BRF SUSTAINABILITY

Get to know how Sustainability is incorporated on BRF‘s strategy.

BRF established in 2011 six priority, taking into account the positive and negative impacts it has on society as well as its present and future ambitions. The pillars were also the basis of analysis and planning of BRF-17, with a strong focus on the value chain of the Company.

SUSTAINABILITY WITH FOCUS ON CONTINUOUS IMPROVEMENT

BRF annually reviews its materiality through processes that include its stakeholders, directly or indirectly. In 2013, the engagement process took into consideration the Company’s strategy to consolidate itself as a global food company and strengthen its commitment to customers and consumers. In this process, the engagement was performed in an indirect way, without present panels or distance consultation to stakeholders, but the relevance being consciously defined by updating the vast engagement history, made since 2009, including already existing policies, process, results of such dialogues. Secondary sources were also considered - such as external commitments, protocols, benchmarking of companies and documents of the sector, as well as topics addressed by the media during 2013.

The themes were classified through two axis: influence on the decision and evaluation of stakeholders, and the importance of economic, environmental and social impacts of the organization. With the intersections were priorized seven macrothemes. The result was presented and validated by leaders in meetings of the Executive Board, the Governance and Sustainability Committee, the Board of Directors and individual meetings. The seven macrothemes are:

  • Environment
  • Animal welfare
  • Supply chain
  • Product Liability
  • Labor practices
  • Local Communities
  • Corporate governance

The evolution also included the reporting indicators of Global Reporting Initiative (GRI). Important document that discloses the Company‘s performance in economic, environmental, social and governance dimensions. Annual Report BRF 2013 brings a G4, most current version of the GRI methodology. The Company has adopted the "Comprehensive" approach, presenting management systems for each theme and a larger number of indicators, bringing a most complete performance panorama of the Company.

LEVERAGING SUSTAINABILITY IN THE VALUE CHAIN

Suppliers Monitoring

The Company assumes its responsibility towards society and is committed to the social, environmental and economic development of its suppliers, seeking the adoption of the best practices in the selection and hiring process, ensuring high quality standards. To leverage sustainability in the value chain is kept the Monitoring Program of Supply Chain in six areas of operation: cattle; grains, meals and oils; logistics; ranching; supplies; and dairy. The program’s goal is to identify the key social and environmental risks in the chain, reducing the impact on society and developing new opportunities. There are four main factors that influence the selection of suppliers: social and environmental performance, quality, competitive costs and delivery time that minimizes inventory.

The program has as premise not to relate with suppliers who are in the blacklist of the Ministry of Labor and Employment (MTE) and public list of environmental notices and embargoes of the Brazilian Institute of Environment (IBAMA). Audits in critical suppliers are made, prioritized according to the volume of purchases and their location in areas with high environmental impact, such as areas near the Amazon forest, indigenous lands, protected areas and areas of deforestation. Also the soybean crushing companies are defined as critical suppliers.

On all fronts aspects of human rights (child labor, slave labor), labor rights (freedom of association and collective bargaining), environmental compliance and ethical issues are evaluated, in addition to the criteria of quality and level of service. As a way of awareness and monitoring these aspects, the topics are addressed in documents such as: Code of Ethics, Suppliers Code of Conduct and specific policies for hiring. 100% of new hires follows the criteria of the Suppliers Code of Conduct.

Impacts in productive chain 1

EnvironmentSocial/CompanyLabor PracticesHuman Rights
Number of suppliers subject to impact evaluation in 2013 2 21,509 19,921 21,509 19,921
Real and potential significant adverse impacts mapped on chain and worked by BRF 3 - non-compliance with environmental legislation;
- environmental licensing;
- illegal deforestation by the supplier;
- use of areas of the biome, the absence of legal reserve;
- non preservation of biodiversity;
- emissions of greenhouse gases;
- overlapping protected areas, such as parks;
- treatment and disposal of solid waste.
- Indigenous rights;
- spreading of odors of plants
- legal compliance with labor laws, social security laws and rights of children and adolescents - diversity sexual
exploitation of children and adolescents;
- Forced or compulsory labor
- Child labor
1 Each board is in a phase of implementation and maturation of the Monitoring Program. 100% of new suppliers of BRF follow the criteria of the Suppliers Code of Conduct, being contractual purchase or spot.
2 Grains: The consultation of lists was considered for the items environment and labor practices, totaling 100% of the suppliers i.e. 5,120 suppliers. For society and human rights items it was considered the performance of self evaluation in 69% of suppliers i.e. 3,532 suppliers answered the evaluation.
3 For cases in which disagreements with some requirements of the Suppliers Code of Conduct are identified, depending on the severity improvement plans (cattle, supplies and logistics) are performed, or the supply contract is canceled (cattle). The main irregularities causing of contractual termination are the presence in IBAMA List of Environmental Notices and Embargoes and in the Black List of the Ministry of Labor and Employment.

Local suppliers

The influence that an organization can have on the economy goes beyond the creation of direct jobs and payment of salaries and taxes. By supporting local supply chain, the organization can indirectly attract additional investments to this economy, making it stable in addition to maintaining a good relationship. In 2013, 43% of purchases of BRF were purchased at local suppliers, considering as such the suppliers who perform billing in the same State as the delivery addresses of the services and/ or materials. For 2014, within the decentralization strategy of purchase and strengthening of the local purchase, a management structure and training of regional purchasers in order to simplify and expedite the process was defined.

