Indicator Center - Minerva Foods

1. When did Minerva Foods make its commitment to sustainability?

Minerva Foods, recognizing that the sustainability of its business is dependent on maintaining the ecosystems that support agricultural production, publicly announced its commitment to the sustainability agenda in April 2021.

More information can be found in the section Commitment to Sustainability.

2. What goals and objectives are part of the commitment to sustainability at Minerva Foods?

The core objective in the commitment to sustainability is to drive Minerva Foods’ transition to a low-carbon economy, transforming it into a carbon-neutral company (net zero emissions) by 2035, 15 years ahead of the Paris Agreement. To achieve this, the Company will focus on three major areas:

1. Scopes 1 and 2 GHG emissions – Environmental Efficiency of operations::

1.1 Reduce by 30% the intensity of GHG emissions in scopes 1 and 2 by 2030; and

1.2 Maintain the energy matrix carbon neutral (net zero emissions in scope 2 – target already achieved in 2020).

2. Scope 3 GHG emissions – Zero illegal deforestation throughout the supply chain (direct and indirect suppliers) for all countries of operation in South America by 2030:

2.1 100% geographic monitoring of direct suppliers in Paraguay by December 2021 (target achieved by December 2021), Colombia by 2023, Uruguay by 2025 and further extension to other South American countries by 2030; and

2.2 Development of a monitoring program of indirect suppliers in all countries of operation in South America by 2030, including :

2.2.1 Integration of the Visipec tool into the geographic monitoring system for the Amazon by December 2021 (target reached four months ahead of schedule);

2.2.2 Release of an app to verify the indirect suppliers in Brazil, in partnership with Niceplanet Geotecnologia, by December 2021 (target reached two months ahead of schedule).

3. Scope 3 GHG emissions – Renove Program, low carbon emission in the supply chain:

3.1 Source at least 50% of cattle from suppliers participating in the Renove program by 2030; and

3.2 Establish a partnership with research institutions to apply a methodology to monitor, report and verify the carbon balance of suppliers in South American countries of operation, with preliminary results expected in 2021 (target reached with the release during the United Nations Climate Change Conference – COP26).

More information can be found in the section Commitment to Sustainability.

3. Does Minerva Foods plan to expand its commitments to social and corporate governance issues?

Minerva Foods is constantly advancing in its ESG agenda and is evaluating the incorporation of objectives and goals on the social and corporate governance fronts over the next few years.

Our current initiatives on both fronts can be accessed on our sustainability website under the sections Prosperity of our People and Solid and Committed Management and in the Commitment to Sustainability.

1. What does Minerva Foods do to promote and encourage good practices in its supply chain?

Minerva Foods is involved in national and international partnerships and coalitions, with the aim of addressing socio-environmental issues and boosting sustainability throughout the livestock value chain.

Brazil: the Company is a signatory to the ‘Public Livestock Commitment’, the Term of Adjustment of Conduct (TAC) with the Federal Public Ministry of Pará and the Protocol for Monitoring Cattle Suppliers in the Amazon (in partnership with the Federal Public Ministry and Imaflora) , in addition to participating in the Sustainable Livestock Working Group (GTPS) and the Indirect Suppliers Working Group (GTFI). Minerva Foods is also a signatory of the National Pact for the Eradication of Slave Labor, in which it has action plans based on InPacto’s ten commitments, among the actions there are, for example, orientation campaigns with business partners on the subject;

Colombia: the Company participates in the Sustainable Livestock Bureau of Colombia (Mesa de Ganadería Sostenible de Colombia), and has a partnership with CIAT (International Center for Tropical Agriculture) for investigations on the fronts of social and environmental regularity;

Paraguay: the Company participates in the Paraguayan Table of Sustainable Meat (Mesa Paraguaya de Carne Sostenible – MPCS);

Global: the Company participates in the Global Roundtable for Sustainable Beef (GRSB) and the Responsible Leather Roundtable (RLRT).

Minerva Foods also has its own initiatives ‘Talking about Livestock’ and ‘Laço de Confiança’ with the aim of promoting the exchange of information with suppliers through lectures, meetings and communications sent with the most diverse content, including good socio-environmental practices . In addition to these initiatives, Minerva Foods also launched the Renove program in 2021 to support low-carbon livestock.

More information can be accessed in the sections Dedication to the Planet, Prosperity of our People, Product Quality and Respect for Life and Renew Program.

2. What are the social and environmental criteria in the evaluation of Minerva Foods suppliers?

The socio-environmental criteria are related to land, social and environmental regularity and all Minerva Foods suppliers undergo this verification. The definition of the policy that defines the socio-environmental criteria is built in accordance with the local legislation of each country where the Company operates and the provision of data for monitoring.

Brazil:

Land tenure regularity: compliance upon presentation of ownership documents and the SICAR (Rural Environmental Registry);

Social regularity: compliance by consulting the Ministry of Labor’s ‘Dirty List of Slave Labor’ on convictions for slave labor and by geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with indigenous lands and quilombola communities; and

Environmental regularity: compliance by consulting the IBAMA embargo list in addition to geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with deforestation polygons and environmental protection areas.

Paraguay:

Social regularity: compliance through geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with indigenous lands; and

Environmental regularity: compliance through geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with areas of illegal deforestation and protected public areas.

Colombia:

Social regularity: compliance through geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with land from ethnically differentiated communities; and

Environmental regularity: compliance through geospatial monitoring, in partnership with Niceplanet Geotecnologia, in which the map of direct suppliers is superimposed with areas of illegal deforestation and protected public areas.

In Argentina and Uruguay, Minerva Foods started the geographic diagnosis and the study of the country’s legislation, with the objective of evaluating the methodology that will be used in the monitoring and which criteria will compose the local cattle purchase policy.

More information can be accessed in the sections Commitment to Sustainability, Dedication to the Planet and Prosperity of our People.

3. How does Minerva Foods manage its direct suppliers?

As per the socio-environmental criteria of Minerva Foods, 100% of direct cattle suppliers are monitored throughout the Brazilian and Paraguayan territory. Future plans for expansion to other countries are underway, as per the Commitment to Sustainability disclosed in 2021.

