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Climate Change
Climate change is a material topic for Raízen
As part of our strategy, we maximize opportunities by investing extensively in renewable energy, managing our emissions, and promoting discussions with stakeholders to develop a positive agenda.
As one of the world's largest integrated energy companies, our ambition is to lead the energy transition by reducing our carbon footprint and its negative impact. Instead, as a major decarbonization vector, we aim to consistently increase the positive impact.
Raízen is aligned with the Paris Agreement
Climate change is a global challenge that has no borders. Discussions on this topic emerged as a result of the increase in greenhouse gas emissions, especially with industrialization, resulting in an increase in global warming and its consequences.
Thus, in light of increasing levels of greenhouse gas emissions and society's growing demand for energy and standards of living that cause higher emissions, such as fossil fuels, in 2015 the Paris Agreement emerged with the purpose of tackling the challenge of climate change.
In line with the Paris Agreement, we seek to increase our generation of renewable energy and encourage a low-carbon economy, contributing to a cleaner Brazilian global energy mix.
We want to reduce greenhouse gas emissions, in keeping with one of the goals in our Strategic Sustainability Plan.
To this end, we have established guidelines that lead our actions:
Manage our greenhouse gas emissions.
Incorporate the topic in decision making through robust governance.
Drive innovation, R&D, and portfolio diversification, strengthening the inclusion of renewable energy.
Exert influence on stakeholders for a positive agenda on climate change.
Map and manage risks and opportunities linked to Climate Change through TCFD
Raízen is recognized in the Leadership Category, the highest level in the CDP climate change ranking
The CDP is the leading international database focusing on climate change, water, and forests. The aim of the initiative is to understand the evolution of companies and cities in relation to these topics. It is an important gauge for evaluating investments aligned with the ESG agenda.
We answer and publish the CDP Climate Change questionnaire every year, reporting on our management practices, emissions, and risk assessment related to these proposals.
In 2021, we joined CDP's select “A LIST” when we reached level A (leadership). This was an achievement of the journey we started a few years ago by adopting best practices in climate change management by including the topic at the heart of our strategy. We have robust governance that allows transversal discussion, leadership involvement and climate risk management at the level of financial risks.
Transparency in the management of greenhouse gas emissions
We monitor our greenhouse gas (GHG) emissions across all activities and business lines throughout the year. They are quantified based on the guidelines of The Greenhouse Gas Protocol and on its Brazilian version, the Brazilian GHG Protocol Program.
Our GHG emissions are reported in the Public Emissions Registry, in which we have a Gold Seal rating for having an inventory that is complete and verified by a third-party audit.
We are committed to adopting best practices in emissions and climate change management in the sugar, ethanol, and bioenergy sector and to promoting them throughout our supply chain.
Life cycle assessment at Raízen
We periodically perform a Life Cycle Assessment (LCA) of our main products. LCA is a technique for measuring the environmental impacts of a product's manufacture and use. It is the most comprehensive scope among the forms of measuring emissions. Sugar, ethanol, E2G, energy cogeneration, and sugarcane pellets produced by Raízen undergo an annual LCA, which measures the impacts of production processes and GHG emissions (carbon footprint), from planting to the output of our mills.
Our goal is to reduce the carbon footprint of sugar and ethanol by 10% by 2030
Assessment of climate risks and opportunities
Raízen understands the need to understand its risks related to climate change and manage them in the most efficient way.
We work to ensure that climate change is taken into account in the company's key business decisions while investing effort and capital wisely.
Thus, with a focus on improving transparency on the topic, we began to integrate and disclose information in accordance with the recommendations proposed by the TCFD (Task Force on Climate-related Financial Disclosures). Click here to learn more.
We perform now, looking to the future.
Through a study on possible financial impacts of climate change that involved the main business fronts, we identified and included the risks and opportunities in the company's business matrix. These risks are managed on an ongoing basis.
RENOVABIO
Energy security + emissions reduction
RenovaBio is the Brazilian program of incentives for the production of biofuels and is part of a global trend of public policies aimed at decarbonization. The program establishes some operating parameters: sectorial decarbonization targets; individual targets for distributors; individual carbon footprints for production mills; and a decarbonization credit market (CBios).
It aims to:
Contribute to fulfilling the Paris Agreement.
Expand the inclusion of biofuels in the energy mix, with an emphasis on the regular supply of fuels.
Ensure predictability for the fuel market.
Promote gains in energy efficiency.
Raízen is the only player in the market that operates on the two fronts of RenovaBio:
Producer: We generate credits with biofuels
Distributor: We buy credits like any company regulated by the program
We actively support RenovaBio
- We are among the 3 distributors with the highest target to be met by RenovaBio.
- We support the Ministry of Mines and Energy (MME), the National Petroleum Agency (ANP), and other agencies responsible for the program with information that helps in their evolution.
- All of our ethanol production units are certified or in the process of certification.
- We have met 100% of the 2020 Cbio purchasing target set by the National Petroleum Agency.