ANNUAL REPORT
Natura 2019
1
2019 ANNUAL REPORT Summary
Our Essence ................................................................................................... 4
Natura against COVID-19 .............................................................................. 7
Presentation .................................................................................................. 12
Message from the Board of Directors ...........................................................15
Message from the CEO ..................................................................................19
Natura ............................................................................................................22
Integrated vision of our performance ..........................................................32
Our strategy ..................................................................................................35
Sights on the future ...................................................................................... 36
More beauty in the world ..............................................................................39
Generating positive impact ...........................................................................43
Evolution of our targets and commitments ..................................................46
Our businesses ............................................................................................ 48
Omnichannel Natura .....................................................................................49
More digital Relationship Selling ...................................................................51
Online sales channel ......................................................................................61
Retail ..............................................................................................................63
Our way of innovating ...................................................................................69
Business Platform to leverage the network .................................................85
Evolution based on our causes .....................................................................88
Standing Forest ................................................................................................91
How we
generate
value
Management
and organisation,
our brands and
products and
our relationship
network organised
to generate
positive impact.
Page 43
Innovation
More technology
and capability to
conduct in-depth
studies on natural
ingredients. Page 69
Respect
the forest
and those who
live in it
In the Amazon since
2000, we respect the
cycles of nature, the
standing forest and
local communities.
Page 91
Digitalisation
Technology to disseminate
Well Being Well in an agile
way, through multiple
|brands and channels,
in multiple geographies.
Page 85
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT
More Beauty, Less Waste ............................................................................106
Every Person Matters ..................................................................................124
Overview of the 2050 Sustainability Vision ..............................................158
Company information...................................................................................161
Corporate governance ...............................................................................162
Risk management ......................................................................................166
Ethics and integrity ....................................................................................170
Commitments and partnerships ..............................................................172
Complementary disclosures .....................................................................175
About the report ........................................................................................197
GRI content index.......................................................................................202
Assurance report....................................................................................... 217
Where does the
pack you use
come from?
We have used refills for over 35
years, but we want to do more.
Page 106
The importance
of each one
We believe in education,
income generation and
diversity as a response
to global tensions. Page 124
ABOUT NATURA AND NATURA &CO
The information in this 2019 Annual Report refers to the Natura Cosméticos S/A
operations in the 10 countries in which the company operates (Argentina, Bolivia,
Brazil, Chile, Colombia, France, Malaysia, Mexico, Peru and the United States). It
does not include the operations of the company’s wholly owned subsidiaries The
Body Shop and Aesop, which are addressed in the Natura &Co Annual Report,
published on the group’s website(https://ri.naturaeco.com/). Neither do the Avon
operations, acquired by Natura &Co in January 2020, come within the scope of
this report.
Our metrics
See the status of
our 2020 Ambitions
and how they relate
to the Sustainable
Development
Goals (SDGs).
Page 158
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2019 ANNUAL REPORT
Our
Essence
GRI 102-16
REASON FOR BEING
Our Reason for Being is to create and commercialize products
and services that promote well-being-well.
well-being
is the individual’s harmonious, agreeable
relationship with him/herself, with his/her own body.
being well
is the individual’s empathetic, successful and pleasurable
relationship with others, with the nature he/she
is part of, with the whole.
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2019 ANNUAL REPORT BELIEFS
Life is a chain of relationships. Nothing in the
universe stands alone, everything is interdependent.
Natura believes that valuing relationships
is the foundation for the great human revolution
in the pursuit of peace, solidarity,
and life in all its manifestations.
Continuously striving for improvement develops
individuals, organizations and society.
Commitment to the truth is the way
to enhance quality in relationships.
The greater the individual diversity, the greater
the wealth and vitality of the whole.
The pursuit of beauty, a genuine aspiration
of every human being,should be free of preconceived
ideas and manipulation.
The company, a living organism, is a dynamic set
of relationships. Its value and longevity are linked
with its ability to contribute towards the evolution of
society and its sustainable development.
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2019 ANNUAL REPORT VISION
Due to our corporate behaviour, the quality of the
relations we establish and our products and services,
we will be a group of global brands, identified with the
community of people committed to building a better
world through better relationships with themselves,
others and nature, of which they are part of,
with everything as a whole.
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2019 ANNUAL REPORT Natura against COVID-19
Faced with the greatest crisis in recent decades,
unleashed by the worldwide dissemination of the
new coronavirus in the first months of 2020, Natura
reaffirmed its commitment to each person, as well
as its belief in the power of interdependence and
unity, as a solution to confront the pandemic.
Even though these events are outside the period
addressed formally by this Annual Report, we
could not ignore the drastic changes the advance
of COVID-19 has caused around the world.
The effects are not yet all known, neither the
dimension of the impact on society, on business
and on people. Nevertheless, Natura and the
Natura &Co group mobilised rapidly to implement
measures aimed at containing contagion, providing
care for our stakeholder groups and minimising
losses for the business and our network – especially
consultants, co-workers, suppliers and communities.
positioning “Our unity is the solution”. On March 31,
Luiz Seabra, Guilherme Leal and Pedro Passos,
the founders of Natura and co-chairmen of the
Natura &Co Board of Directors, together with
Roberto Marques, executive chairman of the Board
of Directors and chief executive of the group,
signed an article entitled “Time to take care”,
published in the newspaper O Estado de S. Paulo.
There follows a description of the main initiatives
implemented by Natura and the Natura &Co group
so far, and we invite you to continue to monitor
these actions through our social networks and
website.
Caring for co-workers
Natura guaranteed the employment of all its co-
workers for a period of 60 days, until the end of
May, as a means of caring for people and enabling
them to carry out their activities safely.
These commitments were rapidly made explicit to
society. On March 18, we disclosed our corporate
To reduce circulation in our areas in order to bar
contagion by the new coronavirus, all co-workers
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT whose activities could be undertaken at a distance
were instructed to work remotely.
Sanitary and safety measures were stepped up
for the operational teams in company plants
and distribution centres. For staff working in the
company’s own stores in cities in which local
authorities did not determine the closure of part
of commerce, we redoubled efforts to ensure
the safety and well being of co-workers and
customers. It should be noted that co-workers
whose activities involve their physical presence but
who are in risk groups also remained at home.
Caring for consultants
We sought to encourage our consultants and
leaders to continue working, ensuring their income
at this time of crisis. For them, our innovation and
technology areas developed new digital tools and
resources in record time, aimed at further driving
online selling and consulting at a distance.
Other examples of measures to minimise the
effects of the crisis for the consultants was
the postponement of the payment of bills, the
introduction of payment in up to six instalments
for credit card purchases, and the reduction of
At a time
when we are
physically
apart, union is
the solution
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2019 ANNUAL REPORT the number of points necessary to place product
purchase orders. We created an emergency fund
to support more socially vulnerable consultants.
For the leaders, who supervise groups of
consultants, we guaranteed remuneration for three
cycles, based on the largest payment made during
the period or the average remuneration in the first
three cycles in 2020, before the crisis.
We cancelled all face to face events for our sales
force and advised all Beauty Entrepreneurs,
who run Aqui Tem Natura franchises, to comply
with any orders to close commerce imposed by
authorities in their cities and states and to adopt all
necessary sanitary measures. To promote business
continuity during this period franchises were
encouraged to work with online sales.
We also created a number of protocols for product
delivery to consultants, aimed at preserving
their health and that of service providers (further
information ahead). We authorized the delivery of
orders without the signature of the consultant to
avoid the need for contact with delivery personnel.
Hand sanitizer and alcohol
70% produced by Natura for
donation, at Cajamar (São Paulo).
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT We also provided information on how consultants
should receive product in their homes and deliver it
to customers in safety.
Caring for suppliers and communities
At the very beginning of the crisis, we announced
that we would honour our contracts with suppliers
and extractivist communities.
For partners engaged in product distribution
to consultants,we provided sanitary kits and
information on preventive measures against
the pandemic for drivers and assistants and
established new safety protocols, such as
maintaining a minimum distance of two metres
during deliveries, driving vehicles with the windows
open and immediately informing supervisors in the
event of suspected contamination.
Caring for society
In conjunction with Avon, we announced the donation
of 2.8 million units of soap (bar and liquid) for
communities, consultants, representatives, hospitals
and public health authorities. In Brazil, for example,
this benefited our supplier communities and the
communities surrounding our operations in the states
of São Paulo and Pará.
We rescheduled production at our plants to
manufacture essential items, including the personal
hygiene products essential for preventing the
propagation of COVID-19.
Our group also committed to processing and packaging
310,000 litres of alcohol 70% solution and 190 tons of
hand sanitizer, in partnership with companies such as
Basf, Raízen and Usina São Martinho.
For providers of services to consultants and
consumers, we devised a system of remote
working in rotation, ensuring that only one third of
call centre staff would be present on the premises
at a time. We also reinforced sanitary measures.
Other initiatives adopted by the other Natura &Co
companies included the donation of over 1 million
The Body Shop products and the rescheduling of
70% of Aesop production to manufacture hand
sanitizer and other essential products.
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT Against domestic violence
#IsolatedNotAlone
Realising that social isolation to brake the expansion of
and requesting that they ensure that women and children,
COVID-19 could increase the number of cases of domestic
in particular in socially vulnerable situations, receive the
violence against women, Natura &Co and its family of brands
support and resources that they need.
(Avon, Natura, The Body Shop and Aesop) are joining national
and international organisations in support of UN Women’s call
Avon, Natura, The Body Shop and Aesop are also going to
to help women and children at risk.
donate packages of essential personal care products to
shelters. Each brand is promoting awareness by means of
The Avon Institute launched the global #IsolatedNotAlone
its social media channels aimed at providing support for
movement and committed to donating US$ 1 million to groups
victims, their friends and families, indicating sources of
that support victims of domestic violence around the world.
help and sharing safety advice. In addition to publicising the
The Natura &Co group also issued a letter to governments,
content produced by the #IsolatedNotAlone movement in all
governors, mayors and legislators in all the countries in
its channels, Natura has also intensified other support and
which it has operations drawing their attention to the problem
guidance tools for its co-workers, leaders and consultants.
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2019 ANNUAL REPORT Presentation
What can
a beauty
brand do for
the world?
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The world of Vani, 42, moves on
two wheels. On her motorcycle,
she does more than spread
beauty and deliver our products
to her customers and friends.
2019 ANNUAL REPORT Can it care for your skin and save it at the same time?
Can it make a forest grow instead of shrink?
A beauty brand can do a lot for the world.
What cannot happen is for it to just stand
with arms crossed.
It must find new ways of producing.
It must ban controversial ingredients.
It cannot test on animals.
It must reduce waste.
Share wealth.
Propose dialogues.
Reduce borders and open hearts.
A beauty brand must do everything to make the
world more beautiful.
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2019 ANNUAL REPORT Click to watch the manifesto on what a beauty brand can do for the world, launched in March 2019.
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT Message from the Board of Directors
It is time to care.
It is time to choose!
Luiz Seabra, Guilherme Leal, Pedro Passos (co-chairmen)
and Roberto Marques (Executive Chairman and CEO of Natura &Co)
A report such as this is, by definition, a journey
through time. Delimited by projects, facts, actions
and results achieved during the course of 12
months, it is underpinned by the inescapable
past and the future that beckons. 2019 was an
unforgettable year for Natura &Co. We had cause
to celebrate many achievements. The current
moment, however, is of a complexity that was
unthinkable a short while ago. Consequently,
we will begin by examining the present.
countries and as a civilisation. It has become even more
important to be clear about what our priorities are and about
how interdependent we all are. It is a time to care. Of the
parts and of the whole. Taking care of oneself, of others
and of the relations we establish with the world. It is a time
to prioritise investment in public health, in supporting the
economy and small businesses, in stimulating the generation
of income and in meeting the needs of the more fragile, of
whom there are many. The needs of the existing and the
ever-growing high-risk groups. There should be no doubt
about the path to be chosen. We must act rapidly in order to
preserve life.
In this challenging context, we are determined to do our
part. We have expanded production of the personal care
On the eve of the publication of this message in May 2020,
product essential in combating the pandemic. We have done
the pandemic caused by the new coronavirus has forced
this taking the necessary care to preserve the health of our
us to reflect on our role as individuals, families, companies,
co-workers. For those not directly involved in production
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT and distribution, we have encouraged and supported our
happier individual lives and a fairer society, the preservation of
associates as they work from home. We have made donations
the planet...In short, the creation of a better world.
to public and medical institutions and engaged in continuous
dialogue with local, national and global institutions to ensure
Our union with Aesop and The Body Shop in recent years
we are in line with best practices. We have done everything
represented the beginning of our international expansion
possible to safeguard job stability, and we continue to
generate opportunities for many.
Evidently, based on love, we have sought to remain as
beyond Latin America. Under the umbrella of the Natura &Co
group, we harboured different brand identities and business
models, united by purpose, activism and ethical principles.
In May 2019, we announced the historical agreement for
close as possible to our millions of independent consultants
the acquisition of Avon, concluded in January 2020. This
and representatives, providing support in the challenge
134-year-old company, which created the direct selling model
of maintaining their business activities going and keeping
in cosmetics and is one of the best-known brands on the
their morale up, while respecting the necessary physical
planet, is now part of Natura &Co, expanding its reach to 200
distancing. Through cooperation and empathy and by taking
million customers in 100 countries. In addition to countless
care of each and every individual, we are certain that we
new business opportunities, we now have the chance to
will overcome these turbulent times. More than ever, what
further extend the causes that we advocate – including
motivates us is that which has united us since the beginning:
the campaign against domestic violence, women’s rights,
“Life is a chain of relationships. Nothing stands alone,
appreciating their invaluable roll in the construction of society.
everything is interdependent”.
The feeling of unity and solidarity that is emerging in this
of the positive cultivation of human relations, the basis of
historic moment is a reminder that concerted solutions
direct selling. Now with over 6 million people, hungry for good
are possible, particularly in the face of another immediate
business opportunities, personal development, knowledge and
challenge: the climate crisis, the full dimension of which has
greater self-esteem – for themselves and for their personal
yet to be understood.
network. It is time to care of and strengthen this network.
Natura and Avon together represent the transformational power
In our origins and in our purpose, we find the strength to face
Now as a larger group, we have taken on the challenge
challenges on this scale. Natura, built on the collaboration
of being the best FOR the world at a time when, more
of millions of people, has developed by discovering meaning
than ever, companies are expected to take on the role of
and disseminating purpose. With a commitment to pursuing
building a more reassuring future. “The sunrise is slow, but
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT it advances”, the poet once said. And we will continue to run
our companies on this hope and on the growth in solidarity
in the world. We have no way of knowing what the post-crisis
world will be like, but we believe that this is the moment to
choose who we want to be, as individuals, as companies, as
countries and as a world.
The intolerable inequalities, the hunger and the many
injustices in the world have gained greater exposure
since the outbreak of this pandemic. Based on this
transformational experience, we clearly have choices
to make. This crisis has shown that the world of radical
nationalism, of intolerance towards diversity and the denial
of science is fragile, even for those who thought they were
above it all. We at Natura have always believed in the power
of developing deeper relations between countries, of open
immigration, of cultural interaction, of a world that creates
consensus based on renewed global governance, anchored
in democratic values.
We have a new social and world order to build to replace
the one that is vanishing. Its nature will depend on the
choices we make and on the values that will underpin this
new construction. It will depend on our capacity to use our
intelligence, our creativity and the technologies at our disposal
as well as the ones we are yet to develop, to construct a new
green economy that is sustainable and inclusive.
This choice is imposed by the crisis. And our hope
resides in making generous choices.
Taking care
of oneself, of
others and of
the relations
we establish
with the world
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2019 ANNUAL REPORT
Board of Directors (from left to right): Gilberto Mifano, Nancy
Killefer, Roberto de Oliveira Marques, Pedro Luiz Barreiros
Passos, Guilherme Peirão Leal, Antonio Luiz da Cunha Seabra,
Carla Schmitzberger, W. Don Cornwell, Ian Martin Bickley and
Jessica DiLullo Herrin
Unable to be with us on this day: Andrew George McMaster Jr.
and Fábio Colletti Barbosa
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2019 ANNUAL REPORT Message from the CEO
People in
first place
João Paulo Ferreira,
CEO, Natura &Co Latin America
[GRI 102-14]
We ended 2019, the year in which we celebrated
Natura’s 50th anniversary, excited about our future,
about the prospect of building a beauty group
that seeks to be the best FOR the world, after the
entry of Avon to our family, which already included
The Body Shop and Aesop. At the beginning of
2020, I assumed a new role as CEO of Natura &Co
operations in Latin America, responsible for
the Natura brand and innovation globally and
for the operations of the group’s four companies
in Latin America.
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
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2019 ANNUAL REPORT TThe creation of the fourth largest global group dedicated to the
beauty sector was only possible because of the significant
results we have achieved in recent years. In 2019, Natura presented
of March, we made a commitment to guarantee employment
for 60 days. We limited production and logistics operations
to the essential, prioritising the manufacture of the sanitary
robust revenue growth in Brazil and in the other countries in Latin
and personal care items indispensable for containing the
America, demonstrating the success in our omnichannel strategy.
dissemination of the virus. Health and safety measures have
Our Relationship Selling model continued to gain strength, with
been stepped up at our installations. Administrative staff have
an increase in consultant productivity for the third year running
adopted remote working, while the people working at our
and impressive advances in our digital transformation – there are
plants and distribution centres who belong to high risk groups
already 1.6 million consultants connected to our online platform.
have gone on paid leave or vacation.
Supported by the knowledge of The Body Shop and its local
master franchisee we arrived in Malaysia, with an operation that
While caring for our network, we also keep the economy
combines e-commerce, a physical store and social selling, a model
running. Continuity in production is essential to enable Natura
that can be replicated in other countries.
Beauty Consultants to maintain their income at this moment
of crisis. And by remaining active, they help ensure the supply
We also had key achievements in our pursuit of generating positive
of items such as soap, necessary in combating the pandemic,
impact in the environmental and social dimensions, contributing
to more remote regions. To reassure our consultants, we
to the conservation of 1.8 million hectares in the Amazon, a region
adopted a series of measures to provide financial relief and
in which we maintain relations with over 5,000 families in supplier
access to our digital tools. Moreover, we created a R$ 1.7
communities.Our commitment to combating climate change received
million emergency fund for consultants who contract COVID-19
worldwide recognition from the United Nations Organisation, which
presented us with the Global Climate Action award.
and those who are in a vulnerable situation. We have adopted
measures to drive awareness of and combat domestic violence
In this report we present the details of these and other
Avon in this period, we have channelled around R$ 7 million
important results in 2019. However, at the moment of its
into providing support for consultants and representatives.
and, in conjunction with the measures also implemented by
publication in May 2020, our attention is focused on the
pandemic caused by the new coronavirus. This has forced
In partnership with NGOs, we distributed 2.8 million units of bar
us to reorganise our priorities, with our efforts and actions
soap to communities throughout Latin America. In conjunction
focused on one immediate commitment: caring for people.
with partners such as Usina São Martinho and Raízen, we have
Commitment to the well-being of our relationship network led
representatives with another 2.8 million units of alcohol 70%
us to rapidly adapt the business to this new reality. At the end
and hand sanitizer, in donations totalling R$ 31 million.
provided authorities, hospitals, co-workers, consultants and
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2019 ANNUAL REPORT
Together, we believe we will be able to overcome this
pandemic, and guided by our principles and beliefs, we will
emerge from this crisis even stronger. On the positive side,
we have learned countless new things during the course of
these recent weeks, such as our capacity to adopt to new
ways of working and the development of important advances
in the digitalisation of our businesses.
The pandemic emerged soon after the beginning of this
new configuration of the Natura &Co group, and the need
to deal with the crisis ended up accelerating the process of
integrating our companies. With Avon, Natura, The Body
Shop and Aesop now united in Latin America, we have
become an even larger platform committed to generating
positive impact. This strength, involving more than 4 million
consultants and representatives and 18,000 co-workers in
the region, will enable us to perform an even more active role
in society, especially in these times we are experiencing.
We achieved significant results during the course of 2019,
but we know the situation will be very different in 2020. It
will be a period in which we will not be able to make the same
choices as usual. As a society, we will have the opportunity
to transform the world based on the collective learning
we will accumulate during this pandemic. The belief in the
interdependence of everything, which has always shaped
our actions, is now more alive than ever. We will continue in
our pursuit of valuing the environment, people and business,
as well as regenerating the planet on which we live. Working
together, collaboratively in a network, makes and will make
all the difference. We are and we will remain together.
Guided by
our principles
and beliefs,
we will
emerge from
this crisis
even stronger
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2019 ANNUAL REPORT Natura
We reached 50 years of age in 2019 as the biggest
Brazilian multinational in the cosmetics sector.
And, at such a significant moment, we decided to
question our role as a beauty company in the world.
What can we do to transform the reality around us?
Based on this reflection, we turned back to Our
Essence. It was time to reinforce the principles and
commitments that have always guided our vision
of business, with the generation and distribution of
wealth, with diversity, with keeping the forest standing,
with reducing waste. To amplify this message, we
invited everyone to be agents of this change,
with a powerful appeal: When you care,
you create beauty
When you
care, you
create
beauty
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2019 ANNUAL REPORT Our
causes
standing
forest
more beauty,
less waste
every person
matters
23
The new Natura brand positioning inaugurated an era
of transformation for the company, increasingly digital
and engaged, prepared to offer new services and products,
always with leading edge innovation. 2019 also symbolised
the beginning of a new cycle of international expansion –
we arrived in Asia with our first multichannel operation in
Malaysia. By means of the franchise model used by The Body
Shop, we inaugurated the first Natura store in Petaling Jaya,
in the capital Kuala Lumpur. Our portfolio is also available in
the country via e-commerce and Relationship Selling.
We are also part of the Natura &Co group, together with
Aesop and The Body Shop and, since January 2020, Avon.
The merger, which created the fourth largest group in the
world dedicated exclusively to the beauty sector, united four
iconic companies in the segment around a better way of
living and doing business, committed to generating positive
economic, social and environmental impact.
The new organisation of the group resulted in four business
units, one of which is Natura &Co Latin America. Headed by
João Paulo Ferreira, the unit is responsible for managing the
Natura, Avon and The Body Shop businesses in the region,
as well as Aesop in Brazil. It also oversees Natura’s global
brand guidelines and innovation.
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2019 ANNUAL REPORT Timeline
Luiz Seabra founds
Indústria e Comércio de
Cosméticos Berjeaut.
Months later, the
company changes its
name to Natura. The
name was inspired by
the vegetable active
ingredients used in
product composition.
The increased demand
for consultations with
Luiz Seabra and for
Natura products leads
the company to transform
some customers into
independent product
distributors.
The first sales catalogue
is launched with detailed
information on how to
use the products. The
publication becomes
a fundamental tool for
consultants.
Natura experiences
strong growth, driven
by expansion to the
different regions of Brazil
(the company had 200
co-workers and 2,000
consultants). L’Arc en Ciel
is born, a Natura partner
focused on makeup and
perfumery.
Pedro Passos becomes
general manager of L’Arc
en Ciel. Natura is the first
cosmetics brand to offer
product refills.
Sève
Launch of Sève, a unique
bath oil.
years
Chronos
Launch of Chronos, an
anti-ageing signs
product that values
women’s
beauty at each
stage of life.
The merger of the
companies is concluded.
Natura reaches the
landmark of 50,000
consultants.
1969
1971
1976
1980
1983
1986
1989
1970
1974
1979
1982
1984
1988
Natura opens its first
store, on São Paulo’s
Rua Oscar Freire. Luiz
Seabra serves the
customers personally,
recommending products
in accordance with
individual needs. The
factory is opened in the
Vila Mariana district, with
some ten co-workers.
Natura adopts direct
selling as a business
model. Following in the
footsteps of Luiz Seabra,
the consultants provide
their customers with
personalised solutions.
The store is closed, and
the company
Pró-Estética, which
distributes the products
in the state of São Paulo,
is formed.
Guilherme Leal joins
Natura, planning a
product distribution
system for outside the
state of São Paulo. This
plan will be executed by
Meridiana (a company he
was to open the following
year).
The company’s first
incursion in the
international market,
by means of a local
distributor in Chile.
Erva Doce
Launch of Erva Doce
soap, soon to become
a classic product in the
portfolio.
The companies Natura,
Pró-Estética, Meridiana
and L’Arc en Ciel, which
worked together on
the production and
distribution of products,
initiate a merger process,
adopting the name
Natura. Products reach
Bolivia, by means of a
local partner.
08/04/2019 14:24
Sr. N
Sr. N line inaugurates the
men’s products segment,
a novelty at that time.
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24
Sem título-2 2-3
2019 ANNUAL REPORT
4
2
:
4
1
9
1
0
2
/
4
0
/
8
0
3
-
2
2
-
o
l
u
t
í
t
m
e
S
The company
inaugurates its own
operations in Argentina
and Peru, initiating
a move towards
internationalisation in
Latin America. Creation
of the Natura Service
Channel, aimed at
consultants.
Natura communicates
its Reason for Being,
Well Being Well, making
its values and its
commitment to society
clearer.
Chronos celebrates the
truly beautiful woman,
confronting beauty
stereotypes in an
advertising campaign
that would become a
global reference.
Kaiak
Launch of Kaiak, a record
best seller in the Brazilian
perfumery market.
Inauguration of the
Natura site in Cajamar
(São Paulo), the biggest
and most advanced
integrated cosmetics
research, production
and distribution centre in
South America.
Natura goes public on
the São Paulo stock
exchange.
The company initiates
a partnership with
traditional communities
for the supply of
Amazonian ingredients.
1992
1994
1996
1999
2001
2004
1990
1993
1995
1998
2000
2002
2005
The rosette becomes
the Natura symbol.
The flower with
interconnected petals
represents the junction of
companies that formed
Mamãe e Bebê
Launch of the Mamãe
e Bebê product line,
with the proposal of
strengthening the bond
between mother and
child. Natura opens its
subsidiary in Chile, after
acquiring its product
distributors in the
country.
Launch of the Length
of Service programme,
Natura becomes the
first company in the
direct selling market to
recognise consultants
for the length of their
relationship with the
company (and not just for
their sales performance).
Crer Para Ver (Believing
is Seeing)
Creation of Crer para Ver,
a non cosmetic product
line the profit from which
is invested in education
Launch of the magazine
distributed to consultants
with information on
products and launches.
Called Espaço Natura
today, it has one of the
biggest print runs in
Brazil.
Start up of operations
in Mexico and France
(marked by the opening
of a store in Paris).
Creation of Movimento
Natura to encourage
consultants to engage in
social and environmental
causes. Natura Musical,
a programme supporting
artists and projects
related to Brazilian
music, is launched.
Natura Homem
Natura Homem is
consolidated as a full
personal care line, with
perfumery and products
for the face, body and
hair. Exame magazine
selects Natura as
Company of the Year
for the first time.
A new version of the
Natura logo is developed.
Ekos
With the launch of
the Ekos line, Natura
incorporates Brazilian
biodiversity active
ingredients into its
product formulations,
combining science,
traditional knowledge
and local wealth
generation.
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25
2019 ANNUAL REPORT
4
2
:
4
1
9
1
0
2
/
4
0
/
8
0
Launch of the Carbon
Neutral programme, with
CO2 emission reduction
targets throughout
the production chain.
Creation of the
Environmental Table,
that calculates the
impact caused by the
production of each item.
Natura begins operations
in Colombia and opens
a factory in Benevides,
Pará.
The Instituto Natura
assumes management
of the funds raised with
the Crer para Ver line,
focused on improving
public education. Natura
starts production in
Argentina, Colombia and
Mexico. Acolher Award
created to recognise
actions of consultants
within the Movimento
Natura.
Beginning of process
to acquire Australian
cosmetics brand
Aesop (which would be
concluded in 2016).
The Ecoparque, a
business centre based on
the concept of industrial
symbiosis, is inaugurated
in Benevides. Natura
becomes the first
publicly traded company
to receive B Corp
certification. The 2050
Sustainability Vision is
launched, with long-term
social and environmental
targets.
Start-up of Natura stores
in Brazil. The São Paulo
distribution centre starts
operating at full capacity
– with more than 15%
disabled people on its
staff. Inauguration of a
store in New York.
Birth of Natura &Co,
global identity of the
beauty group comprising
Natura, The Body Shop
and Aesop.
2007
2010
2012
2014
2016
2018
2006
2009
2011
2013
2015
2017
2019
Natura bans product
and ingredient tests
on animals, replacing
them with scientific
methodologies that
ensure safety and
effectiveness for
consumers.
Upon completing 40
years, Natura reaches
the landmark of 1 million
consultants.
The Amazonia
Programme is launched,
aimed at channelling
investments into the
region and helping
transform it into an
innovation, technology
and sustainability hub.
Natura reduces its
greenhouse gas
emissions by
a third, honouring
the commitment
assumed in 2007.
3
-
2
2
-
o
l
u
tít
m
e
S
Sou
The Sou product line
is launched as an
incentive for conscious
consumption: its
packaging economizes
material and avoids
product wastage.
The Rede Natura (Natura
Network), the company’s
online platform covers
the whole of Brazil
and starts up in Chile.
Natura conducts its
EP&L, “environmental
accounting”, which
provides a monetary
valuation of the impact of
the company’s activities
on nature and society.
Acquisition of the British
cosmetics company
The Body Shop. Natura
revitalises direct
selling – denominated
Relationship Selling
– and creates new
consultant profiles and
different opportunities
for progression in the
business.
Natura reaches its 50th
anniversary and initiates
operations in Malaysia.
Announcement of the
acquisition of Avon,
founded in the United
States over more than
130 years ago, which
becomes part of
Natura &Co in 2020.
The group becomes
the fourth largest
pure-play beauty group
in the world.
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2019 ANNUAL REPORT
Natura’s operations
GRI 102-1, 102-2, 102-3, 102-4, 102-6,
102-7, 102-8, 102-9 and 102-10
co-workers
6,800
5
thousand
of
which
in Brazil
Omnichannel
Relationship Selling
1.8 million
personal and online
Natura Beauty
Consultants
489
physical stores
(company-owned
and Aqui Tem Natura
franchises)
e-commerce
www.natura.com.br
GRI 102-8 Co-workers per country
Brazil
Argentina
Chile
Mexico
Peru
Colombia
France
United States
Total
2017
4,765
641
189
116
219
362
19
Not available
2018
4,958
690
224
122
228
378
21
14
2019
5,085
716
225
133
224
402
16
19
6,311
6,635
6,820
8000
7000
6000
5000
4000
3000
2000
1000
0
Natura co-workers
6,311
6,635
6,820
2017
2018
2019
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27
2019 ANNUAL REPORT
in the world
First publicly
traded company
to receive B Corp certification for
its transparency
and sustainable
practices
in 2014.
80%
of the
formulations
are vegan
Present in: Argentina,
Bolivia, Brazil, Chile,
Colombia, France,
Malaysia, Mexico, Peru
and the United States.
Own factories in
Cajamar (SP) and
Benevides (PA)
and third-party production in
Brazil, Argentina,
Colombia and Mexico
Around
850 daily care
products
(face, body, bath,
hands and feet),
perfumery, makeup,
hair and grooming,
as well as children’s
items and gifts.
11,900 suppliers;
6,200 families in 39
communities in the social
biodiversity production
chains.
logistics hub in
Itupeva (SP)
Administrative headquarters in
São Paulo (SP)
1
12
Distribution
Centres
7 in Brazil and 5 in Latin
America
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28
2019 ANNUAL REPORT
A history of affection
Among the events that marked the company’s
50th anniversary is exhibition “Network of affection:
50 years of Natura”, inaugurated in August at our
Cajamar (SP) unit. This interactive installation
portrays the main landmarks and movements in our
history, which began in 1969. The exhibition will be
open to the public until mid-2021.
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29
2019 ANNUAL REPORT Recognition
Climate change action
agenda recognized
by the UN
Natura’s efforts to reduce greenhouse gas (GHG) emissions
and combat climate change were recognised in the most
important award in this area in the world, granted by the United
We were also elected one of the most ethical companies in
the world by the Ethisphere Institute, a global organisation
committed to enhancing business practices. In April, we came
first in the Merco Corporate Reputation Monitor. This was the
sixth edition of this survey in Brazil, and Natura led the ranking
in every one. The executive João Paulo Ferreira, CEO of
Natura &Co Latin America, was listed among the ten business
leaders with the best reputation in the country.
