We work with our clients on both the supply and demand side to uphold high industry standards.
Whilst we have long-standing relationships with many of our clients, including growers, we have no financial interest in any of their operations and own no farming assets. Nonetheless we are acutely aware of some of the sustainability and ethical issues associated with the industry. It is in our interest to work with our clients on both the supply and demand side to uphold high industry standards. We facilitate, for example, due diligence for many of our industrial clients and we abide by their own codes of conduct.
Over many decades Czarnikow has worked to represent the interests of some of the world’s poorest sugar producers, facilitating access to the preferential European and US markets.
Czarnikow has also actively embraced the need for sustainability in ethanol and renewable energy and has led the way in certification for Brazilian bio-ethanol. Czarnikow’s Corporate Finance team has established a leading role in bringing investment in co-generation to the Brazilian sugar and ethanol industry, which further enhances the low CO2 footprint of cane-based ethanol production.
Case study: Sustainable ethanol in Brazil
Czarnikow was approached by a leading European independent fuel blender to assist it in sourcing environmentally-sustainable ethanol from Brazil. At the time, European sustainability requirements were still in the process of being defined under the EU’s Renewable Energy Directive (RED) and so this was new ground for producers.
Czarnikow undertook to help a number of its Brazilian clients to adapt to the new and anticipated EU legislation. Whilst many of these clients already had good processes in place, the need to demonstrate product sustainability was a new requirement. Czarnikow assisted the mills in preparing pre-audits and, later, comprehensive full audits covering: agricultural husbandry, including soil conservation, fertiliser and herbicide usage; internal management and control; environmental aspects, including conservation plans, deforestation, water resources, waste disposal; and social aspects, including remuneration, health and safety, social commitment and engagement with the community.
These mills were the first sugarcane processors in the world to achieve Gold Standard for sustainable ethanol.