BDF Sustainability approach

Even though companies in the bioenergy sector generate a series of positive environmental and social benefits to society by providing cleaner alternatives to oil-derived fuels such as gasoline and diesel, the nature of their operations might also cause negative impacts on local communities and on the environment. These impacts, if not properly mitigated, can materially impact a company’s financial performance and shareholder value in the long run.

Recent events such as the corporate accounting and governance scandals in the US and in Europe, and the increasing public awareness of environmental and social issues are some of the driving forces reshaping the business environment and reinforcing the importance of taking environmental, social and corporate governance (ESG) issues in consideration when making investment decisions. Companies with strong management teams and a long-term view respond to these challenges by incorporating sustainability issues into their overall business strategy. BDF believes it can play a key role in this process, putting the right incentives in place for companies to respond to the challenges of this new competitive environment.

By analyzing and engaging with companies on ESG issues, BDF raises awareness about sustainability issues, promotes compliance, reporting and accountability, and ultimately drives changes in corporate behavior. Moreover, BDF is capable of making more informed investment decisions, investing in companies that capitalize from the opportunities that sustainability presents, and avoiding those that are at risk by not addressing material issues that affect the bottom line, which we believe minimizes risks and generates higher returns for investors.