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Supply Chain Management

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% Cattle suppliers monitored based on socio-environmental criteria

GRI 13.23.3 GRI 414-1 SDG 12 SDG 15
2021 2022 2023
Brazil 100% 100% 100%
Paraguay 100% 100% 100%
Colombia - 80% 100%
Argentina - 90% 90%
Uruguay - - 60%

Context

The socio-environmental criteria mandated by Minerva Foods in the countries of operation are outlined in the Agricultural Commodities and Livestock Products Purchase Policy. Upon signing supply and service provision contracts, business partners are required to adhere to the stipulated clauses and acknowledge their understanding of the guidelines set forth in the Business Partners Code of Conduct. Furthermore, the Minerva Foods leads the industry in the utilization of geo-referenced systems for monitoring direct suppliers in Brazil, ensuring that 100% of animal purchases are monitored within the biomes (Amazon, Cerrado, Pantanal, Caatinga and Atlantic Forest) where the company operates. Since 2021, efforts have been underway to progressively extend the systems coverage to other countries in South America, with a target set to achieving 100% monitoring of direct suppliers by 2030. Likewise, in Paraguay, we have achieved comprehensive monitoring of 100% of direct suppliers since 2021. It is worth highlighting that in 2023, Minerva Foods successfully reached its target of monitoring direct suppliers in Colombia, achieving the 100% milestone six months ahead of schedule. In Argentina and Uruguay, our efforts are underway to implement the geo-referenced monitoring system. Currently, we have approximately 90% coverage in Argentina and over 60% coverage in Uruguay, demonstrating significant progress in our monitoring initiatives in these regions.
In the Australia division, animal traceability is ensured through the National Livestock Identification System (NLIS) database, which integrates key elements such as the identification of all animals, the use of Property Identification Code (PIC) for property identification, and the recording of animal location and movement data in a centralized database. As animals traverse through the supply chain via buying, selling, and movement, they are tagged with NLIS-accredited tags or devices, which remain with the animal throughout its lifetime. This meticulous process serves both sanitary purposes and lays the groundwork for future expansion of socioenvironmental criteria monitoring within done division.

% Compliance in Audits for Social-environmental Monitoring

GRI 13.23.3 GRI 308-1 GRI 414-1 SDG 12 SDG 15
2021 2022 2023
Audit of the Federal Public Ministry of Pará 100% 100% 100%
Audit of the Livestock Farming Public Commitment 100% 100% 100%
Independent Audit of Paraguay 100% 100% 100%

Context

To validate the efficacy of the geo-referenced monitoring system, third-party audits are conducted in Brazil and Paraguay. In 2023, for another consecutive year, Minerva Foods achieved 100% compliance in the third-party audits attesting to its socio-environmental supply chain monitoring system, including the audit by the Federal Public Ministry of Pará, recognized for its rigor and the speed of its process.

Number of suppliers identified as having a significant risk of socio-environmental impacts

GRI 308-2 GRI 414-2 SDG 12 SDG 15
2021 2022 2023
Total 374 657 264
Brazil - 414 192
Paraguay - 243 45
Colombia - - 14
Argentina - - 13
Uruguay - - -

Context

In 2023, a total of 13,682 new suppliers underwent evaluation based on socioenvironmental criteria. Among them, 264 were flagged for actual or potential environmental impacts, resulting in the blocking of 192
suppliers in Brazil, and an additional 12 in Colombia, accounting for 1.8% and 3.0% of the new partner supplier base, respectively. In Brazil, the primary reasons for suspension included the presence of IBAMA embargoes,
instances of illegal deforestation, encroachment upon indigenous lands, quilombola areas, and conservation units. Meanwhile Colombia, in turn, blockages suspensions were primarily attributed to activities occurring in protected areas. The Company is committed to providing support and comprehensive technical assistance to blocked suppliers, with the aim of facilitating their reintegration into the partner base. As a result of these efforts, 521 suppliers who presented some irregularity both in 2023 and previous years were successfully reinserted into the Brazilian base.
* For the Australia division, the monitoring of social and environmental criteria will be implemented in the future.
** For the year 2021, we do not have data on suppliers identified by country.

Number of direct suppliers monitored by country

GRI 13.23.3 GRI 308-1 GRI 414-1 SDG 12 SDG 15
2021 2022 2023
Brazil - - > 23,000
Paraguay - - > 4,000
Colombia - - > 5,000
Argentina - - > 6,000
Uruguay - - > 5,000

Context

The socio-environmental criteria mandated by Minerva Foods in the countries of operation are outlined in the Agricultural Commodities and Livestock Products Purchase Policy. Upon signing supply and service provision contracts, business partners are required to adhere to the stipulated clauses and acknowledge their understanding of the guidelines set forth in the Business Partners Code of Conduct. Furthermore, the Minerva Foods leads the industry in the utilization of geo-referenced systems for monitoring direct suppliers in Brazil, ensuring that 100% of animal purchases are monitored within the biomes (Amazon, Cerrado, Pantanal, Caatinga and Atlantic Forest) where the company operates. Since 2021, efforts have been underway to progressively extend the systems coverage to other countries in South America, with a target set to achieving 100% monitoring of direct suppliers by 2030. Likewise, in Paraguay, we have achieved comprehensive monitoring of 100% of direct suppliers since 2021. It is worth highlighting that in 2023, Minerva Foods successfully reached its target of monitoring direct suppliers in Colombia, achieving the 100% milestone six months ahead of schedule. In Argentina and Uruguay, our efforts are underway to implement the geo-referenced monitoring system. Currently, we have approximately 90% coverage in Argentina and over 60% coverage in Uruguay, demonstrating significant progress in our monitoring initiatives in these regions.
In the Australia division, animal traceability is ensured through the National Livestock Identification System (NLIS) data* The number of direct farms monitored started to be disclosed only in 2023.base, which integrates key elements such as the identification of all animals, the use of Property
Identification Code (PIC) for property identification, and the recording of animal location and movement data in a centralized database. As animals traverse through the supply chain via buying, selling, and movement,
they are tagged with NLIS-accredited tags or devices, which remain with the animal throughout its lifetime. This meticulous process serves both sanitary purposes and lays the groundwork for future expansion of socioenvironmental criteria monitoring within done division.
* The number of direct farms monitored started to be disclosed only in 2023.