Environmental Performance

GRI 103-2, GRI 103-3

In 2018, the Company’s environmental team was restructured, strategic positions and functions were developed in order to better perform interdisciplinary projects and provide a better monitoring of environmental procedures and controls.

Through Sistema de Gestão Ambiental (SGA), an environmental management system, the Company performs documented controls with the support of the SGI, which allows for the standardization of processes in Brazil’s industrial plants. For the newly acquired plants in Argentina, Paraguay and Uruguay, this process of standardization has begun. Published documents are available for consultation on the Fluig system, a custom platform that gives employees access to internal regulations, procedures and policies.

The Company complies with all legal requirements applicable to its operation in all units by means of the necessary tools for the management of solid waste, liquid effluents and atmospheric emissions. For operational management, the supervisors use the Diário de Bordo a log that together with the action manager, compiles all data to unite the monitoring and control of the operation. In addition to all these controls, weekly conferences are held with the units to discuss and report on environmental processes and indicators.

Water

GRI 303-1, GRI 303-2, GRI 303,3

Water is a precious and limited resource, which must be used and managed responsibly, from the raw nature to its finished product. The operational procedures of the Company depend to a large extent on water availability, which ensures the sanitary standards of its processes and products, as well as the sanitation of areas, equipment and utensils. It is, therefore, an input transversal to all other actions.

Most of the Company’s units are supplied by surface water that, before industrial use, passes through treatment facilities. Water consumption is managed by corporate guidelines and reduction goals aimed towards a conscious use of the resource and encompassing the entire water cycle. In 2018, the Company set a reduction target of 5% over the previous year.

Water consumption is monitored and managed daily by environmental supervisors through calibrated water meter measurements, the data of which is reported to plant and corporate area managers. This procedure ensures an integration between the areas, aiming at the responsible use of the resource. In the managing platform the environment monitoring is recorded.

In 2018, as a means of preventing leaks and adopting modern water resources management equipment, the Company promoted the replacement and / or installation of pressure reducing nozzles, especially in the areas of sanitary barriers and sinks in general, of the industrial units. Another rational use measure is the reuse of water (from the defrosting of cooling chambers, rain, backwashing of water treatment plants, among other sources). Last year, the implementation of the reuse of water collected from defrost, in the industrial unit of Janaúba (MG) was highlighted.

In the search of ways to establish a more efficient and conscious water consumption, the Company also invests in the engagement of its employees, community and value chain, through training and awareness campaigns.

World Water Day
To celebrate this day, activities were developed to encourage the responsible use of water, increasing employee awareness of the importance of water as a resource for survival and well-being. Talks were given addressing topics such as the water cycle and global, national and unit water consumption. There were also presentations of projects made by the Company in the area, such as wastewater reuse, through the exhibition of photos, dialogues and demonstrations.

Arbor Day
In celebration of Arbor Day, in 2018, the Company took actions to encourage tree planting and raising awareness amongst its employees and the community on the preservation of trees and the environment for the survival and well-being of all. Informative materials were distributed and actions were carried out in the community, with the cooperation of schools, NGOs, environmental agencies, and local government.

Among the activities carried out were the delivery and planting of native seedlings, as well as the restoration of natural areas that had been possibly degraded, aiming at the preservation of springs and the installation of water distribution systems via solar energy.

World Environment Day
The event to celebrate the World Environment Day in 2018 had as its theme ‘Vá de Bike’, to encourage transportation by bicycle. Environmental information material was handed out along with lectures by environmental professionals, student visits to industrial units to learn about the Company’s environmental and recycling processes, seedling planting and competitions, among other activities.

Waste

GRI 306-2, GRI 306-4

The Plano de Gerenciamento de Resíduos Sólidos Industriais (PGRSI), a waste management plan responsible for ensuring the environmentally sound management of waste generated by the Company, providing the specific destination required by each category of waste once separation between reusable materials and those that must be decontaminated or discarded has been completed. The waste management of the operating units is performed through document registration, such as the Waste Transport Manifest, a checklist of the truck that makes the transportation, invoices, certificates of destination and licenses of the waste collecting companies, places of destination, among others.

In the Brazilian units, recycled waste is sold to specialized companies, while non-recycled waste is sent off to a licensed landfill. At the Argentine units, it was determined that the waste is to be temporarily stored at the plant and subsequently removed by a waste treatment provider, who is responsible for disposal, recovery or recycling, according to the characteristics of each waste. In Colombian operations, waste is collected, transported and disposed of by legally qualified and authorized waste treatment companies.