In addition to inquiry and documentary verification, through the geospatial monitoring platform SMGeo, developed by Niceplanet Geotecnologia, the map of direct suppliers is overlaid with available information based on the social and environmental criteria established in each country of operation (criteria established according to local legislation and availability of data for monitoring).

In Brazil, an API was developed to integrate Minerva Foods’ internal systems with SMGeo, so that all cattle sell transactions undergo socioenvironmental monitoring, and in the event that any liability or irregularity is detected, the purchase is canceled and the supplier is entered in the Company’s blocking system until it has been regularized. Thus, the system itself prevents any attempt to initiate internal negotiations. This same monitoring platform, SMGeo, is also used in Paraguay. The platform has a division of the cartographic and socio-environmental analysis process that is under the responsibility of an environmental technician, who performs an assisted analysis of the geographic data.

More information can be found in the sections Commitment to Sustainability, Dedication to the Planet e Prosperity of our People.

4. Is there a limit to the number of non-conformities permitted within each individual purchase transaction?

Minerva Foods has zero tolerance for noncompliance with its socioenvironmental criteria. If a supplier presents a non-compliance with any social and environmental criteria, it will be automatically barred from any purchasing operation.

More information can be found in the sections Dedication to the Planet e Prosperity of our People.

5. How does Minerva Foods monitor, analyze and guarantee the social and environmental performance of its direct suppliers?

Based on its public commitments and established social and environmental criteria, Minerva Foods annually carries out audits to verify compliance and effectiveness of its monitoring systems by independent entities.

In Brazil, Minerva Foods had continuously received the top results in the audit supervised by the Public Prosecutor’s Office of Pará among major players for 2018, 2019 and in 2020. The Public Prosecutor’s Office audit is the only official audit that is independently verified in Brazil under supervision of legal authorities. All results are reliable and publicly disclosed by the PPO.

In Paraguay, for the second year running, an audit was carried out on the local supply chain by BDO RCS Auditores Independentes. In this process, we achieved compliance with all the socio-environmental criteria and procedures established by the Company.

All reports of the audits performed are publicly available at Dedication to the Planet and the result of the Public Prosecutor’s Office latest audit can be accessed here.

6. What is the profile of the cattle supplier at Minerva Foods?

Minerva Foods is an export-oriented company, with 68% of gross revenue coming from the export market for 2021 and 73% of purchases originating outside the Amazon region in Brazil. The Company is recognized internationally for supplying premium quality beef to over 100 countries that require the highest standards of traceability, food safety, animal welfare and full environmental and labor compliance based on their own mandatory criteria for importation.

In order to meet the most rigorous export requirements of countries such as the European Union, the United States, China and others, it is imperative that cattle suppliers invest in genetics and breeding, animal welfare and handling, pasture and soil management and in legal compliance related to environmental and labor issues. Cattle ranchers who are able to meet these standards have more profitable operations..

These are professional cattle ranchers, who made the investments to become suppliers to the export markets, who do not regard forest fires, illegal deforestation or noncompliance with the law as beneficial, but rather as detrimental to their livelihoods and the future of their businesses. These are the cattle ranchers that make up the list of suppliers to Minerva Foods.

7. How does Minerva Foods intend to monitor indirect suppliers? What are the biggest challenges?

The efforts of Minerva Foods, in partnership with civil society organizations, academic institutions, and private initiative, are based on tangible initiatives that have an impact today, defining Minerva Foods as a leader in combating illegal deforestation at the level of the indirect livestock suppliers in the Brazilian Amazon region.

Together with Friends of the Earth, the National Wildlife Federation and the University of Wisconsin-Madison, in the United States, the Company publicly released the results of its monitoring of indirect suppliers, carried out in trials with the Visipec monitoring tool at industrial facilities, located in the states of Mato Grosso and Rondônia, and for live cattle export operations in the state of Pará. In addition to Visipec, Minerva Foods launched the first mobile App designed for rural producers, based on the understanding that efforts to strengthen traceability in the chain must be a joint undertaking. SMGeo Prospec was developed together with Niceplanet Geotecnologia, enabling the analysis of social and environmental factors for the entire agribusiness production chain.

Some of the greatest challenges are due to lack of access or in some cases the absence of official data needed to verify other links in the supply chain.

More information can be found in the sections Commitment to Sustainability e Dedication to the Planet and on the following links: https://www.visipec.com, https://gtfi.org.br/en/ and on our Minerva Foods Youtube channel.

8. What is Visipec? What are its initial results?

Visipec is a traceability tool developed by the National Wildlife Federation NWF in partnership with the Gibbs Land-Use and Environment Lab at the University of Wisconsin-Madison (“UW”) and currently managed by the National Wildlife Federation NWF, which works in a complementary way to the systems monitoring systems used by Minerva Foods. The tool provides the Company with the ability to include its indirect cattle supply properties in its existing supply chain management systems, helping to reduce levels of uncertainty around supply and potential exposure to risk related to deforestation and other societal criteria. and environmental.

Indirect cattle suppliers were evaluated according to the best practice criteria established by the Working Group for Indirect Suppliers (GTFI), a multisectoral initiative in which Minerva Foods is a participant.

The results are encouraging and reinforce Minerva Foods’ pioneering spirit in Sustainability. In the tests conducted, more than 98% of the farms directly supplying cattle analyzed are in compliance with the best practices established by the GTFI and therefore in compliance with the monitoring of illegal deforestation for farms that indirectly supply cattle tier 1 of Minerva Foods . 2,548 direct suppliers were verified, resulting in the identification of 8,653 indirect suppliers of cattle and a ratio of 3.4 indirect suppliers for each direct supplier.

Minerva Foods became the first company in the sector to integrate the tool into its monitoring system, thanks to its innovative tests with Visipec. The Company reached the goal of integrating the monitoring system for indirect cattle suppliers four months ahead of schedule, as of the initial forecast date of December 2021. The tool is ready and valid for use in all states of the Brazilian Amazon, which represented around 34% of Minerva Foods’ purchases in 2020 and 27% in 2021.

It should be noted that the processing of data and information made available by Visipec is in full compliance with the General Data Protection Law (LGPD).

More information can be accessed in the Commitment to Sustainability and Dedication to the Planet section and on the pages https://www.visipec.com, https://gtfi.org.br/en/.