Animal Welfare

The Animal Welfare Program enables the improvement of the working environment, the alignment of ethical principles in human-animal relationship, increasing productivity, reducing losses in the final product quality, compliance with the requirements of international and national markets, and minimizing risks. The process, which involves careful handling up to the pre-slaughter phase, complies with all technical, legal and religious principles and covers the full supply chain spectrum from confinement on the farm, shipment, transportation, unloading and holding in corrals, conducting to the slaughtering area and rendering unconscious (also known as stunning) to bleeding. The adoption and observance of precepts allows the animals are raised under minimal stress conditions predisposing factor to disease and the potential need for medication. BRF complies with all Brazilian and European regulations for animal wellbeing duly certified by both European and Asian institutions.

BRF has internal standard, based on national and international requirements and internationally recognized practices (WSPA, OIE, EFSA, AMI, University of Bristol), implemented in all slaughtering units. Monitoring and inspections are conducted to ensure compliance of the processes with the requirements of the standard. Additionally, employees involved in the handling and slaughter of animals are systematically trained. There were also trainings of employees and suppliers (producers and carriers) that come into contact with the animals. During routine visits, extensionists audit and train farmers on concepts of the Animal Wellbeing program.

Any physical change procedures are not performed in animals and in no time hormones are used. Other medicines, vaccines and disinfectants are handled just under the indication and recommendation of a veterinarian and in accordance with national and international legislation and good manufacturing practices and handling standards. Some units that service specific markets comply with the most restrictive laws, moreover the possibility of gradually reducing the use of antibiotics in the production chain is continuously monitored. The chemical hazard is addressed in the HACCP plan (Program of Hazard Analysis and Critical Control Points) in the control and monitoring of the chemical, physical and biological hazards in the industry, with verification performed through the National Waste Control Plan of the Ministry of Agriculture, Livestock and Supply, which monitors chemicals in food and the procedure of Management of Tests of the Production Unit, in case of deviation, the rancher is formally notified to take action.

PROMOTING SUSTAINABLE CONSUMPTION

Food safety is basic and essential premise for the production of any product BRF. The impact evaluation on the health and safety of consumers begins in the conceptualization of all products and extends to the stages of production, packaging, transportation and consumption. The Company operates in accordance with national and international laws, in order to mitigate or eliminate risks to consumer health, maintain the reputation of its brands, ensure the safety of food and its processes, as well as transparency.

The Food Safety and Quality Policy establishes commitments and guidelines adopted by the Company in relation to the issue before the society. The BRF Quality System establishes requirements and standards to be met and is based on standards and legal requirements of customers, certifications and scientific knowledge encompassing all units and applicable to the entire chain, from ranching to the Distribution Center There is a specific program that evaluates the safety of 100% of the products. Called HACCP - Hazard Analysis and Critical Control Points, considers the whole process of production, transport of the finished product and also how to use the products. In this program, the probable hazards to safety and health of consumers are assessed and preventive measures to ensure that the products produced by the company do not pose risk to consumer are defined. Various activities are performed to reduce nonconformities, acting directly in the factories and the chain along with producers and suppliers.

For 2014, the main goals are related to gain recognition of superior quality, through the systematic reduction of claims, reduction of non-compliance of inputs and materials suppliers and partners, ensuring the excellence of performance of icon products of BRF. Moreover, the quality issue will be enhanced as a value for the entire Company, consolidating the golden rules of quality, implementing and certifying all plants worldwide in BRF Quality System in order to be able to meet the requirements of the markets in which it operates, to compliance with laws and regulations properly, efficiently and effectively

Health and Nutrition

In view of the continuing prevalence of obesity, diabetes and diseases related to nutritional issues, BRF has initiated a review of its nutritional policies, considering the most current references on nutrition and balanced diet, in addition to evaluating, based on these standards, its consolidated portfolio of brands and commitments related to its product mix for the next years.

In 2013, through the Brazilian Association of Food Industries (ABIA), entity of which it is a member,
participated in the execution of an agreement with the Ministry of Health that set forth targets for gradual
reduction of sodium levels in the meat products (hams, sausages, burgers, breaded chicken, mortadella).

We also started a close relationship with public and medical professionals (nutritionists, pediatricians, cardiologists, etc.) informing them in advance and sharing information regarding launches and shares of BRF organs. By the platform of healthiness we aim to act in the awareness and education of employees BRF on issues of healthy lifestyle, encouraging a balanced diet and physical activity .

Via social investment, BRF is committed from 2014 to have a structured program to donate food to nonprofit organizations that serve primarily the low-income population. Also, it will seek to implement criteria, procedures and tools to support the selection and monitoring of food donations made primarily by plants.

Initiatives and outcomes

In 2013, many projects have been developed to reduce sodium and fat in Company’s portfolio. The salt, for example, was replaced by natural spices. The fat "load" during manufacture was replacing with more chicken meat.

Reduction of Ingredients

Sugar reduction
Categories of products ard servicesTotal fatSaturated fatTrans fatSodiumTotal reduction sugarSugar replaced with sweetener
Yogurt 11.7% 11.7% - - 100% Use of fructose
Margarine - - 7.7% 7.7%
Breaded 21.7% 21.7% - 21.7%
Ready meats - - - -
Hamburgers 4.5% 9% 9%
1 Refers to Percentage of sales volume of portfolio‘s SKUS of the category which had reduction of ingredients.

However, sodium plays a key role not only in defining taste but also quality, which is currently a limitation for its reduction in composition of different products. Therefore, the P&D area strives to develop and internally apply substitutes and equivalents, always focusing on the quality of the products offered to consumers.

In addition to the reductions in 2013 many products were enriched and fortified. There is increase of nutritional ingredients by the addition of fiber, vitamins and complementary minerals to the initial quantity of the product in order to ensure a concentration which contributes to the feed while maintaining the acceptance of the product by the consumer.

