SUSTAINABILITY BUSINESS MODEL:
JBS approach to sustainable business model is guided by their mission to be the best in all that they do while securing opportunities for their team members, shareholders, suppliers, customers and the next generation (Sustainability at JBS USA, 2019). Sustainable business model of JBS is to reiterate their commitment to conduct their operations with a focus on innovation, investment (in compliance, developing systems & processes), training, high quality, food safety and best sustainability practices across the entire value chain (Annual and Sustainability Report, 2019). This makes them achieve the position of leading global provider of diversified, high-quality food products, including a portfolio of well-recognized brands and innovative, value-added premium products (Executive Summary, 2019). According to JBS, Annual and Sustainability report 2019, these achievements and the entire evolution of JBS are sustained by deep roots that are translated into their values. From the start, they’ve always acted according to simplicity and humility, while also using an attitude of ownership and applying a strong sense of determination and discipline to deal with challenges. When these attitudes are multiplied by their over 240,000 team members, this becomes a powerful competitive edge, with the certainty that major goals will be reached. In order to achieve this sustainability business model, JBS develops its global business strategy based on seven pillars: strong brands, a leading position in the markets where it operates, production in locations with competitive advantages, distribution structure in the largest consumer markets, diversification by protein and geography, operational excellence, and value-added products.
JBS believes sustainability involves continuously improving social responsibility, economic viability, and environmental stewardship (Sustainability at JBS USA, 2019). Aware of its role in engaging the entire value chain, global activities at JBS are based on sustainable development and management of the impacts of its operations. The Company’s global sustainability priorities are product integrity, animal welfare, environmental stewardship, and social responsibility (Annual and Sustainability Report, 2019).
JBS conducts sustainability management based on four objectives:
✔ Enhancing risk management
✔ Reducing the environmental footprint of the business.
✔ Improving eco-efficiency and relationships with society
✔ Fostering innovation
According to the JBS sustainability report 2019, the company’s investments in energy efficiency projects worldwide reached R$ 59.6 million in 2019. The major goals for 2020 for the energy & emissions are as follows:
✔ 16% decrease in natural gas use intensity. Working toward a goal of 20%.
✔ They met their 12% electricity reduction target, achieving a 17% reduction.
✔ 17% decrease in GHG emissions intensity. Working toward a goal of 20%.
The main operating area of JBS is the United States, Canada, Mexico, Argentina and Paraguay and the company has managed to have competitive advantage over sustainability practices. In the year 2018. The company had an incline of 11% as the overall acquisition of revenues incremented from US
$163,170 million to US$ 181,680.24 million in the year 2018. This happened because of sustainable practices in product manufacturing, which abides by four eminent rules i.e. reliability, high quality, eco- friendliness and efficient processes. The company has good communication with customers and believes in maintaining transparency about their product details, especially creating awareness about animal welfare. In maintaining their food production quality of JBS, they have adhered to the certification of Global food safety initiative, they also involve in food monitoring through video technology. The certification also enables them to maintain food safety by eradicating contamination processes in their protein production cycle (market.us, 2020). In case of purchasing livestock, As of in the year 2019, the company has made investments for sustainability to nearabout R$1.9 billion, approximately R$120 million in innovation and for ensuring food safety, they have invested R$931 million (Kamel, 2020). The main competitive advantages of JBS foods are as given:
Distribution with a Worldwide Spread – JBS Foods fares to more than 100 nations and sells its items across the nation in Brazil, with no customer exclusively representing over 10%. (Competitive Advantages 2020).
Chief Position in National and International Markets and Brand Credit- This initiative permits the Company to make the most of market openings, grow its business and increase its offer in household and global markets. Moreover, its brands are perceived as images of value in its business sectors in both Brazil and abroad, which permits the Company to extend its administration. (Competitive Advantages 2020)
Integrated Meat Creation System, with a Incessant Focus on Food Quality and Safety and Sustainability of the Production Chain- Poultry meat creation by JBS Foods is vertically coordinated, implying that the Company produces 100% of its parent pullets, which brings points of interest, for example, more noteworthy authority over sterile conditions, accordingly lessening the danger of illness, more prominent power over the wholesome states of winged animals, prompting gains in feed change, normalization of parts and lower mortality and lower costs with poultry parent stocks contrasted with rest of the business. (Competitive Advantages 2020)
Diversified, Sheer Integrated and Effective Business Model- The plan of action of JBS Foods joins controlling expenses in the creation of different worth included items an incorporated premise in deliberately found creation units. For example, constant control, diversified product portfolio and geographical distribution of production units. (Competitive Advantages 2020)Successful Track Record of Business Execution and Integration and Capacity to Grow Organically and Through Acquisitions- JBS Foods has become fundamentally throughout the most recent two years through key securing of organizations with astounding turnaround potential, which are being coordinated effectively. Furthermore, the organization can likewise profit by the natural development of its activities through quick utilization of accessible introduced limits and by catching profitability and effectiveness gains.
KEY CONSIDERATIONS IN SOCIAL AND ENVIRONMENTAL IMPACT:
“As a global provider of food, we have a great responsibility and opportunity to make a real difference now and for generations to come” (Annual and Sustainability Report, 2019).
JBS is focused on continuously improving social responsibility, economic viability and environmental stewardship to achieve complete sustainable operations (Sustainability at JBS USA, 2019). Being aware of the impacts of its operations, global activities at JBS are focused on sustainable development and management. The Company’s global sustainability priorities are product integrity, animal welfare, environmental stewardship and social responsibility (Annual and Sustainability Report, 2019).
The Main focus of JBS is to achieve sustainable development and management by controlling risks related to social safety and environmental footprint of their business. For this, their major business operations are eco-friendly and innovative as much as possible, along with that JBA understands the importance of their impact on society, so building a rewarding relationship with society.