November 11, 2020

FAIRR Initiative ranks JBS, BRF medium risk and Minerva high risk for investment

The FAIRR Initiative, a network of investors monitoring environmental, social and governance (ESG) issues in the dairy, meat and aquaculture industries, ranked major Brazilian meatpackers JBS SA and BRF SA "medium risk", while Minerva SA was "high risk" for investment, Reuters reported.

According to the Coller FAIRR Protein Producer Index, JBS SA and BRF SA have not discussed key sustainability issues in the meatpacking industry that have affected investor perceptions.

In addition to JBS and BRF, competitor Marfig was also rated "medium risk" in the index. The index ranked 60 listed companies globally against 10 ESG risk factors.

Marfig scored 59 / 100 points, JBS got 51 points and BRF earned 49 points. Minerva only scored 20 points. Minerva said in a statement that it disagreed with the FAIRR index methodology, adding that the criteria is too wide and could distort results.

Mowi, the biggest aquaculture salmon supplier in the world, was the top performer of the index. The index's two worst performers are based in China and India.

FAIRR said it recognised Brazilian meatpackers' commitment to stop purchasing cattle from areas affected by deforestation, but added that cattle origin tracing from direct suppliers is insufficient.

Marfig said it is able to track 42% of its cattle supplied by direct breeders, with the aim of tracing 100% of its supplied cattle by 2030.

BRF and JBS did not reply to requests for comment from Reuters about the FAIRR index.

-      Reuters