São Paulo, October 7, 2021 – Even though the results of therecent Pará state TAC audit for 2018 and the first semester of2019 were impacted by a recent change in criteria adopted bythe Federal Prosecution Office (MPF, in Portuguese), JBS believes that it is important to adopt additional measures tostrengthen its due diligence work in the state. Therefore, thecompany announces a set of actions with the objective ofstrengthening the sustainability of the cattle supply chain in Pará and expanding the adoption of good practices throughoutthe industry. The investments amount to R$ 5 million.
JBS clarifies that the results arise primarily from inaccuraciesin definitions of the monitoring criteria and in the databaseused as the benchmark in the audit process.
As mentioned by the Federal Prosecution Office in thepresentation of October 7th, JBS did not use the Prodes 2008 database in light of the following:
In any case, JBS has included new measures in its monitoringsystem and has blocked all supplier farms in Pará where theaudit flagged irregularities. And, in mutual agreement withthe MPF, the resources will be channeled to a series ofinitiatives within the State of Pará, including the CAR 2.0 project developed by the State Department for theEnvironment and Sustainability of Pará (Semas/PA) with theaim of automating and accelerating the analysis andverification of the Rural Environmental Register and theEnvironmental Regularization Program within the State.
The company has also expanded its Green Offices in Pará, doubling the operations to four units across the State. The JBS Green Offices provide free support for the environmentalregularization of rural properties. Also, as part of the actionsannounced, the Green Offices will now engage in land titleregularization on the properties of the suppliers in the State of Pará.
Enhancing the evaluation of sustainability criteria, JBS hasagreed to audit 100% of cattle purchases in Pará.
In order to expand the adoption of socioenvironmental criteriaby all links in the production chain, JBS will also step up theactions to encourage livestock farmers to sign up to theTransparent Livestock Farming Platform, which allowsproducers to analyze their supply chains using the samecriteria employed by JBS, in a secure and confidentialmanner, thanks to the use of blockchain technology.