Plantar S.A. (Brazil): The Value of Carbon Assets
Plantar S.A. is a pig iron producer based in Brazil working toward an integrated supply chain producing 100% green pig iron. The company is gradually converting the coke fed into the blast furnaces from fossil to green (i.e., coal produced from renewable biomass). The company owns large eucalyptus plantations in Brazil, and was the first in Brazil to obtain the approval to trade Kyoto Protocol carbon credits.
At the time of the case, both internationally and locally, the process and the technical methodologies were yet insufficiently defined. The World Bank saw Plantar as an opportunity to consolidate the process and showcase the Kyoto Protocol.
The Plantar project was a success from a strictly financial viewpoint. In addition, it put the organization on the path of significant transformation, and new growth opportunities.
The case was designed for a capstone course, either undergraduate or graduate, on general management, corporate strategy, or corporate social responsibility. The case is also appropriate for courses in the area of environmental studies, or sustainable development. Its central goal and possibly greatest value is in offering a bridge of understanding between business strategy and environmental ethics.