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SUSTAINABILITY REPORT 2020 SUSTAINABILITY REPORT 2020 02 Highlights from the year 04 Agile and precise actions during the pandemic 06 Messages from the Administration WORK, INTEGRITY, AND COMMITMENT 12 INNOVATION AND DIGITAL TRANSFORMATION 28 CARING IN THE FIELD 38 EXPANDING BUSINESS 48 RESPONSIBILITY TOWARD ALL STAKEHOLDERS 64 ENVIRONMENTAL MANAGEMENT 88 102 About the report 105 GRI Summary 108 Corporate Information Owned farm replaces INDUSTRIAL UNITS fossil fuel and EXCEED THE GOALS increases the use of ESTABLISHED FOR RECORD GROSS OPERATING RENEWABLE RECYCLING sources by REVENUE R$ 1.9 billion SOLID WASTE UP FROM 114% 39% 2019 SIGNIFICANT RETURN ON NET INCOME R$ 298 million NET EQUITY IN THE YEAR 77% UP FROM THE 334% PREVIOUS YEAR OF ITS PRODUCTION 87.12% IN COMPLIANCE SUPERIOR OPERATIONAL PERFORMANCE SUPERIOR OPERATIONAL PERFORMANCE, SUSTAINING MOST ADVANCED Brazilian PRODUCTION EVEN Investment in INNOVATION IN THE MIDST OF meat processing plant in and digital transformation IN A CHALLENGING implementation of ANIMAL PROCESSES AND PRODUCTS YEAR WELFARE measures, in the fields, industry, and according to the Observatório Foreign market corporate activities Suíno report, from NGO with record volumes, driven Alianima, with 77% of its by DEMAND production in compliance FROM CHINA AGILE AND PRECISE ACTIONS DURING THE PANDEMIC AGILE AND PRECISE ACTIONS DURING THE PANDEMIC Caring PREVENTION Attention Faced with the for people INITIATIVES to business challenges posed by the COVID-19 crisis in 2020, Pamplona acted preventively Thanks to Pamplona’s agile and coordinated ac- • Early establishment of the Coronavirus Crisis The pandemic has also had an impact tions, no cases of internal contagion or loss of life Management Committee on industrial, commercial, and logistics by monitoring risks due to COVID-19 were recorded. Due to invest- • Creating the Outpatient Care Protocol operations; however, by planning and ments and safety protocols, the chance of con- • Giving vacation time to employees with remodeling processes and actions, we and establishing work tracting the virus in the workplace is very low. Pam- children in daycare centers and school were able to overcome the resulting dif- plona acted swiftly and invested in safety measures ficulties. • Giving vacation time to employees in high- processes to ensure to protect employees and stakeholders. This in- risk groups volved changes to meet new health requirements. The supply of inputs, which is largely tied • Furloughing employees with children in safety for people to the Chinese market, has been moni- daycare centers and school or in a high-risk Protective equipment was provided by Pamplona, tored since the coronavirus outbreak was group (Based on provisional measure MP 927) and businesses with an emphasis on PFF2 masks and face shields; first reported. This made it possible to lounge areas were expanded, and partitions were • Allowing teams to work from home guarantee supply and avoid shutdowns installed in the cafeteria, which significantly re- • Quarantining employees with symptoms, due to stockouts. An accurate assess- duced physical contact between employees and, according to the protocol of the Ministry of ment of the market, proper risk manage- The committee was formed by the Presidency, Execu- consequently, the risk of contagion. Bus line avail- Health ment, and a solid partnership with sup- tive Board, internal business and management areas, ability was increased, as was the spacing of seats • Cancelling trips, meetings, and events, etc. pliers allowed Pamplona’s operational and legal services providers. In meetings held every and the frequency of vehicle sanitization. • Dismissing all young apprentices and interns and commercial performance to end the day in the first half of the year, and every other day in with early vacation and subsequent furlough year with positive results. the second half, the committee monitored govern- Intense actions were also carried out in the com- • Putting an action plan in place for confirmed ment regulations related to the pandemic and evalu- munities. Campaigns were conducted to provide cases of COVID-19 in Rio do Sul ated business needs, such as supply forecasting and information and raise awareness for employees’ • Instituting access screening at the gate logistics. families about the importance of social distanc- for carriers and outsourced services ing and adopting practices to prevent contagion at • Creating the Health Dialogue with This work ensured that Pamplona maintained com- home. Pamplona monitored not only employees, the Health and Safety team pliance throughout the year on its various fronts and but also their family members affected by the virus. allowed the company to continue serving producers Equipment was offered to entities such as nursing • Prohibiting employees from circulating between units and its commercial activities without disruptions. homes, hospitals, day care centers, and cities, and meat and clothing were donated to entities that • Intensifying sanitation in areas serve vulnerable populations. Ventilators, sanitizing of common use floor mats, hand sanitizer, and hospital masks were • Providing individual guidance also offered. to employees with questions • Donating cleaning products and materials to employees • Creating a web page, advertising video, and educational video on preventing COVID-19. 