In the area of meat, the Chicken Mortadella Smurfs is highlighted for its enrichment with vitamins and minerals. In dairy the highlight of the year is Hidra, which is distinguished by the union of whey - and its nutritional attributes as vitamin C, selenium, magnesium, potassium, phosphorus and calcium - to the fruit flavor (grape, peach and passion fruit). The product of great success in the market, stands out as a technological innovation made possible by the association made with the Irish company Carbery. Greek yogurt Batavo took to the consumer a choice of low-fat yogurt with twice the protein than the other, a large difference in quality, taste and health. The ready meals have in their formulation, in addition of protein and carbohydrates, fiber, vitamins and minerals of the legumes group.

Labeling

Accessible and appropriate product information is necessary for customers and end users to make informed choices in their purchases. Considering customer satisfaction essential for long-term success, the labeling of all products of BRF has instructions for proper use so that consumption does not cause harm to the consumer. BRF meets the demands of each market and keeps 100% of its products under different labeling requirements. In Brazil, the products meet the laws set by agencies such as the National Health Surveillance Agency (ANVISA), Ministry of Agriculture, Livestock and Supply (MAPA), Ministry of Justice and the National Institute of Metrology, Standardization and Industrial Quality (INMETRO).

All labels contain information on the composition (list of ingredients), nutrition table (with information on nutrients, portion and % VD - recommended daily value of consumption), name, net weight, storage conditions, manufacturing date, expiry date, mode of preparation and consumption, and data of manufacturer unit (company name, address, CNPJ). In case of products of responsibility of the Ministry of Agriculture, the labels feature Seal of the Federal Inspection Service (SIF), registration number and classification of the establishment in the Ministry of Agriculture.

The labels also report the presence of additives such as colorings, flavorings, artificial sweeteners, preservatives, ingredients that can cause allergies, fortified with vitamins, fiber and minerals and, where relevant, the methods of pasteurization and sterilization. There are other sources of information available on the websites of the products and the Consumer Service (SAC). Since 2007, the paper and cardboard packaging contain information in Braille language.

ENGAGEMENT WITH STAKEHOLDERS

Focused on driving improvement in the level of service provided to customers, the development of specific actions for each type of channel and structure indicators of satisfaction and service level, BRF began in 2013 the first stage of the Customer Satisfaction Survey. The survey consisted of the application of more than 1000 questionnaires addressed to all channels: retail, self-service and food services that were designed to detect what is important to each customer profile and which are the disadvantages BRF, areas for improvement and competitive advantages. The results of the first stage of the survey (qualitative) were reported to the Board, officers and all areas and employees directly involved in the process (sales, marketing, trade, HR, planning, P&D, among others). The second stage of the survey (quantitative) happened in January 2014.

Main results:

  • Reputable and serious company with financial strength and investment capacity.
  • Recognized for its values, has strong brands and quality products.
  • It has capacity for innovation and skilled technical staff.
  • Interpersonal relationship is a positive highlight
  • There is an opportunity to enhance issues related to logistics and commercial service.

Based on this research, areas for improvement were identified and defined indicators to be monitored annually by quantitative survey with 1,350 purchasers from 13 channels divided into retail, self-services and Food Services of Northeast, Southeast and South region. Satisfaction index based on four measures will be developed: reputation, performance, engagement and overall satisfaction. Moreover, satisfaction survey with consumers through telephone contacts are made, addressing quality level of service, continuity of consumption of products and level of satisfaction. 13,334 consumers were contacted in 2013, with a score of 99.34% satisfaction with service provided and of consumption of the products.

Social investments

With plants and distribution centers in all regions of the country, BRF considers extremely relevant relationships with surrounding communities. The social investment strategy provides for joint action with the surrounding community, in a relationship that cultivates respect for the town to contribute to positive change for the area and strengthen commitment. Social investment is co-managed by BRF Institute staff and 39 Local Committees for Social Investment, community relations, family and government bodies, composed of about 400 employees of the Company. In 2013, there was an advance in methodology for quantitative analysis of this work, through the development of panel of quantitative indicators and processes of all programs and projects.

Actions of private social investment were present in 40 municipalities of the operation of BRF in Brazil
and benefited more than 44,000 people in the year. Main fronts of the BRF Institute:

