Responsible Sourcing

Commodity Supply Chain Monitoring and Management

At JBS, we recognize our role as a value-chain leader starts with making sure our raw materials are sourced responsibly. In doing so, we can influence our entire value chain, from supplier adoption of best practices to the final quality of our products.

 
 

We work to establish relationships with our suppliers that are based on partnership and encourage the implementation of initiatives that improve their governance and practices. Guided by our Global Code of Conduct for Business Associates, we maintain an open dialogue with our suppliers on issues involving respect for the environment, human rights, and national and local labor laws. Through this code, we strive to ensure that our suppliers are compliant with applicable laws and regulations.

Our Regional Approaches:

Case Studies:

Pilgrim’s UK, alongside its retail partners Waitrose and Co-op, conducted a human rights impact assessment (HRIA) of its integrated pork and lamb supply chains. The assessment was the first-of-its-kind for a livestock supply chain due to its scale and wide-ranging criteria. It spanned Pilgrim’s UK’s outdoor-bred pig farms and lamb farms, as well as the business’ processing and abattoir sites, from which Co-op and Waitrose source the majority of their pork and all of Waitrose’s lamb products.
In response to the findings, the businesses have published a joint Human Rights Action Plan, which is designed to raise awareness among stakeholders along the supply chain of health & safety training, mental health and wellbeing, gender discrimination and access to grievance systems. Ongoing worker welfare visits will also continue to take place throughout the year to ensure high human rights standards are maintained. The Action Plan will be updated with progress reported on publicly.
At Pilgrim’s UK, we also work with Bright Futures – a co-operative that helps survivors of modern slavery build a new life with a job that pays them a fair and decent wage. Under the Bright Future scheme, victims are offered a four-week paid work placement leading to a non-competitive interview.
If both elements are successful, the candidate will be offered a permanent job within the host business. Eight survivors have already been given a chance to rebuild their lives by Pilgrim’s UK, with four still in permanent employment. It is envisaged that more people will secure placements through the program thanks to this new structure.
Eliminating Agriculture-Related Deforestation

At JBS, we believe that people and planet don’t have to be at odds. For us, becoming people and planet positive means that agricultural food systems are inextricably linked to the protection and restoration of our shared natural resources. That’s why JBS is undertaking a comprehensive approach toward addressing the drivers of deforestation while also positively supporting livestock producers and the tens of thousands of farm families we depend upon to produce food.

In Brazil, our efforts to mobilize support for sustainable food production are underpinned by robust action and financial investments across multiple states that make up the largest Brazilian biomes, specifically the Amazon and Cerrado regions. The deforestation challenge in Brazil and in agricultural commodity supply chains around the world is larger than any one company — or even one sector — can solve on its own. As one of the world’s leading food and agricultural companies with the scope and scale to influence change, JBS is partnering across agriculture’s full supply chain to address the environmental impacts of food production and help our suppliers adapt to a changing climate.

We believe that strong standards and enforcement, coupled with positive incentives and producer support, can lead to better supply chain integrity and producer viability, without compromising food security through increased costs to consumers. Economic vitality, food production capacity, and quality of life for communities must be in balance with nature. The following lays out the JBS approach and investments toward eliminating deforestation in our Brazilian cattle supply chain.

Our Commitment: Collective Action for Forest Protection

JBS sits in a pivotal position in the food value chain – interacting upstream with farmers, ranchers, grain originators and input suppliers, and downstream with distributors, retailers, restaurants, and consumers. While not the only agricultural commodity actor in Brazil, JBS is an industry leader that can help influence a complex supply chain. As such, JBS has made two key public commitments toward becoming forest-positive with the opportunity to deliver change at scale through our value chain partners.

Specifically, as a responsible business, JBS is committed to:

  1. Delivering zero illegal deforestation in all Brazilian biomes by the end of 2025 for direct and tier 1 indirect cattle suppliers.
    (Note: JBS Friboi reports this goal is met in 2023 for its direct cattle suppliers and is now addressing illegal deforestation risks within its network of tier 1 indirect cattle suppliers)

  2. Advancing the Tropical Forest Alliance−aligned “Roadmap to 1.5°C” implementation plan for the Cattle Sector in the Amazon and Cerrado biomes

The Amazon: 2023 target date for no-deforestation for direct suppliers and 2025 for indirect suppliers (legal and illegal, PRODES 2008)

The Cerrado and other biomes: 2025 target date for no illegal deforestation (PRODES 2020) for direct and indirect suppliers

Our Principles: A Roadmap Toward Eliminating Deforestation

The following principles guide the JBS forest-positive action plan, inclusive of cattle in Brazil:

  • End illegal deforestation in all biomes by the end of 2025 for both direct suppliers and tier 1 indirect suppliers
    (Direct suppliers are compliant as of 2023)

  • Influence drivers of deforestation for both direct and indirect suppliers

  • Focus on priority biomes at greatest risk

  • Achieve complete transparency and monitoring for direct and tier 1 indirect suppliers

  • Engage the supply chain and cross-sector stakeholders to create common standards and scale non-deforestation ambition

  • Provide economic opportunities for farmers and communities

Our Action Plan: Mobilizing the Agricultural Value Chain Toward Zero Deforestation

JBS has a five-pronged approach to combating potential deforestation in our supply chain that is centered on:

  1. A zero-tolerance deforestation sourcing policy

  2. Supply chain monitoring and enforcement

  3. Technical assistance and extension services for producers

  4. Multi-stakeholder engagement and collaboration to accelerate sectoral change

  5. Promoting sustainable development

The following are programmatic highlights to represent clear, compelling, and collaborative impact, and are an integral part of our total commitment.

