by ISO 14064-1: 2007 and the Brazilian GHG Protocol Program.

A total of R$ 99.7 million was invested in environmental management at JBS Brasil in 2019, up by 83% from the previous year.

Water and effluents

GRI 303-3

Management of water resources at Brazilian JBS operations is in line with the Company’s view that water is at the base of its production chain and its sustainable use is a priority. That is why it works to develop strategies and projects to guarantee maximum efficiency in using and reusing water, in addition to minimize the need for new sources of collection. The greatest reference in the Company for this management is the Sustainable Water Management Program (PGSA). The program is mainly tasked with identifying JBS units and critical high-priority water micro-basins; developing projects; deciding on allocation of investments and establishing targets to reduce water consumption; engaging leaders and team members; and creating innovating solutions to reuse water.

The work done by JBS to manage its water resources has been recognized by the CDP Water platform, to which the Company also sends annual reports on its performance in water management. The Company’s performance in 2019 placed it among the 14 best companies in South America regarding this topic.

All JBS production units in Brazil comply with specific municipal and state laws, as well as guidelines from oversight agencies. Production units are also subject to federal laws under the auspices of water management, such as discharge of effluents (Conama 430/2011) and water supply (Consolidation Directive no. 5/2017).

The biggest management challenge in relation to this topic has to do with quality; however, availability can also be a challenge at some specific locations. To control this risk, investments have been made in automatic equipment to control operations/disinfection, as well as in structural improvements and standardization of controls at wastewater treatment stations. Strategies to fulfill any emergency demands during droughts include building raw water storage reservoirs and reducing water consumption.

JBS Brasil invested over R$ 6.7 million in improvements and eco-efficiency related to water, 86% more than in 2018. These investments, along with operational procedures adopted by teams, resulted in a 3% drop in water consumption per ton of product in 2019, year-over-year.

In addition to efforts made to lower water use, JBS has also invested in increasing reuse. In 2019, JBS in Brazil reused over 178 million liters, which is equal to the monthly consumption of a city with a population of 50,000.

When it comes to liquid effluents from the production process, plants use modern wastewater treatment stations for collection and appropriate treatment, in compliance with legal requirements. In 2019, over R$ 18.2 million was invested in modernizing and improving wastewater treatment efficiency. All effluents coming from operations are sent to each operation’s own treatment stations or to public treatment systems. The Company constantly monitors the performance of effluent treatment stations, complying with the physical and chemical standards stipulated by law, with oversight from the respective governmental agencies in each state and municipality.

JBS Brasil guarantees that 84% of the volume of water collected and used in its industrial processes is safely returned to the environment with quality, with the sole exception of wastewater sent for treatment in the public system.

Mozarlândia (GO)

Friboi

In 2019, water consumption per metric ton produced at Friboi was down by 4% compared to 2018. The Company carries out initiatives to lower consumption, especially in those processes where water use is substantial, such as in stockyard operations, cleaning, boilers and heat exchangers. Key projects in this area included reducing pressure in the water supply line, which automatically lowers consumption; automation of specific points within the production process; and raising awareness among and providing environmental education to team members.

In the area of reuse, the Company has projects for reuse of water from cooling systems, equipment cleaning and backwashing of water treatment stations. Studies are being done on a project to reuse treated effluent water as well. All water reused is sent to areas outside of the production unit, free of any contact with the production area.

JBS Couros

At JBS Couros, the protocol for Leather Working Group (LWG) certification, one of the most important in the industry, contains a section dedicated especially to water consumption for Gold and Silver certifications, reinforcing the commitment of the Company’s units to improving its rates. In Argentina, for example, water consumed during leather processing fell by 5.6% year-over-year.

In relation to effluents, there are projects for fertigation and to use some waste as fertilizers. An investment of US$ 1 million has also been made in Argentina to expand the anoxic treatment system to improve liquid effluent quality and remove contaminants.

Climate change

GRI 305-4, GRI 305-5

JBS Brasil takes part in platforms with a global and local scope, providing transparent performance in controlling greenhouse gas (GHG) emissions, such as the CDP, the Brazil GHG Protocol program, the Carbon Efficient Index (ICO2) of the B3 (São Paulo Stock Exchange), and the Paraná Secretariat of Environment’s Paraná Climate Seal. All of these initiatives have annual reporting of JBS’s GHG emissions inventory.

