Our Environment

Our Climate Strategy

(SASB FB-MP-110a.2)

Climate change and food security are two seemingly competing challenges – feeding a future world of 10 billion people with safe, nutritious, affordable food while also helping farmers and our food system reduce environmental impacts and adapt to a changing climate.

We must act with urgency to limit global warming and combat its most negative effects. As a global, diversified food company, we have a responsibility to leverage our scale and influence to help lead sustainable transformation by example and empower our value chain and peers to collectively move forward.

Through partnerships with governments, academia, industry associations, and others, we are working to innovate and impact one of the most pressing long-term risks facing the agricultural supply chain and dependent industries.

Our Performance

JBS has more than a decade-long history of measuring, monitoring, and recording direct and indirect greenhouse gas (GHG) emissions and of voluntarily reporting to CDP, regional regulatory frameworks, and others.

Our GHG emissions are calculated based on the World Resources Institute’s and the World Business Council for Sustainable Development’s The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) (GHG Protocol), as well as internal criteria defined by JBS.

In 2022, we collaborated with credible third-party experts, including a leading UK-based and CDP-accredited decarbonization service provider, to carry out the first comprehensive analysis of the company’s global GHG emission inventory, inclusive of direct GHG emissions from our own operations (Scope 1), indirect emissions from purchased energy (Scope 2), and indirect emissions from upstream and downstream activities in our value chain (Scope 3).

To strengthen stakeholder confidence in our reported emissions, we have obtained third-party limited assurances for our global scope 1 and scope 2 GHG inventories from 2019 to 2022. In addition, we are currently undergoing limited assurance audits for our 2023 scope 1 and scope 2 GHG inventory and our preliminary 2021 scope 3 inventory and will report updated results once finalized. Moving forward, we will continue to conduct assurances against our GHG inventory and Sustainability Linked Bonds annually.

For further information, please visit our Investor Relations websites. It is important to note that the emissions described herein may differ slightly from those resources based on the specific framework requirements of each Sustainability Linked Bond.

Our Emissions Profile

Like other food and agriculture companies in our sector, the majority of our GHG emissions footprint is made up of indirect scope 3 emissions from activities such as livestock and grain production or product distribution and consumption.

In 2022, scope 3 emissions accounted for 97% of our total inventory, while scope 1 and scope 2 emissions made up only 2% and 1%, respectively. This presents a significant challenge because these scope 3 emissions are not directly related to JBS’s operations and management. They are the result of thousands of individual farming operations growing the agricultural commodities in our supply chain and millions of consumers cooking, refrigerating, and disposing of JBS products.

SCOPE	JBS GLOBAL⁶ (MT CO₂e)
	2019	2020	2021	2022	2023
Scope 1¹	3,959,756	3,760,221	3,873,082	3,762,136	3,455,664
Scope 2 (Location Based)²	1,852,769	1,696,928	1,774,432	1,601,134	1,545,135
Scope 2 (Market Based)³	1,816,020	1,530,864	1,724,578	1,453,967	1,548,742
Scope 3⁴	NC	NC	164,116,140	182,343,254	151,531,147
1. Purchased goods and services⁵	NC	NC	145,754,605	159,582,433	134,773,305
2. Capital goods	NC	NC	645,683	241,982	212,946
3. Fuel-and-energy-related activities	NC	NC	823,943	890,252	860,260
4. Upstream transportation and distribution	NC	NC	4,590,693	6,176,849	6,182,901
5. Waste generated in operations	NC	NC	373,592	388,607	771,405
6. Business travel	NC	NC	10,752	12,512	14,792
7. Employee commuting	NC	NC	193,442	194,704	181,628
8. Upstream leased assets	NC	NC	76,230	71,272	71,272
9. Downstream transportation and distribution	NC	NC	4,128,819	6,314,659	2,294,512
10. Processing of sold products	NC	NC	1,479,137	1,437,556	1,321,401
11. Use of sold products	NC	NC	4,492,789	4,436,735	3,434,561
12. End-of-life treatment of sold products	NC	NC	1,517,873	2,567,110	1,375,408
13. Downstream leased assets	NC	NC	0	0	0
14. Franchises	NC	NC	0	0	0
15. Investments	NC	NC	28,583	28,583	36,756
Total⁷	5,775,775	5,291,086	169,713,801	187,559,356	156,535,553

