Our Environment

Energy Management

(GRI 3-3)

Around the world, JBS operations are dedicated to improving on-site energy efficiency and increasing the use of both direct and indirect energy from renewable sources.

As a material topic for our business, both in terms of its impact on our GHG footprint and general eco-efficiency, energy management is addressed globally through a four-pronged strategy, focused on:

• Identifying opportunities

by sharing best practices between company facilities, measuring and monitoring performance, and conducting energy-focused site audits

• Implementing behavioral improvements

by establishing energy key performance indicators (KPIs) for each JBS facility, which prompt the implementation of no- or low-cost methods of reducing emissions through behavior

• Approving capital expenditure upgrades

through capital investments to upgrade non-energy-efficient equipment, capture and use waste heat, and eliminate other inefficient processes

• Using renewable energy

by procuring both onsite and/or virtual renewable energy sources for the areas where physical decarbonization of company assets is not feasible.

We apply this strategy against all sources of energy consumption and support it through our environmental data management systems at both business-unit and facility levels. In addition to total energy use and total renewable energy use, one of the key metrics we monitor is energy intensity (total energy use per unit of production).

Energy Efficiency

To reduce energy use in our facilities, our environmental and engineering teams are dedicated to identifying operational efficiencies, replacing equipment, and leading behavioral improvements by example. Alignment to internal processes allows us to recognize and prioritize impactful projects that ranged across a variety of areas and topics, such as optimization of refrigeration and steam operations, conversion to LED lighting, improvement of fleet fuel efficiency in our transportation units, covering of anaerobic wastewater lagoons for biogas collection, and more.

Our efforts to identify and execute energy improvements are evidenced through our financial commitment. Thousands of projects are implemented annually to improve production, food safety, and mechanics, among a variety of other reasons, but in each project our teams incorporate energy efficiency, which often results in incremental capital spend.

Since 2021, we have invested more than US$ 150 million across hundreds of projects inside our own facilities to reduce scope 1 and 2 emissions, primarily tied to energy use and methane destruction. Collectively, these initiatives will represent an annual reduction of over 400,000 metric tons of CO₂e.

Renewable Energy

In tandem, we are investing globally to increase our proportion of total energy consumption from clean sources. Globally, 36% of our energy use and 8% of our electricity use were derived from renewable sources in 2023. In accordance with GHG reporting protocols, we report both market-based and location-based scope 2 emissions and renewable electricity (RE) purchases. RE is dominant on Brazil’s national electricity grid, however we have refined our reported RE percentage as per updated emission factors and protocols. While this conservative approach has significantly reduced our historically reported RE purchases, it has not materially affected our reported scope 2 emissions.

	Global Energy Consumption¹ (GRI 302-1; 302-3; 302-4)
	2019	2020	2021	2022	2023
Energy Use (MWh)	25,582,089	21,209,776	21,937,268	20,752,370	21,968,507
Energy Use Intensity (MWh/MT of finished product produced)	1.26	1.05	1.02	0.96	0.99
Renewable Energy Use (%)	25%	30%	31%	33%	36%
Non-Renewable Energy Use (%)	75%	70%	69%	67%	64%

	Global Scope 1 Energy Consumption² (GRI 302-1; 302-3; 302-4)
	2019	2020	2021	2022	2023
Scope 1 Energy Use (MWh)	19,097,746	14,364,025	15,210,827	14,860,717	15,904,822
Scope 1 Energy Use Intensity (MWh/MT of finished product produced)	0.94	0.71	0.71	0.69	0.72
Renewable Energy Use (%)	33%	43%	42%	43%	46%
Non-Renewable Energy Use (%)	67%	57%	58%	57%	54%

	Global Scope 2 Energy Consumption³ (GRI 302-1; 302-3; 302-4)
	2019	2020	2021	2022	2023
Scope 2 Energy Use (MWh)	6,484,343	6,845,751	6,726,441	5,891,653	6,063,684
Scope 2 Energy Use Intensity (MWh/MT of finished product produced)	0.32	0.34	0.31	0.27	0.27
Renewable Electricity Use (%)	2%	4%	5%	8%	8%
Non-Renewable Electricity Use (%)	98%	96%	95%	92%	92%

1 Includes direct [electricity generated on-site, the use of fuel to generate steam and heat (stationary combustion) and consumption of fuel by company-owned vehicle fleets (mobile combustion)] and indirect [purchased electricity, steam, heat, and cooling] energy consumption.
2 Includes direct energy consumption [electricity generated on-site, the use of fuel to generate steam and heat (stationary combustion) and consumption of fuel by company-owned vehicle fleets (mobile combustion)].
3 Includes indirect energy consumption [purchased electricity, steam, heat, and cooling].

Case Studies:

JBS Australia has invested AU$ 11.1 million to develop bioenergy systems at its Scone and Beef City (Toowoomba) facilities in partnership with leading biogas handling company Energy360.

This infrastructure will transform the current wastewater treatment process into a circular flow that captures and reuses biogas. Biogas, a naturally occurring byproduct produced from anaerobic wastewater breakdown, will be created by encasing facility wastewater under sealed pond covers. This biogas is a viable renewable energy source that will substitute a major portion of the site’s consumption of natural gas as a heat production source. Beef City’s bioenergy construction has been well underway since November 2022 and is due to complete in early 2024 and is expected to reduce the plant’s CO2 emissions by approximately 35,000 metric tons per annum. Construction commenced at Scone in 2023 to install a system that captures wastewater emissions and substitutes its liquified natural gas (LNG) consumption with renewable gas, which is expected to reduce the plant’s CO2 emissions by approximately 28,000 metric tons per annum. The Scone biogas system is also due to be completed in early 2024. Flaring of gas from the wastewater ponds commenced at both sites in 2023. The Beef City and Scone projects will reduce emissions by at least two thirds across the two sites combined. These new systems complement the Dinmore wastewater pond cover and capture system with biogas reuse to offset fossil fuel consumption. In 2023, JBS Australia also undertook pre-engineering studies at three additional sites with the potential to capture biogas for use on site.

