EMPTY STATE
COMPARISON TOOL

BRF 18/100

(BOVESPA:BRFS3) 26 of 38 (2018)

BRF S.A. (BRF), a Brazil-based producer of poultry and pork, as well as processed foods such as pizzas, pasta, and frozen vegetables, ranks 26th out of 38 companies. While the company provides some information on all seven themes, overall, it provides less information on its forced labor policies and practices than its peers. Compared to 2016, the company demonstrates some improvements by disclosing that 1,288 employees, including senior management, received in person training on the company's code, which covers human rights in the supply chain and its supplier code of conduct. It further discloses actual and potential negative impacts mapped in its supply chains, and that its supplier code of conduct is available in three languages. The company is encouraged to improve its performance and disclosure on the themes of purchasing practices, recruitment, and monitoring.

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18 /100

2018 Ranking: 26 of 38

HOW DO THEY COMPARE?

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24

BRF was evaluated both in 2016, when it ranked 15th out of 20 companies, and in 2018, when it ranked 26th out of 38 companies. The company's score dropped six points, from 24/100 in 2016 to 18/100 in 2018. Since 2016, the company made some improvements, such as disclosing that 1,288 employees, including senior management, received in-person training on the company's code, which covers human rights in the supply chain and its supplier code of conduct.

2016 BENCHMARK

18

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

2016

24

BRF was evaluated both in 2016, when it ranked 15th out of 20 companies, and in 2018, when it ranked 26th out of 38 companies. The company's score dropped six points, from 24/100 in 2016 to 18/100 in 2018. Since 2016, the company made some improvements, such as disclosing that 1,288 employees, including senior management, received in-person training on the company's code, which covers human rights in the supply chain and its supplier code of conduct.

2016BENCHMARK

2018

18

The average score for the sector was 30/100, matching the average score in the 2016 benchmark. Compared to 2016, the number of companies assessed in 2018 increased from 20 to 38. Since 2016 the methodology has been strengthened, making it harder for companies to achieve the same score. The 19 companies benchmarked in both 2016 and 2018 saw their average score increase from 30/100 to 33/100, which is positive given the changes to the methodology.

METHODOLOGY

THEME AND INDICATOR SCORE

The benchmark methodology has seven themes, selected to capture the key areas where companies need to take action to eradicate forced labor from their supply chains. There are a total of 23 indicators across the seven themes. For each theme, a company can score a total of 100 points.

Commitment and Governance

This theme evaluates a company's commitment to addressing forced labor, whether it discloses supply chain standards, and to what extent it has management processes and board oversight, training programs, and engagement with stakeholders on forced labor in place.

OVERALL 57
INDICATORS
Commitment
100
Supply Chain Standards
60
Management and Accountability
75
Training
25
Stakeholder Engagement
25

Traceability and Risk Assessment

This theme measures the extent to which a company demonstrates an understanding of its suppliers and their workforce by disclosing relevant information (such as supplier names or sourcing countries) and assesses and discloses forced labor risks across its supply chains.

OVERALL 19
Traceability
12.5
Risk Assessment
25

Purchasing Practices

This theme assesses to what extent a company adopts responsible purchasing practices (such as providing price premiums and procurement incentives) and integrates supply chain standards into supplier selection and supplier contracts, and whether it cascades them down the supply chain.

OVERALL 16
Purchasing Practices
15
Supplier Selection
0
Integration into Supplier Contracts
50
Cascading Standards through the Supply Chain
0

Recruitment

This theme measures a company's approach to reducing the risk of exploitation of supply chain workers by recruitment agencies, eliminating workers' payment of fees during recruitment processes throughout its supply chains, and protecting the rights of migrant workers.

OVERALL 6
Recruitment Approach
0
Recruitment Fees
0
Monitoring and Ethical Recruitment
0
Migrant Worker Rights
25

Worker Voice

This theme measures the extent to which a company engages with workers in its supply chains, enables freedom of association, and ensures access to effective and trusted grievance mechanisms.

OVERALL 16
INDICATORS
Communication of Policies
25
Worker Voice
0
Freedom of Association
0
Grievance Mechanism
40

Monitoring

This theme evaluates a company's process for auditing suppliers (including whether audits include non-scheduled visits, review relevant documents such as wage slips or contracts, interview workers, and audit lower-tier suppliers) and providing disclosure on the outcomes of supplier audits.

OVERALL 5
Auditing Process
10
Audit Disclosure
0

Remedy

This theme measures the extent to which a company has corrective action plan processes for non-compliant suppliers and ensures remedy is provided to workers in its supply chains who are victims of forced labor. Publicly available allegations of forced labor in a company's supply chains that occurred in the past three years, and how a company has responded to and addressed those allegations, are also assessed as part of this theme.

OVERALL 6
Corrective Action Plans
12.5
Remedy Programs and Response to Allegations
0

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