Sustainability as A Principle: The Challenge of ESG in Rural Cooperativism
Authors: Souza Leonor Venson de , Queda Oriowaldo , Souza Sinvales Roberto de , Kumm Fernanda Marcia 
Published: December 2024

Objectives: The general objective of the study was to propose a new approach to the principles of cooperativism, suggesting the inclusion of an eighth principle that encompasses environmental sustainability and alignment with ESG practices. As a specific objective, the environmental dimension of a rural property within a solidary family farming cooperative, located in Foz do Iguaçu, Paraná, was analyzed.

Theoretical Framework: Faced with the imminent climate crisis and the growth in the number of cooperatives in Brazil, cooperatives, established under a set of principles, emerge as a proposal for improvements for the individual and the community. Another movement converging with good business practices is ESG (Environmental, Social, and Governance), which has three fundamental pillars: environmental, social and governance. ESG recognizes business sustainability as essential, combating the lack of corporate practices focused on social policies and the lack of integral management. It is noteworthy that organizations must commit to both the environment and society.

Method: The study consisted of analyzing environmental issues in a rural property integrated into a cooperative system, located in the city of Foz do Iguaçu, Paraná, with a focus on sustainability and alignment with ESG practices. The case study was adopted as a methodological strategy, with data collection through on-site visits and analysis based on a qualitative, exploratory and bibliographical approach.

Results and Discussions: During the visit to the property, the diversification of production, including the cultivation of fruit and vegetables, cassava, livestock farming and small dairy farming, was identified as essential for economic and environmental resilience. However, it was observed that the adoption of agroecological practices and the use of composting are still not enough to eliminate the use of agrochemicals, hindering the transition to an organic model. Also noteworthy are the limitations related to obtaining quality certifications and renewing environmental licenses and water use permits. On the other hand, the results show advances in the social and governance dimensions of ESG, such as increased income for cooperative families and participation in public programs, such as school meals and local markets. The environmental dimension, however, remains fragile, requiring structured actions, including the adoption of renewable energy, improvements in water and waste management, environmental education and technological innovation.

Research Implications: Cooperatives, whose origins date back to 1844, are based on values ​​and principles that distinguish them from the conventional business model. There are seven cooperative principles defined by the International Cooperative Alliance (ACI) in its most significant revision, which took place in 1995: voluntary and free membership, democratic governance, economic participation, autonomy and independence, education and training, intercooperation and commitment to the community. These principles have been adapted over time to adress with contemporary needs. The research proposes the inclusion of an eighth principle, focused on environmental sustainability, as a strategic path to promote significant improvements. The institutionalization of this principle can transform rural properties into more sustainable systems, contributing to a balanced and resilient agricultural model.

Originality/Value: The proposal to include an eighth cooperative principle, centered on environmental sustainability, represents an innovative and strategic approach. This principle can consolidate a path to transform rural properties, promoting a more balanced and resilient agricultural model, in alignment with ESG practices.