Includes direct emissions from stationary combustion, mobile combustion, agriculture, waste and effluent, and fugitive and process emissions in JBS-owned facilities.
Includes indirect emissions from purchased electricity, steam, heat, and cooling. Purchased electricity is calculated using location-based methodology.
Includes indirect emissions from purchased electricity, steam, heat, and cooling. Purchased electricity is calculated using market-based methodology.
Includes all other indirect emissions in our value chain, both upstream and downstream from JBS operations.
Does not include emissions associated with land use change as those calculations are currently being improved.
As of the date of publishing, this report provides the best and latest public disclosure of our GHG emissions. Information in previous reports cannot be used or compared to. For limited assurance reports, please refer to our website.
Uses the market-based method for scope 2 emissions.

NC = not calculated

Our Approach

At JBS, we believe everyone must do their part to reduce the impacts of climate change, and the responsibility to address the agricultural system’s footprint cannot be put on individual farmers alone. Our company is well-positioned to engage our suppliers, food system partners, and consumers on how to collectively address our shared GHG emissions and improve the resiliency and productivity of the global food system.

Our company culture has always promoted on-the-ground collaboration over off-site enforcement, and we strive to achieve our goal to reduce the intensity of scope 3 emissions through collaborative initiatives that improve both the environmental and financial performance of our supplier partners. We prioritize using a just-transition approach to advancing the sustainability of the global food production system, always remembering that success would not be possible without the people taking action in actual agricultural landscapes.

Farmers provide arguably the most important service to mankind – feeding people every day – and partnering with them to help make their operations more efficient, unlock value and productivity, and produce more with less, will help combat global food insecurity and lower emissions.

Our Ambitions

In 2021, JBS shared our ambition to strive for net zero greenhouse gas emissions in our operations and across our shared value chain by 2040.

At that time, many companies, governments and non-governmental organizations made similar public goals in an effort to galvanize action against the most harmful impacts of climate change. While achievement of a goal of this ambitious magnitude was never under the control of any one company, organization or government; we believed this collective movement towards net zero goals was a positive step and an important effort to join.

As part of our ambition, we set a goal to establish voluntary targets with the Science Based Target initiative (SBTi) in line with our Net Zero by 2040 goal. During the two-year process of goal setting, SBTi created new requirements and draft methodologies for agriculture-based companies that fundamentally altered the goal-setting process. As a result, many leading agricultural companies, including JBS, have not proceeded with setting targets through SBTi and are pursuing their environmental goals outside of the SBTi framework. While certifying bodies and standards will necessarily change over time, our climate ambitions are unwavering.

Our ambition to set near-term science-based goals in line with our Net Zero by 2040 ambition has not changed. More importantly, no matter the long-term goal, there are significant on-the-ground actions that must occur today, such as our comprehensive efforts to address the drivers of deforestation in the Amazon, if we are to preserve a resilient global agricultural system that works for farmers, consumers and the planet tomorrow.

JBS will continue to partner with farmers, NGOs, universities, customers, and other stakeholders to identify ways to reduce agricultural emissions, combat global food insecurity, and enhance the sustainability of food systems. Agriculture has an essential role to play in the climate change solution and that companies like JBS can and should help lead collective action.

Climate Resiliency Beyond GHG Emissions

As climate change continues to challenge the agricultural sector, we are committed to expanding our focus beyond reducing emissions. While GHG mitigation remains a critical component of our strategy, we recognize the need for a holistic approach to climate resiliency that includes ensuring reliable access to affordable and nutritious food.

System resilience refers to the capacity of our agricultural operations to absorb, adapt, and recover from climate-related shocks and stresses while maintaining essential functions. Building resilience involves integrating practices that enhance the stability and health of ecosystems, promote sustainable resource management, and secure food supplies.

