Results

Global Reporting Initiative (GRI)

A growing body of international and national guidance documents for sustainability reporting has evolved in recent years to support companies in developing reports and communicating externally their social, environmental and economic performance and impacts. The most generally accepted and universally applied sustainability reporting framework is probably that provided by the GRI guidance. GRI’s reporting principles focus on defining two aspects of reporting. First, the principles relate to what should be included in the report, they define the content of the sustainability report. Second, the principles prescribe ways to enable companies attain standard quality for sustainability reporting. The GRI principles attempt to standardize sustainability reporting and ensure relevant, useful and timely information that truly reflects the organizations’ sustainability activities and supports stakeholder decision making.  


During thirteen years Natura&CO has been preparing its annual sustainability report following the Global Reporting Initiative (GRI) guidelines, and for eleven years has been adopting integrated reporting by combining their sustainability and annual (financial) report on a simple document and/or via online in a PDF format through Natura’s website. Natura’s GRI reporting demonstrates the positive results obtained through the company value chain activities in their TBL. Recently, sustainable innovation has played an important role for companies seeking new opportunities to grow in the market, for that reason Natura as being at the third stage of sustainability by developing innovative products and services that contribute for the better-off the environment, also utilizes a GRI report on these issues. As a result, Natura has been a very successful company in implementing integrated and GRI reporting by means of showing the progress that the company has had from their sustainable industrial activities to the extension of their outbound logistics, in this way the company expands shared value to a bigger scope in our society and the environment. 


 Triple Bottom Line

Natura aims to create value for society as a whole by generating integrated results in the triple bottom line (people, planet and profits). The company believes that sustainable results derive from quality relationships between stakeholders; therefore the company’s mindset and behavior are expressed through their business conduct, which aligns sustainable development, development of products and concepts that promote social welfare and foster relationships with stakeholders. Examples of Natura’s business conduct are the measures taken in order to reduce the company’s water print (waste of water), greenhouse gases emissions, fair trade with local communities, the company’s implementation of eco-packing and the preservation of the world’s largest forest in the Amazonia. By the achievement of these sustainable conducts the company is successfully contributing to people and the planet and at the same time its results make the company more profitable in the long-run.


Topic
Description
Where it occurs GRI 103-1
Related aspects and indicators
                                                              
                                                    Profit


Generation of work and income
Support for the development of Natura consultants and supplier communities
·       Natura Beauty Consultants
·       Supplier communities

Indirect economic impacts
                                        
                                                  People


Education for the development of co-workers and consultants
Development of the consultant network and co-workers, including measures to promote improvements in public education
·       Natura Beauty Consultants
·       Employees
·       Institute Natura
·       Society in general
·       Indirect economic impacts
·       Training and education
Diversity and equality
Progress in promoting equality in the work environment, in particular concerning gender and women’s participation in leadership


Employees

Diversity and equality of opportunities

                                                   Planet


Climate change
Reduction of greenhouse gas emissions throughout the value chain and neutralization by means of projects that incorporate social benefits
·       Suppliers
·       Freight haulage operators
·       Operational units
·       Environment
·       Economic performance
·       Emissions

Water
Relative reduction in consumption and pollution of water throughout value chain and neutralization of water impact
·       Water sources and environment
·       Supplier communities
·       Operational units
·       Society in general
·       Consumers (use and post-consumer disposal)
·       Water
·       Effluents and waste
Waste
Development of packing that has a lower environmental impact and promotes conscious consumption
·       Product conception
·       Operational units (0 dejects)
·       Freight haulage operators
·       Recyclable material cooperatives
·       Consumers (post)
·       Environment
·       Materials
·       Effluents and waste
·       Products and services



