JBS: MONITORING THE AMAZON BIOME

Transcription

1 JBS: MONITORING THE AMAZON BIOME São Paulo - SP July, 2010

2 OUR VISION OF SUSTAINABILITY Sustainability is a fundamental value that is present in all JBS s operations, in the way it does business and enters into partnerships. This concept is expressed through guidelines that make up a uniform model of management and that aim to assure economic, social and environmental stability in line with JBS s convictions and mission.

3 INTRODUCTION At JBS, we believe that development and business growth must be associated with the Sustainability of our actions. All of our employees, customers and suppliers must be committed to this. With the acquisition of Bertin Group in January 2010, the Company extended its operations and its sustainable practices into the Amazon Region. In order to help reduce deforestation, it has established specific controls for the purchase of cattle, introduced satellite-image monitoring of the Amazon Biome, and is encouraging its suppliers to introduce Best Socio-Environmental and Production Practices. In order to reinforce our commitment to transparency, which is an essential component of social and environmental accountability, we are divulging this report to society at large, with the aim of promoting dialog with stakeholders and continuing our sustainable growth. OBJECTIVE The primary goal of this document is to introduce the methodology and the outcomes of JBS s Amazon Biome Monitoring program to all stakeholders, so as to help reduce deforestation in the region.

4 STEP-BY-STEP LIST OF PROCEDURES 1- Deploying GPS devices and a traceability system on cattle trucks in order to gather the coordinates of loading pens: Hiring a company specializing in Remote Sensing and Georeferencing to introduce and operate the Amazon Biome Monitoring Program (Apoio Consultoria Projetos e Certificações - LTDA); A GPS/GPRS tracing system was deployed on 170 (one hundred and seventy) cattle trucks working in the States of Mato Grosso, Rondônia and Acre to collect the coordinates at animal loading pens; Three hundred Garmin/Etrex Summit HC GPS devices were bought for use on cattle trucks still without a traceability system; The shipment traceability system was changed, and an algorithm was introduced to convert decimal coordinates to geographical coordinates, for use in the databases of the Company hired to monitor the plant cover on suppliers holdings; Drafting a basic script of instructions and training drivers in the use of GPS devices; 2- Building a database of suppliers loading pen coordinates containing the following data: The name and Individual Taxpayer Identification Number (CPF) of the owner of the property; Farm name; Approximate area of the production unit; The Municipality and State in which the holding is located; Decimal and geographical coordinates of the animal loading pen(s).

5 Gathering the coordinates of cattle loading pens is now part of the procurement process for industrial raw material, and the procedure is mandatory at all the Group s industrial units; 100% of animals slaughtered come from georeferenced holdings. After the coordinates are collected, the data are keyed into JBS's register of raw materials suppliers and sent for analysis to the Company that has been hired, superimposing the coordinates on the map constructed from satellite images (we currently have a database with 186 satellite images), maps of Federal, State and Municipal Conservation Units, indigenous tribespeople s lands, and the DETER (Real Time Deforestation Detection) and PRODES (Legal Amazon Deforestation Monitoring Project) reports produced by Brazil s National Institute for Space Research INPE. The entire process is stored, and can be consulted on-line at which allows limited access to the data.

6 METHODOLOGY The following procedures are carried out on the basis of the suppliers loading pen coordinates: 1- The coordinates collected are entered into the database and superimposed upon the official State maps which show the official state boundaries, as well as specially protected areas, conservation units, Indigenous Lands and the INPE DETER, PRODES, and DEGRAD (Brazilian Amazon Forest Degradation Mapping) reports; 2- Suppliers holdings located inside Conservation Units and Indigenous Lands are classified as IRREGULAR and once their illegal status has been confirmed, they are immediately exluded from the list of suppliers; 3- Suppliers holdings whose coordinates come within 10 km of the perimeters of conservation Units and Native Tribespeople s Lands are classified as ALERT SUBJECT TO VERIFICATION and the following steps are taken: I- In those States where the SIMLAM system (Integrated Environmental Monitoring and Licensing System) has been introduced, a search of the CAR (Rural Environmental Register) is carried out on the State Environmental Secretariat webpages to confirm the location of each Holding. The perimeter map thus obtained is superimposed upon the satellite images and the database to analyze whether there has been encroachment upon the Conservation Unit or Indigenous Lands; II- When it is impossible to locate the holding through the CAR, or when there is some kind of inconsistency because the register was selfdeclared, the supplier is notified that (s)he must produce the perimeter map for the appreciation of JBS. The perimeter map that is received is superimposed upon the satellite images and the databases to analyze whether there has been encroachment upon the Conservation Unit or upon Indigenous Lands;

