In a well-lit conference room at the top of Raízen’s headquarters in São Paulo, a group of managers convened under the leadership of the company’s charismatic and visionary CEO, Roberto Silva. Among them was Marina Costa, the dedicated Director of Sustainability, renowned for her commitment to integrating responsible environmental practices into the company’s operations. Also present was Carlos Mendes, the seasoned Director of International Expansion, who brought decades of experience in successfully guiding businesses into global markets.

The meeting had a vital purpose: to outline Raízen’s strategy for international expansion. Known for its innovation and commitment to sustainability in the sugar-energy sector, the company aimed to achieve an ambitious objective - expanding into emerging markets while maintaining alignment with the Sustainable Development Goals (SDGs) outlined in the 2030 Agenda.

Roberto began the discussion by emphasizing the unique opportunity to lead the industry in sustainable growth through the introduction of second-generation ethanol (E2G). However, the team faced a critical strategic decision: Should Raízen license its E2G production technology to promote local production in other countries and advance global sustainable development, or should it retain centralized control to ensure its sustainability standards are consistently applied in international markets?

Marina emphasized the importance of not just expanding but also becoming a global role model for sustainability, inspiring better business practices in emerging markets. Conversely, Carlos expressed concerns about the challenges and risks of licensing technology in new markets, including the potential loss of control over how sustainable practices are implemented.

Given this context, the team faced a critical decision: should they proceed with international expansion by licensing E2G technology, which might compromise control over sustainability practices, or opt for a growth strategy that upholds the company’s values? This could involve exploring alternatives such as strategic partnerships or new business models focused on direct investment in E2G production while adhering to the Sustainable Development Goals (SDGs).

Before advancing discussions on international expansion opportunities, Raízen’s management team prioritized assessing the alignment of its sustainability strategies with the Sustainable Development Goals (SDGs) of the 2030 Agenda. Marina Costa led the discussion, underscoring the importance of integrating all of Raízen’s actions, particularly those related to expansion, with the SDGs. She stressed that, for Raízen, growth alone is insufficient; it must be tied to practices that support clean energy (SDG 7), foster innovation in infrastructure (SDG 9), and build partnerships that reinforce global sustainability commitments (SDG 17).

Roberto Silva emphasized that sustainability is at the core of Raízen’s corporate identity, highlighting E2G technology as a prime example of the company’s potential to lead globally in sustainability while expanding its international operations. He noted that aligning this strategy with the SDGs strengthens Raízen’s socio-environmental commitment and enhances its competitive position in global markets.

Roberto reaffirmed Raízen’s status as a multinational leader in sugar, ethanol, and bioenergy production, as well as fuel distribution and renewable energy generation. He highlighted key company figures, including 35 production units for sugar, ethanol, and bioenergy, one E2G production unit, one biogas production facility, 16 bioenergy generation plants, 67 airport fueling bases, 68 fuel distribution hubs, and over 860,000 hectares of agricultural land dedicated to sugarcane cultivation.

The company is also active in sugar and ethanol exports through trading operations in various countries. In 2018, it acquired Shell’s assets in Argentina for over US$950 million, becoming the second-largest player in the country’s fuel distribution market. With a workforce of more than 30,000 employees and net operating revenue of BRL 246 billion in 2022/2023, Raízen operates under a model driven by integrated ecosystems, a robust corporate culture, and advanced technologies, enhancing synergy across its business segments (Figure A1).¹

Figure 1 Source: Developed by the authors based on Raízen¹.

Carlos Mendes then provided a comprehensive analysis of the national sugar and ethanol market. He detailed the export volumes for both commodities (Table A1) and identified the primary importing countries for sugar and ethanol (Tables 2 and 3)². He also highlighted a significant market opportunity for ethanol, particularly second-generation ethanol, emphasizing its critical role in advancing vehicle electrification³.

