Financiamiento de prácticas verdes en cadenas de valor Mariana Claudio, Sostenibilidad 06 de noviembre 2014, Guayaquil - Ecuador 110 countries served 2nd largest Brazilian food exporter 20% of the worldwide poultry trade 5th largest Brazilian employer Value Chain Overview • US$ 23.3 billion market cap • 57 industrial plants (10 located overseas) with large production capacity • 7th largest food company in the world and first in animal proteins (both market value) • R$ 30.5 billion in annual sales • Member of UN Global Compact and COP advanced level • 4th Brazilian Company in transparency according to CDP • GRI G4 Comprehensive guidelines to Annual Report Sustainability as strategy Six pillars permeate BRF’s business strategies Sustainability at BRF is supported by a set of guidelines, practices and actions intended to achieve positive outcomes, simultaneously on the economic and financial, environmental and social fronts. Grow sustainably and create longterm shared value, ensuring business sustainability and supporting global movements . Sustainability with focus on continuous improvement Adapting to climate change Leveraging sustainability along the value chain SUSTAINABILITY PILLARS BRF Enhancing human capital Engagement with stakeholders Promoting sustainable consumption Supply Chain Monitoring Program • Created in 2011 • Risk management: Key social and environmental risks in the chain. The highest risks are the legal compliance in itself. • The relationship is based on the Code of Conduct for Suppliers, which establishes principles of management for the companies that wish to maintain partnerships with BRF: Relationship among Suppliers and BRF's employees Operational Management of Suppliers – Quality and delivery time Social Management of the Suppliers Environmental management by the Suppliers • The standards are based both on Brazilian Legislation and International Conventions, such as human rights (child or forced labor), enterprises for the climate, etc. • 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). • Operanting in working groups: ranching; grains, meal and oil; logistcs; supplies Leveraging sustainability along the value chain Livestock Production Distribution Retail Customer Integrated Outgrowers: Livestock (poultry and swine) • 14.000 Integrated Partners (Supporting local supply chain). • Evaluate and monitor the evolution of the index (Annual check list application) and suggest action plans to improve the index (verification in loco). • Technichal support for farmers to promote the best development and best practices. • BRF supports: Financial guarantor for investment lines (new structure and quality standards required from BRF). Facilitator in the credit application process. Direct investor (below US$800,00 – To fix up a equipement, for example). Responsible for project implementation. Installation of Cisterns Guidance for the implementation of water harvesting rain on properties of farmers. BRF was the facilitator in the credit application process. Animal waste Reverse Logistic Reverse logistic for health waste (medicine packaging, needles etc) used in agriculture – 100% of integrated outgrowers. BRF was the responsible for project implementation. Photovoltaic Power Provide the most viable alternative energy BRF was the facilitator in for agriculture production, using natural the credit application resources and reducing costs. process. THANK YOU Mariana Claudio mariana.claudio@brf-br.com + 55 11 23225043