2022 Communication on Progress

BRF S.A.

Published date

June 30, 2022

No. of questions

62

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    In 2020, we launched our Sustainability Policy, which reinforces and aligns environmental, social, economic and governance commitments and principles with the management strategy of our operating chain. We also structured an Executive Committee fully dedicated to issues related to sustainability with BRF executives and an external guest for strategic dialogues on the subject. In addition, we have a Sustainability Committee in Board level. The objective is to accelerate and strengthen the ESG agenda.

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    22

    Male (%)

    81.82

    Female (%)

    18.18

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    27.27

    Above 50 years old (%)

    72.73

    From minority or vulnerable groups (%)

    0

    Executive (%)

    66.67

    Independent (%)

    54.55

    13. Do you produce sustainability reporting according to:

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    Limited assurance report

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    To guide our actions on the global stage, just as our business partners have done, in 2021 we published our Corporate Policy on Human Rights. This document provides directives concerning the cross-sectional protection of human rights in compliance with Brazilian and international regulations, such as the Universal Declaration of Human Rights (UDHR) and the Guiding Principles on Business and Human Rights (UNGPs). BRF fights against all forms of discrimination and expects its employees and partners to always respect diversity and not tolerate discriminatory behavior, thereby guaranteeing fair treatment for all. Cases of non-compliance and/or suspicion of violations should be reported using the Transparency Channel, which is administrated independently and autonomously to draw together and investigate complaints. All accusations receive equal treatment and are addressed in order to remedy any violation of human rights inside and outside BRF’s operations. Once registered, the accusations are directed to our internal investigation’s teams, which investigate the facts and support the different departments in their application of corrective or disciplinary measures. The significant risks related to child or forced labor, and work comparable to slavery are found in the livestock farming supply chain and in the commodities chain, both in Brazil and overseas. As measures designed to mitigate these risks, as well as the regulations, our partners are regularly assessed on their reputation and their histories of court and/or administrative processes relating to the use of child or slave labor, and moral or sexual harassment and discrimination, amongst others. Of 2,595 potential new business partners evaluated for contracts, we signed agreements with 1,029 of them in 2021, and all of these contain clauses addressing the issue of Human Rights. The companies acquired in the pet segment were both evaluated in relation to their human rights records.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2021

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    2021

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    100
    Optional comment
    The BRF, respect the labor law of each of the countries and, when there is an entity representing the workers, collective bargaining agreements are 100% observed. In Brazil (company's headquarters), 100% of employees are covered by agreements and represented by the workers’ union (93 unions, 91 agreements, and 01 collective bargaining agreements). The information is public available on BRF Annual Report. Abroad, we obey the laws of each country and, whenever there is an entity representing any professional category, we extend the coverage of Collective Bargaining Agreements to 100% of employees. Except for the Middle East, where cultural aspects do not include collective organizations, our professionals are represented by unions.

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    0.34

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    24

    Non-executive board

    42.56

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    94

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    6.71

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0.78

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Ensuring the health and safety, wellbeing and integrity of our employees is a global priority for BRF. Within this context, we have a Health, Safety and the Environment Policy (HSE), containing directives for the prevention and reduction of accidents, incidents and losses, and covering the responsibilities concerning the management of risks related to the preservation of human life, assets, production, the environment and the community. Our activities are in compliance with all the laws and regulations in effect in all the markets in which we are active. We have indicators, targets and programs established in accordance with the periodic risk evaluations that are performed with the direct involvement of our management. Amongst the actions of special note for the promotion of health and safety , are the creation of OHS goals, systematization of KPIs, monitoring and control of risks with a high potential of occurrence, auditing of the units, and governance by committees focused on occupational health and safety issues. In order to further ensure safe and healthy working conditions and environments for our service providers, we have a Health and Safety at Work (HSE) process for third parties, formally established in the HSE Manual for Third Parties. This manual provides directives on health and safety, and preventative and corrective measures concerning the principal activities and specific risks, whilst also covering topics that involve the classification and documentation required for third parties, amongst others. The risk management in health and safety is performed in a cross-sectional manner, covering all markets and areas. Management of the risk control is in line with the NBR 14280 norm as well , as specific corporate regulations, whilst the injury rate observes the methodology of the Occupational Safety & Health Administration (OSHA). Deaths form part of the injury rates , and the calculation of days off work includes consecutive days, with the count starting the day following the incident. The processes involve operational and administrative controls to eliminate or minimize threats, accidents, illnesses related to the workplace and deaths. The risks identified are prioritized and discussed at a monthly meeting involving the Board of Directors, Regional Offices and Units, as a means of monitoring the reduction targets. The targets are monitored by a management system that, in addition to the final indicators, measure the interim indicators at each stage of the evolution. We also investigate all accidents and near accidents and perform an ongoing assessment of the health and safety system involving the monitoring of proactive and reactive indicators. This process is supported by weekly and monthly meetings at all levels of the organization.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2020