Table 1

Sugar	Sugara	Ethanolb
2015	11,331,037.34	1,109,017.42
2016	28,930,384.09	1,793,490.77
2017	28,693,623.89	1,418,927.20
2018	21,259,203.51	1,674,348.08
2019	17,876,491.24	1,930,160.60
2020	30,634,228.29	2,673,862.53
2021	27,253,842.36	1,952,826.58
2022	27,290,132.75	2,154,011.57
2023	31,375,531.84	2,466,902.58

Note. Retrieved from Observatório da Cana Unicadata (2024).^{2 a} Volume in tons. ^b Volume in cubic meters.

Table 2

Country	Volumea	% of total exported
China	19,673,044.10	10.81
Algeria	15,126,481.70	8.31
Bangladesh	12,653,036.81	6.95
Nigeria	10,709,865.72	5.89
India	10,091,697.17	5.55
Saudi Arabia	9,575,462.68	5.26
United Arab Emirates	8,829,007.36	4.85
Morocco	8,711,626.61	4.79
Malaysia	7,776,442.11	4.27
Iraq	7,250,011.36	3.98

Note. Retrieved from Observatório da Cana Unicadata (2024).^{2 a} Volume in tons.

Table 3

Country	Volume a	% of total exported
United States	5,241,225.61	35.68
South Korea	4,756,249.61	32.38
Netherlands	1,849,571.69	12.59
Japan	461,967.23	3.15
Philippines	316,346.94	2.15
Nigeria	289,246.99	1.97
United Kingdom	210,257.58	1.43
Ghana	196,743.60	1.34
India	187,142.23	1.27
Turkey	120,426.28	0.82

Note. Retrieved from Observatório da Cana Unicadata (2024).^{2 a} Volume in cubic meters.

“Our leadership in E2G production is more than just a competitive edge; it represents a chance to redefine industry standards and make a substantial contribution to reducing global carbon emissions,”⁴ Roberto stated.

Marina raised important questions about how Raízen could ensure its expansion contributes positively to the SDGs and how the company’s E2G technology could act as a catalyst for change in new markets. She proposed that Raízen go beyond merely selling products by promoting sustainability through knowledge sharing. She also highlighted the increasing demand for sustainable solutions driven by the climate crisis, emphasizing Raízen’s potential to play a pivotal role in this movement, particularly through the innovation of E2G and its application in electric vehicles.

After his remarks, the team’s discussion centered on licensing the E2G technology as a strategy to establish Raízen as a global leader in sustainability. Carlos highlighted the economic advantages and the potential for Raízen to expand its influence by licensing the technology. However, he also cautioned against the risks of losing control over quality and the consistent application of the company’s values. To support his argument, he presented Raízen’s data (Table A4), enabling the team to estimate potential impacts and explore different scenarios. Additionally, he showcased how the company is positioned compared to its competitors (Table A5).

Table 4

Item	Data
Revenue	BRL 246 billion
EBITDA	BRL 15.3 billion
E2G production unit	35
Unidade produtora de E2G	1
Biogas unit	1
Refinery	1
Cultivated agricultural area	1.3 million hectares
Distribution terminals	70
Airport fueling bases	68
Shell-branded gas stations	8,000
OXXO market	250
Shell select stores	1,600
B2B customers	5,000
Fuel commercialization	29 billion liters
Ethanol production	3 billion liters
Second-generation ethanol (E2G) production	30 million liters
Sugar production	4.8 million tons
Electricity commercialization	9,476 MWh
Employees	46,000

Note. Developed by the authors based on Relatório Integrado de Raízen (2024)⁵.

Table 5

Competitors by business:
Sugar-energy market in Brazil
Company	Raízen	BP Bunge	Atvos	São Martinho	Tereos	Lincoln Junqueira
Cane Crushingaa	83.2	29	27.5	23.1	21.1	19.7
Hydrous Ethanol Sales Market in Brazil
Company	Raízen	Vibra	Ipiranga	Petroquality	Alpes	Gol
Shareb	19.2	18.4	16.7	5.2	3.5	3.3
Global Second-Generation Ethanol Market
Company	Raízen	GranBio	POET-DSM Advanced Biofuels	Abengoa Bioenergy	Clariant	Beta Renewables
Origin	Brazil	Brazil	United States	Spain	Switzerland	Italy

Note. Retrieved from FG/A and RPAnews. ^{6 a} Harvest 23/24 in million tons.^b Market share percentage in 2022.

