A agricultura brasileira investe em sustentabilidade

ESG: A little-known example of agribusiness in Brazil

A few years ago, three letters began ranking companies that value environmental conservation and sustainability: ESG, short for Environmental, Social and Governance (ESG). In good Portuguese, this means applying a series of measures that respect environmental, social and governance requirements.

As the rest of the world rushes to enforce these rules, Brazilian rural producers, without even realizing it, are managing the country’s crops and pastures by following these standards. However, the biggest problem is communication at the most basic level to show what is being done: from supplier to consumer.

Agriculture and the environment is his chosen subject the West This Wednesday, 31, in the “Desafios do Brasil” reporting series.And the Which will be published until September 2, always following the following order of the week’s themes: Monday (education), Tuesday (Economie), Wednesday (Agriculture and Environment)Thursday (General Security) It’s Friday (health). Watch all the stories in the series here.

in Sri Lanka, The irrational application of standards represented by environmental, social and institutional governance has led to a productive collapse in agriculture. The situation is described in ‘Environmental psychosis threatens the world’Report by Edilson Salgueiro for Issue 121 of Revista the West.

However, the story may be different in Brazil. Brazilian agribusiness produces, immersed in strict environmental conservation rules and labor legislation full of detail and duties for the country’s entrepreneurs.

ESG in agribusiness in Brazil

Brazilian agricultural properties, for example, are required to have permanent protection zones and preserve riverine forests – those on the banks of rivers. Thus, in the Amazon rainforest, 80% of the private property should be occupied by native plants. Thus, the landlord is responsible for paying for it.

Recognition of Brazilian environmental conservation laws comes even from outside the country. “We are aware that the legal framework in force in Brazil, in particular the forest law, is very positive,” commented Ignacio Ybanez, EU Ambassador to Brazil, In an interview with the latest issue of Oeste magazine. “Brazilian environmental legislation is exemplary,” the diplomat added.

For workers across the country, there is no need to go into the field without personal protective equipment to mitigate the risks of the activity. The device consists of overalls, boots, leggings to prevent attacks by poisonous animals, masks, filters, gloves, etc. In addition to complying with the same labor standards used in the city: wages in accordance with union agreements, paid holidays, weekly rest, a guarantee fund and a series of other requirements.

Jose Corral, CEO of Creditares, highlights that access to major credit lines in Brazil is only possible for producers in accordance with environmental and labor legislation. The company he runs specializes in bridging the gap between rural landowners and financial institutions.

“The producer should be in regular contact with bodies such as Ibama, ICMBio, and environmental secretariats,” the executive highlights. “Furthermore, it cannot be linked to labor situations similar to slavery.”

ESG OPPORTUNITIES AND COSTS

The cost is the industry of lawyers, engineers, consultants, and technicians who specialize in meeting these requirements. However, the chance is that Brazilian producers have built know how Essential to know what and how the ESG criteria are met. However, in general, there is still not enough record to demonstrate compliance with the requirements, explains Nelson Annes, sustainability coordinator at the National Agriculture Federation (CNA).

Ananais explains that for CNA production, ESG standards are met to the extent that national legislation is respected. “That’s all we do,” he says. Many cities in the interior of the country developed thanks to the impulse generated by agribusiness, the curator recalls.

“ESG in agribusiness in Brazil is not a thing for the next decade, it is a measure that has been worked on for at least ten years with the sustainable development of agriculture, ensuring food security related to the preservation of the environment and compliance with labor laws and social issues”, he explains. “We have been working towards the ESG agenda for nearly a decade with the development of low-carbon agriculture, for 40 years with the Forest Code and for 50 years with Brazil becoming a country that ensures its food security and still exports food. . “

Need to register to prove

But the challenge has been set. “To turn all of these actions into a joint judgment procedure,” he analyzes. “Something that can be measured and presented to demonstrate that a rural product actually meets these requirements,” he adds.

“There is a lack of a transparent verification mechanism that shows everything the sector is actually doing,” says CNA Sustainability Coordinator. “This can be done through a protocol that records, certifies and discloses all of these actions.”

The model may come from cotton farms

The Brazilian Association of Cotton Producers has a system that collects this same information for the sector, reported Julio Cesar Busato, president of the institution. The form could be one of the ways.

“Ten years ago, we created Algodão ABR – the responsible program for Brazilian cotton,” he said. Bussato in an interview with West. “To obtain the seal, a product must meet 178 socio-ecological elements. Economic, social and environmental requirements. Cotton cultivation must be profitable for the entire production chain. It is necessary to comply with 100% of Brazilian labor legislation and all rules of the International Labor Organization. It is also necessary Compliance with the entire Brazilian Forest Code. As we are the only country with this type of regulation, this makes ABR the most complete sustainability program in the world.”


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