Company Profiles

Cosan

Brazil

Cosan is a leading sugarcane ethanol and sugar producer based in Brazil. Portfolio 21 recognizes the high positive net energy of sugarcane ethanol, partly attributable to companies using waste biomass to produce electricity to operate mills. Cosan is no exception; the company provides nearly all of its own electricity needs and has cogeneration plants at some mills that sell surplus energy back to Brazil's electricity grid, which provides an additional source of revenue for the company. In addition, the company's existing mills and facilities are located in close proximity to its customers, fields, suppliers, and ports, which reduces transportation costs and energy needs. Abiding by national law, the company doesn't utilize or grow genetically modified sugarcane. Cosan has plans in place to increase mechanization of its harvest in the near term, reducing the need for large-scale field burning, a source of significant air pollution. We have asked the company to continue to expand its sugarcane ethanol business, provide additional environmental reporting, and develop a climate change strategy that sets reduction targets.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/09 and may not reflect current opinions or subsequent events.