Nations (UN). We received an award in the Climate Neutral Now
Best practices
category of the 2019 UN Global Climate Action Award. This
constitutes public recognition on a global scale of initiatives
to reduce and offset emissions provoked by the company’s
activities under the Natura Carbon Neutral Programme, in
place since 2007. Our activism in this area ensured we were
the only Brazilian company featured on the list of 15 winning
initiatives. In all, 670 projects were submitted.
The list of winners was disclosed in September, in Climate
Week NYC, a UN event. The award presentation ceremony took
place during the United Nations Climate Change Conference
(COP 25), in December in Madrid (Spain).
For eleven years we have been a member of the group of most
sustainable companies in the world on the Global 100 ranking,
from the Canadian media and research company Corporate
Knights, announced annually during the World Economic
Forum at Davos (Switzerland). Natura is the only Brazilian
company from the sector featured in the list, which assesses
approximately 7,500 companies from 21 countries.
• We have been listed on the B3 (São Paulo
stock exchange) Corporate Sustainability
Index (ISE) for 15 years
• We are listed on the Dow Jones Sustainability
Index (DJSI) for emerging markets
• We have been a B Corp since 2014, which
attests to our commitment to promoting
positive economic, social and environmental impact
• We have been featured on the Corporate Knights
ranking of the most sustainable companies
in the world for 11 years
• We do not conduct tests on animals. Attested
by Leaping Bunny certification, from Cruelty
Free International
• Ethical trade: UEBT (Union for Ethical
BioTrade), attesting to the sustainability
of the natural ingredients supply chain for
the Ekos product line
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30
2019 ANNUAL REPORT Joint commitment
We believe it is only possible to generate systemic change with
economic and socio-environmental results. Recently The
collaboration and cooperation. That is why we participate in
Body Shop joined this group.
voluntary movements and commitments that may leverage our
actions. In addition to reducing the social and environmental
Since 2018, we have been signatories to the New Plastic Economy
impacts of our operation and our value chain, we strive to use
global commitment, an initiative from the Ellen MacArthur
our reputation and our brands to further these commitments
Foundation to adopt circular economy principles in the plastics
and engage more people and organisations in this debate,
chain. In 2019, in conjunction with other actors, we launched
essential for the continuity of life on Earth.
During the 2019 Climate Summit held by the United
Nations (UN) in New York, together with other corporations
we signed a commitment to limiting the increase
in global temperatures to 1.5ºC compared with
the Possible Amazon movement, which proposes the discussion
of effective solutions for conserving the Amazon region and
combating illegal deforestation (further information on page 93).
All these actions are also connected with the 2030 Agenda proposed
by the UN with the Sustainable Development Goals (SDGs), which
pre-industrial levels. We are also developing mechanisms to
establishes the main challenges for the coming decade. At Natura,
advance in our disclosure of climate-related financial risks,
our ambitions are intended to encompass all the goals in a consistent
in accordance with the TCFD (Task Force on Climate Finance
manner, with clear, measurable targets (see the correlation between
Disclosures). We want to demonstrate the effects of these
our commitments and the SDGs on page 159).
issues on our business and on other companies. We are
certified as a B Corp, an initiative of the B Corp movement,
which recognises organisations that give equal weight to
See the full list of movements in which we are
engaged on pages 172-174.
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31
2019 ANNUAL REPORT Integrated vision of
our performance
GRI 103-2, 103-3
In 2019, we progressed on diverse fronts in
our business, allying economic results with the
generation of value for our complete relationship
network, which once again shows the power
of the Natura brand.
We posted robust financial performance, even
faced with a challenging social and political
conjuncture in diverse markets: our net revenue
increased by 6.7%, growing 4% in Brazil
and 13.5% in the other Latin American operations.
Net revenue in Brazil was R$ 6.260 billion; in Latin
America it was R$ 2.742 billion.
Natura also maintained its leadership of the cosmetics sector
in Brazil and is the preferred brand of consumers in four of the
six countries in which the company operates directly in Latin
America. The growth plan for consultants, launched in Brazil
and Chile in 2017, was expanded to the whole region, with
excellent acceptance. The use of the digital platforms also
gained traction, with over 1.6 million consultants on the website
and the app, half of whom already have their own online sales
space. With the new value proposition, network productivity has
been growing for 13 consecutive quarters in Brazil.
We ended the year with 422 Aqui tem Natura stores,
franchised to consultants based on the strategy of stimulating
their entrepreneurial spirit, a model which is growing rapidly .
We opened the first unit based on this model outside of Brazil,
in Peru. With the new store concept inaugurated in May, there
was an increase of almost 100% in net revenue in the Natura
retail channel. The brand’s own stores in malls and commercial
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32
2019 ANNUAL REPORT centres total 67 units and are present in 16 states in Brazil, in
Argentina, Chile, France, Malaysia and the United States.
Natura net revenue
Online sales enjoyed another year of growth and integration of
the website with the other channels increased, in particular in
the convergence model with consultants.
Moreover, the company saw important advances in its main
Other countries
in Latin America1
69.5%
Net
Revenue:
R$ 9.0 b
30.4%
12.8%
Peru
Mexico
25.9%
Net
Revenue:
R$ 2.7 b
16.1%
Colombia
Argentina
socioenvironmental indicators. Revenues from the Crer Para Ver
Brazil
product line, in which profits are invested in public education,
reached new record results, totalling R$ 38.7 million in Brazil
and R$ 15.1 million in the other countries in Latin America.
0.1%
Others2
Regarding inclusion and diversity, women now occupy more
1. Business in Bolivia is conducted through a local distributor.
14.3%
Chile
31.0%
than 40% of leadership positions, comprehending director level
and above. We also saw an increase in the number of families in
the supplier communities in the Pan-Amazon region, with total
business volume in the region reaching R$ 1.8 billion since 2011
– 80% above the target established for the end of 2020.
We still face certain challenges, an example being carbon –
where we had a 2% reduction in greenhouse gases (GHG)
emissions in 2019 –, and in waste, in which we continued to
increase the volume of recycled and recyclable materials used in our
packaging, but we have ambitious targets to improve these results.
Natura &Co: global results
With positive contributions from Natura, The Body Shop and
Aesop, the group’s consolidated net revenue increased by
7.8%, reaching R$ 14.445 billion in 2019.
Our complete financial statements may be accessed at:
https://ri.naturaeco.com/en/
2. The businesses in the United States, France and Malaysia do not yet have a basis for levying income tax.
Income tax due in 20193
Other countries
in Latin America
Income
Tax:
R$ 160.9 m
53.8%
46.2%
Brazil
Colombia
24.6%
24.0%
Argentina
Mexico
4.5%
Income
Tax:
R$ 70.9 m
Peru
15.3%
31.6%
Chile
3. The disclosure of tax payments per country is part of Natura’s commitment to the B Team
Responsible Tax Principles. Read more on page 79.
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33
2019 ANNUAL REPORT
Main indicators
GRI 201-1 Direct economic value generated (R$ million)1
Generated
Revenues (R$)
2017
13,824
2018
19,131
GRI 201-1 Economic value distributed (R$ million)
Distributed
Operating costs
Employee salaries and benefits
Payments to suppliers
Payments to government
Payments to creditors
Community investments3
2017
4,873
1,836
3,116
1,994
1,040
295
2018
5,619
2,813
4,712
2,414
2,693
307
2019
20,312
2019
6,421
3,011
5,354
2,349
2,775
312
Total
13,154
18,558
20,223
GRI 201-1 Economic value retained (R$ million)
Retained
“Direct economic value generated” less “Eco-
nomic value distributed”
GRI 201-1 Other economic indicators (R$ million)
Distributed
Consolidated net revenue
Consolidated Ebitda
Consolidated net income
Free cash generation
Average daily volume of shares traded4
2017
670
2017
9,857
1,787
724
617
46
2018
572
2018
13,397
1,846
548
469
59
2019
88
2019
14,445
1,905
392
398
129
Environmental indicators
Relative GHG emissions (kg CO2e/kg product billed)1 2
2017
3.20
2018
3.14
2019
3.18
GHG emissions in the value chain (tCO2e)2
308,048
333,183
325,840
Water consumption in Brazil (l/unit produced)
0.53
0.52
0.59
% post-consumer recycled material in finished
product packaging — Brazil
% eco-efficient packaging Brazil3
Vegetalization rate in formulas (% of total mass)
Raw materials originating in Pan-Amazon region
(% in relation to sales amount)
4.6
21
81
18.1
5.4
22
81
17.8
8.6
19
80
17.7
Social indicators
Crer Para Ver revenue (R$ million)1
Families benefiting in Pan-Amazon supplier communities
Pan-Amazônia
1 Includes the proceeds in Brazil and in the other Latin American operations.
2017
2018
2019
35.7
44.2
53.8
4,294
4,636
5,136
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34
2019 ANNUAL REPORT
Our strategy
Life is a
chain of
relationships
The world of Tamires, 29, inspires us because
it is made up of women who believe that
people have the power to transform reality.
A consultant for seven years, she created
Cooperlad, a cooperative that supports income
generation for smallholders in Tucano, Bahia.
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35
2019 ANNUAL REPORT Sights
on the future
At Natura, we set ourselves the constant challenge
of meeting the needs of the present without losing
sight of the long-term. After two years of advances in
the revitalisation of our business model, involving a
more attractive value proposition for our consultants,
expansion to a multichannel presence and resumption
of growth, 2019 was focused on preparations for the
transformation we envisage for the future.
More than just driving innovation, sustainability is a
lever aimed at generating value for Natura, and this is
becoming increasingly explicit in our strategic direction,
in our brands and categories, in line with our Vision.
For Natura
there is
no us
without
each one
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
36
2019 ANNUAL REPORT WWith the growth plan for the consultants implemented
throughout Latin America and the adoption of a
series of tools that facilitate their online activities, we are
now furthering the convergence of these models. All the
consultants are integrated into the online and offline world
and are increasingly incorporating more resources to expand
relations with their customers. The new services offered to the
consultants include means of payment and a digital account.
In retail we continue to increase the number of company-
owned stores and Aqui Tem Natura franchises managed by
our consultants. As a result, we have exceeded the mark of
480 stores in Brazil. Accordingly, we are consolidating an
omnichannel Natura, involving a close, direct relationship with
consumers wherever, whenever and in the whatever format
they want. From now on, our focus will be on further driving
interaction between these resources.
In 2019, company efforts to generate more disruptive
innovations led to products with proprietary technologies,
such as the use of prebiotics to help skin to self-hydrate
intelligently and a biotechnology protein for hair, an exclusive
Natura development in partnership with a German start-up.
All of this is combined with the use of natural ingredients and
social biodiversity active ingredients, our main differentials.
Approximately 80% of our portfolio is vegan.
Natura’s
strategic
pillars
Strengthening
preference,
desire and the
power of the
brand
Pursue greater
differentiation
and innovation
in our categories
and revitalise the
architecture of the
sub-brands
Expand
omnichannel
presence
Boost the power
of new direct selling,
integrating the online and
offline consulting models
and improving the consumer’s
shopping experience
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
37
2019 ANNUAL REPORT With our début in Malaysia in October, we are testing a
novel format for operating in new geographies, connecting
with commercial partners and taking advantage of The
Body Shop’s experience in the region, without losing sight
of our value proposition. The venture incorporates the full
Natura brand experience and hit the ground running as
a multichannel operation, with a store, e-commerce and
Relationship Selling. The entire process was designed and
executed in less than a year, proving that agile models are
here to stay.
The reorganisation of our way of working is a reality
in many contexts in Natura, with teams organised in
tribes and thematic cells, in a less hierarchical, more
autonomous configuration. The vision of the area in
this case gives ground to one more focused on cross-
functional and interdependent activity centres.
The next step is to use all these resources to generate
new product and service solutions. This is the mission
of a new business platform developed in Natura, which
integrates competencies such as data intelligence, user
experience (UX), service design and open innovation.
The idea is to foster new business opportunities based on
this ecosystem by also involving the Relationship Selling,
digitalisation and retail areas.
Accelerate the
digital transformation
of the business
Accelerate entry into
international markets
that permit
scalable growth
Adopt innovative
people management
and organisational models
that enable
future businesses
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38
2019 ANNUAL REPORT More beauty
in the world
For us, creating a more beautiful world means
contributing to environmental, social and economic
well being through our business. It means creating
products whose key ingredient is ethics, bringing
together a network of people driven by this
same purpose. In 2019, Natura reaffirmed these
commitments, translating its Essence in the new brand
expression: when you care, you create beauty.
This positioning is aligned with our 2050 Vision,
which outlined a route for making Natura a company
that will generate positive impact in the coming
decades, in addition to reducing and mitigating the
impacts from its activities.
You cannot
do well in a
world that
is doing
poorly
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
39
2019 ANNUAL REPORT Launched in 2014, the 2050 Sustainability Vision connected with
our strategy to such an extent that it influenced the Natura &Co
corporate vision. More than a sustainability plan, it represents a
commitment by the entire business to generate positive impact. We
want our activities to contribute towards protecting and regenerating
the entire ecosystem to which we belong.
The first milestone in this planning, the 2020 Ambitions, are a set
of targets related to biodiversity, waste, carbon emissions, water,
diversity, income generation, among others, whose cycle will be
concluded at the end of this year. By 2019, the company had
achieved 70% of these commitments.
We experienced business challenges during this period – we
restructured the company to recover our sales results, we
transformed the direct selling model to generate greater value for
the consultants and for Natura and we became an omnichannel
company, offering consumers a complete brand experience.
And we also learned a significant amount. The achievement of some
commitments depends on the engagement of society and systemic
changes in behaviour or the development of new technologies. We
organised the material topics in three causes (Standing Forest, More
Beauty, Less Waste and Every Person Matters), which act as a guide
for us not only in our commitments but in the way we engage our
network in building a fairer, more equal society.
We have an important task ahead of us. Combining the strengths
of Avon, The Body Shop and Avon, we will expand our capacity
to generate and share value. Natura &Co is global group of iconic
brands based on the same belief that there is a better way of doing
business: we do not just want to be the biggest cosmetics company
in the world, we want to be the best FOR the world.
Our union
is the great
revolution
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
40
2019 ANNUAL REPORT Our
causes
We want our brands to expand the consciousness of
consultants and consumers and help us to mobilise our
relationship network to build a more beautiful and more
sustainable society.
How did we define them?
We selected needs of society that we could help to
resolve based on our business model. We will use our
business and our connections to generate transformation
in areas of public interest.
We have always had this concern, which is expressed
in our Essence and in our belief in Well Being Well.
We act and monitor results constantly, and now we have
organised our actions on three fronts to boost the
engagement and mobilisation we generate in these
areas. By doing this, we increase the transformational
power of our business model.
Standing Forest
More Beauty,
Less Waste
Every Person
Matters
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41
2019 ANNUAL REPORT
How we
will act
Communication
and engagement
call to action,
generate mobilisation
Advocacy
join forces,
ensure visibility
and generate
public interest
in these topics
Developing a framework
for our programs
and plans to
promote positive
impact
Standing
forest
economy
Standing
Forest
Valuing
and developing
people
Zero
illegal
deforestation
Refills
Plastic
More
Beauty,
Less
Waste
Diversity
Recycling and
post-consumer
recycled
material
Every
Person
Matters
Education
and
development
Income
generation
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42
2019 ANNUAL REPORT
Generating
positive impact
The desire to make Natura a company that generates value
for the whole of society drives our business decisions, the way
we relate to our stakeholders and our way of making products,
selling them and connecting with consultants and consumers.
Innovation and technology – unite nature and beauty. They
accelerate connections and expand the opportunities our network
has to do business and spread Well Being Well in an omnichannel,
agile manner in multiple geographies.
Our brands – the Natura brand and its daughter-brands express what
we are and how we do things. They boost the reach of our messages.
The Natura way of making products – delicious to use and
innovative, they are good for the body, for the forest and for
the communities that live in them. Our choices involve: care
with origin, natural formulas, safety for everyone (and for the
environment), with no animal testing, ecological packaging and
commitment to the climate.
Our relations – we connect suppliers, consultants and consumers
around a common purpose, inviting them to perceive their role in
transforming each person and the world.
Ethical and fair trade – conserves social biodiversity and fosters the
social and economic development of the supplier community chain.
Impact valuation – we seek to improve assessment of social and
environmental impacts to relate our business results to value
generation for society.
Transparency and business
behaviour - certifications and partnerships*
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43
*Full list on pages 172-174.
2019 ANNUAL REPORT
Cause
SDG
Read more on
page 159
Material topic
Read more on page 201
Other related
topics
2020 ambitions
Read more on page 159
Standing forest
Standing Forest
economy
Valuing people and the
forest
Zero deforestation
More Beauty, Less Waste
Recycling
Recycled
materials
Eco-efficient
packs
Reverse Logistics
Climate
Change
1 2 3
6
8
9
10 12
13
14 15 17
Social biodiversity
Climate
change
Water
Work and income
Product transparency
Education
Waste
Waste
3 7
11
12
14 15
9
13
17
Climate change
Water
Work and income
Product transparency
Every Person Matters
Diversity
Education
Income generation
1 3
5 8
12
4
10
16 17
Work and income
Diversity and inclusion
Education
Product socioenvironmental footprint
Consumption of Amazonian
ingredients
Amazonian families
Business volume in the Amazon
Carbon offsetting
Communities
•Human and social development
•Territory strategy
Product socioenvironmental footprint
Eco-efficient packaging
Packs with recycled material
Reduction of GHG emissions
Carbon offsetting
Renewable energy
Water footprint
Reverse logistics
Natura consultant
•Average income
•Entrepreneurship
•Human and social development
•Education
Co-workers
•Women occupying leadership
positions
• Inclusion of disabled people
•Engagement and culture
Communities
•Human and social development
•Territory strategy
Consumers
•Mobilising consumers
Suppliers
•Socioenvironmental assessment
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2019 ANNUAL REPORT
Standing Forest
more than
5,100
supplier
families
in the region
R$ 1.8
billion
invested in the Amazon
from 2010 to 2019
17.7%
of Pan-Amazon
inputs1 2
used in
formulations
Natura has been
carbon
neutral since
2007
Emission offsetting
includes the impact
throughout the
value chain*
* All emissions up to 2018 have
been offset; 34% of the credits
from the period 2017/18 are from
the Amazon region
CO2e
100%
of the social biodiversity chain
is traceable and UEBT certification
for the Ekos line
More Beauty,
Less Waste
Our Packaging
50%
is recyclable material1
of its
composition
8.6%
post-consumer recycled
material in packaging1
Every Person
Matters
In 2019, growth of
12%
in business
leaders’
income
(and income
stability for the
consultant)1
41%
women as
directors and
vice presidents
47% of the volume1 3 of
waste generated by our
packs is recycled, in a
reverse logistics process
18%
eco-efficient
packaging 1 4
7%
of work force
disabled1
R$ 53.8
million
R$ 33.5
million
raised by Crer Para Ver to
drive improvements in
public education in Brazil
and Latin America
allocated to supplier
communities for the
purchase of inputs, benefit
sharing and training
1. Data refer to the Brazil operation. 2. Pan-Amazon comprehends all the regions that are part of the Amazon Rainforest, in
diverse South American countries. 3. In tonnes equivalent. 4. Packaging at least 50% lighter than regular/similar packaging;
or comprising 50% post-consumer and/or renewable non-cellulosic
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45
materials that do not increase mass.
2019 ANNUAL REPORT
Evolution of our targets
and commitments
We have achieved 70% of these commitments. We
coordinate our efforts to improve our performance.
There follows a description of the main 2019 highlights on
each of these fronts.
During this period, we have become more diverse, with more
than 40% of director level and higher positions occupied
by women (page 126). We have developed methodologies
to monetize our environmental impacts, and we are creating
indicators to do the same in the social area (page 89). We
generated more businesses in the Pan-Amazon* region and
around 5,100 families in the region supply us with social
biodiversity ingredients and work towards keeping the forest
standing (page 97), promoting the conservation of 1.8 million
hectares of forest.
And we have also learned a lot. The achievement of
some commitments depends on the engagement of society
and systemic changes in behaviour or the development
of new technologies.
* Pan-Amazon comprehends all the regions that are part of the Amazon Rainforest, in diverse South
American countries.
The world
needs
us
together
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46
2019 ANNUAL REPORT
Status of 2020 Ambitions
2020 Ambition
Achieved/
On target
On track
Not achieved/
Behind target
X
X
X
X
X
Management and organisation
Valuation of externalities
Implement Consulting Council
Promote public debate on
materiality
Governance model with external en-
gagement
Transparency in product information
and evolution of 2050 Sustainability
Vision
Brands and products
Implement product socioenvironmental
footprint
Reduce relative carbon emissions
by 33%
Offset 100% of carbon
emissions
Renewable energy strategy
Water footprint strategy
Eco-efficient packs*
PCR Packs**
Use of recyclable material
Waste collection and recycling
10,000 families in the
Pan-Amazon production chains
Generate R$ 1 billion in business
volume in the Pan-Amazon region
Guarantee 30% of inputs from
Pan-Amazon region
Traceability of inputs
X
X
X
X
X
X
X
X
Target achieved On track Behind target
Our network
Consultant average income
Consultant entrepreneurship
Consultant human and social
development
Consultant education
Inclusion of disabled people
Women occupying leadership positions
Employee engagement and culture
Evolution of supplier management
Community human and social
development
Territory strategy (surrounding and
supplier communities)
*Eco-efficient packaging Packaging at least
50% lighter than regular/similar packaging;
or comprising 50% post-consumer
and/or renewable non-cellulosic
materials that do not increase mass.
**PCR: Post-consumer recycled material.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
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2019 ANNUAL REPORT
Our businesses
The pursuit of
beauty, a genuine
aspiration of every
human being,
should be free
of preconceived ideas
and manipulation
The world of Eloiza, 53, is made up of women
who dream. Who spread beauty, self-esteem
and inspiration to the world of other women.
Eloiza has been a Natura consultant for 12
years and brought her children up with help
from this activity.
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2019 ANNUAL REPORT Omnichannel
Natura
The celebration of our 50th anniversary marks a
track record based on valuing human relations and,
at the same time, signals the beginning of a new
stage in our history. A company that increasingly
believes in the power of relationships, especially
when combined with new technologies and new
ways forms of contact.
This is how we are building an integrated
ecosystem in which the paths to our consumers
(Relationship Selling, e-commerce, and retail)
complement each other, leveraging our results
and those of our network.
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49
2019 ANNUAL REPORT With Relationship Selling, we have concluded the
convergence process. Since June 2019, all Natura
Beauty Consultants in Brazil have been able to adopt a hybrid
All the evolutions during the course of 2019 constitute the
foundations of the path for the new transformations that will
come. Anchored in the digitalisation process, we intend to
format, selling products in person and also via the internet, with
build a new Well Being Well business platform, for which we
a customized virtual store, linked with our online sales channel.
are accelerating the conception of new products, services
and experiences for consultants and consumers.
We have also launched this format in Colombia and
Peru – Argentina and Chile already employed digital sales.
We also maintained our retail expansion strategy. We ended
2019 with 489 stores, counting company owned points of
sale and the Aqui Tem Natura stores. In the beginning of
2020, we passed the mark of 500 establishments, bringing
us ever close to our consumers. Located in 16 states in
Brazil, in Chile, in Argentina, in France and in the United
States, our stores were extended to new geographies in
2019. In October, we inaugurated the first Natura pop-up
store in Malaysia, the Asian country chosen to initiate the
company’s new international expansion cycle. We initiated
the operation with an omnichannel strategy, with the
simultaneous implementation of e-commerce, Relationship
Selling and retail. In December, it was Peru’s turn to open
its first Aqui Tem Natura store –the first point of sale in
this format outside of Brazil. The robust results in our own
retail initiatives influenced the decision to prioritise them,
leading to the discontinuation of company partnerships with
pharmacy chains and department stores.
It cannot
be good
if it is just
for a few
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50
2019 ANNUAL REPORT More digital
Relationship
Selling
The convergence manoeuvre concluded in June 2019
leveraged our consultants’ entry into the online sales channel
in Brazil and the other countries in Latin America. By the end of
the year, 680,000 consultants had opened virtual stores. This
represents a 36% increase over the previous year. The number
of consultants who join and start selling via the digital channel
in parallel with face to face selling also grew in 2019. At the
end of last year, 80% of the new consultants set up their digital
store when they started selling.
We do not measure digitalisation only by the number and the
performance of the virtual stores linked with our digital sales
channel. At the end of 2019, almost all the consultants in Brazil
and in the other Latin American operations were using the
digital platform, available as an app for smartphones and as a
mobile website. In Brazil, for example, 80% of the accesses to
the digital platform occur via the application, which streamlines
the execution of routine tasks (inputting and consulting orders,
issuing payment orders, among other options). This enables
consultants to dedicate more quality time to customers, be it
face to face or virtually.
In 2019, we sought to leverage the use of solutions already
available on the platform, such as CRM tools, which enable
the consultants to access information about their customers’
buying habits so that they may devise activation measures
and personalised promotions. Considering the intensive use
of the social networks, in particular WhatsApp and Facebook,
we developed the Minha Divulgação in which the consultant
creates personalised content using an image library on
the application, boosting sales conversion potential in the
virtual channels, as well as improving the consumers’ brand
experience. At the end of the year, the service was being
used over two times a month by 24% of our consultants
in Brazil. Shortly this will be complemented by multimedia
material, such as videos produced by the actual consultants.
Consultants in the virtual world
• 1.6 million consultants engaged in the digital platform
(app + site)1.
• 680,000 virtual stores2.
• Over 33% of orders transmitted via the Consulting app1.
• 80% of new consultants set up their virtual store immediately2.
• 24% of the consultants use the contents available
in Minha Divulgação, on the Consulting platform
over twice a month3.
• 4.5 point satisfaction rate with the Consulting app in the
Play Store evaluation (from 1 to 5 points)1.
1. The data apply to consultants in Brazil, Argentina, Chile, Colombia, Mexico and Peru.
2. The data apply to consultants in Brazil, Argentina, Chile, Colombia and Peru.
Natura will launch its online sales channel in Mexico in 2020.
3. The information refers to consultants in Brazil.
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2019 ANNUAL REPORT
Our consultant network
Natura ended 2019 with over 1.8 million consultants in Brazil and its
other operations in Latin America. The total in Brazil is 1.1 million,
a slight increase over the previous year. The perspective is that the
convergence of the face to face and digital models will attract a more
significant number of entrepreneurs to our network in the coming
years, especially younger and more digitally engaged people.
In Latin America, there were 708,000 consultants at the end of
2019, a 10% increase over the previous year. During the year, the
operations in Argentina and Mexico exceeded the mark of 200,000
consultants. Among the leaders, we verified a slight reduction both
in Brazil and in the Latin American operations that use this model
(Chile, Colombia and Peru).
The consolidation of our new direct selling model continued in
2019, reaching all the countries in Latin America. In Brazil, there
are five career progression levels for the Beauty Consultants:
Seed, Bronze, Silver, Gold and Diamond. The consultants move
to a higher level as their sales performance improves, with the
percentage earned from sales increasing at each new level.
Consultants at more advanced levels are also able to take courses
and win exclusive prizes and recognition. We remain committed
to enhancing the Relationship Selling model. In 2020, we are
going to invest in segmentation measures in accordance with the
consultant’s level, with differentiated strategies to drive proximity
and greater engagement in the activity.
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52
2019 ANNUAL REPORT We are also revitalising the value proposition for the Business
Leaders, who reconcile Natura product sales with managing and
Consultants and leaders – Brazil (thou-
sands)
supporting a group of consultants.
Consultants
2017
1,129
2018
1,058
2019
1,092
2019
209.5
72.9
115.2
221.9
89.3
708.7
Consultants – Operations in Latin America (unit)
Argentina
Chile
Colombia
Mexico
Peru
Total
2017
170.9
73.4
96.7
160.6
87.4
2018
189.0
73.0
108.4
183.9
90.5
589.0
644.8
Leaders – Operations in Latin America (unit)1
2017
2018
2019
Chile
Colombia
Peru
Total
420
719
845
420
700
650
427
661
516
1,984
1,770
1,604
1. There are no leaders in Argentina, and in Mexico the model has a different system for classifying the consultants.
In our Latin American operations, the career progression levels
vary from country to country. In Mexico, which has a differentiated
multilevel model in which the consultants build up their own sales
networks, there are six progression stages. For the three most
advanced levels, (Platinum, Sapphire and Diamond), in addition to
higher earnings, there is a points programme inspired by airline and
credit card company loyalty programmes. These points may be
exchanged for products from Natura and partnering companies,
including some with B Corp certification. It is also possible to
redeem accumulated points to acquire a carbon emissions
offsetting bonus and books donated by Natura.
GRI 102-7 Consultants – Brazil and Operations in Latin America (thousands)1
2000
1500
1000
500
0
1,718.0
1,702.8
1,800.7
2017
2018
2019
1. Does not include leaders.
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53
2019 ANNUAL REPORT Income generation
and a decent life
Since the model was revitalised in Brazil, the productivity of our
network has not stopped growing. The end of 2019 represented
13 consecutive quarters of growth. Consultant productivity rose
4.5% compared with 2018.
The annual average income of consultants in Brazil remained stable
compared with the previous year, while the annual average income
of leaders increased by 12%. In this last measurement we adopted
the concept of a living wage as a reference, which refers to the
minimum income necessary to have a decent standard of living,
enabling access to habitation, sanitation, water, food, healthcare,
education and well-being. For consultants, who do not usually work
full-time, the reference amount adopted was R$ 11.00 an hour. In
the case of leaders, who have a more entrepreneurial profile and
are responsible for a network of consultants, the basic income
reference used was R$ 1,950 per month. All the consultants in the
three most advanced career progression stages (Silver, Gold and
Diamond) had average hourly earnings related to consulting above
the established reference value. And 95% of the leaders also had an
average annual income higher than the reference rate. GRI 203-2
GRI 203-2 Average annual income for consultants and leaders – Brazil (R$)1
Business leaders
50000
25000
Consultants
4000
37,195
41,536
29,803
2000
3,097
3,885
3,821
0
2017
2018 2019
0
2017
2018
2019
1. In 2019, we adjusted the calculation of consultants’ income to ensure broader consideration of the
different strategies they use in purchasing Natura products and pricing them for their customers.
With the alteration in the calculation rationale, the values for 2017 and 2018 were restated. The
previous amounts reported corresponded to R$ 4,728 in 2017 and R$ 5,318 in 2018.
Caring
for oneself
to care
for others
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54
2019 ANNUAL REPORT
Financial inclusion
for consultants
With the objective of promoting the financial inclusion and
bankarisation of our consultants in Brazil, as well as increasing
their productivity and income, in 2019 we started offering them
a 100% digital bank account that can be opened and managed
directly via the Natura website or the digital platform.
The service, provided in partnership with financial institutions,
also offers special conditions for the acquisition of portable card
terminals to meet the growing demand from consumers who
prefer to pay for their purchases by credit and debit card. The
proceeds from the sales made by consultants in their virtual store
are credited directly to this account, as is the balance from the
face to face sales made using the card terminal. With the funds
available in the account, the consultant can make purchases with
her Natura card, pay bills, withdraw and transfer money.
Training and
engagement
We recognise the importance of training for the development
of our consultants. In Brazil, the total number of face to face
and virtual training sessions concluded in the year grew by 24%,
reaching 3.6 million in 2019. The number of consultants trained
increased from 15% to 23% of the total base. To ensure a closer
focus on digital training, we reformulated the courses for beginners,
which were no longer given by the business managers and became
100% virtual. Worthy of note in face to face training were the more
in-depth courses for specific categories, such as perfumery,
makeup and face.
In the operations in Argentina, Chile, Colombia and Peru, 26,000
consultants received face to face and virtual training in each
sales cycle (the numbers for training sessions conducted in Latin
America and Brazil are available in the Attachments). In Mexico, we
launched podcasts on Spotify. These were aimed at the consultants
and may also be accessed by anyone interested in learning more
about the model. There were seven episodes lasting on average
30 minutes each. They employ simple, humorous language to
talk about subjects such as how the model works, how to build
valuable relationships, the differentials of the Natura brand and how
to organise finances, among others. The consultants also receive
virtual and face to face
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55
2019 ANNUAL REPORT training, as in the other countries. The difference is that the face
In the operations in Latin America, where the survey is still
to face training sessions are organised by the leaders, always with
conducted on an annual basis, the situation was the same: a similar
support from Natura.