7 III- If unlawful occupation of the Conservation Unit or Indigenous Lands is confirmed, the supplier is immediately banned from trading wiith JBS. Whenever irregularities are confirmed, the supplier will be immediately excluded. If the supplier should refuse to hand over the holding s perimeter map for verification, commercialization will be suspended until the verification is completed. 4- Suppliers holdings whose coordinates come within 10 km of the perimeters of areas undergoing degradation as listed in INPE/DETER reports are classified as ALERT SUBJECT TO VERIFICATION and the following steps are taken: I- In those States where the SIMLAM system (Integrated Environmental Monitoring and Licensing System) has been introduced, a search of the CAR (Rural Environmental Register) is carried out on the State Environmental Secretariat webpages to confirm the location of each Holding. The perimeter map thus obtained is superimposed upon the satellite images and the database to analyze whether there has been environmental degradation on the property being investigated; II- When it is impossible to locate the holding through the CAR, or when there is some kind of inconsistency because the register was selfdeclared, the supplier is notified that (s)he must produce the perimeter map for appreciation by JBS. The perimeter map thus obtained is superimposed upon the satellite images and the database to analyze whether there has been environmental degradation on the property being investigated; III- If satellite images confirm the beginning of the process of degradation on the supplier s holding, (s)he is warned of the legal, administrative and commercial sanctions to which (s)he is liable if the following PRODES/INPE report confirms forest clearance (total removal of forest cover).

8 Whenever irregularities are confirmed, commercialization with the supplier is suspended immediately. If the supplier should refuse to hand over the holding s perimeter map for verification, commercialization will be suspended until the verification is completed. If deforestation is confirmed, the suspension is maintaned until the holding is restored to compliance. 5- Suppliers holdings whose coordinates come within 10 km of the perimeters of deforested areas as listed in INPE/PRODES reports are classified as IRREGULAR and the following steps are taken: I- If the holding perimeter map has not been recorded on the database owing to an ALERT SUBJECT TO VERIFICATION confirmation, a CAR (Rural Environmental Register) search is performed on the webpages of the Environmental Secretariats of those States where the system has been deployed in order to confirm location of the properties. The perimeter maps thus obtained are superimposed upon the satellite images and the database to analyze whether there has been deforestation on the property being investigated; II- When it is impossible to locate the holding through the CAR, or when there is some kind of inconsistency because the register was selfdeclared, the supplier is notified that (s)he must produce the perimeter map for appreciation by JBS. This perimeter map is superimposed upon the satellite images and the database to analyze whether there has been deforestation on the property being investigated; III- If deforestation is confirmed, the supplier in question is banned from selling cattle to JBS until all legal and administrative measures have been taken to restore the holding to compliance, and until the Future Conduct Adjustment Agreement has been signed in order to repair the environmental damage caused. (JBS is setting up a team of sustainability

9 specialists to help suppliers restore compliance, in addition to the support that our cattle purchasers already give them.) Whenever irregularities are confirmed, commercialization with the supplier is suspended immediately. If the supplier should refuse to hand over the holding s perimeter map for verification, commercialization will be suspended until the verification is completed. If deforestation is confirmed, the suspension is maintaned until the holding is restored to compliance. 6- The remaining suppliers are classified as ELIGIBLE and continue to sell animals to JBS. The Company s actions will not be restricted only to striking off its list of suppliers those who clear-cut the forest as identified by the PRODES and DEGRAD reports in August every year. All monthly degradation verification alerts obtained from the DETER report will be analyzed and suppliers who own properties close to where the incident occurred will be notified of the legal, administrative and commercial risks they assume if they carry out destructive actions. All JBS s suppliers will be notified by 30th July, 2010, by , of the Company s sustainability policy for the procurement of raw material. These are the actions by which JBS will contribute effectively to reducing deforestation within the Amazon Biome.