4 SUSTAINABILITY REPORT 2020 5 SUSTAINABILITY REPORT 2020 MESSAGES FROM THE ADMINISTRATION MESSAGES FROM THE ADMINISTRATION Planning and Our networking within the sector, both at the Bra- dente Getúlio and Rio do Sul and expanded and zilian Animal Protein Association (ABPA) and the improved our feed plant in Laurentino. These mea- caring for all Union of Meat and Meat Products Industries of sures will benefit our communities, since the agri- the State of Santa Catarina (SINDICARNE), was in- business sector accounts for 34% of Santa Cata- strumental in this work. Collectively, we signed a rina state’s revenue, and the benefits also reflect at commitment with the Ministry of Agriculture stat- the local level. In Presidente Getúlio, for example, audiences GRI 102-14 ing that the agro-industry would produce while we contribute to 50% of the city’s income. Em- ensuring the safety of its workers. We are also ployees also benefit from these gains; our Profit- committed to putting food Sharing Program reached its on the tables of Brazilians maximum cap for the year. while maintaining exports Remuneration was one of and serving customers in all our concerns related to countries. people, so when possible, we advanced the payment The COVID-19 pandemic initially made everyone More than 50% of the pork of salaries to guarantee the naturally insecure because of the total lack of exported by Brazil comes 39,0% integrity of the teams and knowledge about the effects of the novel coronavi- from Santa Catarina, and we bolster the economy of the rus. However, we responded quickly and precisely, are very proud to be part of municipalities during the identifying risks and protecting our teams and com- this. Despite a troubled start Increase in Gross toughest periods. munities. This allowed us to end the year with lives to the year due to the ef- Operating Revenue saved and exceptional business performance. fects of the pandemic, the We believe that our commit- domestic market recovered - totaling a record ment to sustainability reflects The meat packing industry was highly targeted in throughout the period, es- across the entire production the first months of the health crisis. In addition to pecially in terms of prices, R$1.9 billion - chain and is critical for the operational constraints due to reduced staff and a adjustment for domestic business. Before it reaches drop in demand in the food service chains, we had inflation, and growing vol- compared to the the communities, it begins to prove that we were not the villains of the con- umes of processed prod- previous year with training producers and tagion cycle. On the contrary, it was precisely be- ucts. We ended 2020 with promoting animal welfare. cause of the health protocols in the sector, which record Gross Operating In 2020, we were featured in were stricter than in other segments, that the vi- Revenue (GOR): R$1.9 billion the report issued by Obser- rus was identified in certain regions. Internally, we (+39% compared with 2019). vatório Suíno—prepared by ended the year with a sense of accomplishment The composition of net income, R$298 million NGO Alianima, which works to protect animals—as since we did not lose any of our employees, and (+334.3%), provided a significant return on equity. the most advanced Brazilian meatpacking compa- the likelihood of those infected having contracted ny in the implementation of measures to promote the virus at our facilities is very low due to our large Together with the precautions taken because of animal welfare, with 77% of its production in compli- investments in safety. the pandemic, we proceeded with our expansion ance. This commitment also involves the attention strategy, reaching all the goals set for the year. We given to employees and the industry with the read- kicked off our growth plans for the units in Presi- justment of factory layouts and the progress of so- 6 SUSTAINABILITY REPORT 2020 7 SUSTAINABILITY REPORT 2020 MESSAGES FROM THE ADMINISTRATION MESSAGES FROM THE ADMINISTRATION cial and environmental projects. It is also enhanced It is with the certainty that we are fulfilling our role in by our attention to product quality and the food all of these areas that we invite you to read our 2020 safety of our customers, which allows us to obtain Sustainability Report, prepared in accordance with the resources to benefit the communities where we op- standards of the Global Reporting Initiative (GRI) Stan- erate, thereby completing an extremely positive cy- dards. We know that this is an ongoing task, which Commitment cle. To support all these actions and drive efficiency, is why we have established commitments and goals we invested in digital transformation in the fields, in that will be introduced throughout this document.

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