Rural producer finds it difficult to implement ESG practices

ESG is a hot topic in agribusiness too. The acronym means, in Portuguese, Social, Environmental and Corporate Governance, translating into a concept that demonstrates, through practices, whether rural properties are aligned with global issues that classify them as suitable for international regulations in the social, environmental and of governance. And agribusiness, with MAPA forecasting 20% ​​growth by 2030, cannot remain unaware of this issue. Therefore, some Certificates aimed at Livestock and Agriculture guide rural producers in their ESG practices in an assertive, efficient way and recognized by competent bodies.

The guidance of Nayara Marcato, a lawyer focused on agribusiness at LMR Advocacia, in Brasília/DF, is that, on all rural properties, the first step to starting directing the producer towards planning the ESG agenda is the CAR – Rural Environmental Registry , which establishes, for example, the farm's environmental planning and the fight against deforestation. However, a study by EMBRAPA Territorial identified, in February 2021, more than 1.8 million properties still do not have this documentation. “The CAR is a requirement of the Brazilian Forest Code and is requested, legally, when the property is transferred through a notary's office, whether by sale or by will. However, as this document requires internet access and technical knowledge, in addition to other items, many rural producers find it difficult to complete the registration and end up not completing it”, she highlights.

The lawyer identified three other examples of voluntary certification programs that may be important for directing and organizing ESG practices on rural properties in agriculture and livestock. They are, in LIVESTOCK, the SISBOV – Cattle and Buffalo Identification and Certification System and in AGRICULTURE, the ABR Certification – Responsible Brazilian Cotton and the Responsible Soy Certificate (RTRS). These examples are of voluntary adherence, however, they reclassify the property both in terms of environmental criteria and market credibility. “Rural producers need to fill out a series of forms, meeting more than 100 requirements, making the process very careful and bureaucratic”, explains Nayara.

How to go about achieving certifications

One of the solutions proposed by the lawyer is for rural producers to have legal support that will bridge the gap between the needs of the property (bureaucracies such as filling out forms and gathering documentation) and compliance with the standards of the Certifying company. “By means of a power of attorney, seek the support of a lawyer, which can be a very assertive solution due to the environmental practices that are provided for by law”, she advises, also explaining that it can help to find a certifier that is best suited to serving the client. property. In Brazil, an accredited certifier option for Soy and Cotton programs is Genesis Group. Another option is for rural producers to have internal teams on properties that can dedicate themselves to completing the items necessary for certifications, she concludes.