ESG Due Diligence as a Strategic Factor in Risk Management: Brazilian Case Study

Daniela Pedregal de Castro Lima; Lucas de Souza Lehfeld

DOI: 10.22167/2675-6528-202602807

Article derived from a Final Course Work (TCC), with content based on the student’s original work and adapted to the editorial format of the E&S Magazine with the support of the ResumeAI tool, an artificial intelligence solution developed by the Pecege Institute for textual synthesis and organization.

Abstract

The study demonstrated the importance of due diligence in mergers and acquisitions and the relevance of ESG practices as an essential tool for mitigating risks arising from environmental, social, and governance liabilities. The objective was to analyze the practical application of ESG due diligence in Brazil, using Raízen, a company in the bioenergy sector, and its recent financial developments as a reference. The methodology employed was exploratory and qualitative, with an instrumental case study design, using documentary and bibliographic research, including a comparative historical analysis with the Autolatina joint venture. The results evidenced a paradigmatic transition: from a merely reactive and financial approach to ESG due diligence as a central component of value creation and resilience. The Raízen case illustrated the materialization of ESG principles in a robust governance and risk management structure, while the failure of Autolatina highlighted the costs of omitting non-financial criteria. The analysis was contextualized by the Brazilian regulatory framework, with emphasis on CVM Resolution 59/2021. Raízen’s request for extrajudicial recovery, the largest in Brazil’s history, demonstrated that a solid ESG due diligence structure constitutes an intangible asset that attracts strategic opportunities even in crises, although it does not immunize the company against macroeconomic risks. It was concluded that ESG due diligence in Brazil has consolidated itself beyond a mere compliance requirement, asserting itself as a competitive differentiator, a pillar of modern corporate governance, and an indispensable factor for the sustainability and success of corporate transactions.

Keywords: Compliance; Due Diligence; ESG; Mergers and Acquisitions; Risk Management.

1. Introduction

Due diligence in Environmental, Social, and Governance (ESG) has emerged as a specialized branch of the traditional audit process, which historically covers the legal, accounting, labor, tax, and financial spheres. Its rise is driven by increasing pressure from investors, consumers, regulatory bodies, and other stakeholders, who have come to consider environmental, social, and governance factors as indispensable criteria in assessing risks and opportunities (Curi, 2025). This shift reflects a new paradigm, where ESG performance is understood not only as a competitive advantage but as a requirement for business perpetuity, especially in mergers and acquisitions within the corporate sector.

The concept of ESG due diligence is an essential tool in mergers and acquisitions (M&A) transactions, given its ability to identify risks and opportunities related to environmental, social, and governance factors. This includes the assessment of monetary value, regulatory compliance, meeting stakeholder demands, and value creation (KPMG, 2024). This practice represents the materialization of the concept of sustainability in the business world, translating abstract principles into a concrete investigative process (Aichabahian, 2024).

Sustainability, which underpins the ESG agenda, is defined as the ability to balance resource exploitation to meet present needs without compromising those of future generations (Brundtland Report, 1987; Barbieri, 2023). John Elkington (1997 apud Silva; Candiani, 2025) expanded this vision with the concept of Triple Bottom Line (TBL), which advocates for balance between the economic (profit), environmental (planet), and social (people) dimensions. The term ESG, coined in 2004 on the initiative of the UN Global Compact and the World Bank (PACTO GLOBAL REDE BRASIL, 2026), has become a central element in business discourse, transforming sustainability into a strategic factor and a performance measurement tool.

In Brazil, CVM Resolution 59/2021 consolidated the mandatory transparency regarding ESG factors by publicly traded companies. This regulation not only reinforces the importance of ESG due diligence as a risk management tool but also transforms it into a regulatory requirement, promoting greater uniformity, comparability, and reliability of disclosed information. Despite its growing relevance, the effective application of ESG due diligence in the Brazilian context still faces challenges, such as the lack of robust data, superficial understanding of the topic, absence of standardized frameworks, and low internal knowledge within organizations (KPMG, 2024).