    Water

    2020

    Oceans

    Forests / Biodiversity / Land Use

    2020

    Air Pollution

    2020

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2020

    Energy & Resource Use

    2020

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

    Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)

    Climate Action

    We are committed to being Net Zero in greenhouse gas (GHG) emissions by 2040, both in our operations and in our production chain. Actions will be implemented to reduce, by 2030, 35% of direct emissions generated by the company's operations (Scope 1) and indirect emissions originating from the consumption of electric or thermal energy (Scope 2) and 12.3% of indirect emissions that do not belong to the Company (Scope 3), in addition to neutralizing residual emissions by 2040. These targets were drawn up based on the emissions of 2019 and 2020, respectively. With the advancement of this journey, BRF joined the Science Based Targets (SBTi) through the Ambition Letter for 1.5º C. The SBTi is a global initiative that offers guidelines for the construction of science-based goals. In 2021, we established the Net Zero Committee and implemented a digital and global system for the management of Scope 1 and 2 emissions. We achieved a 3% reduction in absolute emissions in relation to the base year (2019), principally through the prioritization of renewable sources with proven traceability, even considering the significant increase in the electricity emissions in Brazil. In relation to the Scope 3 emissions, we have so far recorded a 4.6% increase in the mapped sources in relation to 2020 (base year).

    Energy & Resource Use

    As well as striving to ensure the efficient use of electricity, we aim to increase the share of electricity drawn from clean sources by 50% by 2030. In 2021, 22% of electricity used by BRF was drawn from clean sources - wind and solar. This result was possible due to the strategy implemented by BRF for the prioritization of renewable and clean sources in the acquisition of energy. Also in 2021, we announced two partnerships for the generation of clean solar and wind energy, by means of which we should be able to draw 90% of our energy in Brazil from these sources.

    Water

    Aware of our responsibility in the face of a critical resource such as water, we follow strict quality standards that guarantee compliance with all regulations, both from the point of view of quality and quantity, systematically observing the limits of our water and effluent grants. As a reflection of our conscientious performance, we have established a sustainability commitment that challenges us to reduce BRF’s water consumption indicator by 13% by 2025. (water intensity). In 2021, we managed to reduce the water indicator by 0.81% in relation to 2020, with special mention going to the performance on the international market, with a 7.3% reduction in its water consumption. In 2021, we diagnosed the maturity of the hydromanagement at all of our Units, extended the water usage target to all of our production units, and included the subject of water in a wide range of the Company's governance forums.

    Forests / Biodiversity / Land Use

    We are commited to ensure 100% traceability of grains acquired from the Amazon and Cerrado. In 2021 we achieved 75% of traceability of grains acquired from direct suppliers in the Amazon and Cerrado, through the implementation of a territorial monitoring system, and the definition of the socio-environmental criteria established in our Sustainable Grain Purchasing Policy.

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

    Progress is reviewed against goals annually or more frequently

    Progress is reported internally to the most senior level

    Progress is reported externally

    Other (Please provide additional information)

    Climate Action

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    318393.38

    Scope 2 Emissions

    Emissions (tCO2e)

    240622.99

    Scope 3 Emissions

    Emissions (tCO2e)

    731895.45
    Optional comment
    The data relating to the Scope 1 and Scope 2 emissions are audited by a third party.

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    0.008
    Optional comment
    In 2021, BRF was present at the United Nations Climate Change Conference 2021, COP26, where we reinforced our commitment to Net Zero and presented innovation on this front. The emissions of Veg Frango 100% Vegetal, from the Sadia Veg&Tal line, are reduced from the grain to the table through forest conservation. With this announcement, we fulfilled one of our sustainability commitments, that was to make a carbon neutral line available in 2021. The initiative was honored at the Grow Innovation Awards, taking first place in the ESG category and the projects with impact category.

