Environmental Strategies in the Brazilian Sugar‐Energy Sector: Drivers, Performance, and Competitiveness

ABSTRACT This study examines the drivers influencing environmental strategy adoption within the Brazilian sugar‐energy sector, focusing on 12 medium to large‐sized mills. It explores the relationship between external/internal pressures, operational performance, and competitiveness. The research confirms that external pressures like environmental legislation and commodity trading, alongside internal pressures such as workplace safety, significantly drive the implementation of environmental strategies. Adopting environmental practices positively impacts operational performance, notably through organizational structures, water/waste treatment, and by‐product reuse. Furthermore, environmental strategies enhance competitiveness, with external projects and operational excellence playing crucial roles. Mills implementing these strategies gain advantages, including improved market access, reduced penalties, efficient by‐product utilization, and enhanced stakeholder satisfaction. While the findings are specific to the surveyed mills, they highlight the importance of social and governmental pressures in promoting environmental practices across the industry and offer valuable insights for other companies seeking to improve operational excellence and competitiveness through environmental strategies.