  {"id":8199,"date":"2016-11-02T22:22:40","date_gmt":"2016-11-03T02:22:40","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/a-look-inside-the-worlds-largest-beef-producer-is-jbs-slaughtering-cows-or-the-environment\/"},"modified":"2016-11-03T15:43:32","modified_gmt":"2016-11-03T19:43:32","slug":"a-look-inside-the-worlds-largest-beef-producer-is-jbs-slaughtering-cows-or-the-environment","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-look-inside-the-worlds-largest-beef-producer-is-jbs-slaughtering-cows-or-the-environment\/","title":{"rendered":"A Look Inside the World\u2019s Largest Beef Producer: Is JBS Slaughtering Cows \u2013 or the Environment?"},"content":{"rendered":"<p><strong><u>Beef Production\u2019s \u201cSteak\u201d in Climate Change<br \/>\n<\/u><\/strong>Beef is one of the largest contributors to climate change primarily due to (i) deforestation for cattle pasture and (ii) livestock emissions.<\/p>\n<p><em>(i) via Deforestation<br \/>\n<\/em>Land-clearing related to beef production is the <strong><u>largest contributor to deforestation<\/u><\/strong>, accounting <strong>for nearly 60% of forest loss<\/strong> in studied areas of prevalent tropical forest loss <strong>[1].<\/strong>\u00a0 This impact is amplified in South America, where beef production contributed to 71% of the deforestation seen from 1995 &#8211; 2005 (<strong>See Figure 1) \u00a0[2].<\/strong>\u00a0 Clearing and burning forests subsequently create\u00a0an estimated\u00a0<strong>15% <\/strong>of CO<sub>2<\/sub> emissions <strong>[3]<\/strong> due to the:<\/p>\n<ol>\n<li>Loss of CO<sub>2<\/sub>-absorbing trees and<\/li>\n<li>Subsequent massive release of heat-trapping carbon previously stored in trees.<\/li>\n<\/ol>\n<p><em> <a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate-pic2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8465 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate-pic2-300x166.png\" alt=\"climate-pic2\" width=\"589\" height=\"326\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate-pic2-300x166.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate-pic2-600x332.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/climate-pic2.png 646w\" sizes=\"auto, (max-width: 589px) 100vw, 589px\" \/><\/a><br \/>\n(ii) via\u00a0Livestock Emission<br \/>\n<\/em>In addition to requiring significant land use, cattle also go through a fermentation process of plant-based foods in a specialized stomach prior to digestion.\u00a0 This process emits polluting gases including methane, through belching and flatulence.\u00a0\u00a0Research estimates that livestock emits 7.1 GTCO <sub>2<\/sub>-eq per annum, representing <strong>14.5%<\/strong> of human-induced greenhouse-gas (GHG) emissions.\u00a0 Beef and cattle milk production represent 4.5 GTCO <sub>2<\/sub>-eq per annum or <strong>nearly\u00a065%<\/strong>\u00a0<strong>of the livestock sector&#8217;s emissions<\/strong>\u00a0<strong>(See Figure 2) [4]<\/strong>.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Figure-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8202 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Figure-2-300x171.png\" alt=\"figure-2\" width=\"598\" height=\"341\" \/><\/a><\/p>\n<p><strong><u><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8203 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/McDonalds-Pic-300x182.jpg\" alt=\"mcdonalds-pic\" width=\"321\" height=\"195\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/McDonalds-Pic-300x182.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/McDonalds-Pic.jpg 550w\" sizes=\"auto, (max-width: 321px) 100vw, 321px\" \/>Why Should JBS Care?<br \/>\n<\/u><\/strong>Addressing the link between beef production and global warming must be a fundamental part of JBS&#8217;s strategy going forward. \u00a0They must consider this link when answering key operational questions such as &#8220;What suppliers do we partner with? &#8221; or &#8220;What systems do we need to invest in to help us meet our sustainability goals?&#8221;<\/p>\n<p>JBS\u00a0will continue to face pressure from its customers &#8211; who are attempting to adapt their own policies in the face of climate change &#8211; to provide sustainable beef products. \u00a0For example, McDonalds, a JBS customer, recently committed to only sourcing deforestation-free beef as part of its corporate sustainability program <strong>[5].<\/strong>\u00a0 As of 2013, <strong><u>40% of McDonald\u2019s green-house gas emissions came from its beef supply chain<\/u><\/strong> vs. 30% from its stores <strong>[6]<\/strong>.