At JBS, we will focus on the following key areas to enhance climate resilience in our businesses and value chains, prioritizing their sustainability, productivity, and contribution to global food security in the face of climate impacts.

Deforestation

Mitigating land use change in JBS supply chains is our greatest opportunity for reducing indirect GHG emissions. More broadly, forest stability also has an important influence on rainfall patterns, plant and animal biodiversity, water and soil quality, flood prevention, and economic vitality for smallholder farmers. To address the core drivers of deforestation risks in our Brazilian cattle supply, JBS has developed a multi-layered approach that includes:

Responsible Sourcing Policy

JBS Brazil’s Responsible Raw Material Procurement Policy prohibits the purchase of livestock from farms involved in illegal deforestation, forced labor, invasion of indigenous territories, or embargoed by Brazilian environmental authorities.

Supply Chain Monitoring and Enforcement

JBS Brazil’s supply chain monitoring system increases visibility into complex and obscure cattle supply chains by leveraging public and government databases, satellite imagery, and geo-referenced data. Verification of direct and indirect livestock suppliers’ compliance with socio-environmental standards is fundamental to ensuring the integrity of supply chains.

Technical Assistance and Extension Services for Producers

We provide free consultation services through our JBS Green Offices to farmers who want to improve their environmental performance, productivity, and sustainable practices. Free services should be provided to empower producers to sustainably intensify production and reduce economic incentives to illegally clear additional forest.

Multi-stakeholder Engagement and Collaboration

JBS participates in global forums and associations to mobilize support and deliver change at scale across a complex supply chain.

Promoting Sustainable Development

Through the JBS Fund for the Amazon, we promote economically viable solutions for forest conservation and restoration, socioeconomic community development, and scientific and technological advancement improve the sustainable use of forests and the quality of life of their residents.

Case Study: Restoring Land Preservation

JBS Brazil, through its network of 20 Green Offices, provides free technical support and extension services to farmers seeking to improve the environmental performance, productivity, and sustainable practices of their properties.

With teams composed of specialists and a network of accredited consultants, JBS’s Green Offices offer comprehensive technical support to help producers adapt their farms to comply with the company’s environmental and sustainability requirements.

This support is not limited to suppliers that have been newly blocked for falling out of compliance. The company also actively searches its database for opportunities to help reactivate former suppliers. Such was the case for a small cattle producer from Tucumã, Pará, who was blocked for three years and five months due to noncompliance with the JBS Responsible Cattle Purchasing Policy.

Unaware of the steps required and without the resources needed to regularize his land, the producer accepted the free technical support provided by the JBS Green Offices. As a result, he managed to achieve environmental regularization on his farm – restoring 18.4 hectares of permanent preservation area – and resumed supplying to JBS after a 9-month process of analysis and approval by the Rural Environmental Registry (CAR) and the Environmental Regularization Program.

This is one example of the nearly 8,500 farms that our JBS Green Offices helped bring into compliance as of the end of 2023.

To learn more about our strategies and actions to address deforestation, visit Responsible Sourcing.

Pasture and Rangeland Management

Grasslands support biodiversity, sequester carbon, and regulate water. By partnering with supply chain stakeholders, conservation organizations, and the livestock community, JBS aims to protect these ecosystems, ensuring their ecological and economic viability.

Grassland Conservation and Stability

Grasslands play a crucial role in carbon sequestration by capturing significant amounts of atmospheric carbon dioxide and storing it in plant roots and soil. In addition, healthy grasslands help regulate water cycles, prevent soil erosion, and provide forage for livestock, making their preservation essential for rural communities and ecosystems.

Livestock Management

Proper livestock management in agricultural supply chains supports grasslands and pasture lands by promoting sustainable grazing practices and reducing overgrazing. Optimized movement and distribution of livestock helps ensure pastures are grazed evenly and given adequate time to recover, which maintains soil health and vegetation cover. Additionally, integrating supply chain management with rotational grazing systems can enhance pasture productivity and biodiversity, leading to more resilient and sustainable grasslands.

