Page 32 - Minerva Foods Sustainability Report 2016

2016 Sustainability Report
Like the Ombudsman, these communication channels had no registered cases during the year of violation of privacy and loss of customer data and there were also no con rmed cases of corruption or judicial actions moved as a result of unfair competition, anti-trust and monopoly practices or any other irregularity.
Risk management
G4-DMA Economic performance | G4-2 | G4-14
Operations at Minerva Foods are subject to market risks, especially variations in exchange and interest rates, credit risks and cattle pur- chase prices, in addition to factors such as eco- nomic crises in import markets, climate change and bovine disease outbreaks. e Company therefore maintains high standards of gover- nance and transparency and, through an asser- tive strategy that is appropriate for risk manage- ment, all factors that could a ect operations are managed, administrating possible impacts and risks. To do this, a culture of making decisions based on consistent information was developed, adopting internal tools and procedures for daily monitoring of data that underlie the strategy – as well as correction of any problems. Geographic diversi cation is one of the foundational principles of the risk management policy, as is management of communication channels that provide agility in the face of more volatile scenarios.
Amidst the political and economic adversities in Brazil in 2016, including reduced availability of credit, the risk management policy remained focused on the core business of beef and on enhancing the distribution and sales areas. In terms of the nancial policy, there are three es- sential pillars:
Risk management at the Company also includes the possibility of climate changes signi cantly altering operations, a ecting production costs of raw materials, for instance. One risk related to this aspect is the lack of regulation of the val-
ue chain by the government, which could lead packing plants to acquire cattle from deforested areas and from suppliers that are not engaged with environmentally responsible practices, contributing to changes in land use.
To favor management of this risk, Minerva car- ries out a Greenhouse Gas (GHG) Inventory, based on the GHG Protocol Brazil, aimed at surveying emissions data and, based on results, nding more e cient forms of production with fewer emissions. Energy e ciency and water use
30