\u00a0 As McDonalds and other corporate clients react to consumer and stakeholder pressure to build sustainability plans, JBS and other suppliers must also be agile in adapting its own policies, processes and products.<\/p>\n<p>At the same time, activist groups and consumers are placing higher scrutiny onto the beef industry.\u00a0 Articles like the Time\u2019s <em>\u201cHow A Vegetarian Diet Could Help Save the <\/em>Planet\u201d<em><strong>\u00a0<\/strong><\/em><strong>[7]<\/strong> are\u00a0building public awareness to the link between beef and climate change. \u00a0As an industry, JBS must be able to provide customers comfort or alternative solutions.<\/p>\n<p><strong><u>The Present: What is JBS Doing Now?<br \/>\n<\/u><\/strong>JBS outlined a detail sustainability plan and rated land management as the company&#8217;s top current significant item.\u00a0<strong>(see Figure 3)[8]. \u00a0<\/strong>JBS has pursued several initiatives to address the\u00a0link between its business and climate change.<\/p>\n<p style=\"text-align: center\"><strong>Figure 3:<\/strong><br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8303 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/JBS-300x139.png\" alt=\"jbs\" width=\"605\" height=\"280\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/JBS-300x139.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/JBS-600x278.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/JBS.png 717w\" sizes=\"auto, (max-width: 605px) 100vw, 605px\" \/><\/p>\n<p><u>Select Actions Taken:<\/u><\/p>\n<ul>\n<li>Three major slaughterhouses including JBS signed <em>The Cattle Agreement <\/em>in 2009. Through this agreement, JBS committed to stop sourcing from suppliers involved in deforestation within the Amazon Biome <strong>[9]<\/strong>.\u00a0 Subsequently, 85% of JBS\u2019s existing ranchers signed up so they could continue selling to JBS <strong>[10].<\/strong><\/li>\n<li>JBS co-created the <em>Global Roundtable of Sustainable Beef<\/em> in 2010, the first global organization dedicated to involving all stakeholders (suppliers, manufacturers, customers) to discuss and advance beef supply chain improvements <strong>[11].<\/strong><\/li>\n<li>JBS actively participated in the National Cattlemen\u2019s Beef Association research on the beef value chain by providing comprehensive data from its facilities\u00a0<strong>[12].<\/strong><\/li>\n<\/ul>\n<p><strong><u>The Future: \u201cMoo\u201d-ving Forward<\/u><\/strong><\/p>\n<p>Looking ahead, there is still a lot of room for improvement for JBS as a role model and industry leader. \u00a0JBS\u00a0has the opportunity to pursue the following initiatives:<\/p>\n<ul>\n<li>Commit to stop sourcing from suppliers involved in deforestation across the globe, beyond just South America and the Amazon;<\/li>\n<li>Invest in and work with cattle ranches to educate and promote deforestation-free methods of raising cattle;<\/li>\n<li>Create and implement clear policies and methods such as map-based monitoring to trace and verify all suppliers directly;<\/li>\n<li>Consider vertical integration \/ owning cattle pastures to control and verify more of the supply chain (this strategy is risky\u00a0and would shift business model)<\/li>\n<li>Invest in R&amp;D for sustainable meat replacements. Although this may cause decreased demand for its core product, JBS has the opportunity to be at the forefront of innovation in both the \u201cmeat\u201d and \u201cmeat-alternative\u201d categories;<\/li>\n<li>Serve as a role model to the beef industry by raising awareness about JBS\u2019s own sustainability efforts;<\/li>\n<li>Implement \u201cgive back\u201d programs; for example, commit to plant a tree for every 100,000 of cattle produced;<\/li>\n<li>Invest profits back into forest conservation programs.<\/li>\n<\/ul>\n<p><strong>Word Count: 746 (without citations)<\/strong><\/p>\n<p><strong><span style=\"text-decoration: underline\">References:<\/span><\/strong><\/p>\n<p>[1] Sabine Henders, U Martin Persson, Thomas Kastner, \u201cTrading forests: land use change and carbon emissions embodied in production and exports of forest-risk commodities.\u201d <em>Environmental<\/em> <em>Research Letters Vol. 10 (12), via <\/em>HOLLIS, accessed October 2016.<\/p>\n<p>[2] De Sy, V., M. Herold, F. Achard, R. Beuchle, J.G.P.W. Clevers, E. Lindquist, and L. Verchot, \u201cLand use patterns and related carbon losses following deforestation in South America.