9. What is SMGeo Prospec?

With the understanding that efforts to strengthen traceability in the chain must be collective, Minerva Foods launched the first mobile application focused on rural producers that allows monitoring of their suppliers. SMGeo Prospec was developed together with Niceplanet Geotecnologia, enabling social and environmental analyses for the entire livestock production chain.

The application was a way for Minerva Foods to support its rural producer partners by providing access to the same technology it uses in its supplier analysis, socioenvironmental monitoring systems and risk mapping for all cattle purchases. The same technology that allowed the Company to obtain the best results in traceability in audits among the main players in the sector. The database provides information about the compliance of owners by cross-referencing public lists, such as the ‘Dirty List of Slave Labor’ and the lists of environmental embargoes. As the ability to display maps and satellite images to visualize the compliance of the property in relation to overlapping embargoed areas, deforestation, indigenous lands, conservation units and invasions in traditional communities’ territories.

It is worth mentioning that the application follows all the requirements contemplated in the General Law of Data Protection (LGPD) and for the company to have access to any kind of data and information, it is necessary the “acceptance” of the cattle rancher, and without this no information will be shared.

By making SMGeo Prospec available to the production chain, Minerva Foods has encouraged monitoring of its suppliers’ providers (indirect supply farms), thus reducing risks related to animals coming from areas that do not meet socio-environmental standards and laws.

More information can be accessed in the Commitment to Sustainability and “Dedication to the Planet sections.

10. How does Minerva Foods define deforestation, conversion and biome?

DEFORESTATION:

Minerva Foods, adopts the definition stated by the Accountability Framework, where deforestation is defined as the complete removal of native or planted forest cover, according to the characteristics of each region.

CONVERSION:

Conversion of land characteristics does not necessarily represent deforestation. Minerva Foods adopts the the definition stated by the Accountability Framework, where conversion is defined as the change of the natural ecosystem to another land use, such as, for example, the allocation of areas with natural pasture for cattle grazing or agricultural planting.

BIOME:

Minerva Foods adopts the definition of biome as per the Brazilian Institute of Geography and Statistics (IBGE), where biome is defined as a combination of plant and animal life, constituted by the grouping of vegetation types that are close together and that can be identified on a regional level, with similar geology and climate conditions and that, historically, have undergone the same landscape formation processes, resulting in a diversity of flora and fauna of their own. In this way, each biome can have specific parameters and characteristics that define its Forests.

1. How is the issue of Climate Change integrated into Minerva Foods’ strategy?

Sustainability is one of Minerva Foods’ five values, present in all operations and governance structures. In 2021, the Company disclosed its commitment to sustainability with a focus on combating climate change and illegal deforestation, recognizing that business sustainability depends on maintaining the ecosystems that make agricultural production feasible.
Minerva Foods is committed to its process of transition to a low carbon economy, investing in technologies that mitigate greenhouse gas emissions in the livestock value chain to achieve neutrality of emissions in 2035.
In 2022, Minerva Foods started the project to integrate climate risks (physical and transition) into the company’s risk management. By hiring a specialized consulting firm, climate change scenarios are being studied together with the Company’s strategic vision for the medium and long term (2030 and 2050), according to TCFD recommendations.
The project is being conducted according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and is scheduled for completion in 2023.

More information can be found in the sections Commitment to Sustainability and in the sustainability report page.

2. How are GHG emissions managed at Minerva Foods?

Minerva Foods, through its corporate sustainability area, uses software to collect operational data and calculate GHG emissions. This work is done monthly and covers operations in Brazil, Argentina, Australia, Chile (distribution), Colombia, United States (distribution), Paraguay and Uruguay. The results are consolidated in the Corporate Inventories of GHG Emissions published annually. For the third consecutive year, the data were audited by a verification body (OV) accredited by Inmetro.
Seeking an increasingly transparent relationship with its stakeholders, the Company discloses the results of measurements of its GHG emissions in the Sustainability Report and in the Indicator Center section, in addition to including them in the Public Emissions Registry of the Brazilian GHG Protocol Program (since 2015). In 2022, Minerva Foods received the program’s “Gold Seal” for the second time in the emissions inventory for 2021.

The evolution of the Company’s GHG emission reduction targets can be followed in the Commitment to Sustainability section.

More information can be accessed in the Sustainability Report, in the Indicator Center section, as well as on Minerva Foods page on the Public Emissions Registry of the Brazilian GHG Protocol Program.

3. Does Minerva Foods account for scope 3 emissions in its GHG inventory? Which categories are included?

Minerva Foods has improved every year the accounting of its direct and indirect (value chain) GHG emissions. In 2020, for the first time, the Company included scope 3 in its Corporate GHG Emissions Inventory. Scope 3 emissions were measured for the Brazilian operations and categories ‘4 – Transport and distribution – upstream’ (partial), ‘6 – Business travel’ and ‘7 – Employee commuting’ were included.
In the 2021 inventory, the Company expanded the accounting of scope 3 emission sources to other countries (Argentina, Chile (distribution), Colombia, Paraguay and Uruguay) and included new emission sources and categories: ‘1 – Purchased goods and services’ (purchased livestock), ‘4 – Transportation and distribution – upstream’ and ‘5 – Waste generated in operations’.

In 2022, with the help of a specialized consulting firm, the Company conducted a Scope 3 materiality study, thus creating a complete GHG management of its value chain. In addition to the categories already reported (mentioned above), for the units in Brazil, they were included in the Greenhouse Gas Inventory:
– Category 1 – Purchased goods and services (items considered relevant in the materiality study)
– Category 3 – Fuel and energy not included in scopes 1 and 2
– Category 9 – Transport and downstream distribution (transport of green leather to Tanneries that provide services to Minerva Leather)
– Category 10 – Processing of sold products
– Category 12 – End of life treatment of products sold (applicable to Minerva Foods product packaging).
With the exception of categories 3 and 9, which have already been reported, the new categories will be included in the inventory of the LATAM and Australia units next year.

More information can be accessed in the Sustainability Report, in the Indicator Center section and in the Public Emissions Registry of the Brazilian GHG Protocol Program.