Marina stressed the importance of adopting a business model that integrates international expansion with social impact. She proposed that every new project abroad incorporate local corporate social responsibility initiatives aligned with the SDGs, ensuring tangible benefits for the communities involved.

The group concurred that Raízen should undertake comprehensive feasibility studies, assessing not only the market potential but also the environmental and social impacts of its operations. They emphasized that the company should position itself as a partner in promoting sustainable development in emerging markets rather than solely focusing on maximizing profits.

After reviewing the market analysis and exploring potential expansion opportunities, the managers shifted their focus to a new agenda. They recognized the challenge of adapting or expanding Raízen’s existing sustainability strategies to fit international operations while maintaining a balance between economic growth and environmental and social responsibility.

Roberto Silva, the CEO, opened the agenda by highlighting the company’s success in aligning its sustainability strategies with the SDGs of the 2030 Agenda (https://sdgs.un.org/goals). He emphasized Raízen’s dedication to sustainability, as demonstrated by achievements such as the Bonsucro certification and the Programa Reduzir, which showcase the company’s capability to operate responsibly and efficiently. He also drew attention to the publicly stated goals Raízen has committed to in support of the 2030 Agenda’s SDGs¹ (Figure 2).

Figure 2 Source: Retrieved from Raízen¹.

Marina Costa built on the CEO’s remarks by proposing a plan to adapt and expand these initiatives in new international operations. She suggested forming local partnerships in emerging markets to implement sustainable practices tailored to local conditions while ensuring alignment with the SDGs. She also emphasized Raízen’s capacity to undertake this initiative, presenting the company’s timeline to illustrate how sustainability has been a core element of its ‘DNA’ since its founding (Figure A3). This commitment is reflected in Raízen’s certifications, innovative technologies, awards, and recognition from stakeholders.

Figure 3 Source Developed by the authors based on Raízen¹.

The team discussed the advantages and disadvantages of pursuing joint ventures or strategic partnerships instead of advancing independently⁵. They proposed identifying local partners who share Raízen’s values and can help navigate the regulatory and cultural complexities of emerging markets while also supporting local sustainable development efforts.

Carlos Mendes emphasized the importance of thoroughly evaluating the environmental and social impacts in the regions targeted for expansion. He proposed incorporating socio-environmental impact studies into the expansion process to ensure that new operations not only meet local regulatory requirements but also make meaningful contributions to the communities and the environment (https://sdgs.un.org/goals).

The managers explored specific ways Raízen could implement sustainable practices in new markets. One example was expanding the Programa ELOS to include international suppliers, fostering sustainable agricultural practices to improve environmental and social management across the supply chain. Another idea involved adapting the Programa Reduzir for new operations, emphasizing water conservation and the optimization of effluent treatment processes tailored to diverse geographical and climatic conditions⁵.

Raízen could also replicate its circular economy model, utilizing by-products from sugarcane and ethanol production to generate additional energy or create new products, such as biogas and sugarcane bagasse pellets. This approach not only minimizes waste but also supports the diversification of the energy matrix in the countries where Raízen operates¹.

By the end of the second part of the meeting, the managers reached a consensus that Raízen’s international expansion must remain firmly rooted in its commitment to sustainability. They emphasized that the company’s growth should align with its core values and actively contribute to achieving the SDGs. This approach, they agreed, would not only enhance Raízen’s reputation but also generate long-term value for the company, its stakeholders, and the planet.

As evening approached, the conference room at Raízen became the setting for a pivotal decision. Under Roberto’s leadership, the management team found themselves divided over a strategic dilemma that would shape the company’s path forward in its international expansion efforts.

Roberto, with a focused expression, listened carefully to his colleagues’ arguments as he considered the options before him: licensing the E2G technology to enable local production in other countries and support global sustainable development or choosing direct investment to ensure the company’s values and sustainability standards were upheld in operations beyond Brazil’s borders.

