ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CHALLENGES AND OPPORTUNITIES OF THE BRAZILIAN SUGAR ENERGY SECTOR

Abstract

The objective of the study was to identify the Environmental, Social and Governance challenges and opportunities of the Brazilian sugar-energy sector. To this end, a qualitative methodology was adopted, with content analysis in the Annual Harvest or Sustainability Reports of the companies Atvos, Raízen, Jalles Machado and Grupo Tereos regarding information from the 2021-2022 harvest. Nine challenges and thirteen sectoral opportunities were analyzed. For challenges, the following stood out: in the Environmental context: emphasis on actions that minimize the impact on biodiversity, reuse of waste and water, crop rotation, mechanized harvesting and concern with climate change and the ecological possibilities for the disposal of vinasse; in the Social context: actions related to employees such as training and variable remuneration, in addition to concern for the community, based on the adoption of actions aimed at economic and social development and the search for solutions to reduce vulnerability and; in the Governance context: emphasis on strengthening business culture and diversity. For sectoral opportunities, the following stood out: environmental actions, circular economy, energy, employees, certifications, diversity, sustainable finance, innovation, logistics, new products, standards, strategic partnerships, and relationships with stakeholders, with each opportunity identified presenting actions adopted by organizations that can be replicated by companies in the Brazilian sugar-energy sector. By identifying challenges and opportunities in the Environmental, Social and Governance context, the research contributes to the Brazilian sugar-energy sector, highlighting the practices adopted by the companies analyzed, which may be applicable or serve as benchmarking for other organizations.