JBS Plans to Use Blockchains to Compact Deforestation

JBS

Brazil-based JBS announced on Thursday 24 September that it plans to use blockchains.

The company clarified that this step is to observe 100% of its indirect cattle suppliers by 2025.

The world’s top meatpacker will launch the system in 2021, starting in the Brazilian state of Mato Grosso.

This comes as a part of JBS’s plan to compact the effect of deforestation by meat suppliers. The company noted that it will fully implement the plan by 2025.

The plan was brought up amidst environmentalists and investors about rapidly diminishing forest cover in South America.

“Currently, the company does not monitor indirect suppliers and no company does so. But we plan to close this gap using technology,” global JBS CEO Gilberto Tomazoni said in an interview.

Tomazoni added that the company is already monitoring its 50,000 direct suppliers, according to Reuters.

Meanwhile, KLP, Norway’s largest pension fund with $80 billion under management, said it would watch for concrete results, according to the announced data.

Brazilian meatpackers are facing mounting criticism that beef production fuels deforestation in the Amazon. People use the cleared lands in the Amazon for livestock pastures.

The rate of deforestation surges and reached its peak last year with a large area cut down from the world’s largest rainforest.

JBS clarified that the move comes as part of a wider set of environmental measures. It also launched a 1 billion real ($182.77 million) fund to boost social and economic development in the Amazon region.

Moreover, the fund aims to invest over $44 million in the next five years and another $44 million from 2025 to 2030, according to Decrypt.

The company will use this fund to build an expansive blockchain system that tracks every supplier on its meat supply network.

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Hanan Hamed 48 Articles
a bilingual journalist. She writes in both Arabic and English. She has been writing news and features for 7 years now. She is specialized in business and economic news.