Grazing Management Plans

Effective grazing management plans focus on optimizing pasture use to maintain soil health, improve carbon sequestration, and maximize animal health and productivity. Some key practices include rotational grazing, adequate growing season rest periods, minimizing bare ground, and monitoring above-ground forage. Grazing management plans are a win-win for grazing systems as they can provide greater economic outcomes for producers and increased control over positive environmental outcomes, such as enhanced biodiversity and water retention.

Invasive Species Control

Controlling invasive species is critical for maintaining native forage production in grasslands and pasturelands. Invasive species often outcompete native plants, reducing biodiversity and the availability of nutritious forage for livestock. With community support and investment, we can come together with the ranching community to help prevent invasive species encroachment and maintain grassland health and productivity.

Case Study: Supporting Native Pastures

Maintaining a healthy environment for cattle and sheep is a key element of the JBS Farm Assurance (FA) program in Australia.

Working with industry leading agronomists and horticulturists to perfect pastures for livestock, livestock producers in the JBS FA program are recommended to achieve 75% ground coverage of healthy grass on their properties through regenerative practices. This ensures that livestock always have access to grass and supports the growth of native pastures that are vital to preserving farm biodiversity, including species adapted to difficult soils and tough climate conditions.

In addition, producer partners are encouraged to adopt shelter belts for animal welfare and vegetation growth. Shelter belts naturally provide livestock with shade from wind, sun, and rain, and create corridors for native plants and animals to thrive and connect neighboring farms to create improved ecosystems.

Soil Health and Water Management

Soil health and water management play foundational roles in sustainable livestock and feed production. Healthy soils promote the growth of nutritious feed crops, which directly impact animal health and productivity. In addition, effective water management maintains clean and sufficient water supplies for livestock and crop irrigation, reducing environmental impact and improving regulatory compliance.

Enhancing Soil Health

Healthy soils are crucial for resilient agriculture. JBS supports supplier practices such as cover cropping, no-till farming, and soil amendments to improve soil structure, increase organic matter, and enhance water retention. These practices also contribute to carbon sequestration and biodiversity, creating a more robust system capable of withstanding climatic variations and ensuring continuous food production.

Efficient Water Use and Conservation

As a vital resource, water must be used efficiently to promote climate resilience and food security. Implementing precision irrigation systems, rainwater harvesting, and water recycling techniques reduces water wastage and ensures adequate supply during dry periods. Protecting water quality through controlled runoff and buffer zones prevents contamination and preserves aquatic ecosystems, supporting consistent agricultural output.

Drought Management Plans

Drought management plans increase the availability of water and forage while maintaining ecosystem health. They use a proactive risk reduction approach to address the challenges posed by droughts, such as decreased water quantity and water quality, which are necessary for productive farms, ranches and grazing lands. Drought can also contribute to insect outbreaks, increased wildfires, and alterations in the nutrient cycle, which all impact agriculture ecosystems.

Case Study: Incorporating Pigs in Crop Production

When done right, farming pigs outdoors can help improve the quality of the land. This is a key principle of our Pilgrim’s Europe Pork business’ approach to regenerative agriculture and one of the reasons the sows in their British Quality Plus (BQP) welfare program spend their entire lives outdoors.

Incorporating livestock into an arable rotation gives land a worthwhile break from continual crop production, which is known to deplete nutrients and compromise soil health. Within the Pilgrim’s Europe BQP program, pigs are hosted on partner farmers’ fields for two years, during which time they produce manure that enriches the soil, reduces weed burden and disease carry over, increases nutrient retention, and boosts biodiversity. This makes the land more productive for growing crops like cereals or potatoes, improving yields, and removing the need for arable farmers to use synthetic fertilizers.

To showcase the financial and sustainability benefits of integrating free-range pigs into agricultural practices, Pilgrim’s Europe Pork partnered with Intellync to analyze soil health pre and post pig production across nine farms in Southeast England. The study indicated increases in organic matter and soil carbon, reductions in fertilizer use, and yield improvements. However, the benefits were temporary, necessitating the continuous inclusion of pigs in rotations for sustained results and reinforcing the synergy between livestock and arable crop production.