    8. Has the organization acted to support climate change adaptation and resilience?

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    90

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    0.008
    In  2021, BRF was present at the United Nations Climate Change Conference 2021, COP26, where we reinforced our commitment to Net Zero and presented innovation on this front.The emissions of Veg Frango 100% Vegetal, from the Sadia Veg&Tal line, are reduced from the grain to the table throughforest conservation. With this announcement, we fulfilled one of our sustainability commitments, that was to make a carbon neutral line available in 2021.The initiative was honored at the Grow Innovation Awards, taking first place in the ESG category and the projects withimpact category.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    59677.91

    Groundwater:

    21132.51

    Surface water:

    36754.83

    Rainwater:

    0

    Wastewater:

    1790.57

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    In order to understand the growth in local demand and gauge our exposure to water scarcity, we analyze the drainage basins in those regions where our industrial activities are located and the characteristics of the use of the local hydro-resources. Through the use of a hydro-vulnerability tool, developed internally using global benchmarks (Aqueduct, CDP Water Security), we take two complementary analytical approaches: an internal operational view, related to our routines and activities; and an external, environmental view, tied to the characteristics of the drainage basins where the enterprises operate, and to the multiple uses of water in the regions. We also take part in local and regional hydro-management discussion forums. The indicators from both the approaches are integrated, thus allowing us to monitor hydro-vulnerability. In 2021, we expanded the tool to our international operations and mapped the industrial units that should be prioritized and monitored. In 2021, around 15,000ML of water was collected from those units representing an average to high level of vulnerability, the majority of which are located in the South of Brazil. All of the Company’s units have contingency plans in order to ensure that their activities do not incur significant impacts.

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    8641.08

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Sector-specific: Forest, biodiversity, and land use

    14. Please report the number and area (in hectares) of sites owned, leased, or managed by the company in or adjacent to protected areas and/or key biodiversity areas (KBA).

    Number

    Unknown

    Not applicable (Please provide additional information)

    Sites

    192

    Hectares

    28900

    15. What area (in hectares) of natural ecosystems was converted during the reporting period in areas owned, leased, or managed by the company?

    Conversion of natural resources (hectares)

    BRF has renewable planted forests as a source of renewable fuel for our operations. These forests provide ecosystem services such as climate regulation and carbon stock. Our forest assets currently cover and area of 28,900 hectares in eight Brazilian states.

    16. Is the company supporting or implementing project(s) focused on ecosystem restoration and protection?

    No

    No, but we plan to in the next 2 years

    Yes

    Forest ecosystem restoration

    Other ecosystem restoration

    Reforestation

    Natural regeneration

    Agroforestry

    Set-aside land

    Biodiversity offsetting

    Other (please specify in text box)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    - In 2021, waste centers were also installed in all units where grains are received and processed. These centers consist of the construction of a civil structure for the separation of solid and liquid waste, as a means of ensuring the correct destination of the waste generated by our grains units, in accordance with the law. - In 2021, one notable advance on this front was the publication of the Sustainable Grain Purchasing Policy, that provides the directives used in the management and monitoring of our grain suppliers. - As a founding member of the Brazilian GHG Protocol Program, the Company has now been implementing its methodology for the calculation of the annual inventory of greenhouse gases for more than 10 years. In 2021, we began applying our digital journey to the global management of GHG emissions through the use of an automated tool for the collection of data and calculation of emissions, increasing the accuracy and frequency of our monitoring processes. In 2021, we recorded a rise of 10% in Scope 1 and 2 emissions, compared to 2020, and a reduction of 3% in relation to the base-year (2019). The performance of BRF’s emissions was greatly impacted by an increase in the GRID emissions factor in Brazil, leading to a significant increase in BRF’s Scope 2 emissions in 2021 when compared to 2020. The mapping, quantification and management of the emissions of the value chain (Scope 3), represents a challenge for any organization, and for BRF it is no different. We are aware of the importance of these emissions and have already identified the chain links of most importance and the main initiatives that can contribute to a reduction in our emissions. The complete roadmap of the emissions in the value chain is under development. - Amongst the advances made in the value chain in 2021, more than 100 integrated producers installed solar panels at their farms. This initiative was made possible by means of an agreement with the Banco do Brasil, which made a credit limit of R$ 200 million available for the financing of investments in the installation of solar energy panels at our integrated producers’ farms. - Over the course of 2021, we gauged the maturity of hydro-management at all of the production units and we inserted a chapter into our operational excellence system that standardizes the governance of the hydro-efficiency of our Units, and the issue of water is now a firm item on the agendas of our management and committee meetings. In 2021, we managed to reduce the water indicator by 0.81% in relation to 2020, with special mention going to the performance on the international market, with a 7.3% reduction in its water consumption. - As such, 100% of the water used for the processing of our foods is treated before being returned to the bodies of water in line with the standards established by environmental legislation. In 2021, we maintained an 85% rate of return of water to the environment. It should be stressed that the effluents produced by BRF are organic in nature, or in other words, they are composed principally of proteins and fats and by the biodegradable detergents used in the sanitation process. There are no substances of any particular concern in the effluents.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    Continuous Monitoring
    Optional comment
    Continuous Monitoring: The Company’s top management verifies the implementation of the Integrity System, which allows identifying potential failure points that may need corrections and improvements, through the follow-up of the Transparency Committee and of the Integrity and Audit Board, aside from the annual plans of the Internal Auditing Area and of the Internal Controls area. This System continuous monitoring allows BRF to adequately and immediately answer to any risk.