This gap in the understanding and operationalization of ESG due diligence in the Brazilian scenario justifies the present research. The analysis of the historical evolution of joint ventures in the country, such as Autolatina (1987-1996), which faced difficulties due to the absence of structured mechanisms for evaluating socio-environmental impacts and strategic-cultural misalignment (Andres, 2013; Koengkan, 2015), contrasts with contemporary cases, such as Raízen. Raízen’s experience, even in the face of a recent request for extrajudicial recovery (Nakamura, 2026; RAÍZEN S.A., 2026), illustrates how a solid ESG due diligence structure can act as an intangible asset, attracting strategic opportunities and conferring resilience in times of crisis, although it does not immunize against macroeconomic risks. The relevance of ESG due diligence, therefore, transcends mere compliance, positioning itself as a competitive differential and a pillar of modern corporate governance.

Given this scenario, the present work seeks to demonstrate the importance of the due diligence institute in mergers and acquisitions and the relevance of adopting practices based on ESG criteria as an essential tool to mitigate or avoid risks arising from environmental, social, and governance liabilities, often omitted or dormant by senior management, but which negatively impact business transactions in both the public and private, national or transnational spheres.

2. Material and Methods

This research was designed with an exploratory and qualitative approach, aiming to deepen the understanding of the application of due diligence in Environmental, Social, and Governance (ESG) in the context of mergers and acquisitions in Brazil. The exploratory nature was justified by the incipient academic literature on the subject in the national scenario, especially regarding ESG due diligence in M&A. The qualitative approach, in turn, favored a deep understanding of the phenomenon from the researcher’s perspective and the real context of its applicability, using textual and documentary evidence as primary sources of information.

The methodological design adopted was the instrumental case study. In this type of study, a particular case is investigated with the purpose of providing a broader understanding of a general phenomenon, which, in this work, was the application of ESG due diligence in Brazil. The empirical unit of analysis selected was the company Raízen, active in the bioenergy sector, which served as a reference to analyze the practical operationalization of ESG criteria in corporate transactions.

The choice of Raízen as the object of study was due to its relevance as a large-scale joint venture, with shares traded on B3, the Brazilian stock exchange. Additionally, the company has a detailed Integrated Report, referring to the 2024/25 harvest, which explicits its ESG risk management, its governance structure, and its socio-environmental performance. This document was considered a practical and pertinent example for the proposed investigation, providing concrete data on the internalization of ESG practices.

For the collection of information and data, documentary and bibliographic research was employed. The documentary research focused on the analysis of Raízen’s Integrated Report (2024/25 harvest) and other public company documents. These materials were used as primary sources for the case study, allowing for the identification of the ESG due diligence mechanisms and processes implemented by the company.

The literature review was conducted with the objective of describing the historical context of the due diligence institute and of grounding the theoretical concepts of ESG. This survey included works considered fundamental for the understanding of the legal institutes that permeate the ESG agenda, such as the e-book “ESG and Compliance: interfaces, challenges and opportunities”, organized by Trennepohl and Trennepohl (2023), which addresses the legal, environmental, social, and governance dimensions.

The theoretical framework was complemented by the contributions of Alves (2023), who discusses the role of ESG in the corporate environment, and by the study of Correa Carno, Ferreira, and Silveira (2024). This latter work analyzed due diligence as a mechanism for strengthening integrity programs, whose discussions on the careful selection of third parties and the mitigation of corruption risks were considered essential for understanding the Raízen case in the context of governance.

For the comparative historical analysis and contextualization of the joint venture concept, a complementary bibliographic review was conducted. This stage was based on academic works on the subject, such as those by Andres (2013) and Koengkan (2015), and on the documentary analysis of historical case studies, notably that of Autolatina (1987-1996). The comparison between Autolatina and Raízen was established to contrast joint venture experiences in different periods, highlighting the evolution of risk management practices.