Profit:
Nura generates profit through its multi channel operations. When the company started to join the international cosmetics markets, the company introduced its products throughout direct-selling by hiring consultants in each target country that after a corresponding training period will be formally employed by the organization and lately will contribute to the distribution and selling of their products by showing catalogs to prospect customers that will purchase them. Recently, Natura has owned forty five company’s stores around the world in countries such as Argentina, Chile, Colombia, France, and the United States. Secondly, Natura gains profits through its franchise operations. Natura counts almost 200 Aqui Tem franchised stores that receive support from Narura in marketing strategy and have access to specific training programmes. Thirdly,  Natura increases its profitability through its digital platform, Natura Red in which consultants are able to maintain their own virtual store on the Natura platform, with an exclusive web page and specific tools to support customer relations. The company has over five million customers. 
People:
Natura believes that, in addition to distributing value to its stakeholders, its main contribution to society may be delivered by means of education. Natura states that quality education expands horizonts, and generates better opportunities for constructing a better world. Based on that, Natura Institute was created in 2010 as an independently headquartered and managed, non-profit organization. Natura Institute manages the funds raised by the sale of our Crer Para Ver product line and the equivalent to 0.5% of Natura’s net income for its operations. The capital raised from the Natura’s Institute is invested on  projects that can positively impact education quality in public schools in Brazil and Latin America. More recently the Natura Institute has developed educational initiatives for their Beauty Consultants. Around 90,000 consultants and family members have enrolled in the Natura education programme initiatives that include face-to-face or distance learning degree, postgraduate, language and vocational courses, among others. The courses are knowledge chains in the areas of communication, culture and citizenship, as well as information on how the consultants may collaborate in the education of their children and their relationship network.
As important allies of Natura in raising Natura Institute funds, the consultants promote and sell the product of this line and do not make any profit. Through the Natura Movement, the company encourages the participation of the NCs in this activity to increase investments in education actions. Innovation has also played an important role in increasing educational technologies that propose innovation in educational practices, bringing together new teaching methods, information and communication technology. Lastely, Natura Diversity Policy is essential in supporting the company’s diversity initiatives, which are focused on women, the disabled, LGBTI and black people. The company continues to advance in their commitment to reach 50% women occupying leadership positions (director level and above) by 2020 in all the Natura operations in Latin America.
Planet:
Natura creates value for the planet by developing sustainable business models that aim to increase the preservation of the natural ecosystems located in the Amazon region. The company managed to preserve 18,000 square Kilometers of Brazilian Amazonian Forest, by means of keeping it safe for future generations. As a sustainable company, one of the main Natura’s priorities is to protect the environment and fight against climate change, by developing sustainable value chain activities throughout the production and distribution of their products and services. Natura has adopted a Circular Carbon initiative that has remunerated the families of smallholders not only for the purchase of ingredients and benefit sharing, but also for environmental conservation services. Since 2007, Natura has developed a Carbon Neutral Programme that has contributed to the reduction of 33% of the company offsetting GHG emission. Based on the monitoring exercise, the company was able to draft GHG emission reduction initiatives for the entire chain, which is the second front in the programme. Natura also contributes to the environment by their lower impact on their logistic systems. The Brazilian Cosmetics company utilizes electric vehicles for transportation cargo, maritime transportation instead of air freight, and the use of ethanol-powered buses to transport employees. By implementing new ways to improve the environment, Natura strongly supports local production in some countries in Latin America, reducing the impacts generated by product exports. Natura is most well known in the market by its contribution to the implementation of eco-packing in the entire brand.  Recycled and recyclable materials are mainly used in Natura’s products packing. Natura aims the usage of materials of renewable origin (green PE) and post-consumer recycled material, such as PET and recycled glass for their entire perfumery category by 30%. Product refills are also commonly used by Natura’s product lines by means of reducing GHG emissions from the company overall activities. Ekos and Chronos are examples of Natura’s product lines that rigorously implement product refills as means of eco-packing  in 2018, Natura avoided 9,127 tonnes of CO2 equivalent (tCO2e)  emissions. Finally, Natura uses materials that can be easily recycled, products that can be certainly repaired and remanufactured such as the refill packages, eco-friendly bioplastic, reusable gourdes and recycled cardboard, by being that said, Natura is consider to have embraced the principles of circular economy in a way that the company  reduces greenhouse gas emissions at every stage of its product life cycle.
Natura’s Innovation for sustainability

GRI 417-1
Origin of material and product certification (%)
2016
2017
2018
Material of removable origin-Brazil
83
81
82
Material of renewable vegetable origin-Operations in Latin America
75
75
76
Material of natural vegetal origin-Brazil
6
6
15
Material with certification of origin-Brazil
13
13
14

Innovation
2016
2017
2018
Investments’(R$ million)
188
172
188
% of net revenue invested in innovation
2.0
2.2
2.2
Products launched
255
213
233
Innovation rate (%)
57.1
64.6
59.9