4. What steps is Minerva Foods taking to reduce its carbon emissions?

In 2021, Minerva developed a study with a specialized consulting firm to identify and prioritize projects to mitigate GHG emissions for scopes 1 and 2. In 2022, another study focused on the materiality of scope 3 emissions was conducted. Based on the results, the Company has been working on the complete accounting of GHG emissions in the value chain in order to improve its management and design mitigation plans covering indirect emissions.

In 2021, it became the first Brazilian company to receive the ‘Renewable Energy’ Seal, issued by Instituto Totum, in partnership with the Brazilian Wind Energy Association (ABEEólica) and the Brazilian Clean Energy Association (Abragel). The Company acquired Renewable Energy Certificates (I-REC) to track the electrical energy consumed by its operations in 2020, 2021 and 2022, the initiative allowed it to neutralize scope 2 GHG emissions in line with its commitment to sustainability.
Another highlight is the creation of the Renove Program, which will work to engage and collaborate with cattle farmers in implementing low-carbon practices on the farms that supply cattle. The company’s goal is to include 50% of the supply chain in the program by 2030.

The evolution of the Company’s GHG emission reduction targets can be followed in the Commitment to Sustainability section. More information can be found in the Sustainability Report, in the Renove Program and Indicator Center sections, and in the Public Emissions Registry of the Brazilian GHG Protocol Program.

5. What is the Renove program? What projects does it develop?

The year 2021 marked the launch of the Renove Program, designed to engage and work together with cattle ranchers, that supply Minerva Foods, in the implementation of low carbon emission cattle ranching practices. In its first year, the Program developed three projects with reference partners in South America: MRV Agro Project, LATAM Certification Project and the Carbon Project.

The MRV Agro Project, together with Embrapa, calculated the carbon balance of 22 farms in Brazil (period from June 2020 to July 2021). The study covered 71,400 hectares and more than 250,000 head of cattle. The 22 participating ranch properties supplied 12% of the volume of cattle purchased in Brazil for 2021. The initial results indicate that 21 ranches emit less than the national average for livestock activity and 10 of the ranches analyzed sequester more carbon than they emit through best practices, resulting in negative carbon.

The LATAM Certification Project, carried out in partnership with Imaflora, calculated the carbon balance and the intensity of emissions in 5 different ranch properties in each country of operation, Argentina, Brazil, Colombia, Paraguay, and Uruguay; for a total of 25 ranches, 490 thousand hectares, and 232 thousand heads of cattle. The estimate of the intensity of emissions in global beef production, obtained from the analysis of more than 30 scientific papers, was 19.9 tons of CO2e per ton of beef produced. The 25 suppliers of Minerva Foods are ranked between 11% and 69% below the global average of emissions, with the average being 44% below. When evaluating the carbon balance of the production system for each one of them, which includes the emissions and removals that occur on the property, three of the the ranches were found to be carbon negative. The results were presented at the UN World Climate Conference (COP26). All the data are published at https://carbonontrack.imaflora.org/.

The Carbon Project, carried out in partnership with Santos Lab and Biofílica Ambipar Environment, used remote sensing technologies to analyze the presence of environmental assets on 382 ranch properties in Brazil and Paraguay. Of these, 60 suppliers were invited to participate in the pilot project, 10 of which were located in the Paraguayan Chaco and 50 in Brazil. The project aims to connect these farms with the voluntary carbon market, green finance, and capacity building, with the intention of creating incentives for the expansion of low carbon practices in cattle ranching.

The Renove Program aims to expand these activities throughout 2022, with constant methodological improvement in order to maintain soundness and scientific credibility, thus contributing to the recognition of the sustainability of South American cattle breeding.

More information can be found in the sections Renew Program.

6. What is MyCarbon?

Created in 2021, MyCarbon is a subsidiary of Minerva Foods. It is designed to help companies to reach their goals of neutralizing greenhouse gas emissions through carbon offsetting, in a manner that is transparent, reliable, and sustainable. The company develops projects, originates and trades carbon credits, in line with international standards, thereby creating financial opportunities for the preservation of nature, accelerating the drive against climate change, and promoting a low-carbon future.

MyCarbon is part of the efforts Minerva Foods has made to implement initiatives that promote a more sustainable, low-carbon livestock production, supporting ranchers throughout South America in adopting a technology-based production system that contributes towards reducing emissions in the value chain. In 2021, MyCarbon carried out its first contract for the certified emissions reduction.

As part of our 2022 results, we have already traded over 1.5 million tonnes of carbon and sold the first containers of carbon neutral meat.

More information can be found at MyCarbon website.

7. What are carbon credits?

A carbon credit is the representation of one ton of carbon dioxide that has been removed from the atmosphere or not emitted, contributing to the reduction of the greenhouse effect. These credits are verified, audited and certified within recognized platforms and can be traded, in order to offset the residual emissions of organizations, activities or products, i.e. those emissions that could not be reduced to achieve climate neutrality (net zero).

Carbon credits are generated from projects that promote the reduction of emissions or the removal of carbon from the atmosphere. Activities that can generate these credits include forest preservation and restoration, pasture reform and management, and the implementation of good agricultural practices. The Renove Program supports rural producers to connect to the carbon market, within certified projects.

More information can be found at MyCarbon and the Renew Program webpage.

8. What is carbon neutral meat?

For a product to be carbon neutral, all emissions measured in its carbon footprint need to be reduced and the rest offset in order to neutralize them.

Minerva Foods has already made its first exports of carbon neutral meat, with the inclusion of the CO2 neutral seal, granted by an independent organization with certification systems in more than 100 countries. Minerva Foods, in partnership with research institutions, measures emissions from the farm to the product’s destination. With the implementation of emission reduction plans in farms and industries, the remaining emissions are offset through the use of high quality carbon credits. We started to include this new seal in the lines produced in Uruguay and Brazil as a result of the best practices adopted by ranchers in their efforts to reduce emissions.

More information can be found at MyCarbon and the Renew Program webpage.

9. Have climate risks and opportunities been assessed?

The sustainability of Minerva Foods business depends on maintaining the ecosystems that make agricultural production viable. Climate change has a series of potential impacts on the agricultural and livestock value chain, including, for example, productivity on farms that supply cattle, which could increase the Company’s operating costs.