The data collected, both documentary and bibliographic, were organized and analyzed qualitatively. The analysis sought to identify the materialization of ESG principles in Raízen’s governance and risk management structure, as well as the challenges and opportunities associated with their implementation. Recent developments in Raízen’s financial situation, occurring between 2025 and 2026, were incorporated into the analysis to contextualize the resilience of ESG due diligence in crisis scenarios, according to publicly available information.

The methodological procedures were conducted to meet the general objective of demonstrating the importance of due diligence in mergers and acquisitions and the relevance of adopting practices based on ESG criteria. It was thus sought to highlight how these practices act as an essential tool to mitigate or avoid risks arising from environmental, social, and governance liabilities, which can negatively impact business transactions in both the public and private, national or transnational spheres.

The way textual and documentary data were organized allowed for the construction of a robust theoretical framework and the empirical analysis of the Raízen case, in contrast to the Autolatina experience. This comparative approach aimed to illustrate the paradigmatic transition from a predominantly financial and operational view to an integrated ESG perspective in risk management and value creation within the Brazilian business context.

3. Results and Discussion

This section presents the research results and discussion, which sought to analyze the practical application of ESG due diligence in Brazil, using Raízen as a reference and its recent financial developments, in contrast with the historical experience of Autolatina. The findings highlight a paradigmatic transition in the understanding and application of due diligence, which has evolved from a predominantly reactive and financial approach to a central component of value creation and resilience, integrating environmental, social, and governance factors. The analysis also explores the Brazilian regulatory framework and the persistent challenges in the effective implementation of ESG due diligence.

Conceptual Foundations and the Evolution of Due Diligence

Conceptual research has shown that ESG due diligence has emerged as a specialized branch of the traditional audit process, driven by pressures from investors, consumers, and regulators who have come to consider ESG factors as indispensable criteria in assessing risks and opportunities (Curi, 2025). This evolution reflects a new paradigm, where ESG performance is seen as a requirement for business perpetuity, especially in mergers and acquisitions. KPMG (2024) reinforces that ESG due diligence is an essential tool for identifying risks and opportunities, encompassing monetary value, regulatory compliance, and meeting stakeholder demands.

The concept of sustainability, which underpins the ESG agenda, dates back to the Brundtland Report (1987), which defined it as the ability to meet the needs of the present without compromising future generations (Barbieri, 2023). John Elkington (1997 apud Silva; Candiani, 2025) expanded this vision with the Triple Bottom Line (TBL), which advocates for balance between the economic (profit), environmental (planet), and social (people) dimensions. The term ESG, coined in 2004 by the UN Global Compact and World Bank (PACTO GLOBAL REDE BRASIL, 2026), transformed sustainability into a strategic factor and a tool for measuring business performance.

In the Brazilian legal system, the research identified that the environmental dimension (“E”) is protected by art. 225 of the Federal Constitution of 1988, which establishes the civil, criminal, and administrative liability of legal entities for illicit acts and environmental damage. Law no. 6.938/81 (National Environmental Policy Law) defines polluters, and Law no. 9.605/98 (Environmental Crimes Law) provides for the liability of legal entities and their representatives for environmental crimes (Peixoto; Farias, 2023).

The social dimension (“S”) prioritizes the human component, requiring the prevention, control, and remediation of violations of social, human, and minority rights, combating practices such as slave labor, child labor, and degrading labor (Peixoto; Farias, 2023). Decree No. 9.571/2018, which establishes the National Guidelines on Business and Human Rights, sets forth the obligation for companies to monitor respect for human rights in the supply chain and to disseminate international instruments of social responsibility.

The governance dimension (“G”) refers to the structure and actions for conducting and managing business activities, requiring transparency, accountability, ethics, integrity, compliance, and efficiency (Peixoto; Farias, 2023). Law no. 6.404/76 (Brazilian Corporate Law) reinforces this perspective by stating that the controlling shareholder must use their power for the company to achieve its objectives and fulfill its social function, and that the administrator must act in the company’s interest, satisfying the requirements of the public good and the company’s social function.

