📋 Tender Overview
Project Number
49275
Company Name
JALLES MACHADO SA
Date ESRS Disclosed
Apr 22, 2025
Country
Brazil
Region
Latin America and the Caribbean
Last Updated Date
Environmental Category
B
Status
Pending Approval
Sector
Sugarcane and Beets
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
Jalles Machado S.A. ( Jalles , Jalles Machado , or the company ) is a sugar/ethanol producer in Brazil operating three mills, Jalles Machado (UJM), Otavio Lage (UOL) in the State of Goiás in Brazil, and Santa Vitoria (USV) in the State of Minas Gerais. The company has a crushing capacity of 9 million tons/year of sugarcane and operates over 87.2 thousand hectares of land under cultivation for sugar cane. In FY23, the company achieved a production output of 305,600 tons of sugar (both conventional and organic varieties) and produced 393,100 cubic meters of ethanol. Additionally, it generated 268,000 MWh of electricity through cogeneration, 64% of which was successfully supplied to the National Interconnected System (SNI).
The proposed $60 million IFC investment aims to support the company’s capital expenditure needs for its recently acquired third mill (2022), USV, with a primary focus on replanting and crop treatment to enhance sugarcane productivity. Specifically, IFC’s investment will help Jalles increase USV's sugarcane yield from 60.2 tons/ha in FY23 to 78.8 tons/ha by FY27 through climate-smart agricultural improvements. This boost in productivity is projected to raise USV's cane crushing from 1.8 million tons to 2.7 million tons, supporting higher bagasse and renewable energy output.
Overview of IFC's Scope of Review
Jalles Machado has been an IFC agribusiness portfolio client since December 2017 (#39264 and #44203). The company has successfully completed all corrective actions outlined in the 2017 and 2020 environmental and social action plan (ESAP) timely, and its E&S performance (ESRR) has been consistently satisfactory since 2017. IFC E&S review of the proposed investment included (i) meetings with Jalles’ management team, including Sustainability, Occupational Health and Safety (OHS), Human Resources (HR), compliance staff, and plant managers; (ii) a review of Environmental and Social (E&S) documents and information, including Jalles’ 2023-2024 Sustainability Report, Environmental and Social Impact Assessment (ESIA) of mills UOL and USV, E&S Management and Monitoring Plans (ESMPs), and the E&S permits secured for Jalles’ milling operations; (iii) OHS and HR policies and procedures; (iv) the corporate E&S manual containing Standard Operating Procedures (SOPs) and protocols, such as the soil conservation manual and waste management plan; (v) certifications issued by Bonsucro and RenovaBio; (vi) Jalles’ Code of Conduct and grievance procedures; (vii) employee contracts and salary payment slips; and (viii) information and documentation regarding USV’s agricultural (planting and h