During 2019, JBS joined the Coalition named as Brazil, Climate, Forest and Agricultural, a multi-sector movement whose goal is to propose actions and influence public policies that lead to the development of a low-carbon economy, resulting in the creation of quality jobs, fostering innovation, making Brazil more competitive globally and generating and distributing wealth.

The main highlight among actions aimed at lowering emissions in 2019 was qualification of JBS Biodiesel as the first biodiesel company authorized to take part in a new Brazilian policy to reduce greenhouse gas emissions, with the authorization of the country’s National Agency of Petroleum, Natural Gas and Biofuels (ANP). This means that the Company now is authorized to issue Decarbonization Credits (CBio), as established by the RenovaBio program, which are obtained from production of biodiesel, the main raw material of which is bovine tallow. The Company will sell Cbios from 2020.

In October 2019, Lins (SP) was the first plant certified, followed by Campo Verde (MT), in February 2020. Biodiesel produced by these units prevents around 80 grams of carbon dioxide- equivalent per megajoule of energy generated by vehicles, when compared to the same energy generated from diesel use. For every 370 liters of biodiesel produced at its two plants, JBS will be able to issue 1 CBio, the equivalent of preventing one metric ton of carbon dioxide. Considering that JBS maintains the same biodiesel production level as in 2018 (260 million liters), the Company will be able to issue around 800,000 CBios per year.

Under the program, producers start measuring and qualifying all of its greenhouse gas emissions in order to obtain an energy and environmental efficiency score to issue decarbonization credits, for sale on the stock exchange. Earnings should be invested in expanding and maintaining the production system.

The result is yet another step forward in JBS’s history of creating value by reusing bovine tallow and other inputs, like recovered cooking oil, to produce biodiesel.

The Friendly Oil program, conducted by JBS Biodiesel in partnership with JBS Ambiental, collects used cooking oil from over 200 collection points in 37 municipalities in São Paulo. In 2019, 4.7 million liters of cooking oil were recovered to be reused in biodiesel production, 34% more than in 2018. This amount is equal to lowering emissions by 5,800 tCO₂, when projecting savings of the same amount of diesel fuel used in machinery and vehicles, in addition to preventing contamination from cooking oil of around 120 billion liters of water, the equivalent amount used by 3 million people per year.

JBS Transportadora promotes optimization of distribution routes as one of its biggest efforts to lower GHG emissions. Changing out the truck fleet resulted in savings of 83,000 liters of diesel fuel in the last quarter of 2019, equal to 5% of the total used. For 2020, savings are expected to reach 330,000 liters of oil during the year.

The Optimized Route program aims to bring more efficiency to cargo transport, by optimizing the trips made by its own trucks and in partnership with third parties, so that trucks that would return to factories empty then transport partner cargo. This means that the entire route back and forth is used 100%, contributing to reducing fuel use and consequent CO₂ emissions.

Ibira solar power plant (SP)

Energy

GRI 302-3, GRI 302-4

The main strategy for managing energy at JBS Brasil is to invest in self-production, while also bringing down consumption and improving energy efficiency, aimed at attaining better economic and environmental performance. The Company works with monthly and annual energy consumption goals (kWh/cattle processed and by ton of product or leather goods).

Other trends are:

• An increase in migration to the Open Energy Market, edue to better performance;
• Automation, due to savings on resources from using more efficient equipment;
• Replacement of conventional light bulbs with LED models;
• Reduced natural gas consumption, in favor of cleaner fuels.

In 2019, two 75-kilowatt voltaic plants were leased as part of a pilot project to meet consumption demands at the Swift store in Valinhos (SP), generating over 300,000 kWh of energy during the year. In early 2020, a 1,200 kilowatt-peak photovoltaic plant was leased in Ibirá/SP, currently serving six Swift stores. The Company continues to look to partner with more plants to serve 100% of energy consumed at Swift stores by using renewable electric energy in its activities.

JBS has a cogeneration unit in Lins (SP), called Biolins, which uses biomass (sugarcane bagasse, sawdust, peanut shells, rice hulls and eucalyptus chips) to generate thermoelectric and steam energy. The thermoelectric plant has the capacity to generate 45 megawatts of energy per hour, a volume sufficient to supply a city with a population of 300,000.

Around 33% of electricity generated by Biolins supplies the Friboi, JBS Couros and JBS Novos Negócios production plants the same industrial complex where it is installed. The rest is distributed to JBS facilities and is sold to the national market. Steam generation, in turn, is solely used to supply adjacent JBS production plants. Biolins alone generates the equivalent of 20% of total energy used by all JBS factories in Brazil.