The interface between compliance and the ESG agenda is increasingly evident, with compliance expanding beyond adherence to legal and regulatory norms to encompass ESG practices. Trennepohl and Trennepohl (2023) observe that robust corporate governance and environmental and social practices are gaining prominence, often driven by international trade and societal demands, not just legal obligations. Organizational culture, with its values and purposes, plays a central role in integrating the ESG agenda (Trennepohl; Trennepohl, 2023).

Lima (2023) highlights that socio-environmental responsibility and governance over ESG aspects have raised the bar for compliance professionals, making governance the crucial element for building a corporate structure that contemplates all ESG aspects. Correa Carno, Ferreira, and Silveira (2024) complement this by emphasizing that integrity due diligence, especially in third-party contracting, shields organizations against illicit acts, preventing liability for corruption. Law No. 12.846/2013 (Anti-Corruption Law) reinforces the importance of internal integrity mechanisms for sanction mitigation, which is fundamental for companies like Raízen, which manage projects with public and private resources.

Structure and Processes of ESG Due Diligence at Raízen: A Strategic and Structured Approach

The analysis of Raízen’s Integrated Report (crop 24/25) revealed that the company has institutionalized ESG due diligence on three central pillars, externally audited and reported according to global standards such as GRI, SASB, and TCFD. These pillars are: Business Integrity (governance, compliance, ethics, and risk management); Operational Excellence (environmental performance, water management, waste, energy, safety, and community relations); and Climate Change (Scope 1, 2, and 3 emissions management, climate risks, and low-carbon transition). This structure demonstrates a strategic and comprehensive approach to ESG due diligence.

The materialization of this structure occurs through robust operational mechanisms, including a Corporate Social Responsibility Committee on the Board, a corporate risk matrix that integrates ESG criteria such as water stress and human rights, due diligence programs in the supplier chain (e.g., “Raízen Desenvolve”), and continuous emissions monitoring with reduction targets and investments in 2G ethanol (second-generation ethanol). Raízen, as a joint venture between Cosan S.A. and Shell plc, exemplifies a contemporary model that has internalized ESG due diligence as a strategic risk management tool, incorporating the three ESG dimensions transversally across all its operations.

This approach aligns with the vision of Alves (2023), who argues that companies integrating ESG into their strategic core are better prepared to face crises and capture opportunities. Raízen, by institutionalizing ESG due diligence, transformed an audit process into a tool for value creation and resilience, demonstrating an internalization of ESG logic that transcends mere compliance. This positions it as a practical example of how ESG due diligence can be a competitive differentiator in the Brazilian market.

Historical Comparison: The Evolution of Due Diligence from Autolatina to Raízen

The comparative analysis between Autolatina (1987-1996) and Raízen (contemporary case) reveals a paradigmatic evolution in risk management and corporate governance. It is important to emphasize that this is an ex post evaluation, applying contemporary criteria of governance, sustainability, and ESG due diligence to a historical scenario where such concepts were not yet formalized. The comparison does not seek to judge past decisions anachronistically, but rather to highlight the transition from a predominantly financial and operational view to an integrated ESG perspective within the Brazilian business context.

The contrast with the Autolatina case is striking. Autolatina, a joint venture between Ford and Volkswagen, failed, in part, due to the absence of structured mechanisms for assessing socio-environmental impacts and strategic-cultural misalignment (Andres, 2013; Koengkan, 2015). Created in a context of economic crisis, it prioritized cost rationalization and optimization of industrial plants, neglecting an integrated assessment of non-financial risks. Koengkan (2015) highlights that the joint venture faced cultural shocks, strategic misalignment, and an inability to adapt to regulatory and market changes, evidencing the costs of omitting ESG criteria, even if not formalized at the time.