We also organise a series of engagement actions. The most
emblematic is the Annual Encounter, in which we bring together a
result in consultant loyalty and a more significant increase for the
leaders. The table shows the results for the last three years.
large audience to share our future ambitions and the way in which
GRI 102-44 Consultant relationship quality Brazil1 4 (%)
we intend to achieve them. This is also the occasion on which we
organise actions to recognise consultants for the length of their
relationship with the company. The 2019 encounter in Brazil was
attended by almost 850 people. There was a record audience in
Mexico, with two thousand participants from every region of the
country. In Argentina, the annual encounter was one of the events in
the Semana Mais (further information on page 147), which mobilised
some 10,000 people, including co-workers, consultants, leaders and
end consumers in the country’s capital, Buenos Aires.
Loyalty
Knowing the degree of satisfaction, intention to continue the relationship
with Natura and the probability that a consultant will recommend
the company to third-parties is fundamental for Natura. In Brazil, these
indicators, which are the basis of the loyalty index, are measured in every
Satisfaction2
sales cycle for consultants and every two cycles for leaders.
Loyalty3
Satisfaction2
Loyalty3
20174
2018
2019
76.6%
78.8%
79.3%
22.2%
22.5%
22.6%
GRI 102-44 Leader relationship quality Brazil1 (%)
20174
2018
2019
Satisfaction2
Loyalty3
68.3%
64.8%
64.2%
17.3%
12.1%
14.6%
GRI 102-44 Relationship quality
consultants Latin American Operations1 (%)
Satisfaction2
Loyalty3
GRI 102-44 Relationship quality leaders
Latin American Operations1 (%)
2017
95.7%
43.1%
2017
97.3%
56.3%
2018
95.2%
42.0%
2018
97.0%
62.6%
2019
94.0%
42.3%
2019
98.0%
66.0%
The greater frequency, made possible by migrating the survey to an
online format, enables Natura to identify opportunities to improve
relations and to correct any deviations in course more rapidly. On
average during the year consultant loyalty stood at 22.6%, similar to the
previous year, whereas loyalty among the leaders increased to 14.6%.
1 Source: Kantar, for consultants in Brazil, and Ipsos Institute, for Latin American Operations.
2 Satisfaction: Percentage of consultants and leaders who are “completely satisfied” or “very satisfied”, who gave a
score of 4 or 5 (“Top2Box”) on a scale from 1 to 5 points in relation to their overall satisfaction with Natura.
3 Loyalty: percentage of consultants and leaders who gave the top score (“Top1Box”), on a scale from 1 to 5
points, for three aspects: overall satisfaction with Natura, intention to continue the relationship with the company and
recommendation of Natura to other people.
4 In Brazil, we started to release the results of the annual average of the surveys undertaken in each sales cycle for the
satisfaction and loyalty indices in 2018 and since then we have restated the 2017 numbers to ensure comparability.
Previously, we reported the results of the annual surveys.
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56
2019 ANNUAL REPORT
Evolution in
service levels
We make a point of providing our consultants with the best
possible service, ensuring quality and agility. The Natura
logistics system comprises the Itupeva hub in São Paulo and 12
Average delivery time
Brazil (days)
distribution centres in Brazil and in the other countries in Latin America
Consultant
in which we operate. This work enables a high degree of effectiveness
in delivery times – approximately 98% – and we continue to improve
in deliveries in up to 48 hours, which holds true for 70% of orders in
Brazil and 60% in the other countries.
In 2019, we discontinued activities at the São José dos Pinhais
distribution centre in Paraná, redistributing the operation among the
other distribution centres. We also inaugurated our new distribution
centre in Mexico, which will support our growth strategy in the country
for the next five years (further information in the following box).
In pursuit of continuous improvement, in 2019 we started measuring
the consultants’ level of satisfaction with the delivery service in
Brazil. Using Net Promoter Score (NPS) methodology, our average
satisfaction rating corresponded to 78 points in this first year. The
survey is sent by email soon after the delivery has taken place; we
received an average of 40,000 responses per month.
For the next two years we intend to implant even more significant
innovations and advances in our logistics network, consolidating
same day delivery for the major urban centres, programmed
deliveries, and pick up from stores and other convenient locations. We
are also studying new ways of providing consumers with the product
as soon as they need it. We intend to involve our relationship network
to enable these strategies.
Consumers (online purchases)
Operations in Latin America
(days)1
Consultant
2018
5.4
5.2
2018
3.2
2019
4.7
4.2
2019
3.4
Delivery in 48 hours
50%
of the consultants’ orders
in Brazil and the other countries
in Latin America.
In the main cities and
state capitals in Brazil
the rate reaches 70%.
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2019 ANNUAL REPORT
New Distribution
Centre in Mexico
Inaugurated in August, the new Distribution Centre in Mexico
eco-efficiency measure is the use of process residues by
replaces Natura’s old one, which was located on the premises of one
suppliers to make pallets from wood and other materials.
of our supplier partners. Involving an investment of R$ 45 million
– the largest Natura infrastructure project outside Brazil –, the centre
The distribution centre employs some 200 people who work
employs leading edge technology, ensuring greater agility and quality
in shifts. With the consolidation of the Natura operations,
in the order picking process, reducing costs for the company and
the centre will incorporate logistics for the The Body Shop.
improving service levels for consultants. Operated by a combination
This initiative is part of the synergy process between the two
of staff and robots, the capacity of the picking line is 1,300 orders per
companies announced in 2019, whereby Natura assumed
hour or more than seven million orders per year.
Located in the municipal district of Cuautitlán Izcalli, in the east of
the country, the centre occupies an area of over 20,000 m2 and
is equipped with more efficient LED lighting. Rainwater is also
management of The Body Shop operation in Latin America. In
Brazil, the São Paulo Distribution Centre should incorporate
The Body Shop products into its operation in 2020. With the
acquisition of Avon, we intend to map synergies between our
logistics operations in Brazil and the other countries in Latin
harvested in the facility and used to irrigate green areas. Another
America in which the two brands are commercialised.
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2019 ANNUAL REPORT Natura Experience
Centre
The Natura Experience Centre assumed even greater importance
in 2019. The centre is responsible for monitoring information
related to logistics, product availability, systems and technologies in
data that drive continuous advances in our processes.
We also monitor the consumer experience based on the information
real time, aimed at eliminating deviations and driving the best possible
gathered by the consumer call centre. The reason for the contact,
service levels for consultants. The team was reinforced with new
time to resolve the problem and rate of calls resolved in first contact,
members, whose mission is to monitor and enhance key processes
among other indicators, are monitored. We also measure satisfaction
and react rapidly to any problems, minimising impacts for consultants
with the call centre using Net Promoter Score (NPS) methodology.
and informing them proactively before they contact Natura.
As with the consultants, we pay careful attention to special dates. On
We also seek to identify solutions to avoid the repetition of deviations
by our centre increased by 13% compared with the previous year.
Black Friday in 2019, consumer satisfaction with the service provided
and to implement procedures to reduce recurrence on special
dates, when Natura sales volume increases. One result was the
20% reduction in the number of calls from consultants to the Natura
For the third year running, Natura was champion in the Customer
Service ranking organised by the Instituto Ibero Brasileiro de
Consultant Call Centre (Natura Atende Consultora). Problems with
Relacionamento com o Cliente (IBRC) in partnership with Exame
orders during Christmas 2019, a strategic date for Natura, were reduced
magazine. In the same award, we were also elected company of
by over 60% compared with the same period of the previous year.
the decade in customer service. For the second time running,
We also created a data bank with all the information from
Brasileira de Telesserviços (ABT), with more than ten award-winning
consultants who contacted the call centre. Analytics toolsgenerate
cases in the last three years.
we received the Excellent Company award from the Associação
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2019 ANNUAL REPORT Virtual assistant
and digital influencer
Nat is our virtual assistant, who gained a new look and assumed
new attributions in 2019. Created to provide an agile response
to the doubts of consumers, consultants, leaders and business
managers, she made her début in the social networks and took
over the official Natura account on Twitter. Today, she acts
Nat numbers
• 90,000 interactions/month;
both as an assistant to our customer service team and a digital
• 65,000 users/month;
influencer. With this change, Nat has been helping Natura to get
closer to the youth audience and remain hyper-connected.
For consumers, she is available on the Brazilian website
natura.com.br. She may also be accessed by consultants on the
company’s digital platform and by leaders and business managers
on the exclusive Sales Force app. In a pilot project Nat made an
appearance on WhatsApp, generating four thousand interactions
in only eight days. In 2020, both consultants and consumers from
all over Brazil started to interact with Nat on WhatsApp.
On Twitter, she takes part in major discussions and movements
happening in Brazil and worldwide that have repercussions on the
social networks (read more in Engaged consumers, on page 146).
On occasion, Nat may be present in the Natura profiles on other
• She resolves 60% of the consultants’
needs, substituting interaction with a
traditional attendant;
• The consultants’ requests are related
to exchanging products, cycle orders,
copies of payment orders, courses and the
virtual store, among others.
• Most of the consumers’ requests
are related to product exchange, order
status and information about
how to become a Beauty
Consultant.
social networks, such as Facebook. At the end of 2019, the assistant
started work at Natura Argentina and will be incorporated into the
• Nat already has more than
145,000 followers on Twitter.
other operations in Latin America during the course of 2020.
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60
2019 ANNUAL REPORT Online sales
channel
Linked with the convergence project concluded in 2019,
to access institutional and brand contents when visiting the
our online sales channel strategy also underwent
natura.com.br website.
transformation. The purpose is to ensure our consultant network
may increasingly benefit from the opportunities generated by
The alterations enhanced our omnichannel system and boosted the
working virtually, boosting their productivity, sales volume and
benefits from each sales model. After an initial period of adjustment,
income. With the unification of registration and remuneration
the digital sales channel was stabilised and ended the year with 400
(further information on page 51), we established some minimum
million accesses and a significant double-digit growth rate in the
requirements for consultants who opt to work exclusively via
fourth quarter.
their virtual stores.
Once again, as part of our efforts to maintain the same service level
Another important change was the alignment between Relationship
for consultants and consumers, we set up an agile working structure
Selling and e-commerce commercial and promotion practices,
which were previously separated. With this, we linked the offer of
with all the teams from the different areas involved working in
a dedicated manner in the same physical space. For the fifth
products and, principally, promotions to the 21-day sales cycles.
consecutive year, during Black Friday we donated R$ 1 to a social
On the other hand, based on the data generated in purchases via
project we support in the Amazon region for each sale made via
the website, it was possible to intensify segmentation and meet the
the website. The consumer chooses which initiative the donation
specific needs of each consumer. This includes sending special
goes to. We also organised similar promotions in our stores and in
offers and discount coupons to a customer or user based on their
Relationship Selling.
purchase history or visits to our website.
On the first day of 2019, we unified our institutional and sales
websites. Since then, it has been possible to acquire products and
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61
2019 ANNUAL REPORT Online sales abroad
During the course of the year, we extended our online sales
channel to Colombia and Peru, as planned, as well as to the
newly launched operation in Malaysia. The channel had already
been implanted in Argentina, Chile, Europe (via our operation
in France) and the United States. In 2020, we will finalise the
implantation of our e-commerce operation in Mexico.
In the operations in Latin America, in which the Relationship
Selling model is well consolidated, the introduction of
e-commerce adopted the convergence model used in
Brazil, enabling consultants to work with the two formats.
Nature,
beauty and
technology
can and
should go
hand in hand
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62
2019 ANNUAL REPORT Retail
In the course of 2019, we inaugurated another 20
company-owned stores, totalling 67 points of sale in
Brazil, Argentina, Chile, France and the United States,
in addition to Malaysia.
a virtual mirror which permits the consumer to simulate various
makeup options and a real-time skin diagnosis that indicates
the best moisturising products. With augmented reality glasses,
it is also possible to embark on a virtual experience with Ekos,
discovering the work done by the extractivist communities in
In Brazil, we expanded our operations to the north-east of the
the Amazon, who cultivate and harvest the bioingredients used
country. Salvador, in Bahia, was the first state capital in the
in the product line.
north-east to receive a Natura brand store, in May. Throughout
the year, we extended our reach to Fortaleza (CE), Maceió (AL),
Yet another differential in this model, is the presence of makeup
Natal (RN), Recife (PE) and João Pessoa (PB), in the north-east
consultants who provide free advice to whoever is interested.
region, and to Vitória (ES). We are also present in other states in
the South, Southeast and Midwest of the country.
In 2019, we invested in training for our retail workers, with
emphasis on the fragrances in our portfolio. All of them are
also prepared to explain the differentials of Natura products,
We took advantage of the inauguration of the first space in Salvador
including the choices we make in ingredients. In another
to present the new own-store concept to consumers, with more
initiative, exploring the experimentation potential of our own
interactive trial solutions and greater connection with the Natura
stores, we made an exclusive offer of the new Natura Ekos
brand, our way of doing business and our positionings and causes.
deo parfum – Ekos Alma –, which was only included in the
The new architectural design used references to Brazilian modernist
Relationship Selling portfolio in 2020.
architecture, an example being the landscape designer Burle Marx,
and explored the wealth of the country’s biodiversity. The stores are
The stores have also started to collect post-consumer packaging
more spacious, with two or three isles for experimentation, enriching
from customers, which is then recycled and transformed into new
the consumer experience. Among the solutions employed there is
product bottles.
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2019 ANNUAL REPORT
We arrive in Malaysia
Enter a store to buy some shampoo and receive a diagnosis
about your capillary structure and the state of your hair, as
well as guidance on the most suitable treatment tailored precisely
to your needs. This is the experience available for consumers at
Natura’s newest store. A mobile device uses machine learning
and cross references data on research done by Natura with the
consumer’s habits to determine the best results. A similar resource
is available to conduct skin analysis. This is how Natura combines
technology, the best of science and brand experience to ensure
differentiation in a market known to be highly demanding in terms of
performance, especially in products for the face.
Our products have been available in Malaysia since October in a 100
m2 pop-up store in a mall in Petaling Jaya, a satellite city adjacent to
the capital Kuala Lumpur. Products are also being commercialised
online and by local Natura consultants. The model in Malaysia is
unique and represents an important test for the brand to accelerate
its expansion into new geographies. It was born omnichannel and is
fully managed by a head franchisee – in this case, a franchisee of the
The Body Shop, a Natura &Co group company.
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64
2019 ANNUAL REPORT The portfolio on offer is 100% vegan, comprising around 150
products from the Ekos, Chronos, Lumina, Mamãe e Bebê and
Natura Homem brands, in addition to perfumery. From the second
half of 2020, the store will migrate to a permanent space in the mall,
and new stores will be opened in other districts of Kuala Lampur.
In Brazil, some company-owned stores are already equipped
with this equipment that measures the level of damage to hair,
and the company intends to expand the offer of the other
experiences in the near future.
Entry into the Malaysian market has generated key learnings for
Natura. Employing the knowledge resident in the other Natura &Co
brands, the entire process – from planning, through the definition of
the portfolio to the launch of the website and opening of the store
– took just 10 months. This demonstrates how agile processes have
gained traction throughout Natura and can drive important gains.
The Body Shop operation
in Latin America
One of the synergies identified with the formation of the
Natura &Co group, in 2019 Natura took over the The Body Shop
operations in Latin America, which include 158 company-owned
stores and franchises in Brazil, Chile and Mexico. This change has
been driving the goal of reinforcing the The Body Shop’s presence
in the region, boosting its competitiveness and brand awareness.
The organisation’s logistics structure will also be fully integrated,
generating cost reductions. In Brazil, The Body Shop soaps are
already produced at the Ecoparque, in Benevides (Pará). Further
gains are projected through the capture of synergies in support
areas such as Human Resources, Finance and Technology.
At the beginning of 2020, the operations of the Natura &Co
group (Avon, Natura, The Body Shop and Aesop Brazil) in
Latin America were placed under the command of João Paulo
Ferreira, boosting integration and the capture of synergies
between the brands in the region.
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2019 ANNUAL REPORT Click here to see the video on the inauguration of the store in Malaysia.
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66
2019 ANNUAL REPORT Aqui Tem Natura
We ended 2019 with 422 Aqui Tem Natura stores, compared with
192 in 2018. These stores are currently established in 24 states
across the country. The state of São Paulo continues to be the state
with the highest number of stores – 186 at the beginning of 2020. In
December, we entered Peru with the opening of an Aqui Tem Natura
store in the city of Huancayo.
The stores are still operated exclusively by Natura consultants with an
entrepreneurial profile, who, among the alternatives in our growth plan, opt
to become Beauty Entrepreneurs and open their own business. To become
an entrepreneur, the consultant should reach the silver stage, the third level
in our model. The advantages of this format are the cost and time of return
on investment, lower than the market average for franchises in Brazil.
In addition to the growth in the number of Aqui Tem Natura stores,
other factors demonstrate the effectiveness of the model. For example,
the number of entrepreneurs who open their second and third store is
growing. The company offers all of these entrepreneurs support, such
as specific training programmes and support in implementing marketing
strategies. They may also commercialise complementary brands in their
stores, under the oversight of Natura, a factor which increases profitability.
For consumers, the Aqui Tem Natura stores offer the convenience of a
retail outlet, enabling them to buy product and receive it immediately,
with one differential: the company’s focus on experimentation. The points
of sale are usually located on streets or in commercial galleries with
high people traffic. We are also working on making our channels more
complementary, which will include the possibility of a customer buying a
product online and picking it up at one of the Aqui Tem Natura stores.
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67
2019 ANNUAL REPORT Natura owned stores
In Brazil
2
in
Ceará
in
Rio Grande
do Norte
1
Abroad
in
Paris*
(France)
3
1
in
Mato Grosso
3
1
in
Goiás
in
Mato Grosso
do Sul
in
New York
(United States)
1
in
Santiago
(Chile)
2
in
Buenos Aires
(Argentina)
2
in
Petaling Jaya
(Malaysia)
1
* In the first quarter of 2020, we discontinued
the operations of the stores in Vélizy 2 and La Défense, in Paris.
4
in
Paraná
in
Rio Grande
do Sul
2
1
1
2
in
Paraíba
in
Pernambuco
in
Alagoas
in
Bahia
in
Distrito
Federal
3
2
1
in
Minas Gerais
in
Espirito Santo
4
8
in
Rio de Janeiro
in
São Paulo
20
2
in
Santa Catarina
Aqui Tem Natura stores
422 stores
In 24 states in Brazil: São Paulo, Minas
Gerais, Paraná, Rio de Janeiro, Goiás, Rio
Grande do Sul, Bahia, Pernambuco, Santa
Catarina, Espírito Santo, Ceará, Rio Grande
do Norte, Sergipe, Piauí, Rondônia, Mato
Grosso do Sul, Alagoas, Amapá, Roraima,
Maranhão, Pará, Tocantins and Paraíba, as
well as Distrito Federal.
First store outside Brazil, in Huancayo (Peru).
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68
2019 ANNUAL REPORT Our way of
innovating
As the leader in innovation and technology in cosmetics in Latin
our knowledge of their effects, resulting in high performance
America, we constantly strive to enhance the way in which
formulas. We also have a 3D skin bioprinter, which enables us to
we innovate. Our innovation cycle, which is totally geared to
conduct effectiveness and safety tests of active ingredients on
the company’s positionings and causes, begins with careful
skin models, as well as a DNA sequencer, which analyses human
prospecting of the country’s social biodiversity and access to
microbiota. Initially used to develop products for the body and face,
traditional community knowledge.
more recently these two technology tools have been employed in
projects involving hair.
The following stages are concentrated on the Natura Innovation
Centre in Cajamar, the most advanced in Latin America and which
Employing the technologies discovered, we develop our products in
recently underwent revitalisation (further information ahead).
In the Advanced Technology laboratory there are different research
the formula and prototype development laboratory. These are then
tested by our consultants and consumers. It is important to note
areas dedicated to the study of new molecules, cell culture,
that the Natura portfolio formulas prioritise the use of ingredients of
human microbiota (the bacterial ecosystem that protects the skin),
natural origin, from renewable sources and from Amazonian social
biomimetics (the concept of using nature as inspiration for the
biodiversity. We are committed to only using ingredients that do
conception of products) and biotechnology, which is engaged in the
not put either our consumers or the environment at risk, and we are
development of high performance, renewable ingredients.
compliant with international legislations and best market practices.
We have the most advanced technologies at our disposal and
In the development of packaging, we are also inspired by the
have consistently evolved in our techniques for proving results.
concepts of ecodesign and pursue the creation of solutions that
Employing genomic tools, we conduct the simultaneous genetic
represent the value proposition of our brands, that are easy to use
mapping of diverse active ingredients, which enables us to expand
and that generate the least environmental impact.
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2019 ANNUAL REPORT Increasingly agile innovation
With the growing use of advanced technologies and the
organisation of Innovation area staff in agile teams, we have
achieved important reductions in time to market (the time
from the approval of a project to develop a new product to
its sale to the end consumer). As an example, the agile team
responsible for the gift portfolio (special sets and portfolio for
commemorative dates) achieved an average 35% reduction in
time to market for its projects in 2019.
Investment in networked innovation, which includes co-creation,
open innovation and the establishment of partnerships, is
another element that differentiates and drives the Natura
innovation cycle.
A beauty
brand can
create
products
whose main
ingredient
is ethics
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70
2019 ANNUAL REPORT
Main launches
As a result of the robustness of the company’s innovation cycle,
in 2019 many of the projects in our pipeline were concluded and
launched. During the year we invested R$ 214 million in innovation,
corresponding to 2.4% of the company’s net revenue. We launched
330 new products on the Brazilian market. From this total, four
launches are particularly worthy of note precisely because they
symbolise the positionings made explicit in our brands and
synthesize our innovation process. These are: Tododia, Lumina,
Mamãe e Bebê and Ekos Alma.
Natura Mamãe e Bebê
After completing 25 years in 2018, the brand was relaunched in
2019. The new formulations are 100% vegan, dermatologically
tested and approved by paediatricians; they are safe for use
from baby’s first day of life. The formulas, which were already
free from sulphates, silicon, mineral oil, ethyl alcohol and
colouring agents, now have an even higher percentage of
ingredients of natural origin (96%). The packs are produced
with 100% green plastic and also have refills. In addition to
the emphasis on the use of technology, the launch involved
unprecedented research into the factors that influence the
bonds between parents and babies. Conducted by the Natura
Well-Being Sciences area, in partnership with the Albert
Einstein Israelite Teaching and Research Institute, the study
involved 523 women in their first pregnancy and 211 partners.
The bond with the baby, the mother’s perception of beauty
and the emotions involved were assessed in different quarters
during the pregnancy and in the postnatal period. One of the
main conclusions is related to the mother’s self-esteem: it was
shown that her feeling beautiful, happy and good about herself
strengthens her bond with her baby.
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2019 ANNUAL REPORT
Natura Tododia
The product line was already 100% vegan and gained a new
formulation. This involves a combination of cocoa butter,
which nourishes the deeper layers of skin, linseed oil, which
protects and strengthens the skin, and prebiotics, which
help the skin to adapt intelligently to changes in routine and
climate. The effectiveness of prebiotic nutrition was proven in
tests conducted in a sequencer, which permits the analysis of
human microbiota and its interference in the skin metabolism.
The packaging is made of recycled PET. The new Tododia
launch was associated with the concept I am more than just
a label, an invitation for women to reflect on the standards
imposed on them by society. The line was developed by a
dedicated team of professionals working based on agile
methodology, which enabled a 40% decrease in the time
between project approval and product launch.
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2019 ANNUAL REPORT
Natura Lumina
The new high-performance hair line from Natura also has
a 100% vegan formula and packs made from green plastic.
Lumina employs Natura’s exclusive pro-teia biotechnology.
Based on biomimetics, we identified that the material in a web,
although thinner that a strand of hair, is more resistant than
steel and more malleable than nylon, in addition to consisting
only of protein. In partnership with a German start-up, we
developed a similar biotechnological protein which acts on
all the layers of hair, regenerating it from the inside out to the
exact extent of the damage. To prove the benefits of pro-teia
biotechnology, in conjunction with the University of São Paulo
(USP), we developed a micro x-ray tomography to analyse
hair (a technique inspired by tomography examinations for
health diagnoses). The micro-tomography demonstrated a
70% reduction in the porosity of the hair strands after the
first application. Lumina also employs Brazilian biodiversity
ingredients such as murumuru butter and Brazil nut oil.
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2019 ANNUAL REPORT
Natura Ekos Alma
A Deo parfum inspired by the energy of the forest, the
product reflects one of our causes, Standing Forest. In
a single fragrance, an unprecedented combination of
five Brazilian biodiversity oils: cumaru, which represents
connection with life according to Amazonian tradition;
copaíba oil, with curative properties; breu branco oil,
used as incense in some of the forest peoples’ rituals; oil
from the Vitoria Regia lilly, symbolising femininity; and
priprioca essential oil, aged in Amazonian timber for a
year, ensuring differentiated olfactory characteristics for
each crop. Created by our perfumer Verônica Kato and
Frenchman Yves Cassar, Ekos Alma has organic alcohol
in its formulation, which is vegan, like all the other Ekos
line products. The bottle, with its exclusive format, is
made from recycled glass. We selected the Rock in Rio
festival to present Natura Ekos Alma to consumers; it was
then launched in the company’s own stores and on its
digital platform. The product was incorporated into our
Relationship Selling portfolio in 2020.
Expanded experience
Ekos Alma is the first perfume on the market to offer
an expanded well-being experience. By means of a QR code
on the pack it is possible to access a guided meditation
exercise, set in the Amazon rainforest. This experience is also
available on the Natura Meditation app.
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2019 ANNUAL REPORT New Innovation Centre
As the first stage of the revitalisation of the Natura Innovation
Centre in Cajamar, with a R$ 32.5 million investment
announced the previous year, the company inaugurated new
laboratories and infrastructure in 2019.
(Laboratory Information Management System), a data management
tool that interfaces with the SAP production systems, enabling
complete traceability of raw materials, batches and the tests used to
develop and prototype new formulas. Moreover, the tool has been
customized to enable researchers to reduce the environmental
The renovated centre will be one of the most advanced and
impact of the formulas under development.
innovative in Latin America, expanding the company’s scientific
capacity to enable further in-depth studies into natural ingredients
Additionally, the new innovation centre has an Advanced
with a focus on Brazilian biodiversity. Among the new spaces
Technology laboratory dedicated to biotechnology, which gives us
that have already been inaugurated is the new formula and
the autonomy to develop and test new biotechnological molecules
prototype development laboratory which occupies over 800
m2 and is equipped with plug and play technology, enabling
diverse configurations for the installations. It comprises mobile
technological totems coupled to an aerial infrastructure system
which can be dislocated to serve all the laboratory benches (also
mobile), enabling the connection and disconnection of installations
that are normally fixed (water sources, drainage, compressed air
and electricity), providing researchers with greater autonomy and
internally, as well as a sensorial assessment laboratory and a
collaborative area in which all the areas working with innovation at
Natura can intensify co-creation with each other and with suppliers,
start-ups and university partners.
boosting the success rate in formula development. It is also possible
Indicators
to manage the number of prototypes and natural ingredients
Investment in innovation (R$ million)1
available in the environment automatically. On average, we develop
% of net revenue invested in innovation1
more than two thousand prototypes simultaneously.
Number of products launched2 – Brazil
Innovation rate (%)3 – Brazil
2017
172
2.2%
213
64.6%
2018
188
2.2%
233
59.9%
2019
214
2.4%
330
58.4%
The formula and prototype laboratory also has a pilot plant
equipped with scaled down industrial equipment used to simulate
manufacturing stages with small volumes. It also has a LIMS
1. Data refer to Brazil and the International Operations.
2. The number of products launched includes only products that represent a new value proposition for the consumer,
including new packs and formulations.
3. Share of sales of products launched in the last 24 months in total gross revenue in the last 12 months.
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75
2019 ANNUAL REPORT Technical data on the
Google Cloud platform
With the expansion in the use of advanced technologies, which
significantly increases the number of tests we conduct to evaluate
the effectiveness on an active ingredient or set of ingredients in
the formulations, in 2019 we adopted the Google Cloud cloud
computing platform to store technical data generated by these
tests. The platform is already storing a data volume equivalent to
the memory of more than three thousand computers.
Another advantage of the platform is that by means of
computational simulation we are able to correlate results and
generate more disruptive innovations. Google Cloud has enabled a
reduction of up to 30% in the time it takes to perform some tests,
positively impacting our time to market.
15 years of innovation
in the Amazon
In 2019, we inaugurated a pilot biorefinery in the Natura Amazônia
Innovation Nucleus (NINA), located in the Ecoparque, in Benevides
(Pará). The inauguration coincided with the fifteenth anniversary of
Natura’s work with innovation in the Amazon region, which is based
on the premise of leveraging research and development in the region
while contributing towards keeping the forest standing and promoting
the social and economic development of local communities.
Since we inaugurated the Ecoparque in 2014, we have had a pilot
plant for research into oils from the Amazon. With new equipment
(reactors, different drying and separation systems), the 280 m2
space has gained the status of a biorefinery and expanded its
activities to include research into oils, extracts and essential oils
that may be incorporated into our product lines in the future. The
focus at this stage of the innovation cycle is to evaluate the potential
results of the bioactive ingredient being researched on the skin and
the hair, as well as the technical and economic viability of using it
in our portfolio. It should be noted that we adopt green chemistry
principles, seeking to employ increasingly natural formulations that
offer full safety and care with origin.
By 2021, we will implant a new area in the Ecoparque, an
experimental field to test the best ways to cultivate Amazonian
species that are not yet used in our formulations.
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2019 ANNUAL REPORT
Green patent
Natura became the first Brazilian cosmetics company to
obtain a green patent, granted by the industrial property
agency INPI (Instituto Nacional da Propriedade Industrial),
linked with the Ministry of the Economy. Thanks to the
biotechnological active ingredient developed in partnership
with the research institute IPT (Instituto de Pesquisas
Tecnológicas), we were able to reuse the residues from
Amazonian biodiversity active ingredients to manufacture a
new Natura product, which will be launched in 2020. These
residues are generated in the process of extracting oil from
ingredients such as andiroba and murumuru, and are rich in
carbohydrates, fibre and lipidium.
The INPI Green Patents programme streamlines patent
requests that help combat climate change. With the filing of
this patent, the company will have exclusive commercial use
of this innovation in the first years
There is
no forest
standing if
we sit still
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2019 ANNUAL REPORT Natura Startups
We have chosen to maximise our positive impact on the
world through a new medium, a connection with start-
ups. Since 2016, we have drawn close to the entrepreneurial
ecosystem by means of Natura Startups. In place in Brazil and
Argentina, the initiative connects us with start-ups in order to
leverage innovation in our business challenges and organisational
transformation, inserting Natura in this ecosystem.
The company’s internal team operates based on characteristic
start-up work models: multidisciplinary, autonomous, no direct
report to an area, and pursuit of relevant opportunities in
specialised areas throughout the organisation for a connection
(Plug-and-PoC) with start-ups in different areas of activity, a
method known as hacking.
In a format in which both Natura and the ecosystem is
strengthened, the connections occur both by means of the
active pursuit of the opportunities existent in the market for
the company’s challenges and by analysis of the proposals
submitted to the portal: www.natura.com.br/startups
(in portuguese). Any entrepreneur may submit a proposal
and in the event a possible synergy with Natura is identified,
the start-up is invited to connect with our specialist areas
to initiate tests.
Natura Startups also mobilises internal staff to implement agile
working, intra-entrepreneurship and innovation from the outside
in. The company periodically organises the Natura Pitch, when
start-ups are invited to present their solutions to leaders and
teams. In 2019, there were three editions, with the participation of
over 250 people and 21 start-ups.
At the Natura administrative headquarters we have also made
room for the innovation network. In 2019, we hosted two global
events connecting dozens of cities from around the world
simultaneously. The Startup Weekend Sustainable Revolution
invited more than 150 participants for a weekend visit to Natura
to learn how to create a start-up focused on sustainability-
related problems. WiSE24 – Women’s International Showcase of
Entrepreneurs, organised by the Women’s Startup Lab (WSLab),
an accelerator based in Silicon Valley, connected a selection of
female entrepreneurs who presented their start-ups to investors
in California (United States). We contributed to this same cause
in a partnership with Sebrae for the Speed Mentoring training
programme, in which women who were initiating start-ups
received mentoring from Natura technology area leaders.
At the end of the year, Natura Startups and Natura Campus
organised the Natura Innovation Challenge – Zero Waste
Packaging, the largest open innovation challenge ever held by
Natura (further information ahead).