In the second half of 2022, the Sustainability and Audit, Risks and Compliance areas started a project in partnership with a specialized consulting firm to map risks and opportunities related to climate change and improve the Minerva Foods business adaptation strategy in its operations and value chain.

As part of the project to map and analyze risks and opportunities related to climate change, the Company is considering the greenhouse gas concentration scenarios and socioeconomic strategies prepared by the IPCC (SSP1-2.6, SSP2-4.5 and SSP3-7.0) in the medium and long term (2030 and 2050) that may affect its operations and value chain. The physical risks evaluated include: forest fires, floods, heat and cold waves, windstorms, and meteorological droughts. The transition risks evaluated contemplate those linked to the political and legal, market, technological, and reputational fronts. Eight opportunities were mapped initially, with different applications in each country of operation.

The project is being conducted according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and is expected to be completed in 2023. More information can be found in the Sustainability Report and in the Indicator Center section

10. How is Minerva Foods engaged in discussions about climate change?

Minerva Foods is connected to the national and international sustainability agenda through public commitments and by joining initiatives that are relevant to its business segment.

The Company is a signatory to the UN Global Compact and participates in the Climate Action Platform of the Brazil Network, is part of the Brazilian GHG Protocol Program and can be found on the list of companies participating in the Carbon Disclosure Project (CDP).

In relation to combating deforestation in South America, a topic directly linked to its climate agenda, Minerva Foods is a signatory to the ‘Compromisso Público da Pecuária’ and Termo de Ajustamento de Conduta (TAC) with the Ministério Público Federal of Pará, in addition to its participation in the Global Roundtable for Sustainable Beef (GRSB), Grupo de Trabalho da Pecuária Sustentável (GTPS), Mesa Paraguaya de Carne Sostenible (MPCS), Mesa de Ganadería Sostenible de Colombia, and the Responsible Leather Roundtable (RLRT). Other initiatives in which the Company participates includes the Grupo de Trabalho dos Fornecedores Indiretos (GTFI) and the Protocolo de Monitoramento de Fornecedores de Gado da Amazônia (in partnership with the Ministério Público Federal and Imaflora).

Furthermore, for the third consecutive year, in 2023 Minerva Foods is part of the Carbon Efficient Index (ICO2) and the Corporate Sustainability Index (ISE), both part of B3, The Company is part of the 2022/2023 portfolio of the CDP Brazil Climate Resilience Index (ICDPR70). The Company was also evaluated by the Forest 500 Ranking as one of the companies in the protein sector that presents the lowest risks of being linked to deforestation or of potential exposure to supply chains of forest risk commodities. In 2023, Minerva Foods ranks among the 5 best Brazilian companies in sustainability policies, according to the ranking.

More information can be found in the Sustainability Report, under the section Dedication to the Planet, on the platform for action for Climate of the UN Global Compact Network Brazil, and on the Registro Público de Emissões do Programa Brasileiro GHG Protocol, the questionnaires of the CDP and on index pages ICO2 and ISE of the B3 and ICDPR70.

1. How does Minerva Foods conduct environmental management in its operations?

Environmental management at Minerva Foods encompasses several different activities focused on prevention and mitigation of environmental impacts and continuous improvements. Management includes the stages of environmental licensing and request for grants, environmental investments and implementation of Environmental Management Plans, as well as Management Plans for Solid Waste.

The environmental issues are governed by the guidelines of the Occupational Health and Safety, Environment, Food Safety, and Social Responsibility Policy, which contemplates the business performance in different countries, seeking to standardize internal procedures in all units.

More information can be found in the section Dedication to the Planet.

2. Does Minerva track its performance regarding the use of natural resources in its operations?

Yes, Minerva Foods does monitor several environmental indicators on a monthly basis. These include: water consumption, electricity consumption, fuel consumption, steam generation, effluent generation, volume of waste generated and disposed of, among others.

Each year the Company publishes these indicators in its Sustainability Report, and they are used to define strategies and investments required to optimize the use of natural resources in operations.

These indicators can be found in the section Indicators. More information can be found by accessing the Sustainability Report.

3. Does Minerva have goals related to water use and disposal and electric power usage?

Minerva Foods sets targets in terms of water and electricity consumption, striving to optimize its operations and make them increasingly more efficient. Each business unit establishes a target at the beginning of each year according to production planning.

The metric used to measure water consumption is m³/TPA (Ton of Finished Product).

The metric used to measure electricity consumption is Kwh/TPA.

These indicators can be found in the section Indicators. More information can be found by accessing the Sustainability Report.

4. How does Minerva minimize environmental risks in its operations?

All Minerva Foods business units are subject to the rules and regulations of inspection agencies, whether municipal, state or federal, and ensuring compliance already contributes to minimizing risks inherent in operations.

Finally, studies of environmental aspects and impacts that support the management in the treatment of significant risks are reviewed annually in the operations.

More information can be found in the section Dedication to the Planet.

5. Does Minerva treat effluents generated in its operations?

Yes, effluents generated in operations are treated by Minerva Foods’ own Effluent Treatment Stations. The Effluent Treatment Stations are composed of a primary treatment (responsible for removing solid waste through suspension), secondary (responsible for intensifying the natural biodegradation process of the organic load, i.e., it is a system focused on biological oxidation of a portion of organic matter) and, for some locations, tertiary (responsible for controlling specific parameters that are not removed by conventional biological methods using physical-chemical or biological techniques).

All entire treatment process is monitored through analysis of the raw and treated effluent, performed by laboratories accredited by international quality standards, to ensure compliance with the laws of each country and the non-contamination of the receiving bodies and/or soil when applicable.

The Company has also invested in fertigation systems for the disposal of effluents. In these systems, the treated effluent is sent through pipelines and drained into pastures on supplier properties located in the vicinity of the industrial units. Among the various environmental benefits of this process, the preservation of water bodies and the reduction of the amount of fertilizer products used in pastures that emit Greenhouse Gases.

More information can be found in the section Dedication to the Planet.

6. Does Minerva Foods control its air emissions?

Yes, Minerva Foods controls its atmospheric emissions at all applicable business units. All emissions are monitored by laboratories accredited under international quality standards to ensure compliance with the laws of each country.

More information can be found in the section Dedication to the Planet.