  • Third Sector - Inspira Program was launched by BRF Institute in October 2012 to support non-governmental organizations (NGOs) and strengthen its management. The initiative, which lasts 16 months and has a partnership with the International Social and Environmental Fund (FICAS) organization specialized in methodologies for institutional strengthening of NGOs, comprises 56 NGOs in 29 Brazilian cities. The program consists of training for five classroom modules and direct financial investment for improvements in administration, fruits of learning provided by the modules. Once chosen, the institutions made modules, in which issues such as the mission of the organizations, the context of action, communication and resource mobilization were discussed. In 2013, BRF made direct investment in civil society organizations of R$ 550 thousand, plus about R$ 877 thousand, via Institute to facilitate the training.
  • Intersectoral Networks - With the goal of establishing an area of direct dialogue and joint construction between different institutions working in nearby communities to 10 BRF factories, aiming at local development, the Comunidade Ativa (Active Community) Program was the main front of operation of intersectoral networks in 2013. Projects were undertaken and promoted monthly dialogue meetings with organizations, institutions and agencies operating in Bom Conselho (PE), Chapecó (SC), Concórdia (SC), Dois Vizinhos (PR), Francisco Beltrão (PR), Lucas do Rio Verde (MT), Sabará - district Ravena (MG), Toledo (PR), Uberlândia (MG) and Vitória de Santo Antão (PE) that compose the Community Development Councils for planning and monitoring of collective local development projects.
  • Public Policy -BRF Institute supported the Cidades Sustentáveis (Sustainable Cities) Program, whose aim is to mobilize the government’s commitment to sustainability and the development of cities. In 2013 the Institute has invested in a tool to help municipal managers who are committed to the cause to implement actions in their regions. The Sustainable Public Management (GPS) platform was then created, a practical tool that helps about 200 elected mayors and committed to the cause to think better how to perform their job and where concentrate their actions in the city, because it brings concepts, provides opportunities and guidance on good practice in supporting materials divided by themes, such as the improvement of urban mobility practices.
  • Entrepreneurship and Employability -In 2013, the front had two projects, the Estação Digital (Digital Station), of digital inclusion for youth, adults and seniors in Bom Conselho (PE) and ReciclAção applied as a pilot in Morro dos Prazeres community, in Santa Teresa, Rio de Janeiro (RJ). The work is to develop and incubate a social business to deal with the challenges of waste management of population, to promote local development and bring alternative to the demands of society with respect to reverse logistics.
  • Volunteer Program BRF - Lined in acting from fronts: Third Sector, Intersectoral networks, Public Policy, Entrepreneurship and Employability. The Volunteers BRF has as part of its methodology to perform a mapping in the city, identify needs, assets and potentials and raising organizations that contribute to the promotion of local development of the municipality. The mapping is done by the committee members.
  • Dialogue with peers to encourage the responsibility of the private sector with the communities to which they belong - Workshops for local philanthropy are a good example. Consist of meetings with other companies in some cities where the BRF is present to talk about the importance of social investment and encourage them to also engage in the development of the municipalities in which they are part. In 2013, workshops were held in partnership with Comunitas, an organization created to promote social development through the involvement of the various sectors of society, who lectured on the topic to business and opened the matter for discussion. The meetings were held in the cities of Paranaguá ( PR ), Carambeí ( PR ), Ponta Grossa ( PR ), Concordia ( SC ), Campo Verde ( MT ), Marau ( RS ), Vitória de Santo Antao ( PE ) and Rio Verde

In addition to continuing the work in progress, it intends to start a new program directed to the theme of (pilot) employability, as well as a program of visits of different publics to manufacturing facilities of BRF to know the company and have the chance to experience the culture of HSE and may take to it and its territories relevant knowledge about health, safety and environment. The program is called Portas Abertas (Open Doors).

ENHANCING HUMAN CAPITAL

With the complex merger between Sadia and Perdigão concluded the employees were able to adapt to the dynamic of a new Company and to change in Board of Directors’ expectations. A pillar of planning BRF-17 in the area of human resource is the talent management with the concept of meritocracy assuming importance in variable remuneration in the coming years, and the construction of a short and long term succession map. Complete performance cycle will be adopted in the organization attracting, retaining and developing people.

Held in May and June 2013, the first Climate Survey of BRF with the participation of over 86 million people, i.e., 90% of the employees and more than three months in the Company responded to the questionnaires. Action of great importance to BRF, the survey allows us to know how the staff perceives the Company in all its dimensions. It is a process that will continue and in every application of the survey it will be possible to identify what improved, what continues at the same level and in what areas we still need to make changes. The results began to be presented to all employees in November, with the proposed action plans being built from December to January 2014, and the leadership shall deepen the understanding of perceptions with its teams, analyze opportunities, set priorities and develop action plans.

Employment and Remuneration

The remuneration policy does not distinguish gender, race or religion. The salary practice adopted is based on the market and the factor that can differentiate employee salaries are determined by performance and length in the Company, and all employees receive more than the national minimum salary. The lowest salary recorded on December 31, 2013 considering a workload of 220 hours per month was R$ 715.00, i.e. 5.5% above the national minimum salary. The definition of minimum salaries depends on collective bargaining, which are claimed annually by unions of categories. BRF keeps negotiations with more than 90 unions, and currently it has 77 agreements and 20 collective bargainings. In Brazil, 100% of the employees are covered by agreements and represented by the Union of Workers in the Meat and Derivatives, Dairy and Derivatives Industry, Food Industry and The Like and unions of sellers and sales promoters in their respective cities in Brazil. Moreover, in all Brazilian municipalities with operation of BRF there is a labor union representing the workers. Abroad, labor laws of each country of operation are considered corporate guidelines, and in which where there is a workers’ representative body, 100% of employees are covered by collective bargaining agreements.

Major employer of agribusiness - with over 80% of jobs in small towns - BRF boosts local economies and contributes to the development of society. The hiring practice prioritizes applicants from the town in which the position is vacant. To fill the vacancies of leadership, BRF has as premise internal recruitment and local succession line, provided for the standards of Attraction and Selection. The Internal Recruitment Program was relaunched in 2013 with the purpose of strengthening the policy and meritocracy. The positions are initially opened in the locality and, if not filled, they are made available to the other units. The new program allowed the dissemination of vacancies to all employees, standardized the communication channel and entered into commitments with everyone by meeting the policies of prioritization of employees. In 2013, 76.49% of the leadership vacancies were filled with employees of BRF. For 2014 the goal of internal use for the area of human resources will be maintained and the intention is to continue the unfolding of the goal at all levels of leadership of the Company.

