Setting the record straight on Blackstone’s investment in the Brazilian company Hidrovias
SEP 10, 2019
Update: Funds managed by Blackstone sold their remaining shares in Hidrovias in May 2021.
Blackstone and a Brazilian company we invested in, Hidrovias, were falsely accused of being responsible for the deforestation of the Amazon through the development of an industrial road. The erroneous claims and mischaracterizations were blatantly wrong and irresponsible.
Here are the facts:
Hidrovias does not own, control or have any interest — direct or indirect — in the road in question (BR-163). This road has been operated by the Brazilian government since 1976. The company did not build this highway, nor are they paving it.
Hidrovias only ships from traders abiding by the Amazon Soy Moratorium, which prohibits purchasing soy produced on illegally deforested lands. The company objects to illegal deforestation and is committed to ensuring that the soy it ships is not from the Amazon biome.
Hidrovias has been recognized for operating to the highest environmental and sustainability standards and they have won a number of national and international awards and certifications.
Hidrovias’ port operations play an important role in reducing carbon emissions by taking a significant number of trucks (approximately 90,000/year) off of the road in Brazil – shifting that traffic to waterways.
The company’s operating standards have been regularly evaluated and praised by international multilateral agencies. In addition, since its inception in 2010, the company has created hundreds of jobs in local Brazilian communities.
At Blackstone, we are deeply proud of our commitment to value creation through investing sustainably. Environmental, sustainability and governance (ESG) issues are central to our investment process, and the operations of our portfolio companies.
You can read more about Hidrovias’ operations and commitment to sustainability here.
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