Marina Costa shared her perspective, advocating for the licensing of E2G technology as a way to amplify Raízen’s global impact. She emphasized that this approach could promote sustainable practices across borders and contribute to the SDGs of the 2030 Agenda. In Marina’s view, sharing Raízen’s technology could drive positive change in emerging markets and solidify the company’s position as a global leader in biofuel sustainability.

Carlos Mendes, however, voiced concerns about the potential loss of control over quality and the enforcement of Raízen’s values if the E2G technology were licensed. He argued that licensing could compromise these key aspects, suggesting that keeping all operations under the company’s direct control would better ensure the high standards that have driven Raízen’s success. In contrast, Marina pointed out that this approach would demand substantial financial investment to make the operation feasible, posing a significant short-term challenge.

Roberto considered the benefits of each approach. Direct expansion would give Raízen full control over its international operations, ensuring the preservation of its commitments and values. Conversely, licensing the E2G technology could significantly expand the company’s global influence, encouraging widespread adoption of sustainable practices and making a meaningful contribution to combating climate change. This option would also require less direct financial investment, freeing up resources for other initiatives. However, sharing financial risk through licensing would mean relinquishing some operational control, necessitating trust in partners and ongoing negotiations throughout various decision-making processes.

Both perspectives echoed in Roberto’s mind, each offering significant advantages and challenges for the company’s future. The room fell silent as he contemplated the decision that would shape Raízen’s direction and sustainable legacy. Bearing the weight of this critical choice, Roberto understood that the path forward must strike a balance between economic growth and an unwavering commitment to the planet and society.

As night descended over the city, Roberto recognized that the decision before him would shape not only Raízen’s future but also its potential influence on the global renewable energy and sustainability landscape. In the weeks ahead, he would need to present the chosen strategy to the board. Yet, the choice was anything but straightforward. So now, which path should he take?

Raízen was established in 2011 as a joint venture between Cosan and Shell, with each holding a 50% stake. That same year, it became the first company globally to receive the Bonsucro Certification, recognizing sustainable practices in sugar and ethanol production. In 2012, Raízen introduced Programa ELOS to enhance its supply chain and founded the Raízen Foundation, dedicated to social initiatives.

In 2015, Raízen introduced Programa ReduZa to improve energy efficiency in its industrial plants. The following year, it invested BRL 237 million to build its first second-generation ethanol plant, leveraging sugarcane residues to enhance biofuel production efficiency. In 2018, Raízen acquired Shell’s assets in Argentina for USD 950 million, expanding its network with over 600 fuel stations and refineries. By 2019, the company launched its first solar power plant and established a diversity and inclusion committee.

In 2020, Raízen partnered with Femsa, a global leader in the beverage and retail industries, to create Grupo Nós, a strategic joint venture backed by an investment of BRL 1 billion. The initiative aimed to strengthen Brazil’s fuel retail sector, with a focus on expanding the OXXO convenience store network. That same year, Programa ELOS was recognized by ECLAC as a model for sustainable practices. One of the year’s most significant achievements, however, was Raízen’s public commitment to 15 of the 17 United Nations Sustainable Development Goals (SDGs).⁵

This teaching case aims to encourage reflection on how the Sustainable Development Goals (SDGs) can influence a company’s international expansion. Raízen’s approach to global growth provides valuable insights for the field of International Business, particularly given its strong commitment to the SDGs. Since the integration of the SDGs into International Business (IB) literature is still evolving, this case demonstrates how these goals can be embedded into multinational strategies. It also underscores the critical role companies play in advancing practices that foster a more inclusive society and a more sustainable environment.

The secondary objectives of this teaching case are framed using Bloom’s Revised Taxonomy, as outlined by Anderson et al. (2001):

(a) To analyze how Raízen can achieve a balance between growth and sustainability during its international expansion, focusing on alignment with the SDGs and its effects on the company’s reputation and market position.

The discussion should be provided ahead of time to the team representing the company’s management board in the simulated jury. However, it should only serve as a starting point for analyzing the groups’ responses.