Minerva S.A.

Minerva states that for its direct and indirect suppliers, "No new occurrence of deforestation for cattle raising purposes will be accepted after October 05, 2009." This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME"

Minerva states that for its direct and indirect suppliers, "No new occurrence of deforestation for cattle raising purposes will be accepted after October 05, 2009." This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME"

Target date is current - see 3.2

[translation] "Expansion of geographic monitoring of direct supplier farms to all operating countries in South America by 2030. We will achieve 100% of the geographic monitoring of direct supplier farms in Paraguay by December 2021, Colombia in 2023, Uruguay in 2025 and expansion to other countries in South America by 2030. In Brazil, Minerva is the only company to monitor 100% of direct supplier farms with georeferenced maps in all biomes in which it operates (Amazon, Cerrado, Pantanal and Atlantic Forest), including all full cycle farms, from birth to slaughter of animals. Development and implementation of a program for monitoring indirect supplier farms for all operating countries in South America by 2030. Integration of the Visipec tool in the geographic monitoring system for Amazon until December 2021; Verification application for indirect suppliers in partnership with Niceplanet Geotechnology for Brazil by December 2021 and other countries by 2030."

[translation] "Expansion of geographic monitoring of direct supplier farms to all operating countries in South America by 2030. We will achieve 100% of the geographic monitoring of direct supplier farms in Paraguay by December 2021, Colombia in 2023, Uruguay in 2025 and expansion to other countries in South America by 2030. In Brazil, Minerva is the only company to monitor 100% of direct supplier farms with georeferenced maps in all biomes in which it operates (Amazon, Cerrado, Pantanal and Atlantic Forest), including all full cycle farms, from birth to slaughter of animals. Development and implementation of a program for monitoring indirect supplier farms for all operating countries in South America by 2030. Integration of the Visipec tool in the geographic monitoring system for Amazon until December 2021; Verification application for indirect suppliers in partnership with Niceplanet Geotechnology for Brazil by December 2021 and other countries by 2030."

Target date is current. 

[translation] "monitoring of the supply chain: More than 9.6 million monitored hectares in the Amazon biome More than 2 million monitored hectares in the Cerrado More than 3.6 million monitored in the Chaco biome 100% of suppliers 2020 with properties in the Cerrado biome monitored in a pioneering way in the sector 100% of suppliers direct monitored in Brazil and in Paraguay"

"In Brazil, the Company monitors more than 9,000 suppliers in the Amazon, covering an area of more than 9 million hectares, which translates into 100% geospatial mapping of suppliers located in the biome. The commitment extends to Paraguay, where Minerva has pioneered geospatial monitoring of the Chaco biome through criteria adopted concerning illegal deforestation, encroachment into indigenous lands, and areas of environmental preservation. In that country, in just a little more than a year of operation, the company has already had more than 50% of its suppliers mapped and the remainder certified by an independent audit conducted by independent auditors, BDO RCS Auditores Independes in December 2019."

 [Translation of external independent audit (2019) Grant Thornton Auditores] "Nothing came to our attention that would make us believe that the procedures adopted by the Company in the period January to December 31, 2018, do not comply, in all its relevant aspects, with the criteria established by the public commitment to livestock to adopt the “minimum criteria for operations with cattle and bovine products on an industrial scale in the Amazon Biome.” [Translation of independent audit from 2020] "Based on all the audit procedures, in relation to the deforestation criteria afer October 2009, overlaps with Conservation Units or Indigenous Lands (“ListaGEO”), and from suppliers that appear on the list issued by the Secretariat of Labor, there were no purchases identified that were not in compliance with the criterias described in the “Public Livestock Commitment”, that reinforces the commitment of the company to monitor its deforestation-free supply chain in a clear and transparent manner, contributing to the fight against climate change by mitigating GHG emissions."

"Minerva uses a platform called Visipec to screen indirect suppliers A pilot traceability project covers properties selling calves or stockers to Minerva’s direct suppliers"; HIRD PARTY AUDIT REPORT FOR SERVICE TO THE "COMMITMENT TO ADOPT THE MINIMUM CRITERIA FOR OPERATIONS WITH CATTLE AND BEEF PRODUCTS ON AN INDUSTRIAL SCALE IN THE AMAZON BIOME" (...) An evaluation of Minerva's purchasing system was carried out through interviews with the responsible for the geo-monitoring procedures of the outsourced company, understanding the processes carried out to ensure that the purchase is regular, and that there are no purchases with suppliers that have lands overlapping indigenous lands, conservation units, or that have carried out deforestation as of October 2009; (...)

Minerva states that for its direct and indirect suppliers, "No new occurrence of deforestation for cattle raising purposes will be accepted after October 05, 2009." This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME"

Minerva states that for its direct and indirect suppliers, "No new occurrence of deforestation for cattle raising purposes will be accepted after October 05, 2009." This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME"

"in the leather segment, for example, a traceability system implemented in 2019 has provided competitive advantage and opened new demanding markets to products from Minerva Leather. [...] traceability system—which provides assurance that products are sustainably sourced and full traceability from farm to end customer"; This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME." "In 2019, Minerva Leather introduced a project to provide traceability of the hides throughout the supply chain. The process consists of marking the leather while it is still at the processing plant, with information regarding the farm of origin, classification according to the criteria of the business branch, corral from which it originates, slaughterhouse where it was slaughtered, and date of slaughter, among other information. This gives the customer of the finished product the guarantee that they have purchased a product of responsible origin, in adherence to social, environmental, and quality criteria."