In contrast, Raízen’s structure reflects its ability to access green financing lines (Green Notes, BNDES), strengthen its reputation with international investors, anticipate regulations, and influence public decarbonization policies. The company is listed on B3’s Corporate Sustainability Index (ISE), demonstrating market recognition of its ESG practices. This distinction highlights the importance of internalizing ESG due diligence as a tool for risk prevention (environmental, labor, reputational) and value generation, in contrast to Autolatina’s experience.

CVM Resolution 59/2021 and the Brazilian Regulatory Framework

CVM Resolution 59, dated December 22, 2021, constitutes a fundamental regulatory milestone for the consolidation of the ESG agenda in the Brazilian capital market. This rule establishes the mandatory disclosure of environmental, social, and governance information by publicly traded companies, promoting greater transparency and comparability. Lima (2023) observes that the CVM’s regulatory movement, with Resolution 59/2021 and CVM/PTE/n. 10 Ordinance of 2023, aligns Brazil with global trends in mature markets, such as the Securities and Exchange Commission (SEC) in the United States and European regulators, which continuously raise ESG standards.

CVM regulation transforms ESG information disclosure into a mandatory requirement, driving the formalization and comparability of practices. This regulatory movement reinforces the importance of ESG due diligence as a risk management tool, as unidentified and unreported environmental, social, and governance liabilities can generate significant legal, reputational, and financial consequences for companies and their directors. CVM Resolution 59/2021, therefore, not only demands compliance but also encourages the internalization of ESG practices as an integral part of business management.

Update of the Analysis Based on Recent News (2025-2026): The Intersection between ESG Strength and Financial Crisis

The context of Raízen’s financial crisis and its request for extrajudicial recovery, widely reported in March 2026, adds a critical layer to the analysis, revealing both the potential and limitations of ESG due diligence in a scenario of acute crisis. In March 2026, Raízen filed the largest extrajudicial recovery request in Brazil’s history, involving approximately R$ 65.1 billion in obligations, a value that could reach R$ 98.63 billion when intercompany credits are considered (Nakamura, 2026). The company attributed the indebtedness to the rise in the Selic rate, which reached 15%, and to variations in harvest cycles that reduced its operating margins (Barreto, 2026).

The São Paulo Court granted the processing of the request, giving the company a 180-day stay period to renegotiate its debts (Weiss, 2026). Raízen released a material fact informing the approval of the Extrajudicial Recovery Plan, which was adhered to by 81.6% of the Company’s unsecured financial creditors, corresponding to approximately R$ 61.4 billion (RAÍZEN S.A., 2026). This recent development shows that, although a solid ESG due diligence structure does not immunize the company against macroeconomic risks, it can be a decisive factor for strategic resilience and the attraction of capital solutions in times of crisis.

Despite the financial crisis, Raízen’s solid ESG due diligence structure and its positioning as a leader in advanced biofuels (E2G) and energy transition continue to be intangible strategic assets. This fact is corroborated by Petrobras’ interest in investing in the joint venture, reported in August 2025 (Teles, 2025), even before the bankruptcy filing. This interest demonstrates that, for a potential long-term strategic investor, the company’s governance, environmental credentials, and compliance outweigh the short-term financial challenges, which are seen as a cash flow problem to be resolved, rather than an integrity or business model collapse.

The approval of the plan with the expressive adherence of 81.6% of creditors reinforces this perception, indicating that stakeholders trust the company’s governance and recovery capacity (RAÍZEN S.A., 2026). Raízen’s robust ESG due diligence history becomes a crucial asset in a corporate or capital restructuring process, as the transparency and structure already implemented, with audited data reported according to global standards (GRI, SASB, TCFD), drastically reduce information asymmetry and hidden risks for new partners or financiers.

