Key takeaways
Sugarcane production has steadily increased over the past several decades, doubling over the last 20 years in line with growing consumption of sweetened processed foods and drinks, and its use as a feedstock for producing ethanol.
Producing sugarcane places significant pressure on water supplies and leads to water pollution that impacts biodiversity and the functioning of healthy ecosystems.
The use of forced labor and child labor along with other human rights challenges in many sugarcane-producing countries present a business risk.
Investors should address business risks in the sugarcane supply chain through direct engagement with their portfolio companies and by supporting relevant policies and multistakeholder collaborations.