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2019 ANNUAL REPORT Relations with start-ups
than 4,200
start-ups assessed
(1,451 in 2019)
Interaction
with 671
(327 in 2019)
solutions tested with
(40 in 2019)
93
31 contracted
(9 only in 2019)
Among the companies
most engaged with
entrepreneurs
Natura was elected the second
company most engaged with
start-ups in Brazil in 2019 in the
Top 50 Open Companies ranking elaborated
by the Movimento 100 Open Startups.
For us,
it is only
innovation
if it generates
positive impact
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2019 ANNUAL REPORT
See the video about the global challenge promoted by Natura to reduce waste.
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2019 ANNUAL REPORT
Zero Waste: global
open innovation challenge
Based on Natura’s Sustainability Vision and its More Beauty,
Less Waste cause, an unprecedented movement of network
connections came into play to enable the creation of the biggest
As a result of this work, more than 570 solutions from 37 countries
were analysed. The ones with greater innovation potential and
alignment with the company’s strategic goals were invited to
open innovation challenge ever organised by the company.
make a live presentation to a Natura executive panel on a Pitch
Day organised in March 2020, which was also open to all company
With the mission of finding solutions to combat the waste
staff. On the occasion, the solutions presented by Brazilian and
generated and the pollution caused by plastics, the Natura
overseas entrepreneurs were assessed. Those that were selected
Startups and Natura Campus programmes joined together to
by the panel will proceed to a proof of concept stage aimed at
create the Natura Innovation Challenge – Zero Waste Packaging.
verifying feasibility and the possibility of establishing a partnership.
The two programmes, supported by a partner specialised in open
Additionally, those responsible for more than 50 proposals that did
innovation, enabled the connection of all the Natura innovation
not make it to the final stage, but who were identified as being of
teams in pursuit of possible company-wide solutions, engaging
potential interest to Natura will be kept on record for potential future
external innovation networks on all the continents.
connections and partnerships via established innovation processes.
Launched in October, entrepreneurs, start-ups, research institutions,
All the solutions analysed, from start-ups, companies, research
universities and companies were invited to present solutions
institutes, universities, specialists, through individuals, to Natura
with new renewable or biodegradable materials and innovations
co-workers and consultants, received feedback about the analysis
in logistics, service or commercial models. More than six million
conducted by the innovation teams and the specialised partner.
people in 28 countries were impacted by the challenge in the press
and in the social networks, in pursuit not only of innovative proposals
but also the extension of the debate around waste and pollution.
The Natura Innovation Challenge represented a landmark in open
innovation for Natura, not only for connecting and inviting
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2019 ANNUAL REPORT innovation networks from around the world, but also for
reinforcing the company’s internal organisational transformation
movement, in which multidisciplinary teams connect around a
single purpose, based on more agile, uncomplicated, open and
coordinated working models.
Collaborative
solutions
more than 570 proposals analysed
from Brazil, the United Kingdom,
the United States, Canada,
Germany, Holland, Spain, France
Finland, India, Israel, China, Mexico,
Argentina, Colombia, Chile and Peru,
among other countries.
Projects submitted by start-ups,
companies, research institutes,
universities, specialist, and individuals,
including Natura co-workers
and consultants.
Solutions for innovation in materials,
commercial and logistics models, as well
as cross-cutting proposals involving more
than one topic, were analysed.
Packs that
are beautiful
both inside
and out
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2019 ANNUAL REPORT No animal testing
and formulas of
natural origin
GRI 103-2, 103-3, 416-1, 417-1
Natura has banned animal testing for all its products and
exclusive raw materials since 2006. We have also increased
controls on all the ingredients we purchase from our supplier chain.
In 2018, we were approved in the Leaping Bunny Programme run
by Cruelty Free International, a global anti-animal testing reference,
which attests to our conduct.
We currently employ more than 60 alternative methodologies to
assess the safety and effectiveness of our products, work which
is conducted with support from partnering research institutes and
universities in Brazil and abroad.
Our products are 100% vegetarian and 80% of our portfolio is vegan,
meaning it does not use any ingredient or derivative of animal origin.
In general terms, our formulations have a high percentage of natural
ingredients (weighted average of 90%) – including ingredients of
vegetable, mineral or biotechnological origin. In 2019, the vegetalisation
rate of our formulas stood at 81%, similar to the previous year.
We also make a point of communicating Natura’s commitment
in this respect on our product packaging, as is the case with the
Lumina, Tododia and Ekos.
GRI 417-1 Formulations
Origin of materials and product certification1 (%)
Material of renewable vegetable origin – Brazil
Material of renewable vegetable origin – International
Operations
Material of renewable vegetable origin – Brazil + Opera-
tions in Latin America2
Material of natural vegetable origin– Brazil
Material of natural vegetable origin – Operations in Latin
America2
Material of natural vegetable origin – Brazil + Operations in
Latin America2
Material with certification of origin – Brazil
Material with certification of origin – Operations in Latin
America2
Material with certification of origin – Brazil + Operations in
Latin America
2017
81%
75%
Not available
6%
Not available
Not available
13%
Not available
Not available
2018
82%
76%
81%
15%
24%
16%
14%
16%
14%
2019
82%
76%
81%
17%
21%
18%
15%
16%
15%
1. Calculated on dry base of raw materials present in product formulation. Vegetable origin: raw material of vegetable
origin that has been subjected to some chemical process (e.g.: organic alcohol); Natural vegetable origin: raw material
of vegetable origin that has not been subjected to a chemical process (e.g.: oil extracted from seeds without a pro-
cessing stage).
2. Reporting of this information was initiated in 2018.
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2019 ANNUAL REPORT
Greater safety for
consumers
GRI 102-11, 103-2, 103-2, 416-1
We have always been committed to the health and safety
of our consumers and year on year this commitment
has been reinforced. We have rigorous internal processes
We have also eliminated microbeads from rinse-off products,
which due to their small size are not collected in sewage treatment
systems and end up polluting oceans. We are substituting them
in place, ranging from research into new ingredients,
with biodegradable exfoliants based on rice and bamboo.
through the conceptual design of products to their launch
in the marketplace. Moreover, our cosmetovigilance system
Furthermore, the company maintains a technical and consumer
guarantees that products continue to be monitored after they
perception monitoring process related to controversial subjects,
are launched, driving the company’s continuous improvement
campaigns and ingredients that may affect human health and
processes. Natura formulations use only safe ingredients in
the environment. Depending on the result of this monitoring, we
accordance with the most current scientific criteria and in
may decide to eliminate, restrict or prohibit the use of determined
compliance with pertinent international legislation. In many
ingredients in new product development. This is the case with
cases, we exceed the requirements of the legislation in force.
A number of controversial ingredients have been definitively
Lyral, which should be totally eliminated from the Natura
portfolio in 2020, and DMDM Hydantoin, which is prohibited
excluded from our portfolio, such as triclosan, paraben and
in new product development.
phthalete (the complete list of ingredients banned by Natura
is in the Complementary disclosures section on page 195).
In accordance with European Union recommendations, we
are also gradually removing the ingredient known as MIT
(methylisothiazolinone) from no-rinse products. We have already
substituted it in over 90 no-rinse products and have banned its
use in the development of new products.
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2019 ANNUAL REPORT Business
Platform
to leverage
the network
A strength of our business is an enormous social network,
born in the offline environment, which has been demonstrating
great potential based on digitalisation year on year. Since 2012,
Natura has been digitalising its business at an accelerated rate,
with the online sales channel, the consultants’ virtual stores
and the Consulting Platform (in app and web format) via which
consultants, leaders and the sales force access diverse sales
support and training resources to help drive their businesses
(further information on page 27). Our results in recent years
show that technology boosts opportunities for our network to do
business and to spread Well Being Well in a more agile manner,
with multiple brands, multiple channels, in multiple geographies.
This course has enabled us to develop our Business Platform, the
objective of which is the establishment of an ecosystem of people,
brands, services and products, connecting the diverse links in the
network, from consumers to consultants, content producers to
logistics service providers, making the company’s value proposition
ever more attractive and differentiated.
With this ambition as a starting point, in 2019 we changed the way
we structure our organisation to guarantee focus and to extract
the best from each team, with attention to excellence in execution
and ensuring stability, robustness and innovation. The internal
reorganisation, which led to the formation of the Business Platform
area, involved the widespread establishment of connections
between the technology and business teams and the structuring
of centres of expertise (COEs) focused on: commercial model,
user experience (UX) and service design, data and e-commerce,
which will enhance competencies and further differentiate Natura
in this process.
Agile method
We also developed structures dedicated to the consultant journey
and the consumer journey, to identify opportunities and develop new
solutions that enable them to prosper, develop their businesses and
have the best possible experience. The structure is complemented by
the enabling nuclei, such as Digital Technology, Innovation and Digital
Service Engineering and the Transformation Office.
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2019 ANNUAL REPORT Most of the teams act based on agile methodology. In 2019, for
consultants connected by our digital platform already have access
example, when we mapped the consultant journey, we set up some
to, as well as facilitate the inclusion of the others who are not yet part
specific squads, such as the attraction and beginning squad, to
of this movement.
enhance the process of capturing new consultants and leverage
their initial phase in the activity, and the social selling squad,
The solutions are designed for all the countries in which we operate,
responsible for boosting the use of the social networks to drive
so that they may be implemented rapidly and simultaneously
results. Among the new functionalities created by these groups is
Additionally, we have an organisation wide vision aimed at
Minha Divulgação (My Revelation), incorporated into the Consulting
driving complementarity between channels and brands, which is
platform in 2019 (read more on page 51).
fundamental in this model. With the consolidation of the Business
Platform, it will be possible to multiply the power of our relationship
Moreover, the teams were given different innovation horizons to
network exponentially and consequently boost our capacity to
ensure competitiveness in the present while continuing to build
generate a positive impact on the world.
the future. The squads work directly focused on short and medium
term opportunities, developing products and services that capture
value more rapidly; while the Innovation Lab teams (which act
company wide integrated with the company’s other innovation areas)
concentrate on the medium to long term, working mainly on two
fronts: Natura Startups, integrated into our processes to facilitate
adoption of the mindset, the way of operating and the latest market
novelties (read more on page 78); and garageN, a space dedicated to
prototyping products and services with a high degree of innovation
which, as the name suggests, may freely test the potential of initiatives
to accelerate disruptive innovation. The launch of the partnership
with Amazon in 2019 for a meditation experience with the help of the
virtual assistant Alexa is an example of these stimuli for innovation.
With this movement and internal reorganisation, it will be possible
to further increase the number of tools that the more than 1.6 million
We are one of the companies
that most promote
digital inclusion
in Brazil
and now we will
do this even faster
in other geographies.
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2019 ANNUAL REPORT
Our operation in the
industry 4.0 era
Concurrently with the transformations taking place in our
business model, widely supported by technology and
digitalisation, we continue to invest in the set of industry 4.0
The adoption of a system that captures images of all the production
lines in the perfumery plant, identifying and discarding non-
conforming units represented another significant advance in 2019.
solutions that will make our production processes more efficient
The system generates results by minimising any eventual complaints
and effective. In 2019, we invested approximately R$ 50 million in
from end consumers.
modernising our industrial units.
During the year, there were six collaborative robots in operation
that monitors all our equipment in real time, taking into account
on our production lines and in 2020, this number will increase to
an average of 5,000 variables. This system permits the rapid
15. With the robots, we are able to avoid having workers engaged
identification of any failures and deviations, enabling us to act rapidly
We also finalised the implementation of a management software
in repetitive activities which can cause occupational injuries
to resolve them.
and diseases, in addition to increasing productivity. In parallel,
we are training workers in the operational area to develop new
With the beginning of Natura’s new internationalisation cycle,
competencies, preparing them to assume increasingly complex
based on entry into the Malaysian market, we undertook certain
jobs. We reviewed our training programme and prepared a new
adaptations in our infrastructure for manufacturing the products
highly interactive development plan (read more on page 134).
commercialised in that country. We were granted ISO 22.716
With the 3D printer introduced in 2018, we have been producing
for manufacturing in the cosmetics sector. The plants in Cajamar
parts for in house equipment maintenance , which has helped
(São Paulo) and Benevides (Pará) were certified.
certification, which establishes best practice guidelines exclusively
reduce costs and the need to maintain parts in stock, as well as
decreasing down time in the operation. In 2019, we produced
approximately 4,000 parts in the company.
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2019 ANNUAL REPORT Evolution based on our causes
The world of Sulemi, 50, is an
inspiration. She helps diverse families
to believe in the special potential
of disabled people. Sulemi is a
Beauty Consultant whose work was
recognised in the Inspiring Natura
Consultant category of the Acolher
Award and the Claudia Award.
The greater the
individual diversity,
the greater the
wealth and vitality
of the whole
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2019 ANNUAL REPORT Accounting for
our impacts
2020 Ambition
Where we are
Implement the valuation of socioenvironmental
externalities taking into account the value chain
The EP&L (Environmental Profit and Loss)has
been disclosed annually since 2016. The valuation of
the company’s SP&L (Social Profit and Loss) social
impacts has been progressing. It is currently measured
among consultants and supplier communities.
To provide more accurate information for strategic
planning and to inform decision making, we are
enhancing our tools for assessing business impacts. Our
purpose is to innovate in performance analyses and drive the
development of current standards, relating business results
to the generation of value for society.
The joint assessment of environmental, social and human
impacts is the next frontier in this work. In 2016, we
implemented the EP&L (Environmental Profit and Loss)
and between 2018 and 2019, we started to calculate our
SP&L (Social Profit and Loss) – with Natura consultants
and supplier communities. In 2020, we will apply this
monetisation methodology to our co-workers.
Following this, we should develop our first IP&L (Integrated
Profit and Loss), which will express the results of the
company’s environmental, social and human externalities in
monetary values, aimed at integrating these impacts into the
business model so that the information may be used to guide
the organisation’s strategic decisions.
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2019 ANNUAL REPORT Environmental valuation
We measure the environmental impacts of our activities
on nature by means of the Environmental Profit and Loss
(EP&L) assessment. Aligned with Natural Capital Protocol
With the consultants, we used as a basis the data gathered
from monitoring the Consultant Human Development Index,
the HDI-Consultant (further information on page 139), to
measure the contributions made by the Natura business model
best practices, we account for the externalities or final
to their quality of life. Using the minimum salary as a base, the
consequences of the environmental impacts (or benefits)
income exceeding this amount is multiplied by impact factors
caused by our value chain on society in monetary terms;
determined in function of the social context of the country – in
these include water consumption and pollution, the emission
this case, Brazil –, such as inequality in income distribution and
of greenhouse gases and other atmospheric pollutants, the
safety, health and well-being of the population.
volume of solid waste generated and land use.
For the supplier communities, the methodology took into
In 2019, our externalities, that is the environmental impacts
account the initiatives promoted in the Natura Amazonia
that we generated, represented 6.8% of our net revenue,
Programme, which extend beyond the bioingredient supply
a negative variation of 0.6 of a percentage point compared
relationship. They include benefit sharing, infrastructure
with 2018. This variation is explained by the lower share
investments, training, support in territory development and
of the hair and soap categories, as well as the higher net
strengthening local leaders. In practice, these measures
revenue compared with 2018. Since the first calculation,
generate improvements in managing assets, increased
based on 2013 data, the accumulated gain in efficiency in
efficiency and production capacity and support for local
EP&L/Net revenue has been 1.8 percentage points.
projects associated with other community activities, such
Social impact
GRI 103-2, 103-3, 413-1
Similar to the calculation of environmental externalities, we
as fishing. The Social Progress Index (IPS in the Portuguese
acronym), elaborated by Natura since 2015 with partnering
companies, was also used in the assessment.
have expanded the valuation of the social impacts of our
In the following pages we describe the main actions and goals
business. In 2018, we conducted the first SP&L (Social Profit
and Loss) analysis with Natura consultants, and in 2019 we
performed this assessment with our supplier communities.
related to the natural, social and human capitals. The initiatives
are organised based on our causes Standing Forest, More
Beauty, Less Waste and Every Person Matters.
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2019 ANNUAL REPORT Standing Forest
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2019 ANNUAL REPORT 2020 Ambition
GRI 103-2 and 103-3
R$ 1
billion
in business volume
in the Pan-Amazon region
Where we are
We exceeded
our target by
79%
with almost
R$ 1.8 billion in
business volume
generated since 2010.
In 2020, the Natura Ekos line, which marked the beginning
of our relationship with the Amazonian communities
supplying social biodiversity ingredients, will celebrate 20
years of existence. For almost a decade we have maintained
our Natura Amazonia Programme, designed in 2011 so that
we could coordinate our activities in their region in a more
systematic manner, leveraging the company’s commitment
to promoting an economy based on the standing Forest,
sustainable agriculture and placing value on the local
populations, culture and traditional knowledge.
It is no coincidence that our relationship with the Amazon
became the first of our causes. While we were formatting the
scope of the Standing forest cause, we could see the rising levels
of illegal deforestation and burning affecting various states in the
north of the country in 2019, which convinced us of the urgent
need to make our positioning more active and explicit.
In addition to ensuring the continuity of our work in the
Natura Amazônia Programme, we decided to reinforce
actions designed to sensitise consumers and intensify our
participation in public debates on this issue. The goal
is to contribute to the conservation of the region and not just
the territories in which we interact with supplier communities
and organise socioeconomic development and biodiversity
conservation projects.
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2019 ANNUAL REPORT In August, we disclosed the company’s official positioning on
deforestation, issuing a warning that the world’s future depends
on conservation of the forest. In September, in conjunction with
other actors, we conducted the event “A Dialogue for a Possible
Amazon” in New York (USA), as part of the parallel programme
to the 74th General Assembly of the United Nations (UN) (further
information in the following box).
A beauty
brand can
make the
forest grow
instead
of shrink
Dialogue on the future of the forest
Among its actions to foster dialogue around the conservation
of the Amazon and to combat illegal deforestation, together
with other partners, Natura promoted a meeting at the UN
headquarters in New York (USA), in a parallel event to the
General Assembly held in September. Entitled “A Dialogue for
a Possible Amazon”, the purpose of the meeting was to unite
efforts around an effective agenda to drive the sustainable
development of the region.
Participants in the event included: Guilherme Leal, founder of
Natura and creator of the Instituto Arapyaú; Denise Hills, director
of Sustainability at Natura; Halla Tómasdóttir, CEO of the B
Team; André Guimarães, director of the environmental research
body Instituto de Pesquisa Ambiental da Amazônia (Ipam) and
Coalizão Brasil, Clima, Florestas e Agricultura; Carlos Nobre,
scientist and researcher at the Instituto de Estudos Avançados
(IEA-USP); Marcello Brito, chairman of the Associação Brasileira
de Agronegócio (Abag); and the film maker Fernando Meirelles,
director of the video Amazônia Possível.
The encounter also discussed the agenda of commitments of
the Brazilian business sector, which was later presented at the
Conference on Climate Change (COP-25), held in December
2019, in Madrid (Spain).
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2019 ANNUAL REPORT Business volume
generated
GRI 203-1
Another significant figure is the total business volume we
generate for the region. One of our ambitions established the
generation of R$ 1 billion between 2011 and 2020. By the end of
2019, we had exceeded this target by 79%, reaching a total business
volume of almost R$ 1.8 billion one year before the target date.
We are now pursuing the challenge of ensuring that 30% of the
inputs used by Natura come from the region, another target for
2020. The cumulative result corresponded to 17.7% in 2019, stable
in relation to the figure for the previous year, 17.8%. The absolute
consumption of inputs from the Amazon, however, increased by 2%
against 2018 – there was growth both in the consumption of palm
and the other Amazonian biodiversity ingredients.
We also bought a higher volume of inputs from our supplier
communities. This represented a 15% increase compared with 2018,
without counting palm oil.
Conservation of 1.8 million hectares
Our activities and involvement in the Amazon region, in
partnership with supplier communities, non-governmental
organisations and public authorities, has already contributed to
the conservation of 1.8 million hectares of forest land. This area
is equivalent to half the size of Holland or 12 times the size of
the city of São Paulo.
This volume considers the areas in which we develop Natura
Amazonia Programme initiatives that contribute to maintaining
the forest standing. We incorporated into our calculation data
updated annually by the Brazil’s space research institute
Instituto Nacional de Pesquisas Espaciais in its Prodes-Inpe
project, which conducts satellite mapping of deforested areas in
the Legal Amazon region. Previously, the company’s calculation
included only the areas occupied by the supplier communities,
which totalled 257,000 hectares. Now, three conservation
units: two Sustainable Development reservations (Uacari and
Rio Iratapuru) and one extractivist reservation (Médio Juruá)
are included. In 2019, we included the complete area of these
reservations in the total area, reaching the figure of 1.8 million
hectares. The three reservations were chosen because they
meet the following criteria:
• Families supplying ingredients to Natura represent over 50%
2018
2019
of the people resident in the conservation unit;
GRI 203-1 Natura Amazônia Programme
% of raw materials purchased by Natura from the Pan-Ama-
zon region¹ (in relation to value of sales)
Business volume in the Pan-Amazon region² (R$ million)
2017
18.1
1,222
17.8
1,507
17.7
1,791
1. Total purchases of raw material of Pan-Amazon origin as a proportion of total input purchases.
2. Cumulative amount since 2010, including the purchase of Amazonian raw materials, benefit sharing, investments in
the Ecoparque, local development, institutional reinforcement, innovation, environmental projects
and the purchase of carbon credits, among others.
• The families’ relationship with Natura has existed for more than
five years;
• There is a Natura Social Biodiversity Relationship And Supply
area field team in the area.
In the future, other conservation units which fulfil these criteria
may be included in the calculation.
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2019 ANNUAL REPORT
Advances in
the Natura
Amazonia
Programme
GRI 103-2, 103-3
Our actions in the Pan-Amazon region are
based on the three fronts of the Natura
Amazônia Programme: science, technology and
innovation; social biodiversity production chains;
and institutional reinforcement. The work we do is
coordinated, respecting the cycles of nature and
contributing towards keeping the forest standing
and reinforcing Natura’s community partners. Our
strategy involves scientific research, technology
and innovation, 100% traceability in the supply
chains bringing ingredients from the communities,
income generation and valuing the way of life, the
knowledge and the practices of the forest peoples.
On the next pages, our main advances in 2019.
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2019 ANNUAL REPORT Science, technology
and innovation
2020 Ambition
Achieve 30% of inputs* from
the Pan-Amazon region
Where we are
Our rate reached
17.7% in 2019.
We are continually increasing
the use of social biodiversity
ingredients in new products in
our main categories.
*In relation to value of sales.
108%
was the cumulative
growth over the last
three years, in absolute
value, of the use of these
ingredients by Natura.
Social biodiversity continues to be the main driver of
innovation in the company. Each year, we increase the
use of vegetable and social biodiversity active ingredients
in Natura Ekos products – the symbol of our connection
with the forest – as well as in other product lines in our
portfolio. Natura Lumina, the new hair care line launched in
2019, is one that contains ingredients such as chestnuts and
murumuru in its formulation. These active ingredients are
also used in products in the Casa de Perfumaria do Brasil,
Natura Homem and Chronos lines.
As early as 2004, we started working on research and
innovation in the region, and today the Natura Amazonia
Innovation Nucleus (NINA) continues its activities in
Benevides (Pará). This involves a dedicated team of
researchers engaged in bioprospecting Amazonian species,
assessing the feasibility of incorporating new bioactive
ingredients in the formulations of our products. This is
in addition to ensuring the conservation of species by
developing stewardship protocols to be observed by the
communities. In 2019, NINA received a pilot biorefinery, the
objective of which is to accelerate research into Amazonian
oils and extracts. We are also developing an experimental
forest which will, on a small scale, enable the team to test
the best ways to cultivate certain local species (further
information on page 76).
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2019 ANNUAL REPORT Social biodiversity
production chains
GRI 103-2, 103-3, 203-1, 203-2, 411-1 and 413-1, 413-2
2020 Ambition
Where we are
Families in the Pan-Amazon
production chains
We maintain relations with 5,136 families,
an increase of 10% over 2019.
The relationship we have with the social biodiversity
production chains attests to our belief in an economy
that keeps the forest alive. For two decades we have been
fostering social inclusion and generating work and income
for these populations.
In 2019, we increased the number of families with which we
have relations in the Amazon region – from 4,636 to 5,136,
all of them located in Brazil. We initiated relations with
new families in communities which are already partners of
Natura, and we included two new Amazonian communities
in our network: Turiarte (Forest Tourism and Handicraft
Cooperative) and Coopronat (Cooperative of Amazonian
Natural Producers). Together, the two new communities total
86 families, who supply Natura with handicraft artefacts
and three bioactive ingredients (cumaru, breu branco and
copaíba). Overall, we maintain relations with 33 communities
in the Amazon, totalling
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2019 ANNUAL REPORT
around 20,500 people. Of these communities, 31 supply
for the communities, training and others. The investment the
active ingredients to the company. In 2019, we initiated the
previous year totalled R$ 35.8 million. The company already
process of preparing a supplier community in the Colombian
expected this reduction, which is explained by the fact that
Amazon, which should come into operation in 2020.
in 2018 Natura made a payment relative to the sharing of
benefits which went towards the formation of the Iratapuru
Taking into account other regions of Brazil, the total
Reservation Sustainable Development Fund in Amapá, with
number of communities is 39, comprehending 6,197
amounts due from previous years. The fund benefits the
families. In 2019, we made an agreement that established
cooperative Cooperativa Mista dos Produtores e Extrativistas
a relationship with the Cinta Larga indigenous group in the
do Rio Iratapuru or Comaru – Natura’s first supplier – and
Aripuanã region of the state of Mato Grosso for access to
another seven nearby communities. The fund is compliant
the group’s traditional knowledge associated with Brazil
with the requirements of Brazil’s new Biodiversity law
nuts. This relationship will be conducted in accordance with
(13.123/2015) which provides for the non-monetary payment
the same ethical guidelines that orient our interaction with
of benefits, prioritising conservation measures and the
the other communities, respecting and valuing the rights of
sustainable use of natural resources, including a percentage
indigenous peoples and their way of life.
invested in research projects aimed at conserving
biodiversity – Natura does not participate in these research
The amounts paid to the communities also increased due
projects and in no way benefits from them.
to the higher volume of production ingredients, which
totalled around R$ 13 million in 2019. The average payment
per family was R$ 3,1OO for the year, compared with R$
2,900 the previous year. This income normally constitutes
a complement to the families’ overall income, which is
GRI 203-2 Communities and families benefiting1
generated by other agro-extractivist activities.
Communities with which Natura relates2
The amounts paid in 2019 totalled R$ 33.5 million. These
included payments for benefit sharing, the purchase of
carbon credits, investments undertaken in infrastructure
Families benefiting in the communities
Families benefiting in the Amazon region
1. The number of partners and families is monitored by the Social Biodiversity Chain Verification System.
2. The number of communities includes 16 associations and 23 cooperatives.
2017
34
5,296
4,294
2018
37
5,664
4,636
2019
39
6,197
5,136
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2019 ANNUAL REPORT GRI 203-2 Funds allocated by family (R$ thousands)
2017
2018
2019
Direct funds1
Supply2
3.2
2.9
5.2
2.9
4.5
3.1
1. The direct funds include payments for the supply of social biodiversity ingredients,
payments related to benefit sharing and to the purchase of carbon credits.
2. Supply: direct funds from the supply and purchase of raw materials from communities. This indicator is measured
based on the shipping invoice issued by the communities.
GRI 203-1 Community investments (R$ thousands)
Supply1
Benefit sharing2
Carbon credits3
Image rights4
Support and infrastructure5
Training6
Technical services7
Studies8
2017
2018
2019
9,213
10,286
12,909
6,075
18,711
14,951
1,477
5
763
70
337
281
61
775
71
125
0
14
717
156
214
0
5,578
4,538
Total allocated to the communities
17,942
35,868
33,498
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2019 ANNUAL REPORT Ethical biotrade
GRI 103-2 and 103-3
2020 Ambition
Traceability of
100%
of the inputs of direct manufacturers and
implement a traceability programme for the
other links in the chain
Where we are
For the second year the
Natura Ekos line maintained
its UEBT (Union for Ethical
Biotrade) certification,
attesting to the sustainability
of the supply chain (supplier
communities and other
partners) of all the natural
ingredients in the product
Our Social Biodiversity
Chain Verification
System guarantees the
traceability of 100%
of the Pan-Amazon supplier
communities
In 2019, Natura was granted UEBT (Union for Ethical Biotrade)
recertification for the Natura Ekos product line. The first
certification took place the previous year. This seal attests to the
sustainability of the supply chain for all the natural ingredients in
Ekos products, including those supplied by the communities and by
other commercial partners. It also attests to our commitment to fair
and ethical trade, the conservation of biodiversity and the social and
economic development of these suppliers. The recertification took
into account 81 supply chains of social biodiversity ingredients, an
increase of 17% compared with the first certification.
The certification represents the culmination of work than began
previously when we implemented our Social Biodiversity Chain
Verification System. The system, which was idealized with support
from UEBT, of which we are founding members, provides a
framework for the process of verifying our supplier communities in
the Amazon and ensures the traceability of the chain. Since 2016,
it has been applied to 100% of our supplier communities. On an
annual basis, the communities are audited in the following areas:
conservation of biodiversity, organisational management, good
production practices, labour issues, occupational health and safety
and the use of child, slave or forced labour.
To ensure certification, the chains must receive a score of above 50
points. Those with scores between 51 and 79 points present some
non-conformances, which must be addressed
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100
2019 ANNUAL REPORT and resolved by the next verification cycle, which is annual. These
participated in leadership development training. One Re.Conecta
non-conformances generate improvement plans, which may
module is conducted in loco in the Amazon region (read more in
include, for example, the organisation of training, adaptation of
Organisational transformation, on page 132).
production processes and infrastructure improvements. In 2019, we
organised a round of training on the new Brazilian Forest Code due
Worthy of note among the engagement actions was the Bio Qlicar
to a non-conformance identified previously. At the end of the year,
award, an extension of our supplier development and recognition
we had managed to resolve the majority of the non-conformances
programme. On an annual basis, the Bio Qlicar award provides
identified in the previous verification process.
Training and engagement
By training supplier communities, we benefit our own business,
recognition for two communities, the one achieving the best score
and the one whose performance evolved the most from one year
to another. The assessment is based on the result of the audits
conducted under the Social Biodiversity Chain Verification System,
while promoting the autonomy of these families and environmental
as well as taking into account whether the supply of inputs was
conservation. Worthy of note among the initiatives undertaken
in 2019 was a five-module training programme resulting from a
partnership between Natura, Symrise, a company located in the
in accordance with plans. Since the 2019 edition occurred when
the company was commemorating its 50th anniversary, we also
recognised two other communities that have maintained relations
Ecoparque, in Benevides (Pará), and the German Corporation
with Natura for over 15 years.
for International Cooperation GIZ. The cooperation includes an
investment of R$ 10 million for the development of communities
and cooperatives in the Northeast and the Transamazon region,
in Pará, and in Ponta do Abunã, in Rondônia. This cooperation is
enabling the development of a new supplier community in the
region of Tapajós, also in Pará. Natura is also receiving support from
a non-governmental organisation that operates in this region in the
preparation of this community.
In 2019, we trained 476 people. For the period from 2014-2019,
the number is 3,226 people. Two representatives of our supplier
communities participated in the Re.Conecta Programme, aimed
at Natura leaders. They not only helped Natura leaders to better
understand how the company works with communities, but also
Respect from
beginning
to end
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101
2019 ANNUAL REPORT Loyalty on the rise
GRI 102-44
We conduct a loyalty survey every two years to measure the
effectiveness of our relations with the communities. In the
2019 survey, the rate measured was 48% – compared with
27% in the 2017 exercise. This rise was due to the increase
in the volumes of ingredients acquired by Natura during
the last two years, and the consequent growth in income
generated by the cultivation and extraction of ingredients,
accompanied by closer relations with these communities. In
each training session we organise, we reserve some time to
talk about the company, its key numbers and its strategies.
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102
2019 ANNUAL REPORT Institutional
reinforcement
GRI 103-2, 103-3
2020 ambitions
Develop a strategy
for the social
biodiversity territories
by means of dialogue
and collaborative
construction with the
population and local
actors
Where we are
We advanced in our
sustainable development
initiatives in the Mid Juruá
(Amazônia) and Lower
Tocantins (Pará ) territories,
in partnership with other
civil society actors, with
the communities and with
local governments.
Evolve the indicators
for measuring
human and social
development in our
communities and
develop a plan to
promote significant
improvement
The Social Progress
Index (IPS) measured
in the Mid Juruá region
indicated progress.
We applied the index
for the first time in the
other priority territories
for Natura.
