Measuring the Impact on Environmental Science and Governance (ESG) and Adoption of Biodiversity Conservation in Brazil Agribusiness

Brazilian agribusiness is critical to global commodity supply and biodiversity outcomes, yet empirical evidence remains limited on whether ESG adoption improves biodiversity performance. This study examines the effect of ESG adoption on biodiversity performance in Brazilian agribusiness and tests whether traceability and monitoring capability mediates this relationship. Survey data were collected from 500 agribusiness organizations (May-September 2025) and analyzed using PLS-SEM using SmartPLS software. The measurement model showed [adequate reliability and convergent validity. ESG adoption has a significant positive effect on Biodiversity Performance (β = 0.36, p < .001) and significantly predicts Traceability and Monitoring capability (β = 0.69, p < .001). Traceability and Monitoring also has a significant positive effect on Biodiversity Performance (β = 0.45, p < .001). Mediation analysis indicates a significant indirect effect of ESG adoption on biodiversity performance through Traceability and Monitoring (β = 0.31, p < .001), while the direct effect remains significant, indicating partial mediation. The model explains a substantial proportion of variance in Traceability and Monitoring (R² = 0.47) and Biodiversity Performance (R² = 0.54), with predictive relevance confirmed (Q² = 0.29; 0.33). These findings suggest ESG contributes most strongly to biodiversity outcomes when operationalized through robust traceability and monitoring systems that enable verification, compliance, and corrective action across supply chains.