  1. Our Zero-Tolerance, Zero-Deforestation Sourcing Policy

    According to numerous studies by NGOs and universities including the National Wildlife Federation, The Nature Conservancy, and University of Wisconsin Madison, nearly 93% of illegal deforestation in the Amazon biome is in the first two levels of cattle suppliers to meat processing facilities.

    JBS’s Responsible Raw Material Procurement Policy prohibits the purchase of livestock from farms involved in deforestation, forced labor, invasion of indigenous territories, or embargoed by Brazilian environmental authorities. In addition, all livestock suppliers in the Amazon who sell to JBS must adhere to the “Protocol for Monitoring Cattle Suppliers in the Amazon” (also known as the Beef on Track Protocol), developed by the non-governmental organization Imaflora and the Brazilian Federal Prosecutor’s Office (MPF).

    Beef on Track establishes the processes and tools for monitoring, auditing, and reporting for a deforestation-free beef supply chain.

  2. Supply Chain Monitoring and Enforcement

    JBS has developed a cattle supplier monitoring system that leverages public and government databases, satellite imagery, and geo–referenced data to verify compliance with socio-environmental standards. As a result, our monitoring system covers a significant number of direct livestock suppliers — approximately 73,000 — across an area of about 235,000 miles² (over 610,000 km²). Since implementation more than a decade ago, our monitoring system has blocked almost 16,000 potential supplier farms in Brazil.

    However, when it comes to indirect cattle suppliers, there is a lack of information available regarding upstream transactions, due to privacy laws in Brazil. To overcome that challenge and complement our monitoring system for direct suppliers, JBS has also built and deployed the Transparent Livestock Farming Platform, a digital platform to increase the visibility further up the cattle supply chain to the tens of thousands of farms that sell cattle to our direct suppliers.

    This free, confidential, open-source, online platform uses blockchain technology to extend monitoring of our direct suppliers to their suppliers — producers with whom the company does not have a direct business relationship, but who are a critical part of the supply chain. To date, over 45% of cattle processed by JBS are enrolled in the platform, with the goal being to achieve 100 percent participation by 2025. Beginning in 2026, all direct suppliers and tier 1 indirect suppliers who wish to do business with JBS must be on the platform.

  3. Technical Assistance and Extension Services

    Sourcing policies, monitoring, and compliance systems help to block non-compliant cattle suppliers, but these systems do not address the underlying drivers or economic incentives of forest clearing. As we have learned, simply blocking farms with deforestation concerns is not enough because these blocked farms will continue to produce cattle and other agricultural commodities that will find another way to enter regional and global food supply chains.

    JBS is investing significant resources to address this challenge. We have established a network of 18 Green Offices since 2021 to provide free technical support and extension services to farmers who want to improve environmental performance, productivity, and sustainable practices. The JBS Green Offices include teams of specialists and certified consultants who provide free technical support to producers to help them bring their farms into compliance. To date, JBS Green Offices have helped almost 6,000 farms that produce about 2 million head of cattle to come into compliance with Brazil’s Forest Code requirements.

    In addition, JBS provides free agronomic and business planning services to farmers through our Fazenda Nota 10 (“A+ Farm”) Program to help enhance the productivity, profitability, and sustainability of their operations. Utilizing a proprietary software platform, JBS specialists are able to demonstrate both opportunities for on-farm improvement and performance against other producers in the region. Certified consultants then help develop strategies to empower producers to sustainably intensify production and reduce the economic incentives to illegally clear additional forest.

 
 
  1. Multi-Stakeholder Engagement and Collaboration

    Our significant presence in Brazil and daily interactions with producers in the country give us firsthand experience with supply chains vulnerable to potential deforestation events. However, JBS is only one participant in the supply chain. That’s why we actively participate in multiple global forums, including the United Nations Climate Change Conference of the Parties (COP), the World Economic Forum, and the Tropical Forest Alliance–supported Agriculture Sector Roadmap to 1.5°C, to work collectively to find solutions to the causes of deforestation in palm oil, beef, soy, and other commodities alongside other stakeholders.

  2. Promoting Sustainable Development

    The JBS Fund for the Amazon is a Brazilian organization dedicated to financing initiatives and projects whose aim is the sustainable development of the Amazon Biome, encouraging the conservation and sustainable use of the forest, improvements in the quality of life of the population residing there and development by using technology and applied science. This work is underpinned by forest conservation and restoration, socioeconomic development of communities, and scientific and technological development.

    Projects approved through the JBS Fund for the Amazon include: Sustainable cocoa corridor, Mãos Indígenas, Floresta em Pé (Indigenous Hands, Standing Forests), Bioplástico da Amazônia, FUTURE Endowment Fund for rural education, Fair and Sustainable Fishing Project, and Geoflora – Forest Automation and Carbon Specialization.

Our Progress:

Becoming Forest-Positive By Numbers