In the institutional reinforcement component of the Natura Amazônia
Programme, we work in partnership with other institutions,
governments and the communities to enable environments that
favour the generation of sustainable businesses, the conservation
and regeneration of the environment and education related to
agricultural and silviculture. In 2019, we stepped up our activities in
the Mid Juruá (Amazônia) and Lower Tocantins (Pará) regions. We
extended the Natura Amazônia Programme to Colombia, and we
supported the consolidation of the relationship strategy with the Cinta
Larga tribe in the Aripuanã indigenous region in Mato Grosso.
In Lower Tocantins, we continued to support the activities of the
Jirau Network which included training and the organisation of the
agro-ecological seminar Quarto Jirau Agroecológico, which fosters
agro-ecology within the context of family agriculture and the social
biodiversity chains. In parallel with the seminar, an agro-ecological
fair was organised, the Feira Agroecológica de Economia Solidária
Regional, an important space for publicising and commercialising
forestry products. The event was attended by 500 people, representing
more than 50 institutions that operate mainly in this territory. Also
worthy of note was the support for the formation of a group of young
people from the Casa Familiar Rural de Cametá, which is focused
on promoting alternating technical education, whereby the students
spend part of the time in school and another part working with their
families, exchanging information and applying the knowledge acquired
in school. To leverage local development in the Lower
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103
2019 ANNUAL REPORT Tocantins territory, we established a partnership with Instituto
recent survey indicated an eight point improvement compared with
Humanize, which will prioritise support for the rural family home schools
the result of the 2017 IPS, showing significant progress in areas
and territorial entrepreneurship focused on a standing forest economy.
such as water and sanitation, habitation, access to information
In the Mid Juruá territory, we proceeded with the actions enabled
access to higher eduction. The methodology was developed with
by the USAID (United States Agency for International Development)
support from Centro Brasileiro de Análise e Planejamento (Cebrap)
investment, with a matching contribution from Natura and Coca-
and, after its application in Mid Juruá, it will be replicated in other
Cola, in the local development body Fórum de Desenvolvimento
priority territories.
and communication, ecosystem sustainability, individual rights and
In parallel, we evolved further in the valuation of the social impacts
of our business on the communities in which we operate based on
Social Profit and Loss methodology(further information on page 189).
Territorial do Médio Juruá. The forum is a multi-institution body
created to drive dialogue around boosting the potential for local
development based on a standing forest economy. Diverse
initiatives to promote environmental conservation, foster social
biodiversity chains and encourage educational initiatives for
agriculture and the forest have been undertaken under the auspices
of the Forum. One of these was the distribution of solar lighting kits
to 2,959 people from 56 communities. The action was initiated in
2018, when 600 kits were distributed. Training programmes were
also undertaken, including one to prepare young people from the
communities to work with environmental monitoring.
Another important event in the year was the inauguration of the
Casa Familiar Rural in Campina, which provides training for young
people who live around 8 hours by boat from the Carauari urban
area. In another course, a researcher from Centro Brasileiro de
Análise e Planejamento (Cebrap) trained young people to work
as researchers in a survey that measures the communities’ Social
Progress Index (IPS in the Portuguese acronym).
The IPS indicates how shared territorial development management
is influencing development in a determined location. The most
The city and
the forest are
connected
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2019 ANNUAL REPORT Global biodiversity agenda
The United Nations (UN) had established 2020 as a global
order to bring about significant change in societies and economies.
year for biodiversity. A series of events focused on valuing
Believing that nature-based solutions represent the best alternative
biological diversity and conserving natural resources was
for achieving social well-being, combating climate change and
scheduled for the year. With the outbreak of the COVID-19
protecting the planet, Natura is on the alert and is mobilising around
pandemic, these initiatives were postponed until 2021.
this question and will engage its stakeholders in this discussion.
Reducing the loss of species and alerting the world to the need to
regenerate degraded areas continue to be urgent issues presenting
The year will also be important for the company because of two
landmarks: the 20th anniversary of the Ekos product line and the
first cycle of targets for Natura 2050 Vision (read more about the
risks that can affect the entire planet. These meetings will be an
status of these ambitions on page 159).
opportunity for society, organisations, the private sector and public
authorities to join forces.
• IUCN Conservation Congress
January-2021
This is also a decisive moment for the Paris Agreement, with the
Marseilles (France)
deadline for countries to present their plans to reduce emissions in
order to limit global temperature increase to 1.5 degrees Celsius.
• COP 26 – Climate Change Conference
(date not confirmed)
The Sustainable Development Goals (SDGs) complete five years in
Glasgow (Scotland)
2020, which means we have less than ten years until the deadline
established in the 2030 Agenda. The world needs to step up its
• COP 15 – Convention on Biological Diversity
pace and increase its efforts to find the best solutions for issues
(date not confirmed)
such as pollution, climate change and the loss of biodiversity in
China
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105
2019 ANNUAL REPORT
More Beauty,
Less Waste
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106
2019 ANNUAL REPORT GRI 103-2, 103-3
Offering the most, using the least and reducing excesses
is one of the bases on which we develop our products.
Pioneers in the use of refills 35 years ago, and prioritising
We are engaged in developing solutions that do not require
packaging (naked products).
renewable or recyclable material, as well as reducing
In 2018, we joined the New Plastic Economy global
packaging material volume, we adopt a systemic approach
commitment, organised by the Ellen MacArthur Foundation,
to diminishing our environmental footprint, using and reusing
aimed at driving adoption of circular economy principles for
materials already present in the production process.
the plastics chain.
In our 2020 Ambitions, we established targets to use more
post-consumer recycled material and adopt eco-efficient,
recyclable packs or ones of renewable origin. In 2019, we
reached a return rate of 47% materials recycled.
We value the aesthetic beauty of products but in parallel
pursue lower environmental impact alternatives and seek to
demonstrate the importance of these more conscious choices
Ecodesign
Our innovation cycle establishes that Natura should
increasingly adopt the concepts of ecodesign and circularity
in the development of its packaging.
to consumers. We emphasise not only the design, but also
The company has a multidisciplinary committee comprising
the story a product has to tell. With our More Beauty, Less
Waste cause, we also want to invite our consumers and society
in general to reflect on their choices and habits beyond the
consumption of our products.
people from the design, environmental, packaging
development, consumer experience and sustainability
areas, which is focused on identifying more circular packaging
solutions and defining commitments and guidelines that will
enable us to reduce our environmental footprint.
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107
2019 ANNUAL REPORT Eco-efficient packaging
GRI 103-2, 103-3 and 301-2
2020 ambitions
Promoting a circular economy*
Natura targets
include
40% of units
billed with eco-
efficient packs**
In parallel, the
company wants to
achieve 74%
recyclable material
One of the 2020 Ambitions establishes that the company should
use at least 10% post-consumer recycled material in Natura
packaging in Brazil, based on total packaging mass. In 2019, this
And at least
10% post-
consumer recycled
material
in the their
packaging
indicator reached 8.6% – compared with 5.4% the previous year.
Another target is ensuring that 74% of the product packaging
material used by Natura Brazil is recyclable. In this commitment,
we remained stable in comparison with 2018, with our packaging
containing 50% recyclable material.
*Indicators valid for Natura Brazil.
**Reduction of at least 50% in weight compared with regular/similar packs and/or
with 50% post-consumer recycled material or material of renewable origin in their
Collect and recycle 50%* of the waste generated
by product packaging**
* in tonnes equivalent.
** Indicator valid for Natura Brazil.
Where we are
18%
of the packs billed are
eco-efficient, slightly
down on 2018 due to
the product mix sold.
8.6% of the
inputs are recycled
material.
Half of the material
used in our packaging
is already recyclable
We have already guaranteed
the return of 47% of
the waste volume generated
by our packs. The material
returns to the production
chain via recycling.
The use of recycled material grew in 2019 due to the consolidation
of the measure adopted the previous year, which established that
the entire perfumery portfolio should have up to 30% recycled glass
in its composition, in addition to the relaunch of the Natura Tododia
line with 100% post-consumer recycled PET in its packs. The Natura
Ekos body and hair line and the Sève line also contain 100% recycled
PET, while our spray deodorant packs have 50% recycled PET in their
composition, which boosted our performance in this indicator.
The share of products with eco-efficient packs (weighing at least
half of a similar pack and/or having 50% post-consumer recycled
and/or 50% non-cellulosic renewable material) in the product sales
mix was lower in Brazil. The indicator fell from 22% in 2018 to 18%
in 2019. Even though efill sales performance was good, our result
was influenced by the sales performance of products in the hair
and body categories.
It is worthy of note that we also monitor these indicators in the
Latin American operations even though they are not part of
our ambition for 2020.
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108
2019 ANNUAL REPORT
GRI 301-2 Eco-efficient packs1 over items billed (%)
2017
2018
2019
Brazil
Operations in Latin America
21
21
Brazil and Operations in Latin America
Not available
22
22
22
18
21
19
1. Eco-efficient packaging is at least 50% lighter than regular/similar packaging; or comprises 50% post-consumer and/or
renewable non-cellulosic materials that do not increase mass.
GRI 301-2 Recycled materials used in product manufacture
(%)
2017
2018
2019
Post-consumer recycled material (PCR)¹ incorporated into
finished product packaging – Brazil
Post-consumer recycled material (PCR)¹ incorporated into
finished product packaging – Operations in Latin America
Post-consumer recycled material (PCR)¹ incorporated into
finished product packaging – Total
Recyclable² material in finished product packaging – Brazil
Recyclable² material in finished product packaging –
Operations in Latin America
Recyclable² material in finished product packaging – Total
4.6
4.5
Not
available
50.0
52.0
Not
available
5.4
4.5
5.2
49.6
47.3
49.1
8.6
5.2
6.6
50.0
50.0
50.0
1. Percentage of post-consumer recycled material (PCR) mass in relation to total mass of packaging materials, weight-
ed by the quantity billed.
2. Percentage of recyclable material mass in relation to total mass of packaging materials, weighted by the quantity
billed.
A global call for
zero waste
In October, we launched our biggest open innovation
challenge ever. The purpose is to find new solutions
to combat waste generation, in particular plastics
(further information on page 81).
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109
2019 ANNUAL REPORT Waste management
GRI 103-2, 103-3 and 301-3
Another Natura ambition for 2020 is the collection and recycling
of 50% of the company’s packaging waste in Brazil (in tonnes
equivalent) . To achieve this we are investing in two work fronts: the
In 2019, we used a total 9,200 tonnes of post-consumer recycled
material supplied by the programme. During the year, 11 waste
picker cooperatives were engaged in this network.
Natura Elos Programme, a shared responsibility initiative involving
Natura and its packaging suppliers (manufacturers, cooperatives,
As part of the programme, in October we implemented a pilot
recycling operations), and the Dê a Mão para o Futuro Programme,
project with riverside communities in the Mid Juruá region in the
organised by Abihpec, the Brazilian CFT industry association, with
Amazon, aimed at raising awareness of the need to collect and
the participation of Abipla, the cleaning industry association, and
recycle plastic waste to prevent contamination of the rivers in
Abimapi, the baking industry association.
the region. Another pilot was undertaken with consultants in the
Campinas region in the state of São Paulo, whereby a recycling
Since 2017, the Natura Elos Programme has been engaged in
cooperative collected used product packs from the consultants’
developing the reverse logistics chains to supply recycled materials
homes. In 2020, we will work on raising consultant awareness all
for manufacturing our packaging and support materials. By
over Brazil, requesting that they collect Natura product packaging
involving packaging manufacturers, recycling operators and waste
from their customers and deliver it to the company at events
picker cooperatives, we guarantee reverse logistics with best
organised by the Sales Force.
practices in all the links of the supply chain.
In addition to developing the reverse logistics chain, we encourage
consumers to return discarded packaging. For 2020, an agreement
the professionalisation of all the links in the recycling chains,
will be made with a partner to collect this used packaging and
The Natura-owned retail stores are already equipped with bins for
promoting formal relations and best management and operational
dispatch it for recycling.
practices in cooperatives, intermediaries and packaging
companies.. These initiatives impact the volumes of recyclable
The Dê a Mão para o Futuro Programme exceeded the recycling
materials recovered, generating a positive environmental impact, as
target established for 2019 by 10.5%.
well as social benefits in the form of inclusion, income generation
and decent working conditions for the waste pickers involved in the
As a result of these two initiatives, we reclaimed 47% of the
material collection and sorting chains.
equivalent waste generated by our packaging in the country.
GRI 301-3 Reclaimed products and their packaging
materials – Brazil (%)
2017
29
2018
33
2019
47
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Commitment is extended
to Latin America
GRI 103-2, 103-3
2019 saw the engagement of the Latin American operations in
the cause More Beauty, Less Waste, with the establishment of
public waste recycling targets.
In the first, we created alliances and invested in recycling cooperatives
to help them enhance their management and internal processes. In
addition to environmental gains, the project generates positive social
impacts by boosting the income of the recycling operations. Another
The commitment is a proactive response to legislation that has been
positive impact is due to the sensitisation of our consultants who, by
recently approved or is about to be approved by local authorities. All
extension, may positively influence their customers.
of the countries in which we have direct operations (Argentina, Chile,
Colombia, Peru and Mexico) have access to the sea and some are
On the other front, we have developed partners who manufacture
beginning to feel the negative impact of the disposal of plastics in
products on behalf of Natura, requiring them to incorporate
the ocean on their fishing and tourism industries.
recycled glass into the perfume packs in our portfolio.
The consolidated target for these five countries is to recycle 16% the
waste generated by Natura product packaging (in equivalent volume).
All of the countries met their targets in 2019, with the exception of
Mexico, where recycling chains are not as advanced as they are in
Each country established a target of 15% – with the exception of Chile,
the other countries. At the end of the year, Natura Mexico selected a
which set a target of 20%.
partner that will be responsible for the collection and recovery of waste.
The strategy adopted established higher rates than local legislations,
Even so, the consolidated 16% target for the region was exceeded,
as well as progressive increases for the coming years. Based on a
with the correct destination of 20% of the waste generated by our
systemic approach to ensure the reintegration of these materials into
products in the year. The targets for 2020 remain the same
the production chain – principally among the suppliers with whom
as the previous year.
we operate –, we set up two work fronts.
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Recycling project on the island of San Andrés
A picture postcard for Colombia and home to a wealth of biodiversity,
products in the cartons in which consultants’ order are shipped was
replaced with kraft paper. In a period of five sales cycles, we avoided
the island of San Andrés also suffers the consequences of high levels
the use of 7.5 tonnes of plastic.
of use of plastic. Natura Colombia asked the consultants in its network
on the island to engage in a recycling initiative.
With the orders sent to the island, we include a bag so that
The movement also engaged consultants and co-workers and will be
continued in 2020. Similar initiatives should be adopted in the other
countries in Latin America. In the five countries, the events organised
consultants may collect dry and clean recyclable materials and
by the Sales Force are already compliant with the guidelines set forth
deliver them to a local logistics operator who is Natura’s partner
in the sustainable events manual created by Natura Mexico, which
in this project. The consultants may also arrange for the operator
prohibits single-use plastics, among other things.
to pick up the materials from their homes. In 2019, 40 consultants
managed to collect more than 1 tonne of waste. This volume
was transported to Bogotá by a partnering airline company and
delivered to a cooperative for recycling.
The initiative will be stepped up in 2020 with the involvement of
other sectors, such as hotels and restaurants. The material will also
be sorted and classified on the island by a cooperative that has
joined the project.
Natura Peru says goodbye to single use plastic
To eliminate single use plastics, Natura Peru has launched its
#ChauPlástico campaign. Materials such as those used to wrap
gifts, the Natura magazine, the bags used for presents and the
plastic used in the cartons in which orders are sent to consultants
are being eliminated from the daily routine.
After mapping opportunities for eliminating plastic, Natura selected
alternative materials to replace it. The material used to pack
By ourselves,
we won’t
change
anything
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2019 ANNUAL REPORT
Natura magazines
become Crer Para Ver products
Based on circular economy principles, Natura Colombia
decided to use Natura magazines that would be disposed
of to make new products for the Crer Para Ver non-
cosmetic line, the revenue from which is dedicated to
educational actions for consultants and other groups. The
major differential of the project is the fact that the new
products are manufactured by female prisoners or women
undergoing social rehabilitation. This enables them to learn a
new professional activity; they are paid for the work and gain
a second opportunity to rebuild their lives.
The initiative was undertaken with support from a partner
who designed the new pieces for the Crer Para Ver collection
(cup-holders, pencil cases, mirrors, lights, pendants and
necklaces, among others) and trained the participants.
The project is also supported by other institutions. Before
the prisoners’ training began, Natura employee volunteers
decorated an area in the prison, transforming it into a
classroom. The more than 40 participants had 125 hours of
training, prior to producing 76,000 items. It is projected that
65 women will transform eight tonnes of paper into Crer Para
Ver products by the end of 2020.
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2019 ANNUAL REPORT Natura Carbon
Neutral Programme
GRI 103-2, 103-3
2020 ambitions
CO2
Offset all our
emissions,
primarily in the
Pan-Amazon
region
Reduce relative
GHG emissions by
33% (base year
2012)
Where we are
We offset 100%
of our emissions. We neutralise
emissions by fostering projects
that generate a positive impact
for the climate, as well as a
series of other benefits, such
as generating jobs, technology
transfer, reinforcement of
local economies, women’s
empowerment, among others.
1.2%
Cumulative reduction
of 1.2%. Our challenge
is to find new
opportunities and to
develop technologies to
reduce GHG emissions
throughout the value
chain.
Natura is a carbon neutral company that offsets all the
greenhouse gas (GHG) emissions it is unable to avoid. The
Natura Carbon Neutral Programme functions in three main areas:
mapping of emissions throughout the value chain, the constant
pursuit of emissions reductions and neutralisation of emissions that
cannot be avoided.
We adopt an expanded scope, which takes into account not only
our own production process, but the entire value chain – from the
extraction and transportation of raw materials to the manufacture
of packaging materials by third-parties and the final disposal of
packaging after use. Ongoing emissions reduction targets are
incorporated into the company’s 2020 ambitions.
The role we play in the Amazon biome is also an integral part of
combating climate change. In our offsetting programme we seek to
support projects that help keep the forest standing. Furthermore,
we maintain a platform that shares our learnings from emissions
neutralisation with other companies and encourages the adoption
of a low carbon economy.
We are aware that we can boost the effectiveness of our measures
if we work with partners who share the same goal. Our supply chain
and companies from different sectors will
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2019 ANNUAL REPORT be fundamental for us in the development of innovative
technologies that have yet to be created. Our challenges include
the pursuit of alternatives for product distribution – a demand that
is growing as we become increasingly global – and the ambition
of be a company that generates a positive impact. We want our
business model to help reduce and even sequester carbon from the
atmosphere. This is the next frontier we must pass.
Our management of emissions was recognised by the UN in 2019,
when Natura received the Global Climate Actionaward
(further information on page 28). Natura was also indicated by
the Carbon Disclosure Project (CDP) as a global leader due to its
measures and strategies to reduce emissions and manage climate
risk in its supply chain. The company received an A rating in the
Supplier Engagement Index, a score that only 3% of the 4,800
companies assessed achieved.
Either we
change or the
climate keeps
changing
Support for manifestations for the
climate
On September 20, 2019 Natura-owned stores had no products
on display in their windows. Instead, messages such as “The
future is now” and “Either we change or he climate keeps
changing” drew the public’s attention to the importance of
climate action. Natura participated in the demonstrations for the
Climate Strike organised worldwide on this day, on the eve of
the United Nations General Assembly in New York (USA).
Additionally, the Natura Beauty Consultants were invited to
join the demonstrations organised in various regions of Brazil.
Furthermore, Natura released communications through its
channels with instructions on how to show support for the
Amazon, how to value the people and products from the region,
as well as messages promoting conscious consumption and
care with product origin.
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2019 ANNUAL REPORT
Emissions reduction
In 2019, our efficiency efforts enabled a 2% reduction in absolute
greenhouse gas emissions.
The relative indicator, which indicated the volume of emissions per
product billed, was less efficient compared with the previous year,
increasing by 1%.
In a joint effort by diverse company areas, we implemented
measures such as a portfolio of lower impact products, a reduction
in air freight for exports, improved logistics efficiency and a
decrease in printed publicity material. The challenge remains
of pursuing new opportunities and developing new technologies.
Comparing company performance with 2012, the base year
of our commitment to reduce emissions by 33%, the result in
2019 was a 1.2% decrease.
We also remain engaged in the pursuit of new solutions to reduce
greenhouse gas emissions throughout our value chain.
Organic solar panel
We installed the largest organic photovoltaic (OPV) film in the
world in one of the buildings in the company’s Cajamar unit in
São Paulo. This is the Natura Learning Nucleus (NAN), a building
used for training, workshops and events. 1,800 m2 of panels that
generate energy from sunlight were installed. This should avoid
carbon dioxide emissions of 37 tonnes per year – the equivalent
of the monthly consumption of 459 residences in Brazil.
The film is made from non-toxic organic material in a printing
process similar to that used in the textile industry. The production
of the panels requires less energy, making them more efficient
in terms of environmental impact. The material is produced by
Sunew, the world leader in the manufacture of this film.
The initiative is part of company strategy to use renewable
energy and boost efficiency. Also in 2019, we finalised the
Natura Integrated Global Policy, which sets forth the company’s
positioning in this area.
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2019 ANNUAL REPORT GRI 305-1, 305-2, 305-3, 305-4
Total CO2e emissions (t)¹ ²
2017
2018
2019
Sources (Scope 2):
1. Brazilian Power Grid Emission Factor: Ministério da Ciência,
308,048
333,183
325,840
Tecnologia, Inovações e Comunicações (MCTIC) - http://www.mct.
Relative emissions (kg CO2e/kg of product billed)
Cumulative reduction in relative emissions since 2012 (%)
3.20
0.5
3.14
1.8
3.18
1.2
1. CO2e (or CO2 equivalent): measure used to express greenhouse gas emissions, based on each one’s global warming
potential.
2. Includes GHG Protocol scopes 1, 2 and 3.
Sources used to calculate emissions:
Sources (Scope 1):
1. Intergovernmental Panel on Climate Change (IPCC). 2006 IPCC
guidelines for national greenhouse gas inventories: Volume 2.
IPCC National Greenhouse Gas Inventory Program (http://www.
ipcc-nggip.iges.or.jp).
2. Intergovernmental Panel on Climate Change (IPCC). 1997b.
Revised 1996 IPCC guidelines for national greenhouse gas
gov.br/index.php/content/view/74694.html
2. Argentinian Power Grid Emission Factor: http://energia3.mecon.gov.
ar/contenidos/verpagina.php?idpagina=2311
3. Chilean Power Grid Emission Factor: http://huelladecarbono.
minenergia.cl/emision-para-el-sic
4. Colombian Power Grid Emission Factor: http://www.siame.gov.co/
siame/documentos/Calculo_FE_SIN_2013_Nov2014.pdf
5. Power Grid Emission Factor Peru and France: CO2 Emissions From
Fuel Combustion Highlights 2013
6. Mexican Power Grid Emission Factor: http://www.geimexico.org/
factor.html
Sources (Scope 3):
1. Intergovernmental Panel on Climate Change (IPCC). 2006 IPCC
guidelines for national greenhouse gas inventories: Volume 2. IPCC
National Greenhouse Gas Inventory Program (http://www.ipcc-nggip.
inventories: Reference Manual (Vol 3). IPCC National Greenhouse
iges.or.jp).
Gas Inventory Program
3. Department for Environment, Food and Rural Affairs (Defra)
-https://www.gov.uk/government/uploads/system/uploads/
attachment_data/file/224437/pb13988-emission-factor-
methodology-130719.pdf
4. IPCC Fourth Assessment Report - AR4 (2013) - (http://www.ipcc.
ch/publications_and_data/ar4/wg1/en/ch2s2-10-2.html)
2. Intergovernmental Panel on Climate Change (IPCC). 1997b. Revised
1996 IPCC guidelines for national greenhouse gas inventories:
Reference Manual (Vol 3). IPCC National Greenhouse Gas Inventory
Program
3. Department for Environment, Food and Rural Affairs (Defra)
2013 - https://www.gov.uk/government/uploads/system/
uploads/attachment_data/file/224437/pb13988-emission-factor-
5. Balanço Energético Nacional 2013 (BEN 2013) (https://ben.epe.
methodology-130719.pdf
gov.br/downloads/Relatorio_Final_BEN_2013.pdf)
4. IPCC Fourth Assessment Report - AR4 (2013) - (http://www.ipcc.ch/
publications_and_data/ar4/wg1/en/ch2s2-10-2.html)
5. Balanço Energético Nacional 2013 (BEN 2013) (https://ben.epe.gov.
br/downloads/Relatorio_Final_BEN_2013.pdf)
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2019 ANNUAL REPORT GHG emissions – Scopes 1, 2 and 3 (tCO2
equivalent)1 2
Direct GHG emissions - Scope 1
Indirect emissions from the acquisition of ener-
gy - Scope 2
2017
5,187
6,006
2018
8,509
5,072
2019
7,055
6,636
Other GHG emissions - Scope 3
296,855
319,602
312,149
Total GHG emissions (Scopes 1, 2 and 3)
308,048
333,183
325,840
GRI 305-5 Reduction of GHG emissions as a direct result
of emissions reduction initiatives1
2017
2018
2019
1. Reductions in indirect Scope 3 emissions.
8,578
9,127
10,759
Biogenic emissions (tCO2 equivalent)1
2017
2018
Direct biogenic emissions (from the burning or
biodegradation of biomass)
GRI 305-1
Indirect CO2 biogenic emissions
GRI 305-3
9,387
10,098
8,976
9,639
9,573
2019
11,193
Offsetting
emissions
GRI 305-5
Total biogenic emissions
18,364
19,737
20,766
1. Our greenhouse gas emissions inventory takes into account total emissions from all stages of our operation, from
the extraction of raw materials, through our processes and those in our production chains, to the final disposal of
post-consumer packaging. We comply with GHG Protocol standards and the principles of Brazil’s ABNT NBR ISO
14064-1 standard, which establish rules for their conception, development, management and elaboration. The 2019
Natura GHG inventory was audited and assured by KPMG.
2. Does not take into account the operations in France, the United States and Malaysia.
GRI 305-1, 305-2, 305-3 Emissions in the value chain (t)1
Extraction and transportation of raw materials and packaging (process
and transportation to direct suppliers)
2017
2018
2019
119,101
131,504
127,051
Direct suppliers (process and transportation to Natura)
29,574
32,654
31,548
Industrial and internal processes
16,754
19,814
19,660
Product sales (transportation and distribution)
62,751
62,425
62,282
Use of products and disposal of packaging
79,868
86,786
85,299
Overall total
308,048
333,183
325,848
1. Our greenhouse gas emissions inventory takes into account total emissions from all stages of our operation, from the
extraction of raw materials, through our processes and those in our production chains, to the final disposal of post-consumer
packaging. We comply with GHG Protocol standards and the principles of Brazil’s ABNT NBR ISO 14064-1 standard, which
establish rules for their conception, development, management and elaboration. The 2019 Natura GHG inventory was audited
and assured by KPMG. The sources of emission are the same ones taken into account in the previous tables.
Within the offsetting strategy the company opted to invest
in projects that also generate environmental and social
benefits. These include biodiversity conservation, reforestation,
fossil fuel substitution and energy efficiency projects. To encourage
other companies to do likewise, in 2017 we launched our Climate
Commitment Platform. The initiative connects companies with
carefully chosen projects, creating a portfolio of socioenvironmental
initiatives that generate carbon credits.
At the outset, the platform involved a partnership with Instituto
Ekos Brasil and Itaú Unibanco. In 2018 and 2019, Lojas Renner, MRV
Engenharia and B3 joined the initiative. The participation of B3
(São Paulo Stock Exchange) represents an important opportunity
to further promote the initiative among other publicly traded
companies. Companies listed on the Corporate Sustainability Index
(ISE) and the Carbon Efficient Index (ICO2), both on the B3 index,
also receive a membership discount.
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2019 ANNUAL REPORT
The programme underscores the need to adopt a thorough
approach, which includes mapping all sources of emissions,
implementing reduction measures and lastly, offsetting emissions
that cannot be avoided.
In 2019, we launched a second tender for new projects, making a
further five options of carbon offsetting initiatives available. A total
of 22 projects were submitted to the tender. As an improvement to
the process, we included a legal and risk assessment of the projects
approved, providing the companies participating on the platform
with more complete information for their decision making.
Further information at:
http://compromisso.ekos.social/ (website in Portuguese)
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2019 ANNUAL REPORT Strategy also helps
combat deforestation
GRI 305-5
The acquisition of carbon credits from Natura supplier
contributions to combating deforestation. Part of the funds
communities that use social biodiversity active ingredients
are distributed among the smallholders’ families, while the
sustainably and contribute towards keeping the forest standing is
remainder goes into a cooperative fund. The transfer of funds
another initiative that increases income generation in the Amazon
is conditional on the preparation of an annual emissions
region and helps to prevent deforestation.
inventory audited by a third-party.
The project to pay for offsetting carbon within our supply chain (a
In 2019, we initiated an expansion plan for the Circular
practice known internationally as carbon insetting), initiated in 2018,
Carbon model. A feasibility study was undertaken to
was called Circular Carbon and is the result of an integrated vision
evaluate the implementation of the project with the
of the Amazonia and the Carbon Neutral programmes.
cooperative Coopavam (Cooperativa dos Agricultores do
Vale do Amanhecer), which supplies Brazil nuts for the Ekos
The first partnership was undertaken with the reforestation
product line. Located in Juruena, in Mato Grosso, the region
cooperative Reca (Cooperativa de Reflorestamento Econômico
is under great pressure from deforestation. The Vale do
Consorciado e Adensado), located on the border between the
Amanhecer settlement where the cooperative operates,
states of Acre, Amazonas and Rondônia.
has the first community legal reservation area in the
country and employs an alternative model which,
The contract provides for annual payments during 25 years
through the sustainable extraction of Brazil nuts, keeps
for the environmental services generated by the communities’
the forest standing.
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2019 ANNUAL REPORT Additional benefits
Each R$ 1 invested by the Natura Carbon Neutral
programme generates R$ 31 in social and
environmental co-benefits.
Methodology: The Social Return on Investment (SROI)
measures how the changes generated by the projects
impact community life in monetary terms.
This takes into account aspects that include human
health, community development, ecosystem services
and climate change. For each area assessed, the
impacts caused were mapped, identifying and
quantifying the changes generated.
From 2010 to 2019
more than 3.6 million
tCO2 equivalent offset
generated
+ R$ 1.6 billion*
in co-benefits
* Amount calculated for the period between 2007 and 2018.
We share
the same time
and the
same world
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2019 ANNUAL REPORT
Offsetting on the Colombian coast
We are also engaged in emissions offsetting projects in the
decided at council meetings and involves approximately 1,340
other Latin American countries in which we operate as part of
people from 335 families.
our strategy to compensate for our local impacts. As in Brazil,
the projects must drive additional socioenvironmental benefits
In the first half of 2019, the Natura Colombia team undertook a
besides the carbon credits generated.
field trip to get to know the area (around 42,000 hectares) and
the communities, as well as the governance structure of the
In Colombia, the company supports the SUPP project, the acronym
councils. The council members also had the opportunity to learn
standing for four community councils (Sivurú, San Andrés de
more about our purpose in order to approve the negotiation.
Usaragá, Pizarro and Pilizá) in the Chocó-Darién region on the
With this project, Natura became the first private company to
Pacific coast. The region is rich in biodiversity, with a large number
invest in these communities.
of species that are vulnerable and some that are threatened with
extinction. Historically the local population – mainly black and
indigenous – has been impacted by drug trafficking.
In Argentina, we support a wind energy generation project in
the region of Patagonia. In Mexico, the company invested in a
project to replace wood-fired stoves with more efficient models,
The project offers local communities improved living conditions
in an initiative similar to one undertaken in Brazil. In Chile and
by fostering the açaí production chain and fishing. Natura’s
Peru, the offsetting measures up to 2018 involved projects
proposal involves the purchase of 40,000 carbon credits
aimed at preventing deforestation, one on the Chilean coast and
(2019-2020) generated based on reduced deforestation and
the other in the Peruvian Amazon region. A new purchase will
protection of local biodiversity. The distribution of funds is
occur in 2020.