7. Does Minerva recycle packaging used in its products? Does the Company contribute towards a circular economy?

Yes. As such, in 2021 Minerva Foods received the “eureciclo” seal, which testifies to the Company’s practices of promoting reverse logistics for product packaging. Minerva Foods is the first company in the meat sector to receive certification for all lines sold in Brazil, a testament to the Company’s commitment to compensating environmental impacts. More than a seal, the platform connects cooperatives and collection and recycling operators to companies, generating more resources for recycling agents, promoting the reverse logistics of post-consumer packaging and reducing the environmental impacts of these wastes on the environment. Annually, Minerva Foods disposes of approximately 1,500 tons of post-consumer packaging, a volume that represents 22% of the total packaging placed on the Brazilian market, in line with the goals of the National Solid Waste Policy.

In the operational units of Paraguay, plastic and cardboard waste is donated to an NGO that supports people with low income by selling the waste.

Since 2018, the Ciénaga de Oro unit in Colombia began to carry out the “Plan de Envases y Empaques”, together with the Punto Azul Corporation, in conjunction with compliance with Resolution 1407/2018, and all primary and secondary packaging materials are separated and sent to recycling Cooperatives.

In addition to recycling efforts, Minerva Foods seeks to reduce consumption of materials and segregates, stores, treats and disposes of its waste in an environmentally suitable manner, complying with environmental legislation applicable at each location and following the Solid Waste Management Plans of the operational units.

At the Company, the by-products of the industrial process are transformed into business, linking sustainability and profitability through the Minerva Leather, Minerva Biodiesel, Minerva Ingredients and Minerva Casings divisions. In some locations, rumen from the process is also composted, reducing the amount of non-hazardous waste sent to landfill and contributing to the strengthening of a circular economy.

More information can be found in the section Dedication to the Planet.

1. Which Food Safety certification does Minerva Foods have?

All Minerva operating units have BRCGS certification, recognized by the Global Food Safety Initiative (GFSI). This attests to compliance with international standards and criteria in all production processes.

More information can be found in the Sustainability Report and in the section Product Quality and Respect for Life.

2. Does Minerva Foods possess religious certification?

Yes, all Minerva Foods active operating units are certified for Halal production.

More information can be found in the Sustainability Report and in the section Product Quality and Respect for Life.

3. What is the range of analysis of the Minerva Foods laboratories?

Microbiological and physical-chemical analyses are performed on products, surfaces, air, and packaging, in addition to checking the composition of foods with regard to proteins, fats, moisture, among others. Minerva Foods works with laboratories certified by ISO 17025 and also with third-party laboratories that have the same level of accreditation.

More information can be found in the Sustainability Report and in the section Product Quality and Respect for Life.

4. Does Minerva Foods have indicators for quality?

Yes, Minerva Foods daily oversees the results of established quality indicators, with a focus on continuous improvement. Weekly, monthly, and annual statements are issued to monitor the individual performance of each production unit, in order to ensure overall quality and safety of the food produced.

More information can be found in our Sustainability Report and in the section Product Quality and Respect for Life.

1. What is Animal Welfare?

The term is increasingly being used by companies, consumers, customers, and inspection agencies, making it essential to comply with certain standards of good practice. Animal welfare is not just about ensuring that an animal is not treated cruelly or suffers any unnecessary pain or suffering. Animal welfare is linked to the animal’s nutrition, environment, health, behavior, and mental state.
The most commonly used scientific concept is that an animal’s welfare refers to its state in relation to its attempts to adapt to its environment. In other words, if the challenges of adaptation are overcome with little effort and expenditure of resources, welfare is satisfactory. However, when there are failures and difficulties in meeting the challenges, welfare can be considered deficient. So an animal’s welfare can be measured and is something inherent to the animal, not something given to them by man. In practice, this means that no one is able to provide welfare to an animal, but rather conditions for it to adapt in the best possible way to the environment.
For more information access: Animal Welfare Concepts and Related Issues.

2. What is animal sentience?

Sentience is the ability of individuals to consciously experience sensations and feelings. Minerva Foods recognizes animals as sentient creatures, meaning that we believe they have feelings, memories and wills, as well as physical and mental suffering.
For more information: Animal Welfare Policy;

3. Is animal welfare an explicit part of Minerva Foods’ sustainable protein strategy?

Yes, the sustainability agenda for Minerva Foods was structured upon three key pillars: Dedication to the Planet, Prosperity of our People and Product Quality and Respect for Life.

Specifically above the pillar Product Quality and Respect for Life, there is the objective to ensure food quality and safety and the best animal welfare practices, adhering to innovation and certification at each stage of the value chain.

More information can be found in the section Product Quality and Respect for Life.

4. Does Minerva Foods have a global animal welfare policy?

Yes. For Minerva Foods, animal welfare is an ethical principle that applies to its entire operation. The Animal Welfare Policy is based on strict zero tolerance control of acts of abuse, neglect or mistreatment of animals, always seeking to implement the best management practices, and provide training for all those involved as well as continuous verification at all stages of production.

More information can be found in the section Product Quality and Respect for Life.

5. How many Minerva Foods units are certified in Animal Welfare?

Minerva units in Brazil, Paraguay, Uruguay, Colombia and the Rosario unit in Argentina are certified in animal welfare, in accordance with the NAMI (North American Institute) protocol, by PAACO (Professional Auditor Animal Certification Organization) accredited auditors. As a result, more than 95% of the beef industrial units are certified in animal welfare and we had in 2022 an average of 99.9% compliance with the requirements.
In Australia, although the operations have been acquired recently, the Company has two units certified in the Australian Livestock Processing Industry Animal Welfare Certification System protocol, the AAWCS, and has an approval rate of 100%.

More information can be found in the section Product Quality and Respect for Life.

6. What are the priorities of Minerva Foods in regards to Animal Welfare?

The priorities of Minerva Foods in regards to Animal Welfare are as follows:

Embrace responsibility for ensuring that animals are treated with respect and dignity throughout the global chain;
Develop and implement good animal welfare practices in operations and interfaces with suppliers; and
Advance in the structuring of the company’s Animal Welfare Program based on the five domains of animal welfare.

More information can be found in the section ‘Product Quality and Respect for Life.

