SUSTAINABILITY PRACTICES AND PERFORMANCE IN THE SUGAR AND ETHANOL INDUSTRY

T This study aimed to identify the sustainability practices of companies in the Brazilian sugarcane industry participating in the Clean Development Mechanism (CDM). We identified sustainability practices in the Global Reporting Initiative (GRI) reports, in the social and environmental dimensions, and we investigated the association with the financial performance. We developed a content analysis of the reports disclosed by 18 groups of companies, controllers of 48 plants of Brazilian sugarcane industry participating in the CDM. The results indicated that the most indicators reported by the plants refer to initiatives and strategies for protection and preservation of the environment. As for the actions developed by the plants with the intention of preservation and environmental protection, we found 25 different actions. The most commonly performed practices are related to the reduction of cane burning and CO2 emissions; preservation or restoration of the Permanent Preservation Areas (PPAs) and Private Reserve of the Natural Heritage (PRNH) or seedlings cultivation; and electricity generation. We found out, through cluster analysis, that companies that reported more indicators in the social and environmental dimensions also have higher volume of net sales. This study contributes by presenting a performance analysis in sustainability of mills groups finding that there is still opportunity for greater disclosure of the mills sustainability performance, through the disclosure of more comprehensive reports for a more effective communication with stakeholders. This study also contributes to the literature deepening the analysis of a specific context and understanding the different levels of sustainability disclosure.