"in the leather segment, for example, a traceability system implemented in 2019 has provided competitive advantage and opened new demanding markets to products from Minerva Leather. [...] traceability system—which provides assurance that products are sustainably sourced and full traceability from farm to end customer"; This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME." "In 2019, Minerva Leather introduced a project to provide traceability of the hides throughout the supply chain. The process consists of marking the leather while it is still at the processing plant, with information regarding the farm of origin, classification according to the criteria of the business branch, corral from which it originates, slaughterhouse where it was slaughtered, and date of slaughter, among other information. This gives the customer of the finished product the guarantee that they have purchased a product of responsible origin, in adherence to social, environmental, and quality criteria."

"in the leather segment, for example, a traceability system implemented in 2019 has provided competitive advantage and opened new demanding markets to products from Minerva Leather. [...] traceability system—which provides assurance that products are sustainably sourced and full traceability from farm to end customer"; This is part of the "MINIMUM CRITERIA FOR INDUSTRIAL-SCALE OPERATIONS WITH CATTLE AND BEEF PRODUCTS IN THE AMAZON BIOME." "In 2019, Minerva Leather introduced a project to provide traceability of the hides throughout the supply chain. The process consists of marking the leather while it is still at the processing plant, with information regarding the farm of origin, classification according to the criteria of the business branch, corral from which it originates, slaughterhouse where it was slaughtered, and date of slaughter, among other information. This gives the customer of the finished product the guarantee that they have purchased a product of responsible origin, in adherence to social, environmental, and quality criteria."

Current

"Geospatial monitoring via satellite imaging is performed on the properties of suppliers located throughout the Amazon biome to determine the occurrence of deforestation, encroachment of indigenous lands, and conservation areas [...] Every year the process is certified by audits. In 2019, 100% compliance was assured in the assessment performed by independent auditors of BDO RCS Auditores Independentes. In Paraguay, the Company is pioneering the geospatial monitoring of 100% of its major suppliers, restricting trade with those on whose properties illegal deforestation, intrusion into indigenous lands and environmental protection areas are detected. By 2018, when monitoring began, 289 properties had been registered and analyzed, corresponding to an area of more than 360,000 hectares. In 2019, a further 270 properties were registered and analyzed in an area of more than 339,000 hectares, for a combined total of more than 699,000 hectares monitored. During the assurance audit of the process carried out in Paraguay, 100% compliance with the criteria adopted by the Company was certified."

"In Brazil, the Company monitors more than 9,000 suppliers in the Amazon, covering an area of more than 9 million hectares, which translates into 100% geospatial mapping of suppliers located in the biome. The commitment extends to Paraguay, where Minerva has pioneered geospatial monitor - ing of the Chaco biome through criteria adopted concerning illegal deforestation, encroachment into indigenous lands, and areas of environmental preservation. In that country, in just a little more than a year of operation, the company has already had more than 50% of its suppliers mapped and the remain - der certified by an independent audit conducted by independent auditors, BDO RCS Auditores Independes in December 2019."

[Translation of external independent audit (2019) Grant Thornton Auditores] "Nothing came to our attention that would make us believe that the procedures adopted by the Company in the period January to December 31, 2018, do not comply, in all its relevant aspects, with the criteria established by the public commitment to livestock to adopt the “minimum criteria for operations with cattle and bovine products on an industrial scale in the Amazon Biome.” [Translation of independent audit from 2020] "Based on all the audit procedures, in relation to the deforestation criteria afer October 2009, overlaps with Conservation Units or Indigenous Lands (“ListaGEO”), and from suppliers that appear on the list issued by the Secretariat of Labor, there were no purchases identified that were not in compliance with the criterias described in the “Public Livestock Commitment”, that reinforces the commitment of the company to monitor its deforestation-free supply chain in a clear and transparent manner, contributing to the fight against climate change by mitigating GHG emissions."

 [Translation of external independent audit (2019) Grant Thornton Auditores] For the criterion “System of traceability of monitorable, verifiable and reportable production”, we verify the existence of a traceability system from indirect suppliers, which applies to the totality of the Company's cattle purchases in the Amazon Biome, covering all the previous links and recreates), and if all the commitment criteria are met by indirect suppliers. Additionally, we verify the existence and functioning of the system of blocking direct suppliers who are in compliance, but have indirect suppliers in non-compliance. However, it was not possible to proceed with the analysis by means of sampling, as required by the “Term of reference for third party audits”, due to the absence of a traceability system throughout the entire production chain, as presented in the section “Basis for the conclusion with reservation ”. [Translation of independent audit from 2020] "In relation to indirect suppliers, it was found that Minerva so far does not have a systematic verification system for these cases. It is worth mentioning that monitoring indirect suppliers needs help and investment by the government with technologies that promote traceability of the cattle from birth until slaughter."