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2019 ANNUAL REPORT Water footprint
GRI 103-2, 103-3 and 303-1
2020 Ambition
Implement a water consumption
reduction and neutralisation strategy
taking into account our value chain
Where we are
We advanced in the
analysis of ecotoxicity
in the product safety
assessment process,
and we included studies
on plastics pollution in
rivers and oceans in the
Integrated Profit & Loss
– IP&L tool (read more
on page 89).
We also evaluated
alternative tools to
build a reduction
and neutralisation
strategy for our
In 2017 we concluded our studies on mapping the water footprint of
our products – taking into account the entire value chain, from the
extraction of raw materials, through the production process to use of
the products by consumers. These studies showed that the energy
spent by consumers to heat water in their households is the stage with
the highest impact, especially in Brazil, whose energy matrix comprises
principally hydroelectric power.
These studies will provide the basis for the company’s future strategy
to reduce and neutralise the impacts caused by the company’s water
consumption. The advances in our formulations in recent years, involving
increasingly natural ingredients, and the adoption of biodegradable micro-
spheres in exfoliant products are also part of our efforts to reduce the
impact of water pollution. For the coming years, our strategy will involve the
development of no rinse products, as well as other disruptive innovations.
Water consumption within the company is monitored on a monthly basis
by co-worker and by unit produced. Measurement in our four factories is
conducted on a daily basis. We also monitor water consumption at our
main suppliers, such as those who manufacture products on behalf of
Natura. Effective monitoring will enable the company to rapidly develop
improvement and reduction plans. In 2019, relative consumption (total
litres per unit produced) was 0.59, an increase compared with the 0.52
litre per unit produced in 2018. This increase in water consumption per
unit produced was in part due to changes in diverse sanitary processes.
During the year we included water consumption in the Latin American
operations in the calculation.
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2019 ANNUAL REPORT Every Person Matters
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2019 ANNUAL REPORT The third cause assumed by Natura is an expression of
the importance we attribute to our relationship network.
By means of direct selling and a business model that shares
wealth throughout our value chain, we generate income for
1.8 million consultants in Brazil and in Latin America, and for
our suppliers and communities. We seek to strengthen these
relations and invest in the development of our network.
Our goal is to leverage this impact, especially through
support for education, income generation and diversity. In
terms of economic inclusion, the objective is to contribute
even more effectively to ensure everyone involved has
access to a decent income, enabling an adequate standard
of living, including food, housing, education, medical
assistance, transportation and other essential needs.
Here is a description of the main measures undertaken for
our stakeholder groups in 2019.
Every person
is a world.
And the whole
world matters
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2019 ANNUAL REPORT
Diversity and inclusion
GRI 103-2, 103-3 and 405-1
2020 ambitions
Where we are
50% of women
occupying leadership
positions (director
Our index stands
at 41% of the
leadership team
(directors and vice
presidents).
8% of disabled
employees
in our workforce*
*Takes into account Natura
We reached 7% of
disabled co-workers in
2019.
Based on a detailed study of the reality in each country in which
Natura operates, we have established areas of activity with a view
to promoting a diverse and inclusive environment that reflects the
cultural wealth of the surrounding society. We have prioritised four
main areas of activity: gender equality, inclusion of disabled people,
ethnic-racial diversity and the LGBTI+ audience.
The company maintains its groups of volunteer employees who
seek to reinforce Natura’s diversity agendas both inside and outside
the company. We also organised our second Diversity Week, with
simultaneous initiatives in Brazil and in the Latin American operations,
the main theme of which was prejudice, employing the motto “We
need to talk about this”.
We disseminated the concept of an inclusive culture, which in 2019
encompassed the sensitisation of senior management and the work
force. The goal is to ensure an organisational environment free of
stereotypes, in which people may increasingly feel secure to express
themselves as they truly are.
The diversity and inclusion front gained even greater relevance
with the definition of Natura’s causes. The theme has also been
incorporated into the company’s new strategic planning (2020-2024)
as part of the organisational transformation pillar, with targets that are
monitored by the Executive Committee and the People, Organisation
and Culture area. A specific management area was created to
oversee this aspect. This work is supported by the Natura Valuing
Diversity Policy, in place since 2016.
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2019 ANNUAL REPORT Gender
The focuses are females leaders, co-responsibility and combating
violence against women. We ended 2019 with 41.4% women
occupying leadership positions (director level and above), a 3.4
percentage point increase over 2018 (38.2%). The target for 2020
is 50%. The advance in this area is partially due to the commitment
to ensure that 50% of the finalists in selection processes at any
hierarchical level are women. Currently, women occupy 55.6% of
the management functions in the company and represent 61.9%
of the work force. Externally, we work on women’s empowerment,
with a special impact on the consultants (read more on page 41)
and the women in the supplier communities in the Amazon (read
more on page 53).
Since 2018, we have provided vacancies for the children of male
employees in our two nurseries in Brazil. In 2019, 36 fathers used this
benefit. We also offer paternity leave of 40 days for all co-workers
in Brazil and in the International Operations. Women are entitled to
maternity leave of six months. In partnership with the Instituto Papo
de Homem, we also conducted the biggest survey on masculinity
undertaken in Brazil, which involved more than 40,000 people and
gave rise to the documentary O Silêncio dos Homens (The Silence
of Men). GRI 401-3
Regarding violence against women, in 2019 in Brazil we formed the
Anti-Domestic Violence Committee, comprising representatives of
leaders and an external
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127
2019 ANNUAL REPORT specialist. The committee meets as required to analyse highly
2020 Ambition establishes having 8% of people with some form of
critical cases. We provide a toll-free help line for female co-workers
disability on the workforce in Brazil. In 2019, this rate reached 7.2%.
who are victims of domestic violence in Brazil, through which they
At the São Paulo Distribution Centre (CD SP), 20.6% of the work
may receive specific guidance from psychologists, social workers
force have some type of disability.
and lawyers. In Latin America, we also have protocols in place and
work with partners and public bodies specialised in violence against
Regarding accessibility, in 2019 we prepared 50 new godfathers, co-
women. In some cases, the support provided by Natura may include
workers who have voluntarily learned Brazilian sign language, Libras,
temporary leave from work, credit to deal with additional expenses
to assist hearing impaired team mates in their daily routine. During
and the possibility of transfer to other company units. Also worthy
feedback processes with management and medical consultations
of note during the year was the intense effort to raise awareness
in the company health centres, sign language interpreters are
throughout the company, including operational workers, business
available to provide support via videoconference. For co-workers
managers and leaders, who acted as multipliers of this question,
with intellectual impairment, we use supported employment
disseminating it to the consultants.
methodology with specialists who accompany these co-workers and
their managers on a periodic basis. In 2019, we extended the initiative
On November 25, International Day for the Elimination of Violence
to Natura-owned stores. In December, 23% of our points of sale had
against Women, we organised activities in all our operations. With
staff with some form of intellectual impairment.
the incorporation of Avon, which is equally involved in combating
violence against women, we will have the opportunity to enhance
In the other operations in Latin America, we conducted a study
and extend our actions. In March 2020, Natura joined the Business
during the course of the year to better understand the realities in
Coalition to End Violence against Women, organised by the Instituto
each country. In the operation in Argentina, we formed a squad with
Avon, with support from UN Women and the Fundação Dom Cabral
a multidisciplinary team whose mission is to design and implement
and the participation of companies from different sectors of activity.
a program to include disabled people in the operation.
Disabled people
We strive to promote accessibility and the effective inclusion of the
Based on our experience in this area, we decided to contribute
external discussions and positively influence the public agenda on
disabled, offering ways in which they may develop at Natura. Our
inclusion of the disabled.
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2019 ANNUAL REPORT Ethnic-racial inclusion
In Brazil, Natura’s priority is to increase representation of black
During the year we also took measures to increase the awareness
of leaders and co-workers in relation to the risk of covert racism,
people in the work force. In 2019, over 50% of the candidates
including the actions organised for Black Consciousness Week in
selected in the two editions of our intern program were young
November. With support from our ethnic-racial affinity group we
black university students, exceeding the 33% target that had been
prepared an anti-racist manual, which had a positive repercussion in
established for hiring black people. There were more than 19,000
the social networks.
candidates in the selection process, which was distinguished by a
number of elements: we organised meetings to help candidates to
In Latin America, we will undertake a study to better understand ethnic
prepare for the process, with Natura staff acting as mentors.
questions in each country in order to format specific work plans.
The meetings took place out of working hours to ensure candidates
who work and study would be able to participate. We also provided
LGBTI+ Audience
In partnership with our LGBTI+ affinity group, we prioritised
transportation to facilitate travel to the Natura premises, as well
awareness measures during the course of the year. As with the
as eliminating requirements such as university education, age
other groups that collaborate with different areas in the company,
and mastery of foreign languages. For one group of candidates
the Natura in Colours affinity group assisted in the development of
who were not selected but were participating in other selection
the All the Colours of Love campaign, which reinforced the Natura
processes, we established a partnership to provide them with free
English language courses.
Faces brand’s support for the cause.
In parallel, we are working with human resources consultancies
specialised in ethnic-racial diversity to attract more black women
to our sales force.
In addition to these initiatives to attract candidates, we are also
promoting measures to ensure the development of these co-workers
with a view to enabling them to grow at all levels within the company.
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129
2019 ANNUAL REPORT
We have offered health benefits for LGBTI+ couples for 15 years.
Similarly, the company nursery may be used by the children of
co-workers who have taken maternity leave, irrespective of their
gender identity. We also guarantee adoption of an individual’s
chosen name. To support new measures along these lines,
questions of gender identity and sexual orientation will be part
of the survey that will measure Natura co-workers’ Human
Development Index (HDI), which should be concluded in 2020.
Another focus is promoting work and income opportunities for
the LGBTI+ audience. In partnership with Casa 1, a civil society
organisation that promotes the interests of this group, we offer
makeup courses for transsexuals. The initiative is sponsored
by the Natura Faces brand. In 2019, we also participated in the
Employability Fair organised by Casa 1, which resulted in the
hiring of a number of individuals to work in our stores during the
Christmas period. It is our intention to promote a more structured
manner of showing how Relationship Selling could be a viable
alternative for generating income and development opportunities
for this audience.
Recognition
In 2019, we were elected the fourth most open publicly traded
company in diversity and inclusion in the Top 25 Most Diverse &
Inclusive Companies Organizations Globally ranking, organised
by Refinitiv, a company belonging to the Reuters news agency
and the Blackstone private equity fund. Natura was the only
Brazilian company on the list and the only cosmetics company in
the world in the top ten places.
We also received WOB (Women on Board) certification,
supported by UN Women, which recognizes companies that
have at least two women on the board of directors. At the end of
2019, the Natura &Co group had three women on its Board. The
CEO of Avon, Angela Cretu, took a seat on the board in January
2020, after the finalisation of the acquisition of the company by
Natura &Co.
In Argentina, we were elected the best company for women to
work for in the Great Place to Work award. Our work in including
disabled people received a distinction in the first edition of
the Exame Diversity Guide, launched in partnership with the
Instituto Ethos. We were also recognised in the silver category
of the 2019 WEPs (Women’s Empowerment Principles) award
promoted by UN Women and the Global Compact.
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2019 ANNUAL REPORT GRI 405-1 Employees by
functional category and gen-
der (Brazil and International
Operations1 2) %
2017
2018
2019
n
e
m
o
W
n
e
M
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
Operational
62.4
37.6
100.0
65.4
34.6
100.0
66.0
34.0
100.0
Administrative
21.5
78.5
100.0
21.9
78.0
100.0
23.3
76.7
100.0
Management
Director level
Total
43.3
56.7
100.0
43.8
56.2
100.0
44.4
55.6
100.0
67.3
32.7
100.0
61.8
38.2
100.0
58.6
41.4
100.0
37.2
62.8
100.0
37.9
62.1
100.0
38.1
61.9
100.0
1. The International Operations include our operations in Latin America, the United States and France.
2. The strategic thrusts of Natura diversity policy are gender, ethnic-racial questions and the disabled. Stratification by
age group is not considered to be priority in the context of the business, which is why it is not disclosed.
GRI 405-1 Black co-workers by
functional category and gender -
Brazil (%)1 2 3
Operational
Administrative
Management
Director level
Total
2017
2018
2019
n
e
m
o
W
n
e
M
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
13.6
7.9
20.9
13.5
6.6
20.1
12.9
6.0
18.9
3.1
6.3
9.5
3.7
7.4
11.1
4.1
8.3
12.4
0.3
0.2
0.5
0.3
0.2
0.5
0.3
0.3
0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
17.1
13.8
30.9
17.6
14.2
31.8
17.3
14.6
32.0
1. The International Operations include our operations in Latin America, the United States and France.
2. There are no black members on the Board of Directors.
3. The strategic thrusts of Natura diversity policy are gender, ethnic-racial questions and the disabled. Stratification by
age group is not considered to be priority in the context of the business, which is why it is not disclosed.
GRI 405-1 Disabled co-workers,
by functional category and
gender – Brazil1 2 3 (%)
Operational
Administrative
Management
Director level
Total
2017
2018
2019
n
e
m
o
W
1.5
1.5
n
e
M
2.2
0.7
l
a
t
o
T
n
e
M
3.8
2.5
2.2
0.8
n
e
m
o
W
1.4
1.7
l
a
t
o
T
n
e
M
4.0
2.6
2.4
0.9
0.0
0.0
0.0
0.0
0.0
0.0
0.1
n
e
m
o
W
1.7
1.9
0.1
l
a
t
o
T
4.0
3.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.9
3.1
6.0
3.4
3.1
6.5
3.5
3.6
7.2
1. The International Operations include our operations in Latin America, the United States and France.
2. There are no disabled members on the Board of Directors.
3. The strategic thrusts of Natura diversity policy are gender, ethnic-racial questions and the disabled. Stratification by
age group is not considered to be priority in the context of the business, which is why it is not disclosed.
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2019 ANNUAL REPORT Organisational transformation
GRI 103-2, 103-3 and 405-1
2020 Ambition
Implement a strategy to leverage employees’
execution potential through engagement in the
Natura culture.
Where we are
Updating of culture behaviours and learning and
development processes in 2019.
In line with the organisational transformation currently in progress
in the company, in 2019 we concluded the updating of the Priority
Cultural Behaviours, based on the Natura Way of Being and Doing
Things, which should be encouraged among all co-workers.
The new culture drivers were designed jointly by the People (or
Human Resources) team and representatives from diverse areas.
The Culture team, as it became known, currently comprises some
20 individuals who share the mission of disseminating these values
among their teams and gathering perceptions that may support
new work plans.
Two priority behaviours from the previous cycle were maintained:
placing the consultant at the centre of our decisions and focusing
actions on the result of the whole. These were complemented
by two new behaviours: the first reinforces networking (more
coordinated, agile and uncomplicated), while the second values
entrepreneurship and innovation as drivers of positive impact.
Oriented by these behaviours, our co-workers will contribute to
the fulfilment of our strategy, which increasingly positions Natura
as a global, digital omnichannel company. It is no coincidence that
this set of behaviours is already incorporated into the company’s
learning, development (see ahead) and team review processes.
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132
2019 ANNUAL REPORT Currently, the review process provides for Networked Feedback, in
which individuals may share their perceptions of their colleagues’
deliveries and performance based on the priority behaviours.
This feedback is taken into account in the People Forum, in which
managers and the Human Resources team assess co-worker
performance and determine development and recognition
measures. The process also provides for alignment between the
individual and their manager a number of times during the year
and the updating of individual targets every four months. In 2019,
we started to review the current model to include individuals who
work in different formats, for example the agile teams, which are
designed based on the concept of a network, without the need
for the individual to report to a single manager, as is the case in
the traditional structures. A number of employees were consulted
as part of the review process. In 2020, we will test part of this new
model on members of the agile teams in operation in Natura.
Learning
ecosystem
GRI 103-2, 103-3, 404-1
In 2019, the company’s educational architecture evolved into the
Natura Learning Ecosystem. This comprises five learning journeys.
Two of them are aimed at developing competencies that reinforce
the connection with our essence and are centred on Relationship
Selling, on our brands and products and on sustainability and
diversity – key principles guiding our behaviour. Two others are
focused on the future and comprehend competencies linked with
digitalisation and networking. The fifth journey prioritises leadership
development and cuts across the other four journeys.
The learning journeys employ different formats and methodologies.
The formats include face to face courses, e-learning, experiences,
webinars and podcasts, among others.. Based on the idea that
instead of just providing learning contents, the Organisational
Development area should promote connections between co-
workers that master specific business-related knowledge and those
who do not, we are also consolidating an online platform that will
host our ecosystem. In 2019, we conducted a pilot project involving
some 200 people. The platform will be launched officially in 2020.
For the individuals who work in the areas that already operate
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133
2019 ANNUAL REPORT based on the agile cell model (Brand, Innovation, Internationalisation
maintained the Natura Education Programme, which provides study
and Sustainability, co-workers in Latin America and in the
digitalisation area), in 2019 we prioritised training in new
competencies, such as agile working, design thinking, user
experience and distributed leadership. Co-workers were also
trained to assume new roles, such as product owner and scrum
master. This focus is based on the company’s decision to develop
talent internally, whenever possible. In 2019, approximately 75% of
the management openings in the company were filled internally.
In addition to the teams already working in the agile model,
co-workers selected for the the CorageN Programme introduced
in 2018, and which innovated by not demanding professional
qualifications or establishing age requirements, have worked in this
format since the beginning. This group comprises 18 professionals
who have an entrepreneurial profile and are engaged in four Natura
radical innovation projects. They do not belong to a specific area,
but receive support from mentors, directors or vice presidents.
With the consolidation of the Natura &Co group, we face the
additional challenge of increasingly ensuring that our co-workers
scholarships for technical, degree, postgraduate and language
courses for co-workers in the operational and administrative areas,
as well as in the sales force. At the end of the year, 131 people were
benefiting from this programme. GRI 404-2
Due to the redesign of our training and development strategies, the
number of hours of training was lower than in 2018.
Development of operational staff
The evolution of our manufacturing and logistics operations, which
increasingly employ industry 4.0 based technologies requiring
differentiated skills, led us to rethink training for operational workers.
In 2019, we undertook a diagnosis which resulted in the updating
of our Industry Integration Programme (Pind). One new feature
was the use of a digital platform which goes beyond online training
and assessment, employing differentiated means of sustaining
learning and features that stimulate the production and sharing
of educational contents created by the staff themselves. Using a
gaming strategy, the more online training pills the co-worker creates,
the greater the number of points he/she earns. These points can be
are fluent in a second language, in particular English. For company
converted into Natura products.
executives, we provide a 70% subsidy for language courses.
We also offer virtual English courses for 50 co-workers in areas
that have already become global in scope. In parallel, we have
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134
2019 ANNUAL REPORT Reconnected leaders
We elaborated a new development programme
for leaders. Called Re.conecta, this is a four-day
experience in the Amazon region which, as the
name suggests, is designed to reconnect leaders
with Natura’s causes and its essence, while
underscoring the skills and competencies required
by new organisational environments. To enrich this
process, leaders from our supplier communities and
consultants also took part in these reflections. A total
of 130 leaders from the Brazilian and Latin American
operations took part in Re.Conecta in 2019.
GRI 404-1 Average hours
training per functional category
and gender – Brazil and
International Operations1
Director level
Management
Administrative
Operational
Apprentice
Intern
2017
.
o
n
e
g
a
r
e
v
A
s
r
u
o
h
f
o
2018
.
o
n
e
g
a
r
e
v
A
s
r
u
o
h
f
o
n
e
m
o
W
n
e
M
n
e
m
o
W
n
e
M
2019
f
o
.
o
n
e
g
a
r
e
v
A
s
r
u
o
h
n
e
m
o
W
n
e
M
5.4
6.6
6.2
29.3
22.2
24.6
16.1
13.0
14.2
18.7
23.4
20.9
36.0
35.9
36.0
15.8
14.6
15.3
15.5
27.6
18.6
30.2
34.4
31.1
10.3
13.5
11.0
16.9
37.6
30.0
12.9
20.0
17.3
10.0
17.5
14.9
44.6
40.6
43.4
17.7
19.1
18.1
21.9
19.1
18.2
42.2
45.8
43.2
42.8
47.7
44.3
22.7
17.4
21.1
1. The International Operations include our operations in Latin America, the United States and France.
GRI 404-2 Investments in education by operation
(R$ thousands)
Brazil
Argentina
Chile
Mexico
Peru
Colombia
Total
2017
8,300
2,556
802
598
397
1,075
2018
7,938
1,677
421
338
303
1,373
2019
7,524
701
235
241
320
212
13,728
12,051
9,233
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2019 ANNUAL REPORT
2nd Sustainability Week
In October, Natura organised its second Sustainability Week,
aimed at further reinforcing co-worker connection with
sustainability and raising awareness so they may become
agents of change both inside and outside of Natura. The
event was entitled Natura Challenge for a More Beautiful
World and addressed the company’s three causes: Standing
Forest, More Beauty, Less Waste; and Every Person Matters.
In Brazil, event activities were organised simultaneously
in the units in Cajamar, Benevides and our administrative
headquarters in the city of São Paulo.
In addition to activities such as rounds of conversation,
cultural presentations and fairs involving the exchange of
clothes and books, every day attendees were invited to
take part in specific missions related to one of the Natura
causes. There were also special projects, such as planting
seedlings at the Cajamar site and a visit to a recycling
cooperative. Participants were given a passport, which was
stamped after every mission accomplished. At the end,
there were prizes in accordance with the number of stamps.
These ranged from products from the Natura portfolio
to sustainable products such as metal straws, as well as
donations to a social cause on behalf of the participant.
As occurred in the first edition, the Sustainability Week was
also held in our operations in Latin America.
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136
2019 ANNUAL REPORT Natura Beauty Consultants
GRI 103-2, 103-3 and 203-1
2020 Ambition
Significantly increase the real average income of Natura
Beauty Consultants in Brazil
Where we are
The consultants’ income
remained
stable compared
with 2018, while the
average income of
the leaders grew by
12%. In comparison
with 2017, income
increased by 25%
In 2019, we adopted the concept
of a living wage to assess the
consultants’ earnings. The initial
analysis considered the three
most advanced stages in the
consultant career. At this level
95% of the leaders earned
more than this reference (further
information on page 54).
The Relationship Selling model generates income for 1.8
million consultants in Brazil and in Latin America. In addition to
being a business option, this network, currently in place in all the
5,570 Brazilian municipalities and in the other five Latin American
countries in which the company operates, also benefits from Natura
initiatives to foster personal development, provide healthcare and
promote self-esteem.
In addition to the sales model, which is currently focused on
boosting the consultants’ income and promoting enterprise, we
operate in three other specific pillars aimed at leveraging positive
socio-economic impact in our network: education, women’s rights
and healthcare. The work is organised by the Movimento Natura
and, particularly in the education area, is supported by the Instituto
Natura. All the profit from the sale of the Crer para Ver non-cosmetic
product line is invested in education initiatives managed by the
Instituto Natura. From this total, 30% is channelled into education
initiatives for our consultants and their family members.
The activities of the Movimento Natura are based on different
surveys aimed at determining the priorities to be worked on, such as
the Consultant-HDI and the company’s SP&L (Social Profit
and Loss), the purpose of which is to monetise the contributions
our business model generates in the lives of the consultants (further
information on page 89).
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137
2019 ANNUAL REPORT r.
The contributions from this study and others like it orientate the
activity focuses of our social innovation laboratory, a pioneering
initiative in Brazil, which has the mission of designing solutions
to increase the positive impact the business has on consultants’
lives, transforming their reality and their prospects. The laboratory
operates based on agile methodologies and develops projects in
partnerships with start-ups and internal areas of Natura.
In addition to the funds from the Crer Para Ver line, in 2019 we
invested around R$ 2.5 million in three priority areas: education,
women’s rights (domestic violence) and healthcare.
The world
needs
people
together
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138
2019 ANNUAL REPORT
Consultant HDI
2020 ambitions
To create an indicator
to assess the human
development of the
consultants and develop
a strategy to promote a
significant improvement.
Where we are
2014
2019
The Consultant
Human Development
Index (HDI) has been
measured since 2014
in Brazil. In 2019,
we measured the
indicator in the five
operations in Latin
America.
To stimulate the consultants’
interest in ongoing learning and
provide a broad educational
offering that meets their needs
Our strategy to promote
significant improvement in
the consultants’ quality of life
is organised based on three
areas: education, women’s
rights and healthcare.
We offer study scholarships in
Brazil and organise educational
initiatives for the consultants
and their families in the other
countries in Latin America .
In 2019, 59,000 training sessions
were concluded, including courses in basic
mathematics, healthcare, women’s rights and
diversity, among others.
One of the main diagnostics of our consultant profile is
elaborated based on the Consultant Human Development
Index (HDI), a proprietary Natura methodology inspired by the
indicators created by the United Nations Development Programme
(UNDP). The survey has been in place in Brazil for six years – since
2017 it has been conducted on a biennial basis – and covers three
dimensions: health, education and work, with a rating ranging
from 0 to 1. In 2019, we conducted the fifth measurement of the
index with consultants in Brazil, which indicated a growth of 4.5%
compared with the last survey in 2017. The indicator increased from
0.593 to 0.620. The result presented advances in the education
(especially financial education) and health areas, demonstrating the
effectiveness of our actions in these two areas. In contrast, there
was a decrease in relation to civic awareness, indicating the need
for us to focus more closely on training for consultants in this area.
In 2018, we also applied the Consultant HDI in our operations
in Argentina, Chile, Colombia, Mexico and Peru. The research,
released in 2019, showed a consolidated indicator of 0.620. The
survey enables us to understand regional differences and should
guide our strategy. The data are also analysed individually by
country, to provide a more accurate portrait of the reality of our
consultants. Among the survey highlights, in the education area
digital inclusion was rated a strength, while financial literacy and
civic awareness were shown to be challenges for consultants in
these countries.
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139
2019 ANNUAL REPORT Education
Worthy of note during the year was the growth in the number of
training programmes concluded by the consultants. Previously
offered on an external platform, in 2019 we made them available
via the Consulting app and mobile website. These feature a
series of activities related to the Beauty Consultant career, such
as order entry. The courses are grouped in a specific category
entitled Development for Life, which includes training in basic
mathematics, health, women’s rights and diversity, among others.
The total number of training sessions undertaken in the year was
59,000. In women’s rights and basic Maths alone, the number of
participations was 38,000.
The Instituto Natura also reinforced its activities with the consultants.
In 2019, the institute expanded the group researched with regard to
writing, reading and mathematics skills, inspired by the Inaf (Functional
Literacy index) methodology developed by the organisation Ação
Educativa. The results of the survey, segmented by consultants and
business leaders, help orientate educational measures.
We maintained the offer of study scholarships for degree and
postgraduate courses at the Estácio University and the partnerships
with the language school chains Wizard by Pearson and English
Live. This benefit may be used by the consultant or by her children.
The Instituto Natura is currently engaged in developing new ways
of providing support for the development of the consultants
and their families.
Dalva de Oliveira is a Business
Leader in Barretos (São Paulo)
and resumed her studies
together with her daughter,
Eduarda, using the educational
benefit offered to consultants,
leaders and their families.
They are studying on a Human
Resources Management course
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2019 ANNUAL REPORT Education for consultants
in Latin America
Based on the results of the Consultant HDI in Latin
America, Natura Argentina and Natura Chile initiated two
education projects. In Argentina, the initiative sought to
help consultants who had not finished their secondary
education and consisted of a tutoring and monitoring
programme. Consultants were also able to indicate a direct
family member to participate in the programme. In Chile,
we created a financial education platform with contents
that help the consultants to organise their finances,
benefiting their consulting work. Together, the initiatives
impacted 4,000 consultants in the two countries.
Women’s rights
Work in the women’s rights area involves a partnership between
the Movimento Natura and the company’s Diversity and Inclusion
area. In 2019, we invested heavily in communication on domestic
violence, with face to face training for leaders all over Brazil and
virtual training on women’s rights, one of the programmes in the
personal development area on the company’s mobile website and
the Consulting app. In the first month that the programme was made
available, there were 25,000 participants. The launch of a series
of podcasts is being scheduled in partnership with the initiative
Mamilos, with statements from consultants in our network who
managed to overcome the cycle of domestic violence.
We also employed the experience of the company’s toll-free help
line for co-workers who are victims of domestic violence to develop
a similar service channel for leaders. Baptised Tina
(www.tinaajuda.me), the channels offers outreach, support and
guidance 24 hours a day for leaders who are facing a cycle of
domestic violence or who have a consultant in their group with the
same problem. The service is manned by specialised social workers
and lawyers. In 2019, the channel was launched in pilot format for
our leaders in the state of Pernambuco. From April 2020, it will be
extended to the whole of Brazil.
In Latin America, combating domestic violence against women is
integrated into communication with our consultants, with emphasis
on raising awareness of this problem and publicising the official
channels that provide assistance in this area.
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2019 ANNUAL REPORT Support in combating domestic
violence
Inspiration
In partnership with the initiative Mamilos, we
launched podcasts with statements from consultants
who have managed to overcome the cycle of
domestic violence.
Outreach
Tina is an online channel for business leaders seeking
help in overcoming the cycle of domestic violence or
who have consultants in their group suffering from
Healthcare
Since 2017, we have had a programme that offers subsidised
Engaging our network
We also see our consultants as agents of social transformation,
and we invest in measures to mobilize them around
the company’s causes. In 2019, for example, we intensified the
dissemination of contents around the company causes Standing
Forest and More Beauty, Less Waste, aimed at engaging our
consultants. We also sent out more than 700,000 pamphlets on the
funds raised by Crer para Ver products, explaining how this money
is invested in educational initiatives that benefit both the consultants
and society in general.
Still addressing education, part of Natura’s third cause, at the
beginning of 2020 we mobilised more than 1,000 consultants,
who took part in a walk for literacy at the right age in Recife
(Pernambuco), an initiative organised by the Instituto Natura,
Fundação Lemann and Associação Bem Comum in partnership
healthcare services for consultants in Brazil and for one family
with the state Education and Sports Ministry.
member. The programme includes discounts of up to 60% on
doctors’ visits, examinations and medication. In 2019, 52,500
During the course of 2019, we also conducted a pilot project in
consultants were registered in the programme. During the year,
Campinas, in São Paulo state, to collect empty packages in courses
these consultants received a virtual card, available on the company’s
and events organised by the sales force, as a means of engaging the
Consulting platform.
consultants in the cause of More Beauty, Less Waste.
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2019 ANNUAL REPORT Acolher Award
Since 2010, the Acolher Award has recognised
socioenvironmental initiatives organised by Natura
consultants that generate a positive impact on society
and on the environment. A total of 81 initiatives have won
the award in this period, receiving technical and financial
support from the Movimento Natura and impacting over
65,000 people. In 2019, a process to update the initiative
was initiated with the conclusion scheduled for
the first half of 2020.
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2019 ANNUAL REPORT Engaged consumers
GRI 102-43, 102-44
2020 Ambition
Where we are
Implement a strategy to leverage employees’ execution
potential through engagement in the Natura culture.
With the positioning “When you care, you create beauty”
we invited our audiences to participate in attributing
value to sustainability. We defined three priority causes
Standing Forest; More Beauty, Less Waste; and
Every Person Matters.
The celebration of the 50th anniversary of Natura, a company
that has always believed in the power of relationships and in the
individual’s harmonious relationship with himself, with others and with
the surrounding environment, spurred us to reaffirm our commitment
to Well Being Well, a concept that has permeated our activities for five
decades. The question posed at the beginning of 2019 “What can a
beauty brand do for the world?” led to our new positioning When you
care, you create beauty”, which will shape the course adopted by the
company in the future. More than this, it brings us closer to consumers
who choose Natura because of attributes such as quality and safety,
but increasingly prefer us because they identify with our commitment
to adopting more sustainable production methods, preserving the
Amazon, reducing waste and promoting diversity, income generation
and a fairer distribution of wealth. Above all, the expression “When
you care, you create beauty” makes our belief that each person has a
fundamental role to play in building a better world for everyone explicit.
During the course of the year, we launched other movements to
disseminate our causes. With Natura Ekos, for example, we conducted
campaigns emphasizing our Standing Forest cause. With the
Natura Faces brand, we ran the campaign “Love embraces every
colour”, which was a call for greater diversity, one of the pillars of our
third cause, Every Person Matters. In the #SouMaisQueUmRótulo
(#IAmMoreThanALabel) movement, Natura Tododia proposed
discussing the common habit of labelling people, especially women,
in accordance with their appearance, mindset, personality and age.