Animal Health and Performance

Climate strategies should be designed and deployed to instigate transformative changes in animal production practices while also fostering long-term ecological and financial benefits for farmers and their land. Solutions must balance overall efficiency with the high animal welfare and product quality standards.

Emissions Reductions

Reducing enteric methane emissions is crucial for sustainable livestock production. Strategies include improving animal diets by incorporating high-quality forages and feed additives, for example, to enhance digestion efficiency and lower methane production.

Feed Efficiency

Optimizing feed conversion to animal protein reduces the carbon and water intensity of livestock and poultry production. Better feed efficiency promotes animal health and productivity, contributing to a more sustainable resilient agricultural system.

Livestock Supply Chain Management

Connecting cattle producers with sustainable practices at each production stage is vital for scalable value-chain solutions. Companies like JBS should work to provide producers with science-based recommendations and manageable ROI strategies for positioning environmental outcomes.

Case Study: Testing Feed Additives

At JBS Friboi, GHG emissions are primarily generated by scope 3 activities, such as enteric fermentation from livestock. Therefore, it is essential that the business works in collaboration with partners throughout its value chain to improve the efficiency of cattle production systems and identify potential pathways to reduce methane emissions in Brazilian livestock.

That is why JBS Friboi is actively supporting searching for scalable feed additives that improve feed efficiency in animal diets – one of the possible ways to decrease methane emissions. In 2021, JBS and the Instituto de Zootecnia (IZ) of the São Paulo State Secretariat of Agriculture and Supply established a partnership to develop studies aimed at reducing GHG emissions in the cattle supply chain. The collaboration focuses on researching feed additives that improve nutrient use efficiency in animal diets, thereby reducing methane emissions and promoting sustainability in meat production.

In addition, the Neutropec Animal Production Institute was launched in São José do Rio Preto in 2022 as a research center of the IZ. With a new structure dedicated to studying the intensification of beef cattle production systems, IZ was able to monitor animals at JBS Brazil’s feedlot in Guaiçara (SP) for approximately six months. JBS’s participation in this research allowed for large-scale testing and financial support.

To date, five types of feed additives have been tested in JBS Brazil feedlots, resulting in both reduced enteric methane and increased feed efficiency. The company will continue its ongoing efforts to research and trial the best available enteric methane reducing technology in its feedlot operations.

Circular Economy Solutions

Closed-loop systems for reusing and recycling waste materials and energy can play an important role in the long-term viability of agricultural food production. Applying strategic, circular economy concepts across our operations is an integral component of our business model, and we have created new businesses specifically dedicated to this strategy. This integration supports economic growth by reducing operational costs and environmental footprints, ultimately fostering a more sustainable and resilient economy.

Renewable Energy

Converting organic waste materials into energy sources, such as biogas or biofuels, can power various stages of the animal agriculture value chain. By utilizing waste as a resource, this approach not only reduces the need for fossil fuels but also mitigates the environmental impact associated with waste disposal, creating a synergistic cycle where waste products are continuously repurposed to generate energy.

Packaging

Designing packaging for easy recycling and incorporating recycled materials into new packaging can create closed-loop systems for ongoing reuse. Such solutions extend the life of packaging and reduce the need for single-use items, promoting sustainable production and consumption patterns.

Supply Chain Solutions

Byproduct waste streams from agriculture and animal processing can also be converted into value-added products such as collagen, fertilizers, pharmaceuticals, and more. These transformations foster innovation, enhance resource efficiency, and create new revenue streams.

Case Study: Powering Renewable Transportation with Waste

In JBS beef and lamb facilities, animal fat from processing waste material is cooked down into a liquid form known as “tallow” and refined into renewable fuels that contribute to reducing transportation emissions globally.

In 2023, approximately 656,000 metric tons of tallow produced in JBS facilities in the U.S., Australia, and Canada were refined into renewable fuels. These renewable fuels are used to power hard-to-abate transportation sectors including aircraft, heavy vehicles, and ferries in some parts of the world. Renewable diesel and sustainable aviation fuels refined from JBS tallow by our customers can emit upwards of 50% fewer GHG emissions than conventional fossil fuels.

