Annual and Sustainability Report | 2019
Effluent treatment facility
in Frederico Westphalen (RS)

Commitment to
sustainability

Environmental stewardship

GRI 2013-1, GRI 103-2

Similar to other topics, the environmental stewardship process at JBS involves the utilization of resources, such as water and energy, lowering greenhouse gas (GHG) emissions and treating waste generated by the operation, with a focus always on improved eco-efficiency through innovative solutions and efficient management. In 2019, JBS invested R$ 689.82 million in environmental improvements.

Publishing of the results and assessments of practices adopted through the CDP, the largest and most respected global platform for corporate sustainability information, is part of the Company’s monitoring and analysis of improvements it has made. In 2019, results identified in the CDP showed that JBS had above average performance in all criteria assessed.

The platform allows the Company to report on its performance, policies and good practices in sustainability. Since 2015, the Company has used the tool to report on its performance in managing water resources (CDP Water program), to manage GHG (CDP Carbon) emissions and corporate actions and policies preventing deforestation associated with obtaining key agricultural commodities – cattle, soybeans, timber and palm oil (CDP Forests).

The study used five criteria to assess companies grouped in the food, beverage & tobacco industry. JBS had better than average results compared to companies in the industry working in the biggest animal protein Globally, R$ 698.82 million was invested in environmental stewardship at JBS factories. markets and compared to other sectors, meaning that the Company’s performance is among the best in the world in relation to corporations.

Data used in the assessment is gathered through questionnaires built around topics that cover risks and opportunities, governance, strategies, compliance, traceability, procurement policies, chain engagement and establishment of targets. All of these efforts are geared toward the Environmental Management Policy and by the Environmental Management Systems of its various businesses, which set guidelines and provide indicators to direct actions. Corporate environmental teams supervise environmental performance of operations and provide assistance for specific problems, in the event they arise. Cases on the most relevant results are shared and replicated whenever possible, regionally and globally.

Globally, R$ 698.82 million was invested in environmental stewardship at JBS factories.

Mozarlândia (GO)

Water management

GRI 103-2, GRI 103-2, GRI 303-3

JBS reiterates its commitment to sustainable water use as a priority in all of its units and also develops strategies and projects to guarantee maximum efficiency in using and reusing this resource. Water resource management is the foundation of the JBS production chain. This resource is considered essential to the development of animals and feed, as well as to assuring sanitary standards for processes and products in addition to sanitation of areas, equipment and tools.

The guidelines around water resource management are carried out at the corporate level and the actions are executed by plant environment teams. Specific targets and procedures are defined for each business, respecting their particularities. Is it worth noting among indicators monitored are control of water collection sources and of disposal sites for treated effluents, effluent treatment programs and reuse and recycling strategies, as well as water use based on production intensity.

In addition to monitoring rainwater collection, which reached 125 million liters in 2019, as a premise, the Company reuses water at various moments in the process. Many of these actions are shared by JBS operations around the world. Water reuse and recycling initiatives represent the biggest opportunity for saving this resource. Water reuse is chiefly employed in processes used in cleaning external areas and for cooling equipment, in accordance with existing sanitary standards. It is important to note that the specific local laws in each country outline the types of operations where gray water can be reused. In 2019, over 3.3 billion liters of water were reused in Company operations around the world, accounting for approximately 2% of water captured. This amount of water reused is equal to 1,320 Olympic-size swimming pools.

In addition, through eco-efficiency efforts and process management, JBS lowered the amount of water used in its operations per ton of product produced by 4%.

Investments in water management totaled R$ 39.1 million.

 

Water withdrawn by source

GRI 303-1

2019 2018 2017
Amount (in m³) % Amount (in m³) % Amount (in m³) %
Surface water 44,881,517.80 25.65 53,495,029.89 (*) 30.37 53,363,792.28 29.58
Groundwater 60,191,597.88 34.40 55,599,013.82 (*) 31.57 47,368,450.62 (*) 26.26
Public and third-party supply 69,659,103.35 39.81 10,668,979.54 6.06 16,886,962.75 9.36
Rainwater 125,782.72 0.07 158,451.27 0.09 172,538.48 0.10
Other sources 115,805.00 0.07 56,204,208.47 31.91 62,604,435.54 34.70
Total 174,973,806.75 176,125,682.99 (*) 180,396,179.66 (*)

(*) Data changed in relation to the last report

Effluents

Brasília (DF)

Liquid effluents resulting from the production process at units are appropriately treated and undergo a process that meets legal requirements. All effluents are treated, whether internally or by the public system. 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 country.

The volume of effluents generated by JBS was 151.7 million m³. JBS returns 87% of water collected and used in its industrial processes back to the environment safely. The only exception is the effluent volume sent to the public system for treatment.

Investments in effluent management and treatment totaled R$ 129 million

 

Volume of effluents generated and treated

GRI 306-1

2019 2018 2017
Amount (in m³) % Amount (in m³) % Amount (in m³) %
Volume discarded – water body 79,381,190.65 52.32 72,165,406.03 (*) 49.10 59,806,238.85 (*) 51.21
Volume discarded – fertigation 18,312,871.46 12.07 19,827,579.71 13.49 19,010,574.02 16.28
Volume discarded – public system 46,749,741.05 30.81 49,505,829.21 33.68 22,917,222.07 19.62
Volume discarded – other disposal source 7,287,937.79 4.80 5,474,609.14 3.73 15,052,391.53 12.89
Total 151,731,740.96 146,973,424.09 (*) 116,786,426.46 (*)

(*) Data changed in relation to the last report

JBS Biodiesel unit in Lins (SP)

Climate change

GRI 103-1, GRI 103-2

For the last 11 years, JBS has conducted an annual GHG emissions inventory, according to the international GHG Protocol methodology and has published its global inventory on the Brazil GHG Protocol’s Public Emissions Registry Platform.