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    Over the year, there was not one case of corruption within BRF, nor were any court cases filed against the Company.

    Confirmed during the current year, and related to this year

    0
    There was not one case of corruption within BRF.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    To stay up-to-date on best market practices and share experiences in promoting an environment of ethics, transparency and integrity in business, our Compliance Department actively participates in forums and associations focused on integrity. Among them are the International Chamber of Commerce (ICC - Brazil), Compliance Woman Committee, and Legal, Ethics & Compliance (LEC), Instituto Não Aceito Corrupção, Observatório Social do Brasil, Ministério da Agricultura e Pecuária (MAPA), FGV Ethics, UN Global Compact - Brazil Network, Pact for Sports, Associação Brasileira de Proteína Animal (ABPA), Integrity Task Force, B20 Compliance and OECD Working Groups

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    We base all of our internal and external behaviors and attitudes on the Transparency Manual, that was revised and saw a new version published in 2021. The document brings together a set of information on cross-sectional issues, including conflicts of interest, human rights and diversity, fighting corruption and bribery, data privacy and guidance on the use of the Transparency Channel (a channel for complaints), meeting both legislation and the specific requirements of our business. In 2021, the Company also performed a series of revisions of its regulatory documents concerning compliance, notably: Corporate Policies relating to the Integrity System, Conflicts of Interest, Gifts, Presents and Hospitality, Human Rights, Donations and Sponsorship, and the Business Partners’ Code of Conduct. The idea has been to bring BRF into line with the best practices of risk management and promote the culture of integrity. We also have a Corporate Policy on Prevention of Anti-Trust Practices, a document that establishes the directives concerning the prevention of infractions to the economic order. On this front, in 2021, no lawsuits were filed due to unfair competition, or to trust or monopoly practices in which the organization has been identified as a participant in Brazil. In relation to the overseas market, an investigation into supposed unfair competition, filed by the Turkish anti-trust authority against Banvit, came to a close. The final decision cleared Banvit of any anti-trust practices. Another important issue concerns the combating of bribery and corruption, which we address in order to prevent any such occurrences involving our employees, service providers or business partners who interact with either private or public agents. Cases of non-compliance and/or suspicion of violations should be reported using the Transparency Channel, which is administrated independently and autonomously to draw together and investigate complaints. In our procurement of third parties, the Compliance Board undertakes analyses of the reputations of business partners in procurements that could offer a high level of risk to BRF. We also look at court cases and official public blacklists to detect any noncompliance and check on potential risks of fraud, corruption or other compliance risks, in cases of mergers and acquisitions. The combating of bribery is also very much on the Company's risk management radar and, in 2020, this resulted in a pioneering step forward in the sector, when BRF obtained the ISO 37001 anti-bribery management system certification, with this being renewed in 2021. In 2021, 100% of BRF’s operations were submitted to risk evaluation procedures in the areas of “Anti-Ethical Conduct” and “Anti-Trust, Corruption, Money Laundering and Violation of Human Rights”. The principal risks identified relate to non-compliance with the AntiCorruption Law, all correlated legislation and the directives set forth in the Integrity System and BRF’s Transparency Manual. Over the year, there was not one case of corruption within BRF, nor were any court cases filed against the Company. In February 2021, the Division of Enforcement of the United States’ Securities and Exchange Commission (SEC) concluded an investigation that had been underway against BRF, and declared that it did not intend to recommend any form of SEC enforcement action against the Company in relation to the so-called ‘Operações Carne Fraca e Trapaça’.