To learn more about our strategy, visit Circular Economy and Reverse Logistics.

Conclusion

Building climate resilience within our agricultural systems requires a comprehensive approach that goes beyond reducing GHG emissions. By focusing on pasture and rangeland management practices, soil and water health, animal health and performance, adaptive planning, and food security, we can create a robust and sustainable agricultural system capable of withstanding the impacts of climate change.

Case Studies:

In 2023, our Pilgrim’s Europe beef patty production facility, Beef Orléans, celebrated the 20th anniversary of its cattle supplier contract program. Created in 2003 as a guaranteed outlet for farmers seeking an alternative to a volatile and uncertain cattle market, the program’s objectives remain the same today:

To secure the facility’s beef supply via dedicated animals on farm
To agree to a price independent of market fluctuations, guaranteeing economic efficiency and income security for all, beginning with farmer partners
To ensure that farmers have an avenue and medium- / long-term vision to plan production and investment
To help their suppliers meet evolving challenges and expectations related to climate, Beef Orléans developed two unique diagnosis tools
CAP’2ER, an on-farm Life Cycle Assessment that helps cattle breeders understand their action levers and the positive environmental outcomes generated by their farms
BoviWell, an on-farm animal performance assessment that identifies where farms can further improve

In 2023, Beef Orléans contracted 30,000 cattle from 1,070 French farms, 100% of which were evaluated using these tools. Today, an additional program is being developed to support the implementation of further action on farm.

In the United States, JBS USA has contributed US$ 700,000 to the University of Nebraska-Lincoln Foundation to support a new Feedlot Innovation Center, which will include cattle comfort and research buildings, a feed technology facility, innovative open lots, and an animal handling facility.

The expansion aims to create real-world facilities to test new precision technology, solve environmental challenges facing the feeding industry, and improve cattle performance and welfare while comparing different environments and housing systems. It will also allow for innovation in manure collection and management that will innovate both new and possible modifications for existing operations. The feedlot is expected to open for research in July 2024.

Our Pilgrim’s Europe’s chicken business constructed a state-of-the-art poultry farm to reduce greenhouse gas emissions. Located in Lincolnshire, U.K., Beech Farm was built from the ground up with sustainability in mind to reduce scope 1 and scope 2 emissions by up to 100%, effectively taking the farm ‘off grid’ when all systems operate at capacity.

Everything from the design and layout of the farm building to how it captures and recycles rainwater reflects Pilgrim’s Europe’s mantra of ‘reduce, reuse, renewable.’ Technologies utilized on the farm to reduce emissions include ground source heat pumps to generate heating, heat exchanger systems to reduce overall heat usage, and solar technology capable of generating 1MW of electricity, which work in tandem with lithium battery storage. The facility also practices the latest biosecurity measures to help ensure safety and welfare standards for its birds. Through these innovations, Pilgrim’s Europe has created a 100% reduction in energy-related GHG emissions at Beech Farm, representing 900 metric tons of CO2e savings a year. With more than 700 chicken farmer partners across the U.K., Pilgrim’s Europe plans to use Beech Farm as a demonstration farm to share knowledge and technical assistance with its network of poultry producers. The project’s potential to be a game-changer for the industry is also particularly exciting when taken in partnership with Pilgrim’s Europe’s other scope 3 initiatives, such as its ‘Farm Carbon Calculator’ that will monitor and track GHG emissions in real time at individual farm level, across its entire farming base.

As part of the company’s efforts to improve grazing management practices and reduce greenhouse gas emissions, JBS USA contributed US$ 230,000 to support two Colorado State University AgNext research initiatives.

The first project developed a U.S. livestock industry net-zero roadmap identifying current knowledge gaps in GHG reduction strategies and producer willingness to adopt practices to determine potential reduction pathways. In addition, JBS USA sponsored AgNext to help cattle producers across the country develop science-based grazing management principles that will support the sustainability of ranching.

Looking to drive carbon sequestration, improve soil health and water quality, and create new economic opportunities for growers to profit from conservation practices

such as no-till and cover crops, JBS USA partnered with the Soil and Water Outcomes Fund to engage growers across multiple states in the U.S.