JBS monitors and accounts for its operations’ GHG emissions and reports them within scopes 1, 2 and 3.

Scope 1 emissions
Emissions coming from the Company’s own fleets, fuels used to generate energy or heat in operations, effluent treatment ponds and enteric fermentation from animals on feedlots or Company farms, among others.

Scope 2 emissions
Indirect energy emissions from sources over which the Company has no responsibility or indirect responsibility. These emissions come from the use of electricity.

Scope 3 emissions
Indirect emissions resulting from the third-party fleet, commercial air travel, decomposition of waste on third-party properties and others. Emissions in this scope are therefore considered to be emissions over which the Company has no responsibility or indirect responsibility.

JBS is constantly looking for new applications and best practices to reduce the carbon footprint of its operations. Initiatives by JBS to reduce direct emissions are mainly focused on the volume of fossil fuels and energy consumed. A major effort is also being made to achieve a cleaner energy matrix, to use waste in generating energy, to gain more efficiency in treating industrial effluents and to increase the logistics efficiency of the Company’s own and third-party fleets.

 

GHG emissions by scope

(in tCO2e)

GRI 305-1, GRI 305-2, GRI 305-3

2019 2018 2017
Scope 1 4,593,547.51 4,379,351.82 (*) 5,504,609.52 (*)
Scope 2 1,615,547.85 1,550,524.56 (*) 1,780,515.80
Scope 3 930,672.31 704,850.13 (*) 580,081.37

(*) Data changed in relation to the last report

Absolute emissions at JBS rose slightly from 2018 to 2019. This was mainly due to the acquisition of new operations by the Company, such as Tulip, in Europe.

 

Energy

GRI 103-1, GRI 103-2

JBS invests in adopting best practices related to energy consumption. The Company is conscious of its responsibility to use renewable energies in order to reduce emissions in its value chain. This item is a priority for management, in terms of both the Company’s emissions and eco-efficiency, and it relies on a definite strategy as well as resources for implementation.

In 2019, JBS investments in energy efficiency projects worldwide reached R$ 59.6 million.

Energy matrix

(in GJ)

GRI 302-1

Direct energy* 2019 2018 2017
Total GJ 69,978,035.37 67,804,701.67(**) 67,742,846.23(**)
% non-renewable 54.23% 53.49% 57.19%
% renewable 45.77% 46.51% 42.81%

(*) Considers direct energy to be electricity generation, use of fuel in steam generation and thermal heating (stationary combustion) and fuel consumption to operate the Company’s vehicle fleet (mobile combustion).

(**) Data changed in relation to the last report

 

JBS Ambiental unit in Lins (SP)

Waste and packaging

GRI 103-1, GRI 103-2

Waste management is done at every JBS unit around the world, based on a commitment to reduce waste generated, appropriately dispose of waste, lower the amount of waste sent to landfills and decrease costs, always in accordance with current laws in the countries where it operates.

Management of solid waste generated during internal production processes at JBS is part of the strategy to reduce GHG emissions. The creation of methane (CH4), a greenhouse gas, is a byproduct of waste that the Company works to carefully dispose and treat to lessen its environmental impact.

JBS has undertaken a commitment to recycle or reuse the greatest possible amount of waste, so as to reduce waste sent to landfills and other destinations, in addition to supporting initiatives to promote recycling of post-consumer packaging in Brazil, using reverse logistics programs.

For JBS, the closed cycle system of reusing and recycling waste is fundamental to the sustainability of its operations. The Company develops a variety of initiatives to identify these opportunities.

Packaging is essential, especially when it comes to JBS’ responsibility to protect food and keep it safe from processing to the consumer’s table. That is why the Company promotes returning packaging to the production chain, in an effort to contribute to recycling and diminish the impact of landfill disposal.

All Company operations invest in research and development to find ways to reduce and optimize the use of packages, lowering the amount of waste generated by customers and consumers.

In 2019, JBS reused over 121,000 metric tons of waste to generate energy, which is 9% more than the previous year. This reinforces the Company’s commitment to optimize the use of resources in processes, using the circular economy as a premise. Over 1 million tons of waste generated by the Company were also reused, accounting for approximately 50% of all waste generated. This volume was used in composting, recycling, energy reuse and cogeneration.

Waste generated in operations

(in metric tons)

GRI 306-2

2019 2018 2017
Hazardous waste 32,706.93 1.50% 29,542.03 1.35% 9,356.68 0.50%
Non-hazardous waste 2,144,268.94 98.50% 2,161,720.3 (*) 98.65% 1,868,472.41 99.50%
Total volume of waste 2,176,975.87 2,191,262.33 (*) 1,877,829.09 (*)
1. Company landfill 19,260.53 0.88% 23,533.82 1.07% 22,828.2 1.22%
2. Third-party landfill 469,614.1 21.57% 304,087 (*) 13.88% 245,691.27 13.08%
3. Composting 588,655.27 27.04% 645,906.82 (*) 29.48% 637,852.63 33.97%
4. Incineration 13,288.89 0.61% 14,273.75 0.65% 10,732.44 0.57%
5. Recycling 304,952.38 14.01% 377,462.21 17.23% 399,072.36 21.25%
6. Energy reuse 121,763.63 5.59% 111,986.3 5.11% 57,438.97 3.06%
7. Cogeneration 54,873.48 2.52% 38,834.48 1.77% 28,277.42 1.51%
8. Fertigation 527,198.68 24.22% 584,400.37 26.67% 387,726.39 20.65%
9. Other 77,368.91 3.55% 90,777.59 4.14% 88,209.4 4.70

(*) Data changed in relation to the last report

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