\u201d <em>Environmental Research Letters 10(12), via<\/em> HOLLIS, accessed October 2016.<\/p>\n<p>[3] \u201cDeforestation and Greenhouse Gases.\u201d Congress of the United States, Congress Budget Office, <a href=\"http:\/\/permanent.access.gpo.gov\/gpo17449\/1-6-12-forest.pdf\">http:\/\/permanent.access.gpo.gov\/gpo17449\/1-6-12-forest.pdf<\/a>, accessed November 2016.<\/p>\n<p>[4] Gerber, P.J., Steinfeld, H., Henderson, B., Mottet, A., Opio, C., Dijkman, J., Falcucci, A. &amp; Tempio, G, \u201cTackling climate change through livestock \u2013 A global assessment of emissions and mitigation opportunities.\u201d Food and Agriculture Organization of the United Nations (FAO), <a href=\"http:\/\/www.fao.org\/3\/i3437e.pdf\">http:\/\/www.fao.org\/3\/i3437e.pdf<\/a>, accessed October 2016.<\/p>\n<p>[5] McDonalds Corporation, Beef Sustainability Report, <a href=\"http:\/\/corporate.mcdonalds.com\/mcd\/sustainability\/signature_programs\/beef-sustainability.html\">http:\/\/corporate.mcdonalds.com\/mcd\/sustainability\/signature_programs\/beef-sustainability.html<\/a>, accessed November 2016.<\/p>\n<p>[6] McDonalds Corporation, Enterprise Carbon Footprint, <a href=\"http:\/\/corporate.mcdonalds.com\/mcd\/sustainability\/planet\/climate-and-energy\/mcdonald-s-enterprise-carbon-footprint.html\">http:\/\/corporate.mcdonalds.com\/mcd\/sustainability\/planet\/climate-and-energy\/mcdonald-s-enterprise-carbon-footprint.html<\/a>, accessed November 2016.<\/p>\n<p>[7] Justin Worland, \u201cHow a Vegetarian Diet Could Help Save the Planet,\u201d Time Magazine, March 21, 2016, <a href=\"http:\/\/time.com\/4266874\/vegetarian-diet-climate-change\">http:\/\/time.com\/4266874\/vegetarian-diet-climate-change<\/a>, accessed November 2016.<\/p>\n<p>[8] JBS USA, Sustainability Materiality Analysis,\u00a0<a href=\"http:\/\/jbssa.com\/sustainability\/materiality-analysis\/\">http:\/\/jbssa.com\/sustainability\/materiality-analysis\/<\/a>, accessed November 2016.<\/p>\n<p>[9] Holly Gibbs, Jacob Munger, Jessica L\u2019Roe, Paulo Barreto, \u201cDid Ranchers and Slaughterhouses Respond to Zero-Deforestation Agreements in the Brazilian Amazon?\u201d\u00a0 <em>Conservation Letters Vol 9 (1),\u00a0<\/em><a href=\"http:\/\/onlinelibrary.wiley.com\/doi\/10.1111\/conl.12175\/full\">http:\/\/onlinelibrary.wiley.com\/doi\/10.1111\/conl.12175\/full<\/a>, via HOLLIS, accessed November 2016.<\/p>\n<p>[10] Allie Wilkinson, \u201cIn Brazil, cattle industry begins to help fight deforestation,\u201d Science Magazine, May 15, 2015, <a href=\"http:\/\/www.sciencemag.org\/news\/2015\/05\/brazil-cattle-industry-begins-help-fight-deforestation\">http:\/\/www.sciencemag.org\/news\/2015\/05\/brazil-cattle-industry-begins-help-fight-deforestation<\/a>, accessed November 2016.<\/p>\n<p>[11] JBS USA, Value Chain Collaboration,\u00a0<a href=\"http:\/\/jbssa.com\/sustainability\/collaboration\/\">http:\/\/jbssa.com\/collaboration<\/a>, accessed November 2016,<\/p>\n<p>[12] Ibid.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>My sister \u2013 once a ravenous carnivore \u2013 stopped eating beef last year. Why? She wanted to fight climate change.  Businesses like JBS, the world\u2019s largest beef producer with $45B in sales, must continue to adapt its policies and strategic initiatives in response to the link between beef production and climate change.  <\/p>\n","protected":false},"author":2516,"featured_media":8213,"comment_status":"open","ping_status":"closed","template":"","categories":[1274,1276,1218,1275,1226,1294,1278,1277,332,658],"class_list":["post-8199","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-beef-production","category-cattle","category-climate-change","category-deforestation","category-global-warming","category-jbs","category-land-management","category-livestock-emissions","category-mcdonalds","category-meat"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Look Inside the World\u2019s Largest Beef Producer: Is JBS Slaughtering Cows \u2013 or the Environment? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/a-look-inside-the-worlds-largest-beef-producer-is-jbs-slaughtering-cows-or-the-environment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Look Inside the World\u2019s Largest Beef Producer: Is JBS Slaughtering Cows \u2013 or the Environment? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"My sister \u2013 once a ravenous carnivore \u2013 stopped eating beef last year. 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