10 COORDINATES OBTAINMENT FLOWCHART

11 BLOCKADE AND CLEARANCE FLOWCHART

12 INCIDENTS FROM MONITORING OF THE BIOME UP UNTIL 5th JULY, 2010 ACRE Alerts Subject to Verification : DETER (Real-Time Deforestation Detection / Indigenous Lands / Conservation Units 75 Suppliers Irregular: Indigenous Lands / Conservation Units 07 Suppliers PRODES (Legal Amazon Deforestation Monitoring Project) 0 Suppliers RONDÔNIA Alert Subject to Verification : DETER (Real-Time Deforestation Detection / Indigenous Lands / Conservation Units 677 Suppliers Irregular: Indigenous Lands / Conservation Units 02 Suppliers PRODES (Legal Amazon Deforestation Monitoring Project) 0 Suppliers

13 Alert Subject to Verification : PARÁ DETER (Real-Time Deforestation Detection / Indigenous Lands / Conservation Units 172 Suppliers Irregular: Indigenous Lands / Conservation Units 05 Suppliers PRODES (Legal Amazon Deforestation Monitoring Project) 0 Suppliers Alert Subject to Verification: MATO GROSSO DETER (Real-Time Deforestation Detection / Indigenous Lands / Conservation Units 567 Suppliers Irregular: Indigenous Lands / Conservation Units 17 Suppliers PRODES (Legal Amazon Deforestation Monitoring Project) 0 Suppliers

14 INCIDENTS FROM MONITORING OF THE BIOME UP UNTIL 5th JULY, 2010 Acre: City Conservation Unit/Indigineous land Nº Excluded Rio Branco APA (Environmental Preservation Area) Estadual 07 do Igarapé São Francisco TOTAL 07 Mato Grosso: City Conservation Unit/Indigineous land Nº Excluded São Félix do Araguaia Indigenous Area Maraiwatsede 04 Alta Floresta Cristalino I State Park 02 Alta Floresta Cristalino II State Park 01 Alto Boa Vista Indigenous Área Maraiwatsede 01 Alto Paraguai APA (State Environmental Preservation Area) 01 Nascentes do Rio Paraguai Nova Lacerda Indigenous Area Taihantesu 01 Novo Mundo Cristalino I State Park 01 Pontes e Lacerda Santa Barbara State Park 01 Pontes e Lacerda Indigenous Area Portal do Encantado 01 Tabaporé Indigenous Area Batelão 01 Vila Bela Santíssima Serra de Ricardo Franco State Park 03 Trindade TOTAL 17 Pará: City Conservation Unit/Indigineous land Nº Excluded São Félix do Xingú Indigenous Area Apterewa 01 São Félix do Xingú Itacaiunas National Forest 01 São Félix do Xingú Carajás National Forest 01 São Geraldo do APA (Environmental Preservation Area) São 01 Araguaia Geraldo do Araguaia Tucuruí APA (Environmental Preservation Area) Tucuruí 01 TOTAL 05 Rondônia: City Conservation Unit/Indigineous land Nº Excluded Corumbiara Aripuanã Park 01 Guajará Mirim Extractive Reserve Ouro Preto 01 TOTAL 02 Marco Bortolon Director of Operations, JBS

15 Grupo JBS S.A. Escritório Corporativo - Av. Marginal Direita do Tietê, CEP São Paulo SP - Brasil Fone Fax sustentabilidade@jbs.com.br