7. What current measures does Minerva Foods take to encourage its supply chain to adopt higher animal welfare standards?

The measures taken by Minerva Foods are:

Addition of welfare KPI’s as part of the company’s top management charter;
Specialized animal welfare technical team in all operations;
Clarification of internal responsibilities in regards to the importance of animal welfare to the Company;
Sustain a corporate advisory committee on animal welfare;
Partnership with other stakeholders in the sector;
Promotion of animal welfare events, training sessions and conferences for internal and external audiences; and
Implementation of contractual clauses for adherence to Minerva animal welfare policy by suppliers.

More information can be found in the section Product Quality and Respect for Life.

8. Has Minerva Foods invested in projects dedicated to improving farm animal welfare practices?

We consider animal welfare a priority in our business, and the topic is increasingly establishing a high standard of importance, which drives our sustainable development. To this end, internal and external initiatives and partnerships are constantly implemented. Check out some of our main actions to disseminate the animal welfare theme:
1. internal initiatives
1.1 Research and innovation projects – 1) Corrals: optimization of sprinklers and tests with different types of shades for the cattle’s thermal comfort, tests with different structures for non-slip floors and different types of mobile troughs for feeding the animals; 2) artificial intelligence for bruises on the carcass, in partnership with the company EcoTrace. This technology was developed to map the locations with the presence of bruises on the carcass, facilitating the investigative process of the cause; 3) Systematization: sensor testing deployed at the unloading point for counting and weighing animals; system technology for Big Data – for data management of the animal welfare indicators used in industrial operations, such as application for collecting information from routine animal welfare monitoring and application with the logistics team to monitor the shipment and transport of animals.
1.2 Internal training – Annual training and technical updating of all employees who deal directly with the animals, carried out by external consultants, and by the Animal Welfare Specialists.
1.3 Monitoring cameras – implanted in the industry to monitor the direct handling of the animals. A specialized team monitors the images on a daily basis, reporting possible deviations.
1.4 Ox Path – Audit performed by the Animal Welfare Specialist of each unit, mapping possible dangers and opportunities to improve the facilities, aiming at animal welfare.
1.5. Application of a Compliance Matrix – a tool used for the daily control of key animal welfare indicators, enabling the monitoring of progress, implementation and assurance of good practices.

2. External Initiatives
2.1 Laço de Confiança – developed by Minerva Foods to facilitate sharing of technical and practical knowledge with our suppliers. The main projects in the Animal Welfare area are: “Falando de Pecuária” (Talking about Cattle Raising), which offers lectures aimed at discussing pertinent subjects between the industry and cattle ranchers, the Carcass Efficiency Program (PEC), which aims to disseminate best practices for efficient cattle raising and the Cattle Raiser’s Booklet, which is a manual to guide management practices with animal welfare in mind.
2.2 Technical field visits – visits to partner farmers to provide guidance and instruction on good animal welfare practices, among other relevant topics. Partner animal health companies may also accompany the visits to reinforce the themes that will be worked on.
2.3 External training – Training and updating of drivers and cattle ranchers in relation to good animal welfare practices with the dissemination of support material, covering essential information for the routine of professionals who deal with live cattle.
2.4 We are signatories of the Global Roundtable for Sustainable Beef (GRSB), a multi-sector initiative composed of representatives of the beef chain. In particular, we participate in roundtables on animal welfare issues.
3.. Partnerships
3.1 Research institutions: we are partners of the National Institute of Agricultural Technology (INTA) by means of technical support for the development of the Welfare Protocol for Confined Cattle and the São Paulo Agency of Agribusiness Technology (APTA) with support for research projects focused on animal nutrition.
3.2 Companies: we are also partners of Phibro Animal Health and Biogénese Bagó, supporting initiatives such as mini-courses and technical assistance visits for cattle ranchers, aiming to exchange information on nutrition, productivity, management and animal health. We also have YouTube channels such as PEC TV, which has a programming grid designed to add knowledge to cattle ranchers.
3.3 NGOs: we are partners of Compassion in World Farming (CWF) and Alianima with a focus on developing the company’s public commitments, published in our first Animal Welfare Report, materializing the objectives of continuous improvement of our practices globally.
3.4 Participation in events – To disseminate the animal welfare theme and culture, we constantly participate in a series of important events in the area, such as the Responsible Cattle Raising Movement – animal welfare edition, the 3rd Week of Agricultural Science and Technology and the 5th International Encuentro de Investigadores em Bienestar Animal do Uruguay, held in 2022.

1. Does Minerva Foods train its employees on social and environmental issues?

Yes, Minerva Foods provides ongoing training on social and environmental issues through social media, email and corporate TV at operational units.

When integrating all employees, the environmental department presents its environmental management system and explains what is expected of newcomers regarding the segregation and disposal of waste and to ensure conscientious consumption of water and energy.

During integration, the Company’s Code of Ethics is also presented containing the principles and actions expected regarding several guidelines, among them promoting and protecting the health and physical integrity of employees, service providers and visitors; respect for the environment and the community; management practices aimed at animal welfare; food quality and safety; respect for others (combating any form of discrimination, forced and child labor); compliance with the law and other applicable regulations; and the search for meeting the needs and expectations of customers and other stakeholders.

More information can be found in the section Prosperity of our People.

2. What actions does Minerva Foods carry out to support the quality of life of its employees?

Through the Estar bem program, Minerva Foods offers important initiatives that stimulate quality of life. Highlights include the virtual library, educational and informative presentations, internal health week, and health and influenza vaccination campaigns.

The company also offers Dr. AON, which promotes healthy eating and physical activity with customized follow-ups by nutritional coaches and physical educators; pregnancy counseling and medical orientation; and the Employee Assistance Program, which provides psychological, social, social security, legal and financial assistance to employees, their dependents and families.

More information can be found in the section Prosperity of our People.

3. What is the position of Minerva Foods with regard to practices aimed at ensuring compliance with agreements and collective bargaining?

Minerva Foods informs its internal public of the rights set forth in these collective bargaining agreements, ensuring their practice. It also contemplates an agenda open to dialogue, regardless of collective negotiations and datas-bases* set by the government and/or entities that represent employees.

*A period of the year when the employers of various companies meet to redefine the terms of collective labor agreements.

