Corporate governance and traceability of the production chain are the basis for rural producers and agro-industries to gain more space and become more competitive in the agricultural market, especially when it comes to export.
Brazil is known to be one of the great powers in the world of agribusiness. In addition, Brazil is also home to the largest tropical forest in the world. As such, the importance of our country in the global agribusiness landscape and its responsibility to the actors of this chain appear clearly. On the other hand, the opportunity that is open to the country in the current global conjuncture, formed by the end of the pandemic, the War of Ukraine, among other factors, is also obvious.
This opportunity can be very well used by Brazilian agribusiness actors who adapt to the demands of the new final consumer. New final consumer of whom the interests go beyond the quality of the product, also worrying about the origin and form of production. Supporters of conscious and politically engaged consumption only grow, both abroad and in Brazil.
In the light of this background, it is imperative that rural producers and agro-industries develop internal corporate governance policies and ESG practices.
Corporate governance and ESG: learn about the main practices
Practical measures that can be taken immediately within the scope of corporate governance and ESG include the following ones:
- increasing the level of corporate governance through the creation of supervisory bodies;
- implementing transparency and accountability rules of management bodies;
- implementing a division of control, so that the company does not depend only on the decisions of a single person or group of people;
- creating a complaints channel;
- conducting periodic external audit;
- among others.
Advancing corporate governance and ESG
In addition to the practices listed above, among the ESG practices that stand out and add value to the agricultural product are also the traceability of the production chain and the certification of origin of raw materials and production materials used in production.
Such measures can be implemented by establishing an audit procedure for suppliers of rural producers and agro-industry.
Finally, today it is possible to obtain a certification from the Ministry of Agriculture, Livestock and Supply for companies that meet the integrity standards of the sector. It is the so-called Agro + Integrity Seal.
Obtaining the Agro + Integrity Seal means that the company complies with good practices related to management, sustainability, and ethics. In addition, it also demonstrates that the company has risk management programs and internal audits.