In the United States, we are part of 10 companies funding almost US$ 5 million for the Food and Ag Research, Greener Cattle Initiative over the next five years to support research and development of practices and technologies to reduce enteric methane emissions from cattle.

In 2023, a total of three large scale enteric methane research trials were funded.

Pilgrim's Europe has unveiled a state-of-the-art poultry farm on its pathway to reach net-zero GHG emissions by 2040. Located in Lincolnshire, U.K., Beech Farm was built from the ground up with sustainability in mind to reduce scope 1 and scope 2 emissions by 100%, effectively taking the farm ‘off grid’ when all systems operate at capacity.

In 2023, our Pilgrim’s Europe beef patty production facility, Beef Orléans, celebrated the 20th anniversary of its cattle supplier contract program.

Created in 2003 as a guaranteed outlet for farmers seeking an alternative to a volatile and uncertain cattle market, the program’s objectives remain the same today: • To secure the facility’s beef supply via dedicated animals on farm • To agree to a price independent of market fluctuations, guaranteeing economic efficiency and income security for all, beginning with farmer partners • To ensure that farmers have an avenue and medium- / long-term vision to plan production and investment To help their suppliers meet evolving challenges and expectations related to climate, Beef Orléans developed two unique diagnosis tools • CAP’2ER, an on-farm Life Cycle Assessment that helps cattle breeders understand their action levers and the positive environmental outcomes generated by their farms • BoviWell, an on-farm animal performance assessment that identifies where farms can further improve In 2023, Beef Orléans contracted 30,000 cattle from 1,070 French farms, 100% of which were evaluated using these tools. Today, an additional program is being developed to support the implementation of further action on farm.

At Friboi, our GHG emissions are primarily generated by scope 3 activities, such as enteric fermentation in livestock. Therefore, it is essential that we work in collaboration with partners throughout our value chain to improve the efficiency of cattle production systems and identify potential pathways to reduce methane emissions in Brazilian livestock.

That is why we are actively searching for scalable feed additives that improve feed efficiency in animal diets – one of the potential pathways for reducing methane emissions. We have partnered with the Institute of Animal Science and its researchers at the Rumen Fermentation and Beef Cattle Nutrition Laboratory to test several methanogenesis inhibitors. One of the initial additives being tested is tannins, complex molecule derived from plants that enhance the efficiency of an animals' diet fermentation process, resulting in reduced methane emissions. By focusing on feed additives and collaborating with research institutions, we aim to address the challenges associated with our scope 3 emissions, specifically related to enteric fermentation and manure management in cattle.

In the United States, JBS USA has contributed US$ 700 thousand to the University of Nebraska-Lincoln Foundation to support a new Feedlot Innovation Center, which will include cattle comfort and research buildings, a feed technology facility, innovative open lots, and an animal handling facility. In November 2022, the Center held its official groundbreaking ceremony.

In December 2020, the JBS Canada team successfully completed installation of a 30-million-gallon covered anaerobic lagoon to capture and eliminate the majority of GHG emissions at its Brooks, Alberta, beef facility. Equipped with a cover and a biogas collection and handling system, the anaerobic wastewater lagoon continues

to prevent GHG emissions from entering the atmosphere, ultimately reducing the facility’s emissions by approximately 90% in comparison to pre-anaerobic lagoon levels. In addition, the lagoon also benefits the facility’s water reclamation process by improving its water treatment. Over 99% of treated industrial wastewater at the facility is reclaimed and used for irrigation on local cropland, benefiting crops like alfalfa, barely, wheat and grass. The Brooks team continues to identify the best use of the captured biogas and has partnered with a global leader in anaerobic solids digestion to seek additional opportunities for producing biogas from organic waste solids generated at the facility. Together, these two sources of biogas would be combined and beneficially used.

As part of the company's efforts to improve grazing management practices and reash net-zero GHG emissions by 2040, JBS USA has contributed US$ 230 thousand to support two Colorado State University AgNext research iniatiatives.