Across multiple JBS USA and Pilgrim’s U.S. facilities, we partnered with local utility providers and third-party energy consultants to identify energy savings opportunities, audit routine operations, and implement best practices for reducing energy consumption. Sixteen facilities received on-site assistance and

as a result realized reductions across a range of interventions – from daily low-cost behaviors to capital-funded heat recovery projects. Today, they continue to engage in other energy saving initiatives.In 2023, we continued to engage consultants on energy opportunities and strengthen our partnerships with local utility providers. Many projects were implemented based on 2022 consultant findings, and we are working to monitor and quantify the resulting reductions. At JBS, continual reductions through multiple smaller-scale projects are as important as a one-time implementation of a large project. This is demonstrated by our Greeley, Colorado, beef production facility, which has steadily reduced its electricity usage by more than 20% since 2017.

In the United Kingdom, our Pilgrim’s UK and Pilgrim's Food Masters businesses continued to use 100% renewable electricity in 2022. Looking ahead, Pilgrim's UK is set to invest over £10 million across 2022 and 2023 to support the roll-out of a series of process innovations and operational improvements. To determine the best reduction projects

to invest in, the business has undertaken a net zero investment roadmap exercise. Upgrades include switching out equipment with more energy-efficient alternatives, such as replacing gas boilers with heat pumps and optimizing refrigeration systems. The business also already has local solar projects at many of its sites and is now expanding these to the remainder of its operations across the country – all of which will help to reduce carbon emissions by 11,000 metric tons annually.

Our JBS Biolins cogeneration facility in Lins, São Paulo, produces electricity and steam from biomass (sugarcane bagasse, eucalyptus chips, and various biomass waste), with a capacity of 45 MW – enough to power a city of 300,000 residents. Biolins provides 100% of the electricity and steam it generates to our

Friboi, JBS Couros, and JBS Novos Negócios facilities in Lins. The powerplant alone generates the equivalent of 25% of all electricity used by all JBS operations in Brazil.

In an effort to use more sustainable electricity through use of solar power, Pilgrim’s partnered with one of the largest energy suppliers in North America to implement its first U.S. solar energy project in Texas. Thanks to the area’s abundant open land and sunshine, West Texas has some of the greatest solar and wind power potential in the country. The Pilgrim’s West Texas solar project is a 15-year agreement

that is expected to supply our rural Pilgrim’s locations in Nacogdoches, Waco, and Lufkin with 786,938 megawatts of renewable electricity, displacing a total of 334,070 MT CO₂e annually. To put this in perspective, that is the equivalent of taking more than 80,113 cars off the road for a year. When compared to common carbon offsets, the amount of displaced CO₂e from this project is also equal to the amount of carbon sequestered by more than 393,024 hectares of forest in one year or more than 5,567,836 10-year-old tree seedlings.

As solar power continues to become a more available source of renewable electricity, we believe it can help us reach our global goal of net-zero GHG emissions and meet the energy demands of our facilities.

In multiple JBS operations around the world, facility lighting stood out as an opportunity for improved management. Poor lighting can inhibit workplace efficiency and is typically accompanied by high utility consumption and cost. In total, the company invested US$ 11 million across 41 projects to upgrade lighting and controls to

automatic LED, which provides at least 80% energy savings when compared to non-LED options. In addition, the upgraded work environment also improved employee morale and worker efficiency.

In our Pilgrim’s Mexico operations, we reduced energy consumption 16% from 2021 to 2022. Throughout the year, the business deployed

In 2022, nearly US$ 9 million was invested in 18 projects to improve operational waste heat recovery throughput. Oftentimes, waste heat

can be beneficially used to offset utility inputs, and as such, these projects have the potential to collectively reduce more than 13,000 MT of GHG emissions annually.

In Brazil, Swift uses clean and renewable solar energy in its stores and in all vehicles used to sell the brand's products. The business has installed solar panels on the roofs of 101 Swift stores and supplies an additional 45 stores with energy generated at solar farm plants. By capturing sunlight and generating electricity to powers

its stores, Swift generates fewer GHG emissions and minimizes its environmental impact. This project is a partnership with third-party companies such as mbar Energia from the J&F group, which operates in the generation and selling of energy. By the second half of 2025, Swift anticipates that its entire network will be supplied with solar energy.

In Continental Europe and the United Kingdom, our Moy Park team saw an 8% reduction in energy intensity between 2021 and 2022. Overall energy consumption was reduced due to the business’ utility saving teams at the facility level leading

reduction projects, action plans outlining targeted opportunities, and behavioral changes in team members.

Energy-related key performance indicators (KPIs) were also closely evaluated through regular performance reviews, and improved metering system deployment and analysis were advanced. Finally, sharing utility reduction activities and improvements between facilities was also found to be effective.

No Carbon, a new JBS company that leases out electric trucks to transport frozen and

chilled products, began operations in 2022, supporting logistical operations for retailers and other JBS businesses across Brazil.

The incubation department of Pilgrim’s Mexico’s center chicken complex consists of six hatcheries that have a cumulative loading capacity of 5,798,880 fertile eggs per week.

In 2016, the business developed a plan to reduce liquefied petroleum (LP) gas consumed for heating, while still maintaining temperature needs across different rooms and areas of the hatcheries. Over the years, Pilgrim’s Mexico implemented several energy efficiency strategies that managed to reduce LP gas consumption from 507,587 liters to 207,962 liters from 2016 to 2023, a reduction of almost 60%.