Responsible for about 27% of the Brazilian Gross Domestic Product, agribusiness is one of the engines of the Brazilian economy. An essential segment, agro did not stop in the pandemic and still recorded growth, unlike other sectors that suffered from confinement. With this curriculum, it is not surprising that agro is at the center of important and current discussions on environmental, social and governance issues.

ESG guidelines are increasingly part of the daily lives of agribusiness companies, and, regardless of size, socio-environmental commitment and transparency about these practices grow exponentially. The current debate on ESG is of interest to the sector and may be an opportunity for agribusiness to show how agricultural production has walked alongside sustainable development. In the sugar-energy sector, we understand that sustainability is much more than a competitive advantage.

It's in the DNA of everything we do. With the mission of producing food and clean energy from the valorization of raw materials, we already operate in the logic of the circular economy. This means that it is possible to make the most of our raw material, sugarcane, and, from this point of view, nothing is wasted, and everything is used. The by-products and residues of sugarcane processing are used in soil fertilization, in animal nutrition through the drying of yeast, in the cogeneration of clean and renewable energy through biomass and, more recently, in the production of biogas, which becomes a source of green energy generation, and in biomethane.

Another important topic in the current debate, which also provides an opportunity for sugarcane companies to take a stand, is the decarbonization of the planet from the transition to a low-carbon economy. We have a series of challenges to go through, but we know the relevance we can have in this story. By highlighting the role of ethanol, we can help Brazil to be in a favorable position in the fight against climate change.

With 90% less greenhouse gas emissions compared to gasoline, ethanol is emerging as one of the main renewable sources in the world. It is here, in our country, that the sugar-energy sector stands out as the second largest global producer of biofuel, behind only the United States. And it is also in Brazil that we can say that agribusiness is able to effectively contribute to a low carbon economy. We have already seen, in practice, changes happen because of ethanol. According to data from the Sugarcane and Bioenergy Industry Union, around 515 million tons of greenhouse gases were not released into the atmosphere from 2003 to 2020, a result that is evident from the launch of flex-fuel vehicles in Brazil.

When we talk about decarbonization, more recently we have also seen the production of biomethane through the biodigestion of vinasse and filter cake gain space in the discussion. Both are residues from sugarcane processing, rich in organic load and currently used as fertilizers in the fields. Touted as a green and renewable fuel, biomethane has real potential to play a relevant role in the decarbonization of the national energy matrix by replacing diesel, fossil fuel, in trucks and agricultural machinery, in addition to contributing strongly to the country's energy security.

All the examples mentioned above show how agribusiness is committed , in practice, to ESG principles and make clear the opportunity we have, as industry leaders, to leverage sustainable practices throughout the production chain. Civil entities, private companies and public institutions, inside and outside Brazil, are in agreement that it is necessary, in fact, to act. On the sugar-energy sector's side , we will continue to invest in ways that literally help the world breathe a little more relieved.