Natura is a company that has implemented the sustainable innovation approach combining both internal resources with those outside the organization, making organization’s boundaries more permeable to finding innovative solutions. Natura have demonstrated that industries can develop new sustainable products and business models for environmental and social solutions while still generating profits. Natura’s sustainable innovation has increased recently with new solutions arriving on the market and focus on increasing investments in features such as big data and machine learning solutions that can drive positive results for different company areas. Innovation and Sustainability, ensures more effective alignment between science, product development and the company’s commitment to generating a positive social impact. Therefore, Natura Eco Park in Benevides was inaugurated by the company in 2014 as a hub to connect communities supplying social biodiversity ingredients with companies willing to invest and develop businesses in the region. Moreover, Natura Innovation Laboratory which was dedicated to identify feasible solutions for the points mapped by the HDI that still represent challenges to social inclusion, generation of work and income and improved quality of life and well-being for the consultants. Lastly, the Amazonia programme- NINA (Natura Amazonia Innovation Nucleus) implemented by Natura, it is a science and technology hub that prioritizes the development of innovations and technologies which may be applied in social biodiversity production chains and inside the company.

Disruptive technologies indeed are an essential part for an industry to be innovative in a market nowadays. Natura por instance utilizes the following disruptive technologies in their business operations and outbound logistics for their product’s line. First, the company got involved into the IoT by developing systems that predict deviations in the reactors and packaging lines and thus improve production performance, as well as software that simulates production processes and helps to map opportunities for optimization. Second, the Brazilian company has also been implementing the usage of 3D printer and 3D skin printer. Recently, a 3D printer was installed in the factories in Cajamar (São Paulo). It is capable of producing permanent plastic parts to replace damaged machinery components. Prior to this, it was necessary to acquire new parts from suppliers which resulted in more expensive and environmentally damage to the company and the planet as a whole. By similar means, the company had implemented some 3D skin printers for a more innovative product formulation. Natura 3D skin printers enable research into irritation and allergies for some products, which allows the company a better and more efficient product formulation and natural properties benefits mainly used in the development of fragrances, soaps and exfoliantes inside the industry. Third, Augmented Reality (AR) and Robotics are innovation technology used by Natura. The company started to implement the usage of some robots on the packaging line of the Natura Plant production, and the usage of AR in their Amazonia Programme development. Fourth, the implementation of electric cars by means of cargo transportation and ethanol-powered buses that are used by the company for employees’ transportation. 

Companies use information systems to execute their sustainability strategy and drive innovation. Natura drives innovation under sharing the economy throughout crowdsourcing by using social media to inform and connect to their stakeholders in new product design. Natura has implemented two types of crowdsourcing which are crowd labor and crowd creativity, for the first one the company  developed “Cocriando Natura” which allows users to collaborate online and through face-to-face meetings, and leverages gamification and recognition to encourage users’ contributions. The ideas are used as inspiration sources by the internal teams. Secondly, Natura Campus is a platform that targets college students, the initiative allows students to submit their ideas and follow up on related projects. By similar means, Natura have developed some programmes as well, first the Natura Start-ups Programme, which is a platform created to enable and accelerate innovation opportunities by interactions with start-ups and second, the Cultural Management Programme developed for all employees, which focuses on the rapid changes society is undergoing, driving the demand for faster decision making, teamwork and the more effective use of digital tools in the workplace. Furthermore, open innovation and crowdsourcing have been essential tools for Natura to have success in their TBL without utilizing a R&D department. In a positive impact, these tools have improved discovery and development of new technologies and enhanced a greater number of different problem-solvers to address the issues in play.