Number of employees by region

Job typeTotalRegion
NorthNortheastCenter-WestSoutheastSouthLatamAsiaAfricaEuropeMiddle-East
Indefinite term 105,240 302 3,917 26,899 29,413 44,709
Definite term 712 4 177 33 465 33
Outsourced 9,395 2 315 2,468 1,274 5,336
Trainees and apprentices 1,584 16 89 395 276 808
Staff outside Brazil 4,186 3,035 24 13 505 609
TOTAL 121,117 324 4,498 29,795 31,428 50,886 3,035 24 13 505 609

Health and safety

BRF has been developing its own guidelines in order to preserve the integrity of the employee, his family and the community in which it operates. Together with managers, health and safety professionals of the SSMA (Health, Safety and Environment) Program intensify actions aiming to improve human behavior and value and preserve life. Initiated in 2006, the SSMA management is strategic and is a key process to firm a new level in the accident prevention culture. The process has made significant progress in 2013, with the awareness of employees and contractors aiming at the elimination of fatalities and occupational accidents and diseases. This year, BRF team in Argentina came to Brazil to meet SSMA management, because these processes will also be intensified in the country.

Among the management tools there is the SSMA Governance System, an integrated process involving
10,608 people at all organizational levels: executive, managerial and operating level, through their respective committees and working groups (10% of the workforce), representing 100% of the employees. Meetings will be held at least once a month, so that the SSMA policy,principles, legal requirements are met, and information is disseminated and the SSMA process monitored for BRF to achieve the desired levels of performance of SSMA. There are still 1,698 members of 120 Internal Committee for Accident Prevention (CIPA), present in all units where the regulatory standard (NR 05) is mandatory. In places where formation of CIPA is not mandatory, there is at least one member responsible to act in the prevention of occupational accidents. Specialized services on occupational safety and held are kept with the participation of 573 professionals between safety engineers, doctors, nurses, nursing technicians, occupational health technicians, occupational safety technicians and speech therapist.

The reduction in frequency of lost time injuries was 12.14% in 2013 compared to 2012, surpassing the goal presented in RA2012 of reducing this rate by 5%. In comparison with 2008, the year of commencement of the SSMA Program, the reduction reaches 79.91%. For injuries without lost time, the reduction was 10.15% compared to 2012.

Safety Indic ators 1

2013 3GenderRegion 2
MenWomemTOTALNorthNortheastCenter-WestSoutheastSouth
Injuries with Lost Workday Case 245 117 362 - 22 98 112 130
Lost Workday Case Rate 1.35 0.65 2 - 13 1.63 3.32 1.52
Injuries with No Lost Workday Case 1,387 476 1,863 - 20 1,089 107 647
No Lost Workday Case Rate 7.66 2.63 10.29 - 11.82 18.11 3.17 7.56
Occupational Diseases Rate 0.05 0.09 0.14 - 0 0.13 0 0.2
Lost Days 10,846 9,278 20,124 - 1,637 4,834 4,403 9,25
Absenteeism rate N/D N/D - 0.92 1.14 4.4 3.25 2.89
Fatalities 5 0 5 - 1 - 1 3
1 Does not include third-party data.
2 The monitoring of this indicator abroad will start in 2014
3 The data for this indicator were changed with G4 version of GRI. Thus, the comparison cannot be made in full with the information published in 2012.

Safe transport

A topic widely discussed by the SSMA Program during the year was the dissemination of safer behavior to drivers that transport persons (by charter) and cargo in the transportation and distribution. The project, initiated in 2011, is directed to the partner carriers and it aims to bring make Brazilian roads safer - in addition to passing information on health and environmental protection. To structure the project from January 2011 to March 2013, the units of Videira (SC), Carambeí (PR) and Jundiaí (SP) participated in a pilot project covering 8% of carriers, when corporate standards and procedures to be followed in the units were developed.

The drivers of partner carriers received structured information with tips on defensive driving and health (measures used to prevent traffic accidents or mitigate their consequences), on combat of the commercial sexual exploitation of children and teenagers on Brazilian roads and incorporated the performance of the checklist, a procedure which ensures that the vehicle and driver are able for a safe travel by checking various items - such as tires, reverse gear signal and the driver and vehicle documentation, among others. There was also the implementation of the Road Prevention and Observation Program - POP to observe the behavior of the driver.

The Company is expanding the SSMA Program in Transport and Distribution focusing on change in the behavior of the drivers and carriers, seeking to reduce traffic accidents. The tools of the project in roll-outs will reach 50% of suppliers in 2014, reaching 100% by 2015.

Operation in refrigerators

Prepared throughout 2012 from discussions that brought together entrepreneurs, workers and federal
prosecutors, Regulatory Standard 36 for Health and Safety at Work in Slaughtering and Meat Processing
and Derivatives Companies was created whose implementation process has been followed by unions
of the workers since October 2013. Currently, BRF has 97 agreements and conventions, of which approximately 95% cover health and safety topics such as supply of uniforms and PPEs, SST Committees (CIPA) and training and general health standards. The operation of Agribusiness Refrigerator is among the
activities of BRF process that pose higher occupational risk to workers. Therefore, BRF structured initiatives to mitigate these risks and ensure a safe work environment and quality of life for its employees.

Among the initiatives we highlight the following:

  • Ergonomics Program and Ergonomics Committees
  • Environmental Risk Prevention Program
  • Medical Control and Occupational Health Program
  • Hearing Conservation Program
  • Respiratory Protection Program

Training and education

BRF has several collective and individual training activities covering all the audiences of the organization. Actions called collective (and described in the table below) are training programs prepared according to specific demands of the Company and its business. The training plan is also complemented by courses, congresses, fairs and symposia to meet the individual and specific needs of employees. In 2013, 30 graduates were hired for the third edition of the Trainee Program of BRF, after undergoing tests, group dynamics, interviews and overcome almost 20,000 competitors. For these young people, in addition to BRF being very well regarded in the market, the main attraction of the program is job rotation in which trainees pass through various areas to understand the processes of each one. The hiring practice prioritizes applicants from the town in which the position is vacant. Leadership development programs are maintained at various hierarchical levels, such as: Leaders Training, E-learning for Leaders Integration, Leadership Development Program (LDP).