More information on adherence to Collective Bargaining Agreements and/or Conventions can be accessed in the Indicators section.

1. How does Minerva Foods manage health and safety in its operations?

Minerva Foods establishes guidelines in this regards, with the intention of promoting, protecting and encouraging the health and physical integrity of its employees, service providers and visitors; through safe and healthy conditions and behavior and management to eliminate dangers and reduce risks identified in its processes, preventing injuries, work-related health problems and the occurrence of incidents.

The principal areas of management in the health and safety system are:

Local safety committees;
Management of critical risks;
Monitoring of legal requirements applicable to the business;
Safety monitoring;
Health monitoring
Management of contractors
Safety leadership;
Communication and consultation; and
Aftereffects management

2. What are the practices and procedures at Minerva Foods in relation to accident and occupational disease prevention?

Minerva Foods operates in accident prevention through its health and safety management system along various guidelines, with emphasis on critical risk management and its ‘Golden Rules’.

Management of critical risks is a priority, where risks with the greatest potential are monitored, evaluated and controlled periodically and regularly. Strict control systems, audits, and investments are made to block the possibility of serious and critical events.

The main critical risks are:

Working with electricity;
Ammonia;
Working at heights;
Cargo handling and lifting;
Machinery and equipment;
Pressure vessels and boilers;
Confined spaces;
Fire prevention and protection; and
Working in cold environments.

‘Golden Rules’ is one of the Company’s main programs to encourage safe behavior. These are 10 rules that save lives, built on best market practices and based on Minerva Foods’ principal lessons learned. These are rules that contribute to the educational and learning process, on the road to an improved workplace safety culture.

3. Does Minerva Foods have a process to manage the safety and welfare of contractors and subcontractors working on its behalf?

Yes, Minerva Foods possesses a comprehensive program to manage its employees and all those who work on its behalf, specifically its contractors and subcontractors.

All contractors and subcontractors are systematically evaluated before any service is provided. Together with a strict integration and training program, all activities are assessed prior to their execution to ensure that all risks have been identified and controlled.

4. What subsidies does Minerva Foods provide to employees in situations of occupational illness?

We periodically monitor the health profile of each worker, seeking to identify, in advance, a possible physical discomfort that could evolve into an occupational disease. The internal medical team follows up on these cases and if necessary refers them to specialized care. We also keep the occupational health program updated, which defines actions for the prevention and promotion of the worker’s health.

5. How did Minerva Foods adapt its operations to ensure the health and safety of its employees during the COVID-19 pandemic?

In February 2020, when the first case of COVID-19 was confirmed in Brazil, Minerva Foods, with the support of Hospital Israelita Albert Einstein, was the first to mobilize in the development of a solid and technical plan for handling the situation.

In addition to the contingency plan, Minerva Foods introduced important physical and mental health support programs for its workers, such as DR. AON and its Employee Assistance Program.

More information can be found in our Sustainability Report under the section Prosperity of our People.

1. How is the Minerva Foods Administrative Council composed?

The Minerva Foods Administrative Council has 10 members and 2 alternate members. It is composed of members with different academic backgrounds and corporate experience within the Company’s operating segment.

Currently there are one women on the Administrative Council, and also it should be noted that there is a female representative on the Executive Board.

More information can be found in the sections Our Strategy, Solid and Committed Management and on the Investor Relations site.

1. Does Minerva Foods have a reporting channel?

Yes, Minerva Foods has the ‘Conexão Minerva’ ombudsman channel. To access the channel, simply contact us by:

Website: conexao.minervafoods.com
Phone: 0800 741 0027
E-mail: conexaominerva@canalconfidencial.com.br

Conexão Minerva is operated by an outsourced company hired by Minerva Foods, guaranteeing its independence, autonomy and impartiality. All manifestations received through this channel are sent to the ombudsman/secretary of the Ethics and Integrity Committee.

2. What are the anti-corruption practices at Minerva Foods?

The Minerva Foods Compliance program adopts strict controls in order to reduce risks related to corruption practices, use of privileged information, unfair competition, child, forced and slave labor, among other actions firmly opposed by the Company.

Furthermore, Minerva Foods is a signatory of the UN Global Compact, a voluntary initiative of major corporate leaders that contribute to the sustainable growth of our planet, by incorporating the ten principles of the UN Global Compact.

More information can be found in the section Solid and Committed Management.

3. Is it possible to follow-up on a report filed in the Minerva Connection?

Yes, simply access the conexao.minervafoods.com website and the user will be redirected to the platform of the third-party and independent company that manages the ombudsman channel.

To follow up on the complaint, the user must follow the guidelines when registering the report and use the protocol number to query.

Internal Public:

Click on ‘Employee’ > ‘Follow up on the report’
Type the protocol number of the report and then click ‘Consult protocol’

External Public:

Click on ‘External Public’ > ‘Community’ > ‘Follow up on report
Type the protocol number of the report and then click on ‘Consult protocol

4. Does Minerva Foods have a Code of Ethics?

Yes, Minerva Foods has a Code of Ethics approved by the Administrative Council, which defines the ethical principles of operation, with responsibility for application by employees and business partners. The document includes several topics, among them: compliance with legislation and regulatory standards, ethics and integrity, protection of human rights, compliance with labor laws and standards, environmental care, among others.

More information can be found in the sections Prosperity of our People and Solid and Committed Management.

5. Are Minerva Foods employees allowed to receive gifts from business partners?

Minerva Foods understands that giving gifts is a cultural attitude in many countries around the world, however, the giving of gifts to Company employees is subject the following rules:

The amount may not exceed $100.00 (one hundred dollars) per year;
Cannot be delivered for business purposes, or in a period close to contract renewal;
It is not allowed to send gifts with the intention of obtaining benefits; and
From competitors.

More information can be found in the section ‘Solid and Committed Management’.

6. How does Minerva Foods handle personal data and/or sensitive personal data?

Minerva Foods handles personal data and/or sensitive personal data in accordance with the privacy policy that is publicly available on our website.

For requests involving the subject and the Brazilian General Law on Data Protection, you can contact the Minerva Foods Data Protection Officer at the e-mail address: privacidade@minervafoods.com.

More information can be found in the section ‘Solid and Committed Management’.

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