Correa Carno, Ferreira e Silveira (2024) argue that integrity due diligence shields organizations against illicit acts committed by third parties, and in Raízen’s case, this shielding applies to the company itself, making it a safer and more transparent target for investments during a period of fragility. The approved recovery plan foresees a capital increase of R$ 3.5 to R$ 4.0 billion to be paid in by Shell and, eventually, by Aguassanta Participações S.A., evidencing the controllers’ confidence in the Company’s future (RAÍZEN S.A., 2026).

The Raízen case also illustrates the limits of the traditional ESG due diligence scope. The company’s current financial challenges are mainly attributed to macroeconomic factors, such as high interest rates and adverse market conditions, risks that, although they can be mapped (e.g., physical climate risk and interest rate risk in the economic scenario), largely escape direct managerial control and the classic scope of a pre-transaction due diligence focused on socio-environmental and governance liabilities. This reinforces the need for an integrated view of risks, where ESG and financial factors are analyzed in a correlated manner, as ESG excellence does not immunize a company against liquidity crises, but it can be the decisive factor for its survival and recovery, attracting the right capital and partners.

Raízen’s list of creditors includes the world’s largest banks and financial institutions, such as BNP Paribas, Santander, Bradesco, Itaú, Bank of America, and JPMorgan (Barreto, 2026). The fact that these institutions, with their strict credit policies and responsible investment, have financed Raízen and are now negotiating a recovery plan, is a strong indicator that the company’s ESG due diligence was considered robust and reliable. The crisis is seen as a market problem, not one of bad faith or poor management of non-financial risks. The high adherence of 81.6% of creditors to the recovery plan is the clearest evidence of this trust placed in the Company’s management and governance (RAÍZEN S.A., 2026).

Internationalization by the Brazilian Market: From Requirement to Competitive Advantage

The Raízen case, in contrast to the Autolatina experience, shows that investors and large national companies are internalizing ESG due diligence as a component of competitive advantage and resilience, and not merely to meet external demands. This internalization gains institutional contours with CVM Resolution 59/2021, which formalizes the mandatory disclosure of ESG information for publicly traded companies, transforming transparency in environmental, social, and governance criteria into a regulatory requirement and a market differentiator.

The company’s presence in the ISE B3, the issuance of green bonds, and Petrobras’ strategic interest, along with the complex negotiation with a broad base of international creditors, demonstrate that the integration of ESG criteria is intrinsically linked to attracting capital and building long-term partnerships in sectors strategic to the Brazilian economy. Lima (2023) points out that, with the market increasingly attentive and demanding, organizations will be held accountable for better products and services, considering socio-environmental issues, demonstrating maturity in transparency and generating shared value for their stakeholders.

Alves’s (2023) view complements this analysis by stating that integrity and transparency, pillars of ESG governance, are the main intangible assets of a company in times of crisis, as they determine the confidence of creditors, investors, and the market as a whole. The Raízen case is a powerful empirical example of this statement: the financial crisis is real and severe, but the credibility built over the years through its ESG structure allows the company to negotiate an unprecedented scale of judicial recovery with the confidence of its creditors, without a collapse of trust in its governance or business model.

Challenges and Perspectives for ESG Due Diligence in Brazil

Notwithstanding the advances evidenced by the Raízen case, the effective implementation of ESG due diligence in Brazil still faces significant challenges. KPMG’s (2024) research identifies obstacles such as the lack of robust data on the topic, superficial understanding of ESG, lack of experience and standardized frameworks, calibration of findings, lack of relevant benchmarks, and the low level of internal knowledge within organizations. Furthermore, the absence of a one-size-fits-all approach requires each company to develop its own strategies for managing ESG risks, considering its size, sector of operation, and sustainability maturity (Lima, 2023).