ADAPTATION TO CLIMATE CHANGE

With a productive activity dependent on the availability of natural resources and agricultural production, the BRF’s adaptation strategy assesses aspects related to climate change that may impact the Company‘s operations. In 2013, the 5th Report of the International Panel on Climate Change (IPCC) has reinforced the need to intensify adaptation actions confirming that global warming impacts will occur, even with the immediate discontinuation of GHG emissions. Aware of this reality, the company’s strategy considers aspects related to climate risks, assessing and managing potential impacts on the operations and supply chain, recognizing the vulnerability of natural resources and basic agricultural inputs for its production activity.

BRF strategic long-term vision is to be one of the largest food companies in the world, admired for its brands, innovation and results, contributing to a better and sustainable world. And, the long term planning (BRF 17) took into account the high degree of exposure to the commodities business, redirecting the company to higher value-added products (processed). Also, make part of BRF17, strategies growth at the national and international markets, and developing marketing campaigns for different cultures that are directly related to regulatory and reputational aspects of climate change. BRF plans and works to differentiate itself from its global competitors also for its positive environmental and society contribution.

The main risks identified by BRF are related to physical aspects such as extreme changes in temperature and rainfall, which influence: agricultural productivity, quality and availability of pasture for animals, animal wellbeing and availability of energy as hydroelectric predominate in the Brazilian energy matrix. These changes can directly impact the company’s costs by various factors, from the rising price of agricultural commodities to the need to search for other energy sources in the eminent risk of rationing electricity because of water scarcity. When mapping climate risks of the Company, we also considered the regulatory aspects, monitoring trends of change in licensing laws, that incorporate the management of GHS emissions at the national and international scene, and the reputational aspect, as developed country markets are more rigorous regarding environmental aspects of the product, specially the carbon emissions.
Among the actions to minimize mapped risks and ensure competitiveness in cost, monitoring of inventories in the purchase of grain, constant monitoring of the climate; process efficiency project development, technological innovation aimed to improve ambience and climatisation to ensure the animals wellbeing, are highlighted. For BRF, the stimulus to more efficient production and process innovation can bring opportunities for business. Additionally, changes in weather patterns may favor the development of commodity production in regions close to the operations or provide greater volume of rainfall in areas where much of hydroelectric generation is concentrated, ensuring energy supply at a lower price.

Emissions

BRF also has Corporate Standard for the management and control of atmospheric emissions in its plants, which in some cases exceed the frequency required by legal requirements. There is operating control of systems for combustion to occur with the greatest possible efficiency, ensuring minimal emissions and enhanced system performance. GHG emissions that occur in the chain are considered to have the largest magnitude for BRF, mainly in the agricultural supplies and logistics. Environmental impacts of transport systems have a longrange, from global warming to air and noise pollution. For organizations like BRF, with extensive networks of supply and distribution, environmental impacts related to logistical issues may represent much of the environmental footprint.

Greenhouse gases emissions (tCO2e) 1
2011 32012
Scope 1 - direct emissions 346,935.4 327,123.85
Gases included in the calculation All have been mapped, but BRF only emits CO2, CH4, N2O, HFCs.
Biogenic CO2 emissions 2,557,312.87 2,797,109.23
Scope 2 - acquisition of electricity and steam2 101,344.51 185,034.6
Gases included in the calculation CO2, CH4, N2O
Scope 3 - other indirect emissions4 521,651.77 1,046,913.65
Land Logistics 512,677 530,926
Business travel (air/land) 8,974.77 10,599.17
Waterway Logistics - 505,388.49
Gases included in the calculation CO2, CH4, N2O
Biogenic CO2 emissions 16,196.67 tCO2e 17,896.93 tCO2e

1 The GHG emission inventory is Golden Seal and follow the guidelines of the GHG Protocol Program and disclosure schedule defined by it thus inventory of 2013 will be published in May/2014 in the Brazilian GHG Protocol Program platform and RA in 2014.
2 The emission factor used is the one provided by MCT - Ministry of Science and Technology.
3 By having defined 2011 as the base year for emissions of Scope 1 and 2, it was necessary to incorporate to 2011 emissions of Argentina, which were estimated. For the year 2013 will be held the first Global Inventory BRF, including operations in Europe and other continents.
4 In 2011, the company has not made recalculation for Scope 3 emissions.

Commitments and targets

BRF target is to reduce the intensity of direct emissions (Scope 1) by 10% until 2015 considering as basis the 2011 inventory. The target refers to activities in Brazil, representing 82% of Scope 1 of GHG Inventory and was defined considering the emissions performance in 2011 and increased annual production expected up to 2015.

In addition to mapping the Scopes 1 and 2, BRF is challenged to advance the identification and measurement of other indirect emissions (Scope 3), increasing the font mapping in addition to emissions from transport and logistics as well as business travel already disclosed. For this, it finished in 2013 a Map of Scope 3, which took into account the categories presented by the GHG Protocol Program and their relevance/applicability to the Company. An action plan that prioritizes the calculation of the most relevant sources for those of lesser relevance was also defined.