Besides crowdsourcing, Natura's artificial information system can help consultants and sales teams deal with any problems related to credit and payment records. Consultants or clients can choose to talk with it to deal with some complex problems. This information technology can be used to maintain communication with customers and collect sales data to help analyze market information, which can be classified as automated assets to help companies automate business processes more efficiently, or as information assets to provide necessary data for enterprises to make decisions.
By being at the third stage of sustainability, Natura implements innovation through the company’s eco-efficient packing and carbon neutral initiative through the product’s business process and selling. Through some of the studies from the Natura Innovation Laboratory and outside resources, the organization has implemented different ways of eco-packing. The first one is the most well-known of bottle refills, which is mostly implemented for its Ekos and Chronos product lines as well as recycled-glass is used in the perfumery product line. Second, Natura’s products packing is made from recycled and recyclable material extracted from sugar cane and palm of oil (the company's main raw materials) as well as rice, bamboo and plant’s ingredients obtained from the Amazon region. Natura have also implemented innovation through its Carbon Neutral Programme, in which the company counts with its own information systems that measure the carbon and water footprints by means of  reducing GHG emissions through each product’s life cycle and the company sustainable chain activities throughout a circular economy approach. This Brazilian organization has contributed to innovation through the company’s online selling platform called Natura Red, in which customers can navigate Natura’s website with consideration of purchasing their products via the internet, by this customers can save time when shopping and sometimes even save more money than going to the physical store. Lastly, Natura has also created  innovation through the company’s system thinking approach by the implementation of an integrated management model for means of an eco-effective production and distribution model focused on local development and the generation of positive socio-environmental value throughout the company’s value chain.



Creating Shared Value:




The Brazilian cosmetic company has created shared value not just to itself but to people and the environment in two mainly ways that include creating positive social impact and contributing to the reduction of environmental impact. First, the organization  has created a social positive impact by promoting socially improved quality of life and well-being for the company's entire relationship network by creating work and income for the consultants by means of public education, the development of surrounding areas, the implementation of sustainable supplier chain management, diversity, culture for sustainability, and organizational transformation. 
Natura’s incrementation of public education and the creation of work and income for their consultants has been one of the biggest assessments of the company of creating positive social impact. The Brazilian organization has created shared value throughout the development of work and income for their consultants in means of many programmes as the following, the Educational Programme which is financed by the Crer Para Ver product line and managed by the Instituto Natura. This programme offers 80 degree and postgraduate courses by the Universidade Estácio and the partnerships with the language school chains Wizard by Pearson and English Live and with Geekie Games (an online preparatory platform for Brazil’s Enem national secondary education examination) and the Khan Academy (online reinforcement courses in mathematics). As Crer Para Ver revenue has grown significantly, Natura have increased investments in educational initiatives in Latin America. In these countries the company works via the Learning Community at school, aimed at driving social transformation through school administrators, teachers, students, families and the community. This work is monitored by the Instituto Natura, which provides support and know-how, but investments are made independently in each country. For example, in Argentina, more than 5,000 schools incorporate learning community practices into their programmes, more than 450,000 books were distributed and 3,000 professionals were trained in the methodology. By similar means, Nauta have launched an exclusive internal channel called Movimiento Natura for reporting and providing advice on violence. The channel is also open to the Business Managers, employees who work directly with the leaders and consultants. The Movimento Natura and UN Women, in Brazil have launched a toll-free 0800 channel for female employees who are the victims of violence. Additionally, the company has launched a Health Programme offering healthcare services for the consultant and one family member. The programme provides for discounts of up to 60% in doctors’ consultations, examinations and medication. The beneficiaries have access to more than 15,000 pharmacies in every region in Brazil and products from the main laboratories in the pharmaceutical sector. In 2018, more than 43,600 people joined the initiative.
The positive social impact the company is committed to generate, also involves the development of surrounding areas.  The priority regions are the municipalities of Cajamar (São Paulo) and Benevides (Pará), where the company’s industrial units are installed, and the Vila Jaguara district in the city of São Paulo where its administrative headquarters and the São Paulo distribution centre are located. In these locations, we make a significant contribution to the generation of employment and income, not only through the direct jobs created by Natura, but also through indirect employment opportunities connected in some way to the business. Worthy of mention is Benevides (PA), where the Ecoparque was implanted in 2014 and where 80% of Natura’s bar soaps are manufactured today. In the unit, a significant part of the workforce comprises young people who are relative newcomers to the labour market. The organization has also stimulated the development of surrounding areas by means of partnerships with local suppliers, engaged in partnerships and arrangements with governments, the communities themselves and other companies to leverage human and social development in these regions. contribute towards the consolidation of transformational movements in the three locations. In Cajamar, the company supports the organisation Inova Cajamar’s Viva Vielas project, aimed at revitalising urban spaces and carrying out positive interventions, In Vila Jaguara, the organization supports a joint community recuperation effort in the Parque Vila Edwiges district. In Benevides, together with the Rede UDBEN, the company has  helped to set up an exhibition of social projects in the city. In partnership with the Instituto Natura, the organization also engaged in efforts to improve the municipality’s performance in Brazil’s basic education development index, Ideb.
Natura cosmetics has also created positive social value through its sustainable supplier management and chain activities. To become a Natura supplier is not an easier task, Natura new suppliers  are submitted to audit processes that verify environmental, labour and human rights criteria and potential impacts on society and the environment. In 2018, 13 (1%) of the company’s 1,306 new suppliers were eligible and were submitted to assessment. In addition tt is also necessary to share the company ethical commitments including formal adhesion to the Natura code of conduct (no child or forced labor, freedom of association and collective negotiations, and others) the existence of an environmental policy and proof that it is communicated, assessment of environmental risks and management of water and energy consumption, emissions, waste and effluent generation, among other details. Recently the company has 10,400 suppliers in all the countries in which Natura operates. The company creates supply chains as the following, the Joint Agricultural Cooperative of Tomé-Açu (CAMTA), an investment resulted in increased production via less waste and better quality, helping the community meet the requirements and gain access to new markets. The Cooperative of Iratapuru River Co-Producers and Extractors (Comaru), a program that  improves the education of people linked to the productive chains and management of the organization. The company has also  developed a BIOQLICAR initiative aimed at communities supplying social biodiversity ingredients. Currently, 80% of the score is derived from the results achieved in the Social Biodiversity Chain Verification System. Lastly, The Middle Juruá program that provides Natura with andiroba oil and murumuru and ucuuba butter, resources from the Benefit Sharing help local organizations protect biodiversity. By means of different programmes and usage of recycled and recyclable materials, the Brazilian company has increased shared value through all its value chain activities as well as creating strong relationships with their shareholders.
Natura has increased value to our society by the implementation of their diversity policy. Natura diversity policy supports the company diversity initiatives, which are focused on women, the disabled, LGBTI+ and black people. Regarding gender equality, the organization has started to focus on the problem of violence against women. After performing a diagnosis with the Movimento Natura and UN Women, in Brazil the company launched a toll-free 0800 channel for female employees who are the victims of violence The channel provides support from lawyers, psychologists and social assistants and dispenses advice on how to report cases of violence, how to find shelters and to obtain other protective measures. An example of this could be Natura in Argentina, where employees who suffer from violence may contact a partnering organisation and, in addition to receiving the necessary guidance, are able to request temporary leave from work and credit to cover extra expenses. This process has already been established in the other countries in Latin America as well. Natura continues to advance in their commitment to reach 50% women occupying leadership positions (director level and above) by 2020 in all the Natura operations in Latin America. Natura strigly value diversity and reject each form of prejudice, discrimination and harassment. The company suppliers are committed to investigating and addressing any situations of humiliation, intimidation, ridicule, hostility and embarrassment in the company work dynamics, in the relations with Natura, whether related to color, race, gender, sexual orientation, language, religion, political or other views, nationality, social background or any other.
By means of culture for sustainability, Natura focused on reconnecting its co-workers with the company’s sustainability proposals and mobilising them around causes already adopted with other stakeholder groups, such as consumers and consultants.  The company  launched the Meatless Monday movement, which abolished red meat from company canteens and snack bars on Mondays. The initiative is part of the reflection Natura seeks to trigger among co-workers about the preservation of the Amazon region, impacted by the spread of soybean plantations and cattle breeding. Another movement initiated in Sustainability was the elimination of the use of plastic cups. Natura estimated that it was using 13 million cups per year in all the company units in the country. With the ban on use, to be completed in 2019, it is estimated that there will be a 25-tonne reduction in waste generated, driving annual savings of R$ 300,000. Natura also launched a campaign to stimulate car sharing among co-workers, reducing impacts caused by fossil fuels. In Cajamar, the Natura headquarters in São Paulo, Ecoparque and the Itupeva Hub, exclusive spaces were reserved in the parking lots for drivers participating in the initiative. In São Paulo, the company provides coworkers with a bicycle rack and changing rooms. Lastly, for each co-worker who bought R$ 20 worth of Crer Para Ver line products, the company donated a study grant for the language school English Live to a Natura consultant or her child. The company managed to exceed the internal target established, distributing a total of 574 grants.