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2019 ANNUAL REPORT The Rock in Rio
Experience
We chose the Rock in Rio music festival – the biggest music
and entertainment event in the world –, which agitated the
city of Rio de Janeiro at the end of September and the beginning
of October, to launch a collective call for the construction of a more
beautiful, more empathetic and more sustainable world. It was
the first time that Natura had sponsored the festival and involved
a series of activations. The installation “Nave – our future is now”,
a co-creation between the festival and the company, used art,
music and technology to drive an immersive and playful sensory
experience, inviting participants to reflect on their role in the world
and their potential for transformation. The début of the attraction
was successful. It received the most mentions in the social networks
and had the second highest attendance during the seven days of
the festival, coming second only to the traditional big wheel installed
in the City of Rock.
We also established an unprecedented partnership with Heineken
whereby all the beer glasses distributed during Rock in Rio were
recycled and transformed into caps for the company’s Humor
deo body spray, which are already made from recycled material,
driving interest in our More Beauty, Less Waste cause and
encouraging debates about conscious consumption and recycling.
Approximately 10,000 tonnes of cups were collected and will
be used to produce 670,000 caps. This action helped avoid the
emission of 15 tonnes of CO2 in the atmosphere, the same amount
of carbon gas a car would emit driving around the world three times.
Rock in Rio employs a waste management plan that ensures the
proper disposal of the trash generated in the festival. The festival
also has ISO 20121 certification for sustainable event management.
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2019 ANNUAL REPORT Nat: the spokeswoman for our causes
in the social networks
In December, a post by Nat on Twitter that provides a humorous
description of our virtual assistant’s hair transition, enabling her
to assume her natural curls, enjoyed widespread repercussion.
A simple example but one that shows consumers’ empathy and
engagement in questions addressing respect for individuality. In
less than a month, more than 3.6 million single users had been
impacted by the tweet. This and other numbers made this tweet
on hair transition the best Twitter story in Brazil.
On Nat’s timeline in the channel, there are countless posts
about preserving the Amazon, reducing the use of plastics,
accepting one’s body and the importance of self-esteem, ethnic-
racial representation, combating violence against women and
femicide, among other questions that are relevant for Natura.
Read more about Nat on page 60.
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2019 ANNUAL REPORT #NaturaDialogues
in Latin America
GRI 102-43, 102-44
We launched the initiative #NaturaDialogues in our
operations in Latin America in 2019. This is a series of
thematic meetings aimed at promoting dialogue as a
tool to provoke reflection about issues of importance
in the region, such as gender, social networks, beauty
stereotypes and activism. At each meeting we invited
different spokespersons who, based on the conversations,
helped build a true mosaic of perceptions.
In all there were 17 meetings: four in Argentina, one in
Chile, six in Colombia, three in Mexico and two in Peru. By
way of example, the three encounters in Mexico debated
toxic masculinity, diversity and the circular economy. In
Argentina, one of the meetings took place during the
Semana Mais, which united co-workers, consultants and
consumers in the same space. These events were also
broadcast live through our profiles on the social networks,
receiving over a 100,000 views.
15 years of Natura Musical
The company celebrated 15 years of its Natura Musical Programme in
2019. Since it was created, the programme has fostered the diversity
and wealth of Brazilian music and artists. The programme has been
transformed into a platform for connection and dialogue that helps reinforce
our causes and our positioning in the eyes of consumers and society as a
whole. In 2019, after the launch of our “When you care, you create beauty”
positioning, we sought to disseminate the concept that music is one of the
instruments that will enable us to build this more beautiful world.
In 2019, around 265,000 people were impacted by more than 260 shows
and nine festivals sponsored by Natura Musical. In parallel, Casa Natura
Musical, which opened in the city of São Paulo in 2017, maintained its full
programming. The total invested in Natura Musical was almost R$ 14 million
– R$ 8 million of which from the company’s own funds. We also engaged
a further 1.5 million people by transmitting contents via the programme’s
digital channels. During the year, a number of artists supported by Natura
Musical recorded the soundtracks for our perfumery portfolio campaigns,
such as the singers Gabi Amarantos and Jaloo.
A total of 2,647 projects were submitted to the Natura Musical tender in
2019. With the support of 22 curators, we selected 41 projects, ranging
from recording albums, the organisation of national tours and support for
cultural bodies, to musical education projects and the documentation of
local cultural scenes. The selected projects, which will be executed during
the course of 2020, receive direct funding from Natura, complemented by
funds from the national tax incentive for culture and ICMS tax incentives in
the states of Minas Gerais, Bahia, Pará and Rio Grande do Sul. The artists
supported include Elza Soares, Letrux, Emicida, the women’s band Ilú Obá
De Min, not to mention the posthumous album of samba artist Clementino
Rodrigues (Riachão). Another project will sponsor the documentary Essas
Mina é Zica about women in the Belo Horizonte rap scene in Minas Gerais.
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2019 ANNUAL REPORT
Everyone
teaches,
everyone
learns,
everyone
grows
together
Instituto Natura:
our pact with education
GRI 103-2, 103-3, 203-1
About to complete 10 years of activities in 2020, the Instituto
Natura reviewed its strategic planning and reinforced its goal
of participating in the formulation of public policies capable of
generating the changes necessary to boost the quality of public
education in Brazil.
By focusing further on strategy, the institute organised its activities
into four major commitments: literacy at the right age, quality of
learning in secondary education, articulation with public authorities
and the third sector to drive other educational agendas and
educational incentives for Natura Beauty Consultants.
In 2019, agreements were made with five state governments for
partnerships to promote literacy on a collaborative basis. The
initiative, undertaken jointly with the Fundação Lemann and the
Associação Bem Comum, provides technical support for states
and municipalities to enable them to develop and execute policies
aimed at joint collaboration in addressing challenges.
The number of teaching institutions that implemented full-time
schooling for secondary education students in the states supported
by Instituto Natura increased from 1,207 to 1,533 in 2019. In this
initiative, the institute partners with state governments, supporting
training, monitoring, planning and financial management measures.
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2019 ANNUAL REPORT
Other questions are of equal importance for improving the
quality of education, such as the teaching career, early childhood
activities and the basic curriculum. Essentially the Instituto Natura
supports the work done by other social organisations that have the
knowledge and experience to drive these agendas.
We believe that this connection with a powerful network of
institutions working together with public authorities will enable the
realisation of the dream of quality education for everyone.
Educational support for
consultants and their families
As mothers, family members, educators or students,
the Natura Beauty Consultants help us to spread the
message about the need for improved public education
all over Brazil. We are increasing the number of measures
designed to help the consultants with their own education
and that of their families (further information on page 137).
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2019 ANNUAL REPORT Activities will be expanded in Latin America
GRI 103-2, 103-3 and 203-1
The Instituto Natura is non-profit organisation responsible for
Measures have also been implemented to promote education for
managing and investing Crer Para Ver funds. Additionally, the institute
Natura consultants and their families in Argentina and Chile (further
provides support in managing the funds raised from the sale of
information on page 140).
this product line in the other countries in Latin America. These are
invested locally, respecting the characteristics of each society.
Further information about Instituto Natura activities at:
www.institutonatura.org.br
From 2020, the Instituto Natura will step up its activities in Argentina,
Chile and Mexico. The objective is to expand the level of support for
these countries as the amount of funds raised and our consultants’
engagement increases. Each country should have its own legal
organisation financed with local Crer Para Ver funds, based on a
similar model to the one adopted in Brazil. A global board of directors
will formulate the strategic planning as a means of ensuring the
alignment of Instituto Natura purposes in all the countries.
In 2019, the countries in Latin America in which Natura has direct
operations proceeded with initiatives to support the transformation
of schools into Learning Communities, a proposal based on a set of
successful educational measures to generate social transformation
and greater involvement of administrators, teachers, students,
families and communities in the schools. At the end of the year
more than 8,000 schools were involved in the initiative, particularly
worthy of note being Argentina, with 5,300, and Peru, with 2,200.
Additionally, around 500 more schools are currently engaged in the
process of becoming Learning Communities. These are institutions
that involve the community in school routines, promoting greater
dialogue in school management and adopting practices such as the
formation of interactive groups to leverage learning and to improve
the school experience.
Growth in Crer Para Ver revenues
GRI 103-2, 103-3, 203-1
Crer Para Ver is a special line of non-cosmetic products
commercialised by the consultants and by Natura,
in which all the profit is invested in educational measures.
The line is sold in Brazil and in the other countries in Latin
America in which Natura operates, with all the proceeds
invested locally.
In 2019, we achieved a new record in sales volume, totalling
R$ 53.8 million in Brazil and the other Latin American countries.
Consultant engagement in selling these items also grew,
reaching a penetration of 35% in Brazil and 17.8% in the Latin
American operations (average percentage of consultants who
bought at least one Crer Para Ver product in each sales cycle).
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2019 ANNUAL REPORT GRI 203-1 Investments benefiting public education
2017
2018
2019
Brazil
Crer para Ver Programme Revenue1 (R$ million)
Crer para Ver Penetration2 (% cycle)
Operations in Latin America
Crer para Ver Programme Revenue1 (R$ million)
Crer para Ver Penetration2 (% cycle)
22.8
28.5
12.8
17.7
29.1
30.5
15.1
18.8
38.7
35.4
15.1
17.8
1. Refers to earnings before tax on the Crer Para Ver product line.
2. Average indicator of percentage of Natura Beauty Consultants who bought any Crer Para Ver product from the total
number of Natura consultants active during the 19 cycles.
GRI 203-1 Crer Para Ver Programme Actions – Operations
in Latin America
Cost of projects developed and supported by Crer para Ver 1 (R$
million)
2017
2018
2019
10,431
13,273
11,010
Schools impacted
2,433
5,745
8,072
Teachers, coordinators and headmasters impacted
10,459
24,125
32,288
Students involved
173,074
407,824
573,112
Municipal, state and national governments partnering with the
project
28
61
27
1. The amounts for the projects developed and supported by Crer para Ver may be altered as a result of the audit that
will be conducted in the Instituto Natura.
GRI 203-1 Crer Para Ver Programme Actions – Brazil
2017
2018
Cost of projects developed and supported by Crer Para Ver
(R$ million)
Municipalities involved
Schools
Teachers
Students
24,097
25,043
1,601
1,053
2,015
1,299
2019
28.9161
1,898
1,671
34,633
33,598
14,406
1,174,238
1,191,902
957,257
Municipal Education Departments
1,601
2,015
1,898
State Education Departments in partnership with the Instituto
Natura
25
22
22
Natura Beauty Consultants impacted by education benefits
62,000
80,657
99,320
1. Total invested in projects was R$ 23.5 million. The remainder of the amount consists of payroll and mobilisation
expenses. These amounts may be adjusted after auditing, which had not been concluded by the publication of this
report. The amount raised is different from the amount invested in the same year because the Instituto Natura takes
into account the records from the previous years and its own strategic planning to project its budget and to ensure
responsible fund management. Any surplus in the fund is invested in the following years. All the funds are audited.
The amounts for the projects developed and supported by Crer para Ver may be altered as a result of the audit that
will be conducted
in the Instituto Natura.
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2019 ANNUAL REPORT Local development
GRI 103-2, 103-3 and 204-1
2020 Ambition
Developing a strategy for the communities surrounding
the main operations in Brazil by means of dialogue and
collaborative construction with the local populations
and actors.
Where we are
Spending on local suppliers
in Cajamar (SP) and
Benevides (PA) totalled
R$ 219 million
in 2019, growth
of 5.7%.
We support educational,
entrepreneurial and sustainable
development initiatives in the
three surrounding communities:
Cajamar (SP), Benevides (PA)
and Vila Jaguara, in São
Paulo (SP).
We remain committed to generating positive social impact
in the communities in which our main operations are
installed. The priority regions are the municipalities of Cajamar
(São Paulo) and Benevides (Pará), where our industrial units are
located, and the Vila Jaguara district in the city of São Paulo,
the location of our administrative headquarters (NASP) and our
distribution centre (DC SP).
We contribute towards generating work and income by contracting
co-workers from these communities and by means of the indirect
jobs created in other companies in some way related to the
business. We foster the local economy in these communities
through the partnerships we establish with suppliers. Our spending
with suppliers in Cajamar and Benevides totalled R$ 219 million
in 2019, growing 5.7% compared with the R$ 207 million spent
the previous year. During the year, these partners accounted for
4.1% of the total amount paid out to company suppliers, a slight
drop compared with the 2018 rate of 4.3%. We also work with
governments, civil society bodies and other companies active
in these locations to promote human and social development,
focusing on educational and entrepreneurial initiatives.
With the definition of Natura’s causes, we reviewed our strategy for
surrounding communities, prioritising the cause of social impact
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2019 ANNUAL REPORT (Every Person Matters) and, in the case of Benevides, also the
Standing Forest cause. This revision will ensure that the actions
promoted in the three priority territories will be even further aligned
with our commitments to generate transformation by means of
economic inclusion, education and promoting diversity and, in
Benevides, by fostering a standing forest economy.
GRI 204-1 Total amount spent on
local suppliers by operational unit1 (R$ million)
Cajamar
Benevides
Total
2017
2018
2019
169
12
181
193
14
207
204
15
219
Percentage of budget spent on local suppliers2
5.2%
4.3%
4.1%
1. Only the manufacturing units (Cajamar and Benevides) are considered to be operational units. We maintained the
definition of local, considering total purchases from suppliers located in the same municipality as the manufacturing
units (Cajamar and Benevides) supplying any Natura unit. Since only the manufacturing units are considered to be
operational units, the Latin American operations are not considered in the calculation.
2. The total amount paid to suppliers used for the calculation was R$ 5,381,842,300.
GRI 203-1 Investments in surrounding communities
(R$ thousands)
Natura funds
Crer Para Ver funds
2017
2018
2019
280
847
265
767
176
726
2019 highlights
GRI 413-1, 413-2
In 2019, we organised the second edition of the Acolher Surroundings
Award, which supports socioenvironmental projects in the
communities. In this second edition, the initiative focused exclusively
on Benevides (PA), where the Ecoparque is installed. 31 projects were
submitted, from which two were selected and will receive technical
and financial support. Also in Benevides, we held the ninth Ecoparque
Social and Environmental Communication Panel, when the industrial
complex opens its gates to the surrounding communities, as well as
local suppliers, consultants and representatives of public authorities,
the third sector and academia. In the event, Natura strengthens its
ties with the community and has the opportunity to learn about local
perceptions and measure the company’s impacts.
In line with our positioning of combating violence against women, we
supported the First Lilac August Walk in Cajamar, the theme of which
was attention, empowerment and awareness. Also in Cajamar, we
established a partnership with Sesi (Serviço Social da Indústria) in a
project to promote entrepreneurship among residents in the region.
In the Vila Jaguara district in the city of São Paulo, Natura co-workers
and employees, parents and students from a local municipal school
joined forces to repair one of the institution’s walls.
Through the Instituto Natura, the company also develops the
Education Support Network (RAE in the Portuguese acronym) in the
cities of Cajamar and Benevides. This involves measures to improve
educational administration and learning results in partnership
with the municipal education departments in the two regions. The
effectiveness of the project is measured by the improvements
in the scores obtained by the municipal schools in the federal
government’s Basic Education Development Index (Ideb).
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2019 ANNUAL REPORT Our suppliers
GRI 102-9, 103-2 and 103-3
2020 Ambition
Evolve the supplier selection and management
process, further integrating socioenvironmental
and financial parameters
Where we are
We progressed in auditing critical suppliers and screening
new suppliers for social and environmental impacts.
In function of the implementation of a new management
platform, the review of the selection and management
process should be concluded in 2020.
In 2019, Natura &Co consolidated its Global Procurement
Organisation, with a single virtual structure which operates as
a network and centralises all Natura, The Body Shop and Aesop
purchases. This unification generates gains in scale for the group
which, by negotiating more significant volumes of products and
services, is able to obtain better payment terms and delivery times,
in addition to other advantages.
During the course of the year, the standardisation of processes and
policies also advanced. By way of example, the group launched its
Global Supplier Code of Conduct, which sets forth guidelines for
all business partners, regardless of the company they supply. The
group also concluded the standardisation of general contracting
terms and supply contracts. Currently, supply chain management
is through the SAP Ariba platform, which ensures total traceability
and conformance with compliance rules. Employing data analytics,
the platform also generates a set of systematized data that supports
decision making in the area.
Natura alone had a supply chain comprising 11,900 companies in
2019; these are classified as production or non-production suppliers.
The former supply materials used in manufacturing our products,
such as packaging and raw materials, or manufacture products
on behalf of Natura. Non-production suppliers supply products or
services not applied directly in manufacture (maintenance services,
freight haulage and logistics operators, among others).
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2019 ANNUAL REPORT In 2019, Natura production volume increased once again, resulting
Every year, we perform audit processes on critical suppliers and on
in higher demand, in particular for materials used in product
new ones. New suppliers are selected in accordance with the nature
manufacture. The amount spent on suppliers corresponded to R$
of their activity, as well as the socioenvironmental risks that they
6.5 billion in 2019, of which R$ 5.3 billion went to suppliers in Brazil
present. We audited a total of 415 suppliers in 2019, compared with
and R$ 1.2 billion to overseas suppliers. The consolidated result was
280 the previous year. It should be noted that due to the updating
9.8% higher than in 2018. Of the total suppliers, 198 are considered
of the supply chain management platform to SAP Ariba, it was
to be strategic and accounted for 55% of our purchase volume.
not possible to report the number of new suppliers screened for
socioenvironmental criteria. This information will be available in the
coming years.
2017
2018
2019
In environmental terms we screen for compliance with legal
GRI 102-9 Supply chain
Estimated monetary value of payments to
suppliers (R$ billion)
Annual renewal rate1 (%)
5.1
11
5.9
13
6.5
9
1. Percentage of new suppliers registered in the year in relation to the total number of suppliers registered.
Contracting criteria
GRI 103-2, 103-3, 308-1 and 414-1
To supply Natura it is necessary to adhere to the Supplier Global
Code of Conduct, whereby the partner attests that it recognises
and shares the company’s values and ethical commitments. In
the new supplier approval process, Natura also verifies providers’
financial health, registration data, in addition to socioenvironmental
criteria. As a result of the internationalisation of the company, in
2019 we required partners to comply with additional requisites in
line with international legislations. Examples of these requisites are
reforestation measures and the non-use of ingredients prohibited
on international lists.
requirements (environmental operating licenses and water
withdrawal permits), the existence and dissemination of an
environmental policy, environmental emergency and waste
rendering plans, environmental risk assessments and management
of water and energy consumption, as well as controls for effluents
and atmospheric emissions.
On the social side, we check for the existence and dissemination
of codes of conduct, commitments assumed in relation to anti-
corruption, human rights and decent working conditions (prohibition
of child and slave labour), compliance with pre-established
government quotas (in Brazil related to apprentices and disabled
employees) and the undertaking of community development
measures. We also consult public listings. For example, in Brazil we
verify presence on the CEIS and CNEP blacklists.
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155
2019 ANNUAL REPORT Enhancing relationships
GRI 102-43 and 102-44
Natura strives to maintain close relations with its business partners,
We also systematically measure supplier satisfaction and loyalty. In
considered to be strategic stakeholders. Every year, we organise
2019, this survey included The Body Shop and Aesop suppliers for
a strategic meeting with production and non-production suppliers
the first time. Loyalty, which takes into account satisfaction, intention
with the purpose of sharing our plans for the future. As a result of
to continue as a Natura &Co supplier and recommendation of the
the supply chain development programme Qlicar, we also hold an
group as a customer, obtained the highest rating since measurement
annual recognition award which has consolidated its status as a
was begun. On a consolidated basis, our loyalty rating increased from
key moment for celebrating and reinforcing our links with suppliers
33% to 50%.
(see the following box). Another initiative is the Innovation Fair, the
purpose of which is to foster the development of innovative and
disruptive projects among suppliers. The fair is held in Cajamar
and staff from the technical and developments areas participate
in electing the best proposals. For example, in 2019, we asked
packaging suppliers to present projects that enabled the production
Supplier loyalty (%)
Satisfaction1 by supplier
Supplier loyalty2 Brazil
of more sustainable packaging. We received proposals from 12
Supplier loyalty2 Latin America
raw material suppliers and 29 which involved finished packs and
products, which are now under analysis.
For the first time, we conducted a survey with around 30% of our
suppliers to map all their interactions with Natura and to identify
strengths and critical points in the relationship. With all the stages
of the supplier interactions identified, the next step is to draft
improvement plans.
2017
2018
89%
30%
45%
37%
90%
28%
38%
33%
2019
89%
44%
60%
50%
Consolidated3 loyalty2
1. Satisfaction: percentage of suppliers who are satisfied and completely satisfied, who gave a score of 4 or 5 (“Top2Box”)
on a scale from 1 to 5 points in relation to their overall satisfaction with Natura.
2. Loyalty: percentage of suppliers consulted who gave the top score (“Top1Box”) on a scale from 1 to 5 points,
in three aspects: overall satisfaction, intention to continue supplying and recommendation as customer.
3. Takes into account consolidated loyalty (Brazil and Latin America). Indicators based on satisfaction survey with
main suppliers.
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156
2019 ANNUAL REPORT
We believe
that
businesses
can and
should be
a true force
for good
15 years of Qlicar
In 2004, Natura launched its Qlicar Programme, to assess
suppliers in the areas of Quality, Logistics, Innovation,
Competitiveness, Environment/Social and Relationship.
Today, the programme is a reference for our business
partners, a process that helps enhance their management,
their processes and their socioenvironmental performance.
The partners are assessed annually. Based on the results we
establish improvement plans that are executed by the partners
themselves with support from Natura. The suppliers Natura
considers to be strategic take part in the Qlicar programme; in
2019 there were 198 of them.
There is an award ceremony for the partners with the most
outstanding performance in the year. In the 2019 award, a total
of 23 suppliers were recognised, including the categories
Bio Qlicar, for the supplier communities, Qlicar Innovation
and Qlicar DT, focused on partners in the areas of research
and development and digital technology. There is also the
socioenvironmental distinction category which in 2019
was awarded to the transportation operator Patrus, the
first company in the segment worldwide to receive B Corp
certification, attesting to its commitment to promote economic
growth in conjunction with social and environmental well-being.
To celebrate 15 years of the programme and Natura’s 50th
anniversary, we also recognised suppliers who have been
partners for many decades.
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157
2019 ANNUAL REPORT Overview of 2050 Sustainability Vision
The company,
a living
organism,
is a dynamic
set of
relationships
There are always great conversations in the
world of Cristiane, 37. Customers become
friends. Friends become part of the family.
Cris has been a Natura Beauty Consultant
for three years and believes that beauty
is a wonderful link in relationships.
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2019 ANNUAL REPORT Overview of 2050 Sustainability Vision
The first cycle of targets will terminate at the end of 2020.
Here we present the status of these ambitions.
Pillar
Brands and Prod-
ucts
Topic
Brands
2020 Commitment/Ambition
Correlated
material topics
SDG
The environmental and social footprints of all Natura brand products will be disclosed, as will all
the respective improvement commitments.
Transparency and origin
of products
12
Progress
Status
SDG
targets
12.2, 12.8
Formulations
Guarantee that 30% in value of the total inputs consumed by Natura in Brazil come from the Pan-Amazon region.
Valuation of
social biodiversity
3
12
15
3.9, 12.7,
15.1, 15.2
Packaging
To use at least 10% recycled post-consumer material in the total mass of Natura packaging in Brazil.
Waste Climate Change
Use at least 74% recyclable material in the total mass of Natura packaging in Brazil.
Waste Climate Change
3
11
12
3.9, 11.6,
12.2, 12.4,
12.5
Guarantee that 40% of the units billed by Natura in Brazil have eco-efficient packaging.
Waste Climate Change
Social biodiversity
To reach 10,000 families in the Pan-Amazon production chains.
To achieve a business volume of R$ 1 billion in the Pan-Amazon region.
Valuation of
social biodiversity
Valuation of
social biodiversity
1
10
15
1
12
6 10
15
Climate change
For the Natura brand, reduce relative greenhouse gas emissions (scopes 1, 2 and 3) by 33%.
Climate change
13
17
Energy
Waste
To continue to offset all the emissions that cannot be avoided through initiatives that in addition to reducing and/or se-
questering greenhouse gases, are aimed at driving socioenvironmental benefits, primarily in the Pan-Amazon region.
Climate change
Valuation of
social biodiversity
Implement a strategy to diversify sources of renewable energy for the Natura operations in Brazil.
Climate change
6
13
15
17
13
To collect and recycle 50% of the volume of waste generated by Natura product packaging in Brazil (in t equivalent).
Waste
14
11 12
15
11.6, 12.2,
12.4, 12.5,
14.1, 15.5
1.1, 10.1, 10.2,
10.3, 15.1,
15.2
1.1, 6.6, 6.b,
10.1, 10.2,
10.3, 12.2,
15.1, 15.2
13.1, 13.3,
17.3, 17.14
6.6, 13.1,
13.3, 13.b,
15.1, 17.3,
17.14
13.1
50%
59%
86%
68%
47%
51%
100%
35%
100%
75%
79%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Target achieved On track Behind target
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2019 ANNUAL REPORT Pillar
Topic
Water
2020 Commitment/Ambition
Correlated
material topics
For the Natura brand in Brazil, implement a strategy to reduce and neutralize impact, based on measurement of our
water footprint, taking into account the entire value chain.
Water
SDG
6
SDG
targets
6.3, 6.4, 6.6
Supply chain
Guarantee the traceability of 100% of the inputs produced by the direct manufacturers (last link) by 2015.
Implement a traceability programme for the remaining links in the Natura brand value chain by 2020.
Transparency and product
origin
8
12
8.3, 12.8
Our Network
Consumers
Define priority topics and implement a strategy that mobilizes Natura brand consumers.
Natura consultants
Significantly increase the real average income of Natura Beauty Consultants in Brazil.
Stimulate their interest in ongoing learning and provide a broad educational offering that meets their needs.
-
-
12
1
10
12.8
5
8
1.1, 1.2, 1.4,
5.5, 8.3, 10.1,
10.2, 10.3
Education for the
development of
co-workers and consultants
4
5
8
4.3, 5.5, 8.3
Create an indicator to assess the human development of this stakeholder group and develop a strategy to promote
significant
improvement.
-
5
8
5.5, 8.3
Expand the collaboration network, supporting socioenvironmental entrepreneurial actions.
Education for the
development of co-workers
and consultants
4
5
8
4.3, 5.5, 8.3
Co-workers
For the Natura brand, reach the rate of 50% women occupying leadership positions (director level and above).
For the Natura brand in Brazil, to have 8% disabled employees in the workforce.
Implement a strategy to leverage employees’ execution potential through engagement in the Natura culture.
-
-
Education for the
development of
co-workers and consultants
Communities
Improve the indicators for measuring human and social development in our communities and develop a plan to
promote significant improvement.
-
Develop a strategy for the social biodiversity territories in the Pan-Amazon region and the communities surrounding
our main operations in Brazil, by means of dialogue and collaborative construction together with the local populations
and actors.
Valuation of
social biodiversity
Suppliers
Evolve the supplier selection and management process, further integrating socioenvironmental and financial parame-
ters.
Transparency and
product origin
Management and
Organisation
Management model
For the Natura brand, implement the valuation of socioenvironmental externalities, taking into account the
positive and negative impacts of the extended value chain (from the extraction of raw materials to product disposal).
Transparency and
product origin
Government and society
Stimulate public discussion and debate around our material topics based on the review of the materiality matrix
elaborated in 2014.
-
Stakeholder engagement
Institutionalise a governance model with external engagement to evolve management and sustainability strategy
5
10
8
10
4
12
16
8
10
16
8
10
15
5.5, 10.2
8.3, 10.2,
10.3
4.3, 12.2,
16.6, 16.7
8.3, 10.2,
10.3, 16.6
8.3, 10.2,
10.3, 15.1
8
12
16
8.3, 12.8,
16.6
6
12
13
15
16
17
6.6, 12.8,
13.1, 15.1
16.6, 17.14
12
16
12.1, 16.6
Ethics and transparency
For the Natura brand, to implant full transparency in the provision of information about products
and progress in the Sustainability Vision.
Transparency and
product origin
12
12.8
Governance of
Sustainability
Implant a Consulting Council comprising external specialists to assess the company’s progress
and to help develop its strategy.
12
16
12.1, 16.6
Progress
Status
0%
75%
75%
75%
100%
100%
100%
75%
89%
100%
75%
100%
50%
50%
50%
50%
75%
75%
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2019 ANNUAL REPORT Company information
Continuously
striving for
improvement
develops
individuals,
organisations
and society
The world of Lucimara, 50, is believing that
education transforms. As a school teacher
and headmistress, Lucimara created an
environmental education project that received
the 2016 Acolher Award. Today, she is a business
leader, supporting and stimulating the growth of
a network of hundreds of friends.
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161
2019 ANNUAL REPORT Corporate
governance
GRI 102-5, 102-18, 102-19, 102-20, 102-21, 102-23, 102-24, 102-26
As a process geared to the growth and internationalisation of
the group, the corporate governance structure continues to
advance to keep pace with the growing complexity of the business.
structure. Three new members, previously on the Avon Board, were
nominated: Nancy Killefer, who was previously a senior associate
at McKinsey & Company; Andrew G. McMaster Jr., who worked as
This is reflected, for example, in the increase in the number of
executive vice president and vice president of Deloitte & Touche
members of the Board of Directors and the greater cultural diversity
LLP; and W. Don Cornwell, who occupied the positions of lead
and broader competencies of the board members.
director (leader of the independent board members) on the Avon
Board and CEO of Granite Broadcasting Corporation. In 2019, Ian
2019 saw the incorporation of Natura &Co Holding, which controls
Bickley joined the board, benefiting the group with his in-depth
the group’s brands, with shares listed on the São Paulo B3 stock
knowledge of the dynamics of the Southeast Asian markets. Silvia
exchange (under the ticker symbol NTCO3), in addition to ADRs
Lagnado left the Board in February 2020 to assume a function on
(American Depositary Receipts) traded on the New York Stock
the Group Operations Committee (GOC). The process of replacing
Exchange (further information ahead). Natura Cosméticos S.A.
her is underway.
continues to be a public company and is now a wholly owned
unlisted subsidiary of the group. GRI 102-5
As a result, the Board was increased to 12 members, eight of
whom independent. At the end of 2019, the period covered by this
The company’s principal decision making body is the Natura &Co
report, the Board of Directors had ten members, six of whom were
Board of Directors, which was altered to reflect the group’s new
independent.
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162
2019 ANNUAL REPORT Leadership is exercised by the co-chairmen Luiz Seabra, Guilherme
Leal and Pedro Passos and by the executive chairman Roberto
Marques, who also assumed the position of chief executive of the
group. Since January 2020, the CEOs of the business units have
been members of the GOC : Angela Cretu, from Avon; João Paulo
Ferreira, from Natura &Co Latin America (responsible for the Natura
brand and for the operations of the group’s four companies in the
Latin American countries); David Boynton, from the The Body Shop;
and Michael O’Keeffe, from Aesop. Representatives of key areas,
such as finance, operations and legal are also members of the GOC.
To reinforce integration between board members and group
executives, Natura organised an in-depth meeting in New York
(USA) in June, 2019. In addition to the ordinary meeting of the
Board of Directors, this occasion was used to further strengthen
connections and to debate the development of strategic plans for
the group and for each of the brands.
Besides the meeting in New York, ordinary Board meetings
were held in Brazil (two), England (one) and Mexico (one). Other
extraordinary meetings were necessary, particularly because of
the negotiation with Avon. Many of these took place via video
conference to streamline the process and to reduce the need for
travel, not to mention the expenses this involves.
Avon integration
The Natura &Co corporate governance structure underwent
alterations in 2019 in function of the Avon acquisition. The
operation, concluded in January 2020, involved a share swap
resulting in in the creation of Natura &Co Holding, which
assumed full control of both Avon and Natura Cosméticos S.A.,
with the latter, in turn, controlling Aesop and The Body Shop.
The incorporation of the stock of Natura Cosméticos was
concluded on December 17, 2019, after approval in an
Extraordinary General Meeting, when the holders of Natura
Cosméticos S.A. shares received shares in Natura &Co, under
the ticker symbol NTCO3. In January 2020, Natura &Co also
initiated trading in ADRs (American Depositary Receipts) on the
New York Stock Exchange.