Example Programs to reduce emissions:

  • Logistical efficiency: Use of rail and waterway transportation, more efficient routing of travel, changing the fleet profile, vehicles with higher load capacity, optimizing the loading of return, replaced vehicles and refrigeration equipment with a maximum age of 10 years etc..
  • SSMA Program in Transport and Distribution: aware carriers and make a commitment to Health, Safety and Environment. Through the Integrated Supplier Management (GIF), the 68 largest carriers of refrigerated segment (689 vehicles) monthly complete self-evaluations concerning waste disposal and black smoke.
  • Priority was given to refueling with ethanol for 95% of the light vehicle fleet in the states of Paraná and São Paulo (which corresponds to about 1,665 vehicles)

Photovoltaic Power Generation - The pilot project was implemented in Uberlândia (MG) in 2013 and is in operation. Currently the consumption and generation of photovoltaics in the poultry production system are being measured and its operation observed to verify the feasibility of the project. The aim is to develop the model for the distributed photovoltaic generation (solar panels) in rural areas.

Sustainable Hog-Farming System (3S) - Supports integrated producers to build biodigesters and flaring system generated from the treatment of animal waste.

Biomass Boilers: BRF adopts in its manufacturing operations the use of biomass boilers to replace non-renewable fuel. In 03 plants, these boilers generate electricity in addition to steam.

Energy

Energy is one of the main resources used in the activities of BRF, so there is continued investment in the search for processes and equipment that reduce their demand. Because of this, the Energy Excellence Program established performance indicators to monitor specific energy consumption in the different production processes, because of the particularity of the energy profile of each product comprising the Company’s broad portfolio. These indicators are monitored daily by specialists in plants. The other activities that make up the operation of BRF as distribution centers (considering kWh per ton shipped, calculated by summing the consumption of energy - electric and diesel - all CDs divided by the sum of ton shipped), and agricultural and administrative areas, also have monitoring indicators established as their patterns of operation.

In 2013, BRF acquired on the open market 93.2% of its electricity from renewable sources, considering the plants headquartered in Brazil, thus exceeding the target set in the RA2012 to acquire at least 90%. The Company also achieved the goal of maintaining its matrix cleaner than the National Interconnected System (SIN), reaching 11.5% of superiority in relation to the system. It also exceeded the target set of 96% of direct energy consumed within the organization from a renewable source, reaching 97.23% in the period, on the same basis of analysis for the year 2012. The challenge of the company for 2014 is 95% of direct energy from renewable sources. The database of BRF increased in 2013, with the inclusion of activities that were previously not recorded, such as agriculture, administrative buildings, distribution centers and plants from abroad. Even with the inclusion of new activities the commitments assumed have been achieved obtaining in indirect energy the result of 91.31% and in direct energy obtained 96% . The goals for 2014 is to rationalize the consumption of plants, DCs and agriculture in approximately 200,000 GJ.

Water and Effluent

The water availability is a decisive factor for BRF in the construction of new plants and the expansion of the
productive capacity of existing units. The water quality also directly impacts the quality of products such as, for example, in milk production, in which the cleaning of equipment and utensils used for milking directly reflects in the quality of the final product. For these reasons, the Company develops initiatives to reduce consumption of this resource such as informative documents and guidance for the responsible use and reuse of water, and the implementation of mechanisms to collect and store rainwater. BRF performs measurements and provides for the daily management of water consumption, prioritizing the removal of surface sources, reducing the exploitation of underground water and avoiding the use of public water
supply, not to compete with the population.

For 2013, the Company has set targets in relation to consumption and water reuse. The goal to save 1 billion liters of water has been overcome, rationing approximately 1.3 billion, considering the same database as 2012, which included only manufacturing units of dairy and meat from Brazil. However, in 2013, the scope of the indicator was higher with the inclusion of activities not accounted for in previous years, such as agriculture, distribution centers, administrative buildings and units abroad. This increased scope implied an increase of 7.05% in the volume of water for the year 2013. The goal regarding water reuse was to keep the index above 20%. Using the database of 2012, the Company met the goal. For the year 2014 this goal is maintained.

To achieve the goal, the site of Curitiba, for example, built cistern that captures rainwater for use in garden, urinals and toilet that serves approximately 30% of the employees of the administrative site. On Itajai site, program Mergulhe nessa Ideia, which promotes awareness of the use of water, sending emails
periodically about the importance of this issue was developed. Initiatives for water management are also
implemented at distribution centers, like the CDs of Ribeirão das Neves (MG), Salvador (BA) and Jundiaí (SP), using rainwater for washing trucks.
Moreover, in 2013, projects aimed at reducing water consumption in production processes were performed. PINCH technology was adopted, a methodology based on the principles of thermodynamic to promote reuse and recycling within the processes, optimizing the way the water can be applied according to the required quality. Standardization of cleaning system in the plants was also carried out, identifying and replicating best practices in water conservation. Another initiative was the implementation of Lean philosophy, which identifies the flow of materials and information at all stages to avoid waste.

In the chain, integrated producers are responsible for water management in its operations, but the company supports those interested in adopting new technologies for resource optimization. Suppliers are monitored and evaluated annually through a sustainability checklist, which assesses the availability of water in the last year. In the monitoring record of the batch of poultry breeding, for example, the water consumption data is reported daily.

About effluent, in 2013, there was a 6.6% increase in the volume of effluent generated, compared to the previous year due to the inclusion of activities in the database, however, there was significant reduction in the pollution load of more than 11.2%, which is due mainly to the corporate project for the reduction of organic load generated in the process and that is not yet fully completed.

The project also enabled an increase in the recovery of waste, which are no longer generated and used for the treatment of industrial effluent. BRF Agricultural area completed in 2013 studies and evaluations of its system of water consumption and production of hog waste when it recorded an average generation of 4.5 liters/hog/day compared to the national average generation of 7.0 liters/hog/day This index, 35% lower, adds value to waste, focusing more nutrients to be made available in the culture, which after treated became fertilizer.

