Summary JBS USA entered into an agreement with the U.S. Department of Labor in January 2025 after federal investigations found that third-party service providers had employed children in dangerous jobs and overnight shifts at JBS meatpacking facilities in Colorado, Iowa, Minnesota and Nebraska. The Department of Labor said the agreement requires JBS to provide $4 million to assist individuals and communities affected by unlawful child labor practices and to implement measures designed to hold contractors and service providers accountable for illegal child labor. U.S. Department of Labor – JBS child labor agreement: https://www.dol.gov/newsroom/releases/whd/whd20250113 The case grew out of federal investigations beginning in 2022 into contractors providing sanitation services at meatpacking plants. One of the largest involved Packers Sanitation Services Inc. (PSSI), which provided cleaning services at JBS facilities. Federal investigators initially found at least 31 children between 13 and 17 years old working hazardous overnight sanitation jobs. Their work included cleaning dangerous powered meat-processing equipment at JBS plants in Grand Island, Nebraska, and Worthington, Minnesota, as well as at another company's facility. U.S. Department of Labor – Original investigation: https://www.dol.gov/newsroom/releases/whd/whd20221109 The investigation subsequently expanded dramatically. In February 2023, the Department of Labor announced that PSSI had illegally employed at least 102 children aged 13–17 at 13 meat-processing facilities across eight states. Children were employed to clean dangerous equipment including back saws, brisket saws and head splitters. Investigators also determined that at least three minors suffered injuries while working for PSSI. U.S. Department of Labor – 102 children found in hazardous jobs: https://www.dol.gov/newsroom/releases/whd/whd20230217-1 Associated Press – Meat plant cleaning company fined $1.5 million for employing children: https://apnews.com/article/3afa3ace009791b8cf29fa91f2a8e6e4 An important distinction is that the children were employees of third-party contractors rather than direct JBS employees. However, the violations occurred inside JBS facilities, and the Department of Labor's subsequent agreement specifically required JBS to strengthen oversight of contractors and other parts of its supply chain. In announcing the 2025 agreement, the Department of Labor stated that JBS had taken responsibility for children performing dangerous work at its facilities and had proposed enforceable measures intended to prevent illegal youth employment. Company Response JBS states that it does not tolerate child labor and has taken measures to prevent contractors and service providers from illegally employing minors at its facilities. Under the January 2025 agreement with the Department of Labor, JBS committed to enhanced contractor oversight and compliance measures, including training, auditing, reporting mechanisms and stronger controls intended to prevent illegal child labor. JBS also agreed to provide $4 million to support individuals and communities affected by unlawful child labor practices. U.S. Department of Labor – Agreement with JBS USA: https://www.dol.gov/newsroom/releases/whd/whd20250113 Key Facts Children were found performing hazardous work at JBS meatpacking facilities. Some of the children identified in the underlying investigation were as young as 13. Children worked overnight shifts cleaning dangerous powered meat-processing equipment. At least three minors employed by contractor PSSI suffered injuries. The broader PSSI investigation identified at least 102 children working illegally at 13 meat-processing facilities across eight states. The children were employed by contractors/service providers, not directly by JBS. The Department of Labor said JBS facilities affected by contractor child-labor investigations were located in Colorado, Iowa, Minnesota and Nebraska. JBS entered into a formal agreement with the Department of Labor in January 2025. JBS agreed to provide $4 million to assist people and communities affected by unlawful child labor. The agreement requires JBS to strengthen oversight of contractors and other parts of its supply chain. Sources U.S. Department of Labor – JBS USA child labor agreement, January 2025 https://www.dol.gov/newsroom/releases/whd/whd20250113 U.S. Department of Labor – Original investigation into children working at JBS plants https://www.dol.gov/newsroom/releases/whd/whd20221109 U.S. Department of Labor – More than 100 children illegally employed in hazardous meatpacking jobs https://www.dol.gov/newsroom/releases/whd/whd20230217-1 Associated Press – Meat plant cleaning service fined $1.5 million for hiring minors https://apnews.com/article/3afa3ace009791b8cf29fa91f2a8e6e4

JBS became embroiled in one of Brazil's largest corporate corruption scandals after brothers Joesley Batista and Wesley Batista, controlling shareholders of JBS through their holding company J&F Investimentos, admitted to participating in a long-running bribery scheme involving politicians and public officials. The case formed part of Operation Car Wash (Lava Jato), Brazil's landmark anti-corruption investigation. In 2017, J&F Investimentos agreed to a leniency agreement worth 10.3 billion Brazilian reais (approximately US$3.2 billion at the time), one of the largest corporate corruption settlements in Brazilian history. The agreement followed investigations into corruption involving companies controlled by J&F. Following the scandal, JBS stated that it strengthened its corporate governance, ethics, and compliance programs, and implemented measures aimed at preventing future misconduct. Sources Reuters – Brazil's J&F agrees to pay record $3.2 billion fine in leniency deal https://www.business-standard.com/article/reuters/brazil-s-j-f-agrees-to-pay-record-3-2-billion-fine-in-leniency-deal-117060100096_1.html Reuters – Federal prosecutors approve J&F leniency agreement (10.3 billion reais) https://economia.uol.com.br/noticias/reuters/2017/08/24/camara-de-combate-a-corrupcao-do-mpf-homologa-acordo-de-leniencia-com-jf.htm SEC Annual Report (JBS N.V. Form 20-F) https://www.sec.gov/Archives/edgar/data/1791942/000121390026034213/ea0282342-20f_jbsnv.htm

JBS has repeatedly faced investigations and public scrutiny over allegations that cattle in its supply chain originated from illegally deforested areas of the Amazon rainforest. Brazilian environmental authorities and investigative journalists have alleged that some cattle were routed through intermediary "clean" farms to conceal their origin before being sold to meat processors. In 2024, Brazil's environmental agency IBAMA fined meatpacking companies, including JBS, as part of a major enforcement operation targeting cattle raised on illegally deforested land in the Amazon. JBS denied purchasing cattle directly from embargoed areas and stated that it operates geospatial monitoring systems and supplier controls designed to prevent illegal sourcing. In 2025, IBAMA opened another investigation into meatpacking plants, including two operated by JBS, over alleged purchases of cattle linked to illegally cleared Amazon land. JBS stated it did not buy cattle from the farm identified by the authorities and said it would cooperate once it had access to the full inspection report. Company Response JBS states that it has a zero-tolerance policy toward illegal deforestation, uses satellite and geospatial monitoring of direct suppliers, and is working to improve traceability across its entire cattle supply chain. The company has denied knowingly purchasing cattle from embargoed or illegally deforested land. Key Facts Brazilian authorities have investigated JBS over alleged purchases of cattle linked to illegally deforested Amazon land. IBAMA has issued fines to meatpacking companies, including JBS, as part of Amazon enforcement operations. Authorities have alleged the use of intermediary "clean" farms to disguise cattle origins. JBS denies knowingly buying cattle from illegal sources and says it has strengthened supplier monitoring and traceability. Reuters – Brazil probes JBS and other beefpackers for buying cattle from deforested land https://www.reuters.com/sustainability/climate-energy/brazil-probes-jbs-other-beefpackers-buying-cattle-deforested-land-2025-08-29/ Associated Press – Brazil fines meatpacking companies, including giant JBS, for buying illegally raised cattle https://apnews.com/article/76bd1fe0c0f3cd77f0e5a4be8e366ab5 Reuters – Brazil's JBS vows to monitor deforestation through whole cattle supply chain https://www.reuters.com/article/world/brazils-jbs-vows-to-monitor-deforestation-through-whole-cattle-supply-chain-idUSKCN26E1U0/