Abstract
Biofuel has been pointed out as one “green” option for traditional fossil fuels like petroleum. Brazil is one the leading countries within this proposal competing globally with its sugar ethanol.. Nevertheless, there is a debate between corn ethanol and sugar ethanol .regarding the appropriateness to produce fuel instead of food in highly fertile regions. This industry is also severely criticized regarding its socio-environmental practices. We analyzed three cases identified as featuring best practices in this industry in Brazil. Two of the companies are located in the state of São Paulo, Southeastern Brazil, the most important region in sugar-ethanol production. The third is situated in the Brazilian Midwest, a region with fast growth in this industry. In this region, cattle, soy and corn have been substitute by sugarcane plantation. The results suggest that, when a company in this industry pursues a sustainable approach to its operations, it is possible to mitigate environmental impacts and to improve local social conditions. Such practices are potential sources of competitive advantage. However, clear gaps are still present regarding integration and collaboration along the supply chain. Nevertheless, sustainable business policies have also created new business opportunities. The continuous challenge is to develop synergetic operational capabilities that are able to mitigate environmental impacts, to decrease operational costs and to add value to the products.DOI:10.12660/joscmv8n1p45-56URL: http://dx.doi.org/10.12660/joscmv8n1p46-56
Highlights
One of the current challenges in the sugar-ethanol industry is to deal with the question of sustainability, while taking into account the characteristics of this economic activity
Two of the companies are located in the state of São Paulo, Southeastern Brazil, the most important region in sugar-ethanol production
This study focuses on the Brazilian sugarcane production in order to observe its challenges toward sustainability, based on triple-bottom line
Summary
One of the current challenges in the sugar-ethanol industry is to deal with the question of sustainability, while taking into account the characteristics of this economic activity. Sugar-ethanol industry is challenging due to interdependencies of climate uncertain and political-economic decisions, what directly impacts its value chain (Everingham et al, 2002). This study focuses on the Brazilian sugarcane production in order to observe its challenges toward sustainability, based on triple-bottom line (economic, social and environmental perspectives). The annual revenue of the sector is around US$ 36 billion, the foreign revenue (export) component accounting for US$ 16 billion. It ranks second in Brazilian agribusiness exports, just after soya production. The industry employs 1.15 million direct workers, distributed nationwide among more than 400 mills
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