Waste

In all administrative sites, there is a separation in the disposal of organic, recyclable, non-recyclable waste
and collectors of batteries. For some administrative units, collections of oil and electronic waste are made.
Awareness emails are continuously sent to employees reinforcing the importance of proper disposal of waste. In 2014, the restructuring of Recicle suas Ideias Program, initiated in 2011, is expected to contribute to the proper disposal of all waste and make employees aware of their importance. Initially, the program was focused on the issue of solid waste, but in 2014 its scope will be extended to all other resources (water and energy). It is also provided for the standardization and implementation of all phases in all the administrative buildings of BRF.

The guidelines set forth in Environmental Control Standard are implemented in 100% of the meat
operations and in completion phase in dairy operations when meeting goals for waste generation and quality of effluent emissions for 2014 will be set. Aiming to fulfill the assumed target of reducing by 2%
(by weight) waste generated in 2013, BRF optimized training and qualification of teams in units with the help of regional and corporate experts, using as base policies and internal and external standards. Improvements in design, process optimization and reduction of organic load were also made in factories. Thus, it exceeded the target reaching 15.7% reduction in waste generation. For 2014, it projects reduction by 3% of the total volume of waste generated.

In the integrated producers, waste are monitored and evaluated annually and for management of such that aspect BRF has corporate standards (NCs) of Agricultural Environmental Management, Animal Health Waste Management Program, and Sustainable Hog Program, in addition to the compliance index and checklist of compliance.

BRF performs collection of hazardous waste, transporting them and allocating them properly according to environmental legislation. As a differential in the operations in all proper and integrated farms (approximately 14,500 producers) and in hatcheries of BRF is implemented the Reverse Logistics Program of Waste of Animal Health, and in 2014 will be extended to the feed mills. More than 1,5 tons of hazardous waste have been collected in the field and hatcheries.

All distribution centers also have waste sorting system. The proper disposal of oil, batteries and tires is verified through awareness programs with employees and suppliers, and audits in the larger carriers. The drivers are also aware about the subject "Waste generated in traffic."

Adequacy to PNRS

Aligned with the world’s leading food and packaging trends, BRF seeks to reduce, recycle and reuse packaging as well as prevent waste and disposal of food through the quality and adequacy of its packaging. Therefore, it invests in smart packaging and products that enhance the preservation, quality and promote flexibilization of shelf life of the product. BRF provides in product packages guidance on the packaging disposal after consumption, according to the Selective Symbology Discard, approved by the Brazilian Packaging Association (Abre) and ABNT. With this attitude, moves to improve the participation of consumers in implementing the National Policy on Solid Waste (PNRS). The symbolism indicates the separation between dry waste (recyclable) and moist (not recyclable) to facilitate the disposal of containers for selective collection.

  • BRF integrates the Brazilian Packaging Association (Abre), the main representative body of the industry, working in government, technical agencies, the market and society. Through this association discussion committees of PNRS, which has already impacted the Company’s policies, including the insertion of symbology of selective disposal.
  • In 2013, the second phase of construction of recovery plant of recyclable materials of the State of Paraná, in conjunction with the environmental authorities of the State. The initiative received investments of R$ 80 thousand for 2014, there is a commitment to invest about R$ 40 thousand.
  • Through the Brazilian Association of Food Industries (ABIA), it participates since 2012, with 27 other associations (of various sectors), of Business Coalition coordinated by the Business Commitment for Recycling (Cempre). The coalition aims to achieve more significant results in relation to the increase in the percentage of recycling in the country and compliance with PNRS. Currently, the Coalition is awaiting approval from the Federal Government on the proposed reverse logistics designed to meet its determination of 22% reduction in the percentage of dry recyclable waste in landfill by 2015.
  • Aligned with the National Solid Waste Policy, BRF in late 2013, has partnered with companies specialized in technical support and management in waste pickers cooperatives to develop a project together. The first phase of the project provides technical and management training in 16 cooperatives in the regions of Porto Alegre, São Paulo, Rio de Janeiro and Cuiabá, four of which will also receive equipment. With this project, BRF expects cooperatives increase the percentage of recycled waste, add value to the collected waste and increase income generation.
  • In 2013, the BRF Brigade (partnership with TerraCycle) enabled the collection of 283,007 units of packaging. From 2014, similar actions will be developed with the help of new partners, aiming to develop new areas of expertise and different perspectives.

Mitigation of Environmental Impacts of Products and Services

Projects conducted In 2013Result
Change of the model from the transport box to "cash Tray" without the use of film. Reduced consumption of 290 tons/year of plastic.
Card with new weight for packing ready meals. 10% reduction in mass, which represented a decrease of 112.5 t/year of material (equivalent to approximately 1.461 medium-sized eucalyptus trees).
Dimensional changes and structure of the corrugated box of the product cooked ham. Reduction of 2.4 t/year of material not consumed approximately (32 medium trees -eucalyptus).
Optimization of plastic bag of Toscana sausage brand Sadia, with an average reduction of 4% of dimensional Result in approximately RS 60.000 per year savings.
Adaptations in the packing process, allowing remove devices used to hand clamp used In turkeys. Reduction of 5.56 tons/year consumption of polyamide.
Adjust of packing, registration and documentation to change the structure and dimensional reduction of the primary package. Reduced consumption of 85 tons of Low Density Polyethylene (LDPE) and reduced cost of RS 660,000 per year
Reduction of film thick covering frozen sausage. Consumption reduction 19.4 tonnes of PET/PE and R$ 95,000 a year saving.
Reduction of automatic stretch film consumption. Savings of R$ 500.000 per year and 118 tons of Linear Low Density Polyethylene (LLDPE) will no longer be used.

For more information about BRF, click here for the Annual and Sustainability Report

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