The regulatory movement observed in Brazil, with the action of the CVM, the Central Bank (Bacen), and the Superintendence of Private Insurance (Susep), signals that the previously voluntary standards are progressively becoming mandatory. Lima (2023) highlights that many companies have begun to emphasize the importance of building a governance area to monitor and anticipate regulatory standards and references. The case of FEESC, studied by Correa Carno, Ferreira, and Silveira (2024), offers a practical example of how these challenges can be overcome through the definition of clear and risk-proportional criteria, with the adoption of eight objective hypotheses that require in-depth due diligence, preventing the process from becoming a bureaucratic bottleneck. This “trigger-based risk analysis” approach demonstrates that maturity in ESG due diligence involves not only the existence of the process but its intelligent calibration to be effective and efficient.

In summary, the research results confirm that ESG due diligence is an essential and evolving tool in the Brazilian mergers and acquisitions market. The comparative analysis with Autolatina and the Raízen case study highlight a paradigmatic shift from an approach focused on short-term financial synergies to a model where proactive assessment of ESG risks and opportunities is central to long-term value creation and business resilience. Raízen, even in a judicial recovery scenario, demonstrated that robust governance and ESG transparency are decisive factors for strategic resilience and attracting capital solutions in times of crisis, consolidating ESG due diligence as an intangible asset and a competitive differentiator in the national business landscape.

4. Conclusion

This study sought to demonstrate the importance of due diligence in mergers and acquisitions and the relevance of ESG practices as an essential tool for mitigating risks arising from environmental, social, and governance liabilities. A paradigmatic transition was observed in the application of due diligence in Brazil, which evolved from a predominantly reactive and financial approach to a central component of value creation and resilience. The Raízen case illustrated the materialization of ESG principles in a robust governance and risk management structure, which became a strategic asset capable of attracting opportunities and capital solutions even in scenarios of financial crisis. In contrast, the failure of Autolatina highlighted the costs of omitting non-financial criteria in past corporate transactions. The analysis was contextualized by CVM Resolution 59/2021, which consolidated the mandatory transparency regarding ESG factors, transforming them into a regulatory requirement and a competitive differentiator. It was concluded that ESG due diligence has transcended the phase of a mere compliance requirement, establishing itself as a pillar of modern corporate governance and an indispensable factor for the sustainability and success of corporate transactions in the Brazilian market.

Although Raízen’s robust ESG due diligence structure has proven to be a crucial intangible asset for strategic resilience and stakeholder confidence, evidenced by the expressive adherence of 81.6% of creditors to the out-of-court recovery plan, the study also revealed the limits of this tool. It was observed that ESG excellence does not immunize the company against acute macroeconomic risks, such as high interest rates and adverse market conditions, which were the main factors behind Raízen’s recent financial challenges. The effective implementation of ESG due diligence in Brazil still faces challenges, such as the lack of robust data, superficial understanding of the topic, and the absence of standardized frameworks, as identified by the research. It is suggested that future studies explore the intelligent calibration of ESG due diligence, with the definition of clear and risk-proportional criteria, and the need for an integrated risk view, where ESG and financial factors are analyzed in a correlated manner to optimize the effectiveness and efficiency of the process in different business contexts.

Bibliographic References

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CURI, I. R. Due diligence ESG ganha força e se consolida como ferramenta de gestão de riscos. Migalhas, 10 jun. 2025. Disponível em: https://www.migalhas.com.br/depeso/432170/due-diligence-esg-se-consolida-como-ferramenta-de-gestao-de-riscos. Acesso em: 31 out. 2025.

KLYNVELD PEAT MARWICK GOERDELER (KPMG). Global Due Diligence Study. 2024. Disponível em: https://kpmg.com/br/pt/home/insights.html. Acesso em: 31 out. 2025.

Relatório Brundtland, 1987 [Referência completa não encontrada no documento original]

SILVA, Giovanna Ruiz Nunes da; CANDIANI, Giovano. ESG – Environmental, Social and Governance: práticas do Grupo Solví. Revista Observatorio de la Economía Latinoamericana, Curitiba, v. 23, n. 8

Article originating from the Final Course Work of the Specialization in Compliance and ESG of the MBA USP/Esalq

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