By Ana Mano SAO PAULO, Nov 10 (Reuters) - Meatpackers in Br
By Ana Mano
SAO PAULO, Nov 10 (Reuters) – Meatpackers in Brazil resembling JBS SA JBSS3.SA and BRF SA BRFS3.SA have but to handle key sustainability points affecting investor perceptions of their trade, in keeping with the Coller FAIRR Protein Producer Index launched on Tuesday.
One smaller Brazilian meatpacker, Minerva SA BEEF3.SA, was ranked “excessive threat” by the FAIRR Initiative, an investor community that screens environmental, social and governance (ESG) points throughout the dairy, meat and aquaculture sectors.
JBS, BRF and Marfrig MRFG3.SA had been rated “medium threat” within the index, which ranked 60 international listed firms in opposition to 10 ESG threat components.
Of the 60 corporations lined, 38 corporations valued at $165 billion are ranked as “excessive threat” on common, throughout all the 10 threat and alternative classes gauged by the FAIRR Initiative, whose members have $25 trillion of property below administration.
In Brazil, Marfrig received the highest rating of 59 out of 100 attainable factors. Rivals JBS and BRF scored 51 and 49 factors respectively. Minerva scored 20 factors. In an announcement, Minerva disagreed with FAIRR’s methodology, saying the index standards are too broad and may doubtlessly distort outcomes.
The general high performer was Norway’s Mowi MOWI.OL, the world’s greatest farm-raised salmon provider. The 2 worst performers are primarily based in China and India.
This 12 months, local weather change and the COVID-19 pandemic weighed on an trade “already cracking from basic constraints round land, water and antibiotics use,” FAIRR mentioned. The well being disaster uncovered “governance failings” with respect to working situations in meat-packing crops, it added.
In Brazil, firms together with JBS, Marfrig and Minerva are additionally more and more topic to shut scrutiny as a result of alleged hyperlinks with Amazon deforestation.
Whereas FAIRR acknowledges their commitments to keep away from shopping for cattle from areas the place deforestation doubtlessly occurred, it mentioned tracing the origin of cattle solely from direct suppliers was not sufficient.
Marfrig mentioned in an announcement it might hint the origin of 42% of cattle equipped by direct breeders, and by 2030 goals to have the ability to hint 100%.
BRF and JBS didn’t instantly present feedback.
(Reporting by Ana Mano; Modifying by Richard Chang and Richard Pullin)
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