In 2018, the Company disposed of 2,810.20 tons of waste. The main material discarded was paper and cardboard.

Effluents

GRI 306-1

The liquid effluents generated in the Company’s operations undergo physical-chemical and biological treatments, and are monitored through sampling, which allows the verification of the system effectiveness and identify areas for improvement. Going through primary treatment and subsequent conduction to stabilization ponds, its quality must meet what is recommended by current legislation and IFC monitoring indicators. At the Brazilian units, monthly analyzes are performed to monitor the efficiency of the system. All the units have Effluents Treatment Stations, with primary and secondary systems.

The management of effluents resulted, in 2018, in a satisfactory accomplishment of the goals by the local teams, with a 3.32% reduction in effluent generation in the Brazilian units. In the same year, the Company invested on improvements to the treatment plants of the Barretos (SP) and Rolim de Moura (RO) units, with prospects of improvements in the systems of the other industrial units over the next two years.

Climate change

GRI 201-2, GRI 305-1, GRI 305-2

In relation to climate change, the Company identifies risks of direct impact, which may affect its costs and business continuity, and indirectly, reach the production chain. Among the first for example, the increase in operating costs due to water scarcity and a reduction in cattle supply. In the chain, it is possible to identify a potential withdrawal of suppliers from the agricultural business. Accordingly, the Company systematically monitors, suppliers that operate in deforested areas in the Amazon biome or that are on the embargo list of IBAMA. Throughout the years, the Company has privately monitored more than eight million hectares of the Amazon biome, blocking more than 2,000 direct suppliers for non-compliance of the adopted sustainability criteria. Through this initiative, the Company guarantees the integrity of its operations with the sustainable management of its supply chain.

Thus, interested in mitigating these risks, the Company seeks to improve its management through research and analysis of the sector and chain, as well as promoting good practices. Monitoring the consumption of resources in its direct operations is essential, as well as the establishment of internal actions, such as the creation of the Inventário de Gases de Efeito Estufa, an inventory of greenhouse gases that published every two years. There are also actions specifically focused on the chain, such as Falando de Pecuária, and the sharing of informative emails, with climate data and guidelines for better business management.

An important impact prevention initiative was the development of the Sistema Online de Gestão Integrada (SOGI) an online management system which compiles all environmental and health and safety legislation, from which action plans can be created to ensure compliance. In 2018, the Company performed an internal audit of its operations located in Brazil, in order to verify the execution of the plans and compliance with legal requirements. That same year the emission for the operation in Brazil was 290,919.455 CO²eq (Scope 1) and 13,246.094 CO²eq (Scope 2). while the consolidated emissions from all units of the Company were 340,413.47 CO²eq (scope 1) and 16,514.82 CO²eq (scope 2).

Electric Power

GRI 302-1

After cattle, electrical energy as the main input consumed by its operations, it is a resource that receives great attention from the Company. The management of electrical energy is the responsibility of the Engineering sector, being conducted by the industrial units themselves, whose managers provide daily data on their consumption.

Interested in raising energy efficiency – including considering that energy consumption interferes with fundamental activity indicators, such as the value of deboned product per kilo, the Company maintains targets for reducing consumption, and investment in renewable energy and energy efficiency, seeking to increase this efficiency, which contributes to the reduction of greenhouse gas emissions.

Most of the energy efficiency actions undertaken are related to the cold chain (preservation of refrigeration conditions in the conception, storage and transportation of the product), indispensable to the activities.

One of the most relevant actions in 2018 was the creation of the ideal consumption curves for electric power consumption in the units, based on the internal benchmark, which enables the identification of deviations and the creation of actions to reduce the consumption of electric power in kilowatt-hours per tons of the finished product (kWh/TPA). This improved control has led to new operational actions and procedures for energy efficiency and product quality. Interested in advancing control and management over energy costs, since 2016 the Company has maintained a specific business area, the Minerva Comercializadora de Energia, a department responsible for identifying opportunities to reduce costs and mitigate relevant risks related to the electricity market, bringing profitability and efficient use of the input, as well as trading in energy from renewable sources. Through it, the Brazilian production units have been purchasing energy in the free market, according to the annual production forecast, which has led to cost reductions and increased profitability of the Company.

(1) Exceto a de Goianésia (GO)