Other strategies include ongoing improvement in energy efficiency at production plants and expanded use of energy from renewable sources. Right now, 65% of energy the Company acquires on the open market comes from renewable sources. To generate steam, just 1.1% of fuel used comes from fossil fuels. To generate electricity, 1.6% of energy consumed comes from diesel.

From 2018 to 2019, electricity consumption per metric ton fell by 4.4% at JBS Brasil. Electricity projects were concentrated on optimizing the cold generation operation (machine room). For steam, there were projects to optimize consumption by installing more efficient equipment and reusing condensation, in addition to investing R$ 28.4 million in energy efficiency projects.

Out of all direct energy used in JBS Brasil processes, 85% comes from renewable sources, considering electricity use and fuel used in the Company fleet and to generate thermal energy. When only considering the use of thermal energy generated by Company boilers, over 98% is renewable fuel.

Waste and packaging

At JBS Brasil, every area is committed to working to recycle, reuse and reduce solid waste generated in industrial processes as efficiently as possible. All production units comply with the National Solid Waste Policy and waste management is based on the Solid Waste Management Plan (PGRS), created by the team members tasked with environmental duties at the unit. This plan defines procedures for collection, transportation and correct disposal, along with good practices to lower the amount of waste generated in specific points in the process.

The Company uses research and development projects to work on bringing down the weight of packing material used, changing out packaging materials for materials that are more easily recycled and reused as well as for projects to recycle materials for use in other products within the process.

JBS Ambiental is a business unit working with a circular recyclable waste economy. It is responsible for collection, processing (recycling) and reuse of materials inside the Company. Plastic waste, such as polyethylene, is recycled and turned into new products for use at JBS production units as trash bags, plastic tarps, pallet covers, shrink wrap, pallets and injected racks. Today, 100% of trash bags used at JBS are produced in-company; in other words, they come from circular economy initiatives.

Plastic collected by JBS Ambiental management units is sent to the Lins unit and transformed into recycled plastic resin, for use as a raw material in manufacturing products. In 2019, 2,432 metric tons of recyclable plastic resin and 2,189 metric tons of recycled plastic products were produced, this is equal to around 5 million units of new recycled plastic products and 1,780 ton of recycled shrink.

Another example of reuse is the process carried out with wood pallets that are collected at the Lins (SP) unit for refurbishment, after which they once again enter the production cycle, maximizing use cycles. In a project developed with a partner, five tons of liners (waste from labels used at meatpacking plants) were prevented from being sent to landfills each month.

JBS Ambiental’s overriding commitments are management of solid waste generated by JBS production units, aimed at compliance with current laws; reuse to add value to waste generated by the Company, consolidating the circular economy concept; and development of products and processes using recycled raw materials and promoting the sustainability of the business. In 2019, JBS Ambiental managed 23,904 metric tons of solid waste, including plastics, metals, oil, cardboard and non-recyclable waste.

Volume of recycled resins and plastic products produced

JBS Ambiental in Lins (SP)

In 2019, centers in Goiânia (GO) and Senador Canedo (GO) were opened, with facilities in Andradina (SP), Barretos (SP) and Lins (SP) modernized. These investments resulted in a 32% increase in the amount of waste managed, going from 18,000 metric tons in 2018 to 24,000 in 2019. For 2020, challenges at JBS Ambiental include opening new operations at Seara production units and developing circular economy products with multi-layer packaging.

At JBS in Brazil, approximately 387,000 metric tons of waste generated at factories were reused and sent for composting, recycling, energy reuse and cogeneration. Of this total, 21,300 metric tons were used to generate energy.

The tire analysis process was revised at JBS Transportadora, resulting in a lower rate of premature disposal and reusing tires that would have previously been discarded. Around 300 tires were reused in 2019, through this new process to extend useful life.

Prolata

In compliance with Law 12.305, which instituted the National Solid Waste Policy in 2014, JBS joined, in Brazil, the Industry Package Agreement and the Prolata Program, an initiative of the Brazilian Steel Packaging Association (Abeaço), based on three pillars: reception/deposit centers, whose structure is geared toward receiving large volumes; recyclable material collectors cooperatives, responsible for social inclusion work; and Voluntary Delivery Points (PEV), which interface with the end consumer. According to data from Abeaço, the program has already recycled over 31,000 metric tons of steel.

Prolata Program areas of action

JBS Brasil also takes part in the City+ Program.
Learn more in Seara/Environmental Stewardship.