Sustainability of Ethanol Sector in Brazil: A Multicase Study

Abstract

Sustainability has been worldwide discussed, and when it comes to sugarcane-ethanol production, there are many standards required from importing countries to its suppliers. Brazil is the second biggest producer of ethanol in the world, and it has a competitive advantage over other countries since it has a high established production and land for agricultural expansion. The aim of this research is to evaluate the situation of ethanol plants in Minas Gerais state concerning their compliance to sustainability criteria and to briefly present the current situation of ethanol plants in Brazil. This evaluation is based on Bonsucro certification. A multicase study, composed of four sugarcane-ethanol plants, was conducted. The results indicated that the studied plants were not prepared to receive Bonsucro certification. They justified it due to constant changes in legislation relating to sustainability, and the fact that these criteria are not required by their customers, however, was concluded that the companies did not take a proactive posture, seeking knowledge about standards related to the topic. Obtaining international certification did not look appealing by the time of the study, but attendance to national legislation is mandatory. In 2017, the number of certified plants has increased, showing that there has been progress.