We believe that having the ESG (environmental, social and corporate governance) as the pillar of our management is fundamental to our business. Moreover: it is an attitude that has the potential to generate highly positive impacts for humanity.
For this reason, we are always striving to continuously improve in this regard, committed towards a sustainable future in food production for the world. For us, this matter is so important that, in 2020, we created the Sustainability Committee with participation of our main leaders. In addition to the CEO and the CFO, the Committee relies on executives holding key positions in the Company. All united in the goal of promoting the Company's strategy for sustainability, based on two important initiatives: the traceability of suppliers and the combat against deforestation in South America.
In order to achieve this, we rely on a geospatial monitoring technology that allows for real-time monitoring of the conditions of the farms that supply Minerva Foods. This ensures that our products are not linked to deforested areas; areas under environmental embargo; encroachment in Indigenous Lands and Conservation Areas.
By means of this tool, we are the first company in the country having 100% of our direct suppliers mapped in the Amazon, Cerrado, Pantanal, and Atlantic Rainforest. All these territories combined represent more than 11 million hectares monitored each day in Brazil.
In addition to the criteria mentioned above, we monitor the occurrence of slavelike and child labor, by reviewing the database of employers who have submitted workers to the conditions stated above, thus resulting in being placed on a list of suppliers blocked from trading with the Company.
In 2020, to collaborate with the implementation of the Amazon Cattle Supplier Monitoring Protocol, we incorporated into our monitoring system the productivity index for 100% of the cattle purchases made in the states of the Amazon biome. Based on this criterion, properties that exceed the limit of 3 heads of cattle, per hectare, per year must submit a declaration of productivity.
Our work in traceability of the supply chain extends throughout South America. In Paraguay, we have more than 1,200 ranches registered in the geographic monitoring tool, representing 75% of all cattle monitored against illegal deforestation, encroachment on indigenous lands and environmental protection areas. This means that we monitor more than 3 million hectares throughout the paraguayan territory.
Part of our commitment is to make viable the continuous evolution of territorial traceability systems. Minerva Foods expects that by 2021, 100% of animals will be monitored in Paraguay, as well as initiating implementation of the monitoring system in Colombia.
The biggest challenge for the entire industry is the monitoring of indirect suppliers. However, we have kept up our activities focusing on the prosperity of the chain and, as innovators, we became the first company in the sector to test and integrate into our systems a risk assessment tool for indirect suppliers in the Amazon, VISIPEC. This initiative is supported by organizations such as the National Wildlife Federation, Friends of the Earth, and Wisconsin-Madison University. Test results indicate a more than 99% compliance with the best practices criteria defined by the Indirect Suppliers Working Group. And we didn't stop there! In August 2021, after calibration tests and analysis of results, it was possible to implement the tool in our internal systems four months ahead of schedule, making Minerva the first company in the industry to incorporate it into its activities.
In this way, Minerva Foods moves forward in the monitoring of its suppliers and the possibility of reaching its goal of zero illegal deforestation by 2030, demonstrating its commitment to fighting climate change and protecting the ecosystem.
You can check out the historical background of the work accomplished through our Timeline at here
Note: All tests were conducted utilizing data available only at the rural property information level, such as available in public databases - subject to data protection laws.