Natura commits that its transformation process will be accelerated, engaging co-workers in new behaviours that complement the company sustainable strategy. By means of encouraging entrepreneurship to create an environment in which people work proactively. The new behaviours reflect the future designed for Natura, which is preparing to become a digital, multichannel company that operates globally.  working models are also gaining space in company routines, such as the use of agile cell methodology, tested in different Natura areas. Comprising multifunctional teams, working groups act together to streamline project development. The CorageN programme is another recent experience that has produced excellent results, with the selection of new people with an entrepreneurial profile, without limitations of age or educational requirements. These individuals work in groups that map and implement new ideas.
Second, the Brazilian cosmetics company has created shared value throughout the reduction of environmental impact by promoting a sustainable social biodiversity-oriented business, the development of a carbon neutral initiative, the implementation of eco-efficient packing and the utilization of water/carbon footprints as innovative ways of incrementing value for the society and the environment. 
Natura has promoted a sustainable social biodiversity-oriented business almost since its creation. The organization has established a Social Biodiversity Products Chain, which its main goal is to reach 10,000 families in the Pan-Amazon production chains which come from the Pan-Amazon region. Natura also is well recognized for its vegan formula design in many of their products lines, the company uses some disruptive technologies for a safety and more efficient formulation for their Ekos and Chronos products line which required a deeper R&D for its commerce on the market. Recently, Natura has implemented crowdsourcing for the improvement of their product design and redesign. This new initiative has been developed through “Cocriando Natura” and “Natura Campus” , platforms that provide an interaction between the company’s stakeholders  and its customers by meanings of education, improvement of social quality, transparency practices and product design and redesign. Promoting sustainable business is another way by which the company contributes to its social biodiversity products chain. Natura promotes its sustainable business by being an eco-brand that implements its eco-efficient sustainable strategy and the creation of sustainable products and services. By means of innovation, since 2007, Natura has been dedicated to a project aimed at adopting an Agroforestry System (AFS) for cultivating palm oil, which is a combined system that involves planting palm together with other crops such as cocoa, açaí and andiroba. By the development of this project, the company has reduced 33% of its GHS emissions through its products life cycle from its raw materials to its disposal. 
Natura is one of few cosmetics companies worldwide to have implemented the water and Carbon footprint into the company environmental policy. In 2007, Natura introduced the Carbon Neutral Programme, which was Natura’s first public commitment to reduce greenhouse gas (GHG) emissions generated by its production practices. Later between 2010 and 2013, the company started to minimize its consumption of both natural resources accomplishing a 33% reduction in the company’s emissions. Significantly, Natura tested some methodologies such as monitoring all emissions generated by its company and its production chain, to measure its water consumption and impact of the company consumption on local resources with the purpose to implement new solutions. Having great results from the monitoring exercise, Natura was able to plan GHG emission reduction initiatives for the entire chain. Some of the activities include, the adoption of lower impact logistics systems that helped the company to reduce the usage of air freight, reducing the impacts generated by product exports; the use of ingredients of vegetable origin in the company formulas and organic alcohol in the entire perfumery lines. 
Some of Natural biggest ambitions are related to increasing its eco-efficient packaging.The company is always working on reducing the environmental impact of its products in the formulation and development of a green packaging process, for this reason its priority is the usage of sustainable Materials ( recycled and recyclable ). The initiative started in 2007, when Natura implemented the usage of recycled plastic and glass in many of their product lines which resulted in increasing its eco-packaging up 50%. Natura is known as a pioneer in the offering of refills for their Eknos and Chronos products lines that are made of 100% eco-friendly bioplastic . By 2010, the company implemented a new approach by gradually replacing polyethylene with green plastic, which are made from sugar cane. The packs for Natura Ekos body care products are 100% recycled PET as well as  the packs for all Natura perfume bottles which now are 30% recycled glass in their design and composition. Additionally, Natura uses ingredients from plant origin such as palm oil which help to preserve the local ecosystem. Natura is an industry capable of generating a positive social and environmental impact by means of their business model and the pursuit of innovative and collaborative solutions for the challenges facing the company’s relationship network.


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