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163
2019 ANNUAL REPORT Advisory committees
The Board of Directors is advised by five committees, including the
Board of Directors was involved in formatting the Natura &Co
group, entailing a series of adjustments and the expansion
Group Operations Committee (GOC), created in 2017 and headed
of its composition and scope.
by the executive chairman of the Board, Roberto Marques. The
CEOs of the three companies and representatives of key areas in
In function of this, the evaluation gained even greater relevance
the group are also on the committee. The committee assists in the
given the need to determine matters such as the frequency of
definition and implementation of global strategy and serves as a
meetings, the sharing of information, among others. The results
forum for discussion and recommendations of administrative and
of the evaluation indicated that the composition of the Board is
operational structures. It also contributes to the formation of centres
coherent with the group’s growth and internationalisation and the
of excellence among the business units, seeking to promote best
new competencies required for this process.
practices and excellence.
The selection of board members takes into account their
Three of the other four Board of Directors advisory committees
qualifications, complementary executive experience, identification
are made up exclusively of board members: Strategic; People and
with Natura’s business principles and the absence of conflicts of
Organisational Development; Corporate Governance. The Audit,
interest. The term of office is one year, which may be renewed upon
Risk Management and Finance Committee, which is now statutory,
approval of the shareholders’ meeting. Additionally, the process
has an independent member who is not on the board.
should ensure that membership of the Board of Directors takes into
account the availability of members to exercise their functions and
Further information about the composition of each committee
diversity of knowledge, experiences, behaviours, cultural aspects,
and its attributions: https://ri.naturaeco.com/en/naturaco-
age group and gender. In line with best practice, Natura &Co Holding
holding-s-a/board-members-and-committees/
also seeks to maintain a majority of external members on the board
Self-evaluation
GRI 102-28
The board members conducted a self-evaluation of their activities
in 2019, a process aimed at assessing performance and seeking
opportunities to improve governance. Natura conducts periodic
evaluations, but these did not occur in 2017 and 2018, since the
and at least one third of independent members. The proposed re-
election of board members should take into account the periodic
evaluation of the Board of Directors and any conclusions as to
adequacy or the need for adjustments in the composition of the
board. The process is detailed in the Policy of Indication of Company
Administrators, available on the Natura &Co website. GRI 102-24
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164
2019 ANNUAL REPORT Economic, social and environmental analysis
The résumé of each member of the Natura &Co Board of
GRI 102-26, 102-27, 102-29, 102-31
It is the function of the Board of Directors to determine and to
Directors may be seen at: https://ri.naturaeco.com/en/
naturaco-holding-s-a/board-members-and-committees/
monitor the implementation of company strategy and to assess
the performance of the chief executive and main leaders of the
group periodically. This assessment includes the evaluation of
GRI 102-22, 405-1 Composition of the Board of Directors
quarterly performance and the Natura &Co annual management
report, which encompasses the main socioenvironmental indicators
By age group
considered relevant for the company, expansion projects and
investment programmes, as well as risk management and definition
of profit share parameters for Natura &Co co-workers.
The board also undertakes the assessment and approval
of Natura &Co’s strategic activities and performance in the
socioenvironmental areas, including engagement actions and
presentations related to data collection and progress.
Composition of the Board of Directors*
GRI 102-22
Pedro Luiz Barreiros Passos
Antonio Luiz da Cunha Seabra
Guilherme Peirão Leal
Roberto de Oliveira Marques
Carla Schmitzberger
Fábio Colletti Barbosa
Silvia Freire Dente da Silva Dias Lagnado
Gilberto Mifano
Jessica DiLullo Herrin
Ian Bickley
* Composition of the Board of Directors up to December 31, 2019. In January 2020,
changes were made due to the Avon acquisition, with the inclusion of three new
members: Nancy Killefer, Andrew G. McMaster Jr., and W. Don Cornwell. In February
2020, Silvia Lagnado left the board to join the Natura GOC .
Up to 45 years
Over 45 years
Women
Men
Brazilian
Foreign
Up to one year
0
10
3
7
8
2
1
3
6
By gender
By origin
By length of service
Between one and three years
Over three years
Natura Executive Committee (Comex)*
GRI 102-22
João Paulo Brotto Gonçalves Ferreira
Agenor Leão de Almeida Júnior
Andréa Figueiredo Teixeira Alvares
Erasmo Toledo
Flavio Pesiguelo
Itamar Gaino Filho
Joselena Peressinoto Romero
José Antonio de Andrade Filippo
*Composition on December 31, 2019.
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2019 ANNUAL REPORT Risk management
GRI 102-30, 102-31
To increase the transparency of company guidelines,
principles, roles and responsibilities regarding corporate risk
management, we reviewed and published the Corporate Risk
The organisation’s risk map was reviewed in 2019 in accordance
with strategic planning and the greater complexity of the business
model in view of the entry of the new brands and Natura’s
Management Policy. This document is available on the company’s
internationalisation. With the integration of the Natura &Co group,
Investor Relations website. Its scope is global, meaning it is valid for
questions such as supply chain, culture, people development and
all the companies in the Natura &Co group.
leadership also gain greater relevance.
The policy systematises risk management and underscores
the co-responsibility of all co-workers in terms of awareness
of the risks in their areas and the requirement that such risks
Another area that mobilised efforts in 2019 was managing
information security, including cyber-security, an area in which
practices and processes were reinforced in accordance with Brazil’s
be managed in accordance with three lines of defence model:
General Personal Data Protection law and the preparations for the
the first comprising the business areas, the second the control
structures and the third, internal audit, responsible for
independent oversight in order to verify the effectiveness
of the model.
control environment necessary to fulfil the requirements of the
Sarbanes-Oxley (SOX) act (further information ahead).
The entire risk management process is monitored by the Executive
Committee (Comex) and the Board of Directors. The Audit, Risk
After risks have been identified and assessed, the management
Management and Finance Committee, which reports directly to
process involves analysis of the sources, areas and processes
the board, is responsible for overseeing internal and external audit
affected; evaluation of the impacts and the probability of
processes, risk management mechanisms and controls, as well
occurrence; addressing any risk by means of appropriate action
as evaluating the coherence of financial policies and the risk
plans; communication and sharing of information; and, monitoring.
profile of the business.
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166
2019 ANNUAL REPORT Main risks monitored GRI 102-15, 102-34
Risks
Monitoring and mitigation measures
Complexity of the business
model, including the
commercial model,
brands, channels,
internationalisation and
attractiveness to consultants
We constantly monitor our industry, including consumer preferences and spending patterns.
We continue to evolve the commercial model in accordance with our value proposition,
the sales channels, maintaining significant investments in the Natura Beauty Consultant
prosperity plan. On a periodic basis the company measures attributes of the brand’s value
and brand innovation and power indicators. The results are discussed and monitored by the
committees established jointly with the executives.
Implantation of strategy
Innovation capacity
Research, development,
manufacturing and product
quality
Annual review of the company’s strategic planning and short, medium and long-term
targets, including investment decisions involving acquisitions and holdings and entry
in new markets. The strategies and reviews are presented to and debated with the
Executive Committee and approved by the Board of Directors; main indicators and
initiatives are tracked periodically in order to ensure the timely adoption of any
necessary adjustments.
We consider different dimensions of innovation: commercial strategy, digital platforms,
product development, logistics and distribution network etc. We maintain rigorous control
over the registration of intellectual property, in particular patents, industrial designs and
brands. The company periodically reviews its product portfolio, managing the pipeline in
accordance with the mix of types of innovation and the performance of established indicators.
We are totally committed to ensuring customer health and safety, with rigorous
internal processes ranging from the conceptual development of the product to its
launch, based on the principles of truth and transparency. Natura’s Occupational Health and
Safety policy and Work Safety Management system, as well as diverse accident prevention
programmes, mitigate the occupational risks inherent to our operations. Furthermore, the
company maintains open communication and relationship channels with unions, recognis-
ing them as the legitimate representatives of the interests of our co-workers in each area,
always striving for understanding and reconciliation of interests between the parties.
Interruptions to IT systems,
including cyberattacks
Developing people and
leaders
Natura’s main IT systems are managed with a view to ensuring operational
stability. We ensure data and server redundancy, information back up routines, control of
access to our systems and continuous monitoring to detect safety vulnerabilities in data
banks and infrastructure components, web systems and mobile applications, network pe-
rimeter security tools, multi-factor authentication, protection against malware, viruses and
malicious codes, as well as real time network and cloud monitoring to contain
any attacks in progress Natura has a fully structured management process for information
security, with guidelines set forth in the Code of Conduct, co-worker awareness measures,
mapping and handling of information security risks and adherence to the ISO 27002:2013
standard, including the assessment of information security criteria applied to third-party
services, and periodic disaster recovery plan tests in the technology environment.
A more simplified and networked process, driving greater autonomy, non-hierarchical
assessments and feedback in real time, enabling co-workers to indicate and be aware of
strengths and opportunities for improvement. Annual review of the succession map, with
ongoing identification of individuals with the potential to occupy executive positions in
the short, medium and long-term and mapping focused on critical leadership positions to
identify the need for acceleration and development.
Ethics and culture
(compliance)
We review the Code of Conduct on an annual basis, including permitted practices, expected
standards of behaviour, anti-corruption legislation, conflicts of interest and other relevant
questions. Suppliers and third-parties are subject to the company’s Global Supplier Code of
Conduct. Suppliers must read this code and consent to it, with written confirmation from a
legal representative. Co-workers may communicate any concerns, suggestions, complaints
and report breaches of conduct to the Ombudsman channel. These may be communicated
by email, intranet, internet, telephone, post office box or personally, with the option to remain
anonymous. Telephone contact is available 24 hours a day in Portuguese, English and Spanish.
Compliance with Brazil’s
Personal Data Protection
law
Diagnosis with support from a legal consultancy specialised in digital law, workshops for
the main agents impacted by the law, generation of documentation on uses and sharing of
data, legal bases, mapping of potential improvements to processes, routines and items of
consent. Design and implantation of improvement projects/measures, including the review
of policies, standards and procedures.
Raw materials, supply chain
and distribution chain
Climate change
GRI 201-2
The company conducts periodic audits at strategic suppliers and in critical chains, which
includes the monthly monitoring of the financial health of the main production suppliers
and integrity due diligence processes. The results of these processes are tracked
periodically and measures taken when necessary. Regarding the distribution chain, we have
a decentralized logistics network and distribution centres with a high degree of investment
in technology, enabling online control of distribution with real time detection of failures and
implementation of corrective measures.
Our activities are aimed at combining economic and socioenvironmental gains. Strategic
mitigation projects span the entire company and have been incorporated into formal
routines, such as the Carbon Neutral programme, which prioritises the reduction of direct
and indirect emissions throughout the production chain, in addition to offsetting 100% of
emissions that cannot be avoided through projects that drive socioenvironmental benefits.
Based on the climate range risk matrix, the company prioritised the assessment of risks and
opportunities in the supply of ingredients from the Amazon region in 2019.
The use of social biodiversity ingredients is governed by the Natura Sustainable Use
of Social Biodiversity Products and Services policy, which ensures the fair sharing of
benefits with the supplier communities and the sustainable stewardship of these assets,
in addition to complying with Brazilian legislation on access to genetic heritage. To ensure
greater security, we also elaborated a risk matrix for the social biodiversity chains. By means
of the Natura Amazonia Programme, Natura also seeks to drive the generation of sustain-
able businesses based on biodiversity and traditional knowledge.
Legal, sector regulation and
tax load
We actively monitor regulatory changes applicable to our business in all the judicial spheres
in order to manage the impacts any alterations may have on our operational and financial
results. We continuously track federal and state level tributary processes and work with
sector associations such as Abihpec and ABEVD to advocate industry interests.
Other external risks
(interest rate, exchange
variation, inflation etc.)
Institutional conjuncture
(Brazil and International
Operations)
Constant monitoring of external risks related to the economic conjuncture by senior
management, with the redefinition of strategic planning, when necessary.
Constant monitoring of the political-economic conjuncture in the countries in which
we operate, with the reformulation of strategy as required.
Competitors
Monitoring of behaviours and trends by means of periodic measurement of
market share and interpretation of the activities of the company’s main competitors.
Social biodiversity
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2019 ANNUAL REPORT Internal controls
Based on the COSO (Committee of Sponsoring Organizations of the
Treadway Commission) framework, the organisation’s internal control
procedures, use profiles and sharing of personal data, potential
vulnerabilities and questions of consent, among other aspects.
matrix is updated annually. All controls are submitted to effectiveness
This process led to a series of projects and measures to protect the
tests, and there are plans in place to monitor and remedy any non-
data bank and implement controls to segregate functions. Specific
conformance that is detected. All the work is documented and
policies will also be formulated to ensure privacy for co-workers,
presented to the company’s independent auditors, who at their
consultants and consumers. Since this legislation is Brazilian, the initial
discretion, may complement their analyses with additional tests.
focus is on the the operation in Brazil, but the initiative will generate
The results of the tests undertaken by both the company and the
gains in protection in the other countries in Latin America. Due to its
independent auditors are reported to the managers responsible
experience in operating in a more mature regulatory environment
for the controls and to the Audit, Risk Management and Finance
where data privacy is concerned, governed by European legislation,
Committee, linked with Natura &Co Board of Directors.
The Body Shop made an active contribution to this process.
Since 2010, Natura has voluntarily maintained SOX related practices,
ensuring high standards in the assessment of the effectiveness of
internal controls. With the acquisition of Avon, the company came to
have ADRs (American Depositary Receipts) traded on the New York
Stock Exchange, consequently SOX practices will be determinant
for the entire Natura &Co group. Therefore, in 2019 we expanded
assessment of the effectiveness of internal controls in the other
companies of the group, The Body Shop and Aesop.
The gains achieved with this work were greater knowledge
of processes and details of the operations and the governance
of internal controls, in addition to alignment of methodologies
and standards.
Adaptation to Brazil’s Data Protection Law
To review its processes and guarantee alignment with Brazil’s General
Climate change
and risk management
GRI 201-2
To reinforce analysis of the effects that significant changes in
climate could have on our business, a working group involving
the Risk Management and Internal Controls and the Sustainability
areas undertook an exercise to map risks and opportunities due to
climate change. The work was orientated by the recommendations
of the Task Force on Climate-related Financial Disclosures (TCFD),
a global movement in which Natura engaged in 2017, which pursues
the development of standards for the disclosure of climate-related
Data Protection Law (LGPD), Natura conducted a diagnosis of its
financial risks.
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2019 ANNUAL REPORT Given the relevance of our business strategy, the time scale and
the audiences involved, we determined that the initial focus of the
assessment would be the influence of climate change on the supply
of social biodiversity ingredients for our products, in particular
Governance
those originating in the Amazon. The multidisciplinary group used
available research and internal field knowledge to identify possible
impacts. We crossed-analysed models projecting climate change
impacts in Brazil with the ingredient stewardship areas and the
financial impacts that should be evaluated in accordance with
mitigation or adaptation scenarios that are still under construction.
These possible financial impacts still under qualitative evaluation (for
example, net revenue, operational costs, working capital and cash
flow) will provide the basis for decision making. This work should be
concluded in 2020 and will help to evolve the approach to these effects
not only in the company’s communications to the market, but will also
contribute as an effective instrument for managing the business.
Strategy
There follows a prior analysis based on the four pillars
recommended by the TCFD.
Risk management
Management and decision making on sustainability-related topics, including the effects
of climate change on the business are shared by leaders and teams across the
organisation. Accordingly, there is no specific sustainability committee in our governance
structure. We identify and prioritise the main socioenvironmental challenges for our
business through the prism of the 2050 Vision and the organisation’s Strategic Planning.
Tracking these is a responsibility shared by leaders. Commitment to these goals also
influences executives’ variable compensation, which encompasses socioenvironmental
targets, such as greenhouse gas (GHG) emissions. Moreover, the status of the 2020
ambitions and the 2050 Vision is presented to the Executive Committee on a monthly
basis and to the Board of Directors every quarter.
Further
information
on pages
36-40
In addition to driving innovation, sustainability is a lever for value generation that is
becoming increasingly explicit in managing company strategy and its brands and
categories. In particular, the use of Amazonian social biodiversity ingredients for over 20
years has resulted in valuable learning in relation to the importance of keeping the forest
standing as an element for combating climate change. Through the Natura Amazonia
Programme, we advocate zero illegal deforestation and the promotion of science and
local technology to reinforce higher added value businesses in the region. To keep the
risks and opportunities on our radar, we support global movements that seek to
reduce emissions and limit their effects on the planet, such as the Paris Agreement, the
Sustainable Development Goals and the UN Climate Conference, among other initiatives.
We also have strategies to develop packaging with a lower climate change impact, such
as refills, materials of renewable origin or made from post-consumer recycled material,
and the development of packaging that uses less material. These solutions are evaluated
by the internal ecodesign committee.
Further
information
on pages
36-40 and
92
Even if it is not completely clear how the climate is going to change, it would seem to
be correct to state that the associated risks may provoke wide-ranging effects on the
business world. At Natura, for example, this could influence our competitiveness,
generate research and development expenses and the need to invest in new
technologies; it could also provoke an increase in the cost of raw materials and expenses
with the transition to low intensity GHG emission technologies. The effects could extend
to our value chain, including reductions in consultants’ sales and in the amounts paid to
supplier communities for social biodiversity ingredients, changes in consumer behaviour
and preferences, among other things. Questions related to climate change and social
biodiversity are part of our strategic risk map monitored by the Natura Risk Management
and Internal Controls area, which prioritised the assessment of risks and opportunities in
the supply of inputs from the Amazon region in 2019 (see the table on page 167).
The area is responsible for reviewing related current and potential risks and making
recommendations to senior management.
Read more
on page
167
Metrics and
targets
We are progressing continually in our tools for assessing impacts, not only related to
greenhouse gases (GHG), but also other important socioenvironmental questions, such
as EP&L (Environmental Profit and Loss), SP&L (Social Profit and Loss), the Social
Progress Index of the Amazonian supplier communities, among others, included in the
2050 Vision. The Carbon Neutral Programme has been in place for 13 years and
underscores Natura’s pioneering stance in managing atmospheric emissions
throughout its entire value chain, from the extraction of raw materials to the disposal of
post-consumer waste. Natura has been carbon neutral since 2007. Since then, we have
maintained emissions reduction targets and measures to offset our GHG emissions and
boost efficiency, always encompassing the entire value chain.
Further
information
on pages
159-160
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169
2019 ANNUAL REPORT Ethics and integrity
GRI 102-17
Under the auspices of its Ethics and Compliance area, Natura
bases its activities on a vision that goes beyond compliance
with standards and legislation and is integrated into the company’s
money laundering. An important part of this work was to reflect the
cultural differences in the group and the maturity of standards and
processes in each company in the group.
sustainability agenda. This ranges from transparency in tax
practices and the use of ingredients, through anti-corruption and
The guidelines were used as a basis to orientate training for
promoting civic awareness, to engagement in topics such as
respect for civil and for women’s rights.
managers, the Executive Committee and the Board of Directors.
The training programmes addressed questions such as anti-
corruption legislation in all the countries in which the company
After formalising its compliance structure under an executive director
operates, in particular European and North American regulations.
in 2018, Natura consolidated its processes and practices for the global
Other questions addressed were behaviour in the workplace,
structure of the Natura &Co group. This involved adapting procedures
discrimination, harassment and conflicts of interest.
that reinforce the organisation’s principles and values in alignment
with international best practices. The team was increased to support
We launched the Ethics Line, a channel available to the entire
this structure, with dedicated managers for the company’s main
group in Portuguese, Spanish and English, for reports on breaches
markets, including Brazil; the other countries in Latin America; North
of the Code of Conduct. There is a guarantee of anonymity and
America; Europe, Africa and the Middle East; and Asia and Oceania.
confidentiality for all contacts and the reports are handled by the
Corporate policies were revised and new ones created based
Ethics Committee. The Ombudsman Channel already
in existence at Natura was maintained to receive
on this structure. These include the Global Code of Conduct and
other types of contact from users, such as doubts and complaints
documents oriented to matters such as donations and sponsorship,
about the structure of the company. Communication
relations with public authorities, competition, anti-corruption and
campaigns publicised these channels and the purpose of each one.
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170
2019 ANNUAL REPORT Natura continually gains recognition because of its commitment to
ethical conduct. Since 2016, Natura has maintained the Empresa
Pró-Ética (Pro-Ethical Company) seal awarded by Brazil’s Federal
Comptroller General and the Instituto Ethos for the measures
implemented to prevent, detect and remedy corruption and fraud.
Moreover, for the ninth year running we were recognised as one of
the most ethical companies in the world by the Ethisphere Institute,
the global leader in defining and developing ethical standards for
business conduct. The company is also a signatory to the Instituto
Ethos Pacto Empresarial pela Integridade e Contra a Corrupção
(Business Integrity andAnti-corruption Pact); we support the
Alliance for Integrity, a global anti-corruption initiative; we are
signatories to the Global Compact; and we participate in the ICC
Brasil Corporate Responsibility and Anti-corruption Commission.
Read more about the company’s anti-corruption practices
on pages 183-184
Responsible tax practices
To promote greater transparency, Natura is a member of the
group that established the Responsible Tax Principles, aimed
at communicating the tax practices of companies around the
world. The initiative is led by the B Team, a global movement
comprising leaders of companies, civil society and government
to promote best business practices, prioritising the well being of
people and the planet.
The B Team Principles adopted by Natura espouse transparency
and responsible tax practices and strategies, including
information about effective tax burdens. Based on this, in this
report we disclose Natura’s revenues (not including the The
Body Shop and Aesop) in Brazil and in the other countries in
Latin America where we have operations, as well as the income
tax due in each of them. We are committed to enhancing this
practice and extending commitment to the principles to the
other companies in the group (further information on page 33).
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171
2019 ANNUAL REPORT Commitments
and partnerships
Who is with us in pursuit
of a more beautiful world
GRI-102-12, 102-13
Seals and certifications:
• We have been certified as a B Corp since 2014. This is an initiative
of the B System movement which recognises companies that give
equal weight to economic and socioenvironmental results. | https://
bcorporation.net |
• Organic alcohol – we use 100% organic alcohol in our perfumery,
with IBD (Instituto Biodinâmico) and Ecocert certification.
• FSC paper (Forest Stewardship Council) – we use FSC certified
paper in our product packaging and the cartons used to ship
• UEBT (Union of Ethical Biotrade) seal for the Natura Ekos product
product to consultants.
line, in recognition of the traceability of the natural ingredient supply
chain and the company’s commitment to fair trade, the conservation
of biodiversity and community development. | https://www.
ethicalbiotrade.org/brands-1/2018/6/12/natura |
• Leaping Bunny certification from Cruelty Free International,
which attests to the non use of animal testing in the entire Natura
portfolio. The Body Shop also has this certification. | https://www.
leapingbunny.org |
• RSPO Palm – we use palm oil 100% certified by the Roundtable on
Sustainable Palm Oil.
• LEED certification – in 2018 the Natura administrative building
NASP was awarded LEED (Leadership in Energy and Environmental
Design) GOLD certification. Developed by the U.S. Green Building
Council (USGBC).
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2019 ANNUAL REPORT Organisations with which we maintain relations:
Empresarial Brasileiro para o Desenvolvimento
• The United Nations (UN) Global Compact, a movement of
companies, workers and civil society to promote citizenship and
sustainable growth. | https://www.unglobalcompact.org/ |
• We are signatories to the Global Compact, and Guilherme Leal is a
Sustentável).
| https://cebds.org/ |
• UEBT (Union for Ethical Biotrade), member of the management
committee. | https://www.ethicalbiotrade.org/ |
member of its council, the highest governance body responsible for
• B-team – a group comprising world leaders with the goal of
defining the initiative’s strategies and policies.
• We participate in the Global Compact Brazil Network and the
Natura Sustainability director is vice president of the Board of
Directors. | https://pactoglobal.org.br |
• We have aligned our Sustainability Vision with the Sustainable
Development Goals (SDGs), a global agenda that sets forth 169
targets within the 17 goals to be achieved by 2030.
• World Business Council for Sustainable Development (WBCSD),
led by the CEOs of more than 200 leading companies that are
working together to accelerate the transition to a sustainable world.
| https://www.wbcsd.org |
engaging corporations and global leaders in the cause “People-
Planet-Profit” and proposing solutions that reconcile revenues and
socioenvironmental responsibility.
| http://www.bteam.org/ |
• Natura board member Guilherme Leal
is a member of the B Team.
• Signatories to Net Zero, a coalition dedicated to
accelerating the transition to a low carbon economy
by 2050.
| http://www.bteam.org/plan-b/net-zero-by-2050/ |
• TCFD (Task Force on Climate-related Financial Disclosures), a task
force aimed at developing standards for the
• The Natura vice president of Innovation and Sustainability,
Andréa Alvares, is a member of the executive committee.
disclosure of climate-related financial risks.
| https://www.fsb-tcfd.org/about/ |
• We are signatories to the Natural Capital
Coalition – a multi-stakeholder global collaboration
oriented to conserving and improving natural capital.
| https:naturalcapitalcoalition.org/ |
• We are also members of the Brazilian sustainable
development business council CEBDS (Conselho
• Science Based Targets, a group of global institutions that aims
to define science-based emissions reduction targets in line with
the scale of reduction necessary to maintain the increase in global
temperature below 2°C.
| https://sciencebasedtargets.org/companies-taking-action/ |
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2019 ANNUAL REPORT
• Ellen MacArthur Foundation, whose mission is to accelerate the
• LGBTI Conduct Standards Pact, by the UN Free & Equal movement,
transition to a circular economy. | https://www.
ellenmacarthurfoundation.org/ |
• In 2018, we became signatories to the New Plastics
Economy initiative, which establishes targets related
to plastic packaging for 2025. For Natura, the targets
are the commitments assumed for 2020
in the company’s Sustainability Vision.
| https: newplasticseconomy.org/ |
aimed at promoting equality of rights and fair treatment at work for
the LGBTI audience.
• Business Initiative for Equality (Iniciativa Empresarial pela
Igualdade), aimed at promoting opportunities in the labour market
for the black population. Upon joining the initiative, companies
adhere to 10 Commitments for the
Promotion of Racial Equality.
• Instituto Ethos | https://www.ethos.org.br/ |
• Win-Win: gender equality means good business, implanted by the
International Labour Organisation (ILO) in Argentina, Brazil, Chile,
Costa Rica, Jamaica and Uruguay. Natura Brazil and Natura Chile are
engaged in the initiative.
• Andréa Alvares is a member of the Steering Council.
• Natura is a member of the Coalizão Brasil, Clima,
Florestas e Agricultura.
• PPA (Parceiros pela Amazônia), a group organised by small private
sector companies, NGOs and financiers in the
Amazon region to promote sustainable development.
| https://ppa.org.br/ |
• The CFT association Abihpec (Associação Brasileira da Indústria
de Higiene Pessoal e Cosméticos). | https://abihpec.org.br/ |
• Members of the initiatives: the sector programme
Dê a Mão para o Futuro, a coalition of companies
that promotes racial and gender equality
and the Climate Forum.
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2019 ANNUAL REPORT
Complementary disclosures
Commitment
to the truth
is the way to
enhance quality
in relationships
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175
2019 ANNUAL REPORT Index
People management............................................................177
Labour practices...................................................................177
Remuneration and benefits................................................178
Turnover...............................................................................179
Career development............................................................. 180
Quality in relationships...........................................................181
Health and safety.................................................................181
182
Freedom of association......................................................
Ethics and human rights......................................................183
Anti-corruption...................................................................184
Public policies.......................................................................185
Human rights.........................................................................185
Anti-competitive behaviour..................................................185
Environmental management................................................186
Emissions .............................................................................186
Energy ..................................................................................186
Water.....................................................................................188
Waste and effluents.............................................................189
Biodiversity............................................................................ 191
Environmental compliance...................................................192
Natura Beauty Consultants ................................................193
Training................................................................................193
Suppliers.............................................................................193
Society.................................................................................195
Consumer health and safety.............................................. 195
Support and sponsorship actions.......................................195
Leadership and social influence..........................................196
.
.
.
Natura Operations
Regarding the locations informed in the indicators, we take into account:
Cajamar: Natura plants and office in Cajamar (São Paulo)
NASP: Natura administrative headquarters in São Paulo (SP)
SP DC: São Paulo Distribution Centre (SP), located next to NASP
Ecoparque: Natura plant and office in Benevides (Pará)
Itupeva Hub: logistics warehouse located in Itupeva (SP)
Operations in Latin America: Argentina, Chile, Colombia, Mexico and Peru
IOs: The International Operations which, in addition to the countries in Latin
America, include stores, offices and e-commerce operations in the United
States and France.
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2019 ANNUAL REPORT
Labour practices
Information about co-workers
People management
GRI 102-7 Number of co-workers per country1
GRI 102-8 Employees by type of work contract and gender1 2 3
Region
Brazil
Argentina
Chile
Mexico
Peru
Colombia
France
France
United States2
Total
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
Total
% Men
% Women
2017
4,765
43%
57%
641
16%
84%
189
22%
78%
116
39%
61%
219
13%
87%
362
18%
82%
19
37%
63%
2018
4,958
44.2%
55.8%
690
17%
83%
224
20%
80%
122
43%
57%
228
13%
87%
378
17%
83%
21
71%
29%
Not available
Not available
Not available
Not available
Not available
Not available
6,311
6,621
2019
5,085
43.9%
56.1%
716
19%
81%
225
20%
80%
133
50%
50%
224
15%
85%
402
20%
80%
16
19%
81%
19
11%
89%
6,820
1. Malaysia, where we initiated an operation in September 2019, is not within the scope.
2. The country was incorporated into the indicator in 2018, and classification by gender, in 2019.
Type of contract
Fixed term
Brazil
Permanent
International Operations
Permanent
Brazil
Permanent
International Operations
2017
2018
2019
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
n
e
M
n
e
m
o
W
l
a
t
o
T
n
e
M
n
e
m
o
W
54
20%
80%
97
27%
73%
96
30%
70%
33
3%
97%
54
11%
89%
59
24%
76%
4,711
44%
56%
4,861
45%
55% 4,989
44%
56%
1,513
19%
81%
1,609
19%
81%
1,676
21%
79%
Total
6,311
37%
63% 6,621
38%
62% 6,820
38%
62%
1. Expatriates, interns, members of the Board Directors and Instituto Natura employees were not taken into
account.
2. Workers hired on a temporary basis are allocated in diverse areas/segments in the company (total in
Brazil: 415). Apprentices are allocated in diverse administrative areas of the company (total in Brazil: 124).
Third-party workers are allocated in diverse areas/segments in the company, with a work load that varies in
accordance with each activity (total in Brazil: 3,006). Interns are allocated in diverse administrative areas of
the company (total in Brazil: 93).
3. We do not disclose a classification by type of employment. This information is not relevant for the Natura
operation because there are no part-time workers.
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2019 ANNUAL REPORT
People management
Remuneration and benefits GRI 103-2, 103-3
Ratio of women’s salary to men’s
GRI 405-2
The variations in women’s salaries to men’s
occur exclusively in function of the distribution
of remuneration within the Natura structure
because there is a single salary grid which is
not defined by gender.
For Natura Brazil collective bargaining
agreements resulted in increases of from
2.5% to 5% for operational and administrative
co-workers in 2019. Managers received a fixed
increment to their base salary. There were also
spontaneous pay rises and pay rises related
to promotions and merit awards, in addition to
hires, terminations and transfers during the year.
In 2018, the methodology for calculating
the amounts was based on the concept
of monetary remuneration and did not
include the proceeds of sales bonuses and
commissions. This change impacts mainly
women in the administrative area, reducing
their average monthly
remuneration. The same occurs in the other
countries in Latin America, where the median
sales bonuses also negatively impact the
salary difference between women and men,
principally in Chile.
It should be noted that Natura has been
progressing in terms of the percentage
of women occupying leadership positions,
with 41% in in director or vice president level
roles and 56% in management positions.
Further information about diversity policies \
from page 126.
Ratio of women’s salary to men’s by functional category – Brazil (%)
20171
2018
2019
Director level
Management
Administrative
Operational
-19
-3
18
-22
-19
-3
-8
-20
-17
-5
-12
-20
Ratio of women’s base salary to men’s by functional category –
– Operations in Latin America (%)1
Argentina
Management
Administrative
Chile
Management
Administrative
Colombia
Management
Administrative
Mexico
Management
Administrative
Peru
Management
Administrative
2017
-11
3
2017
3
33
2017
-9
-4
2017
7
-1
2017
-5
-28
2018
-8
-16
2018
-4
-27
2018
-3
-17
2018
10
-4
2018
-6
-24
2019
-9
-12
2019
-2
-24
2019
-14
-15
2019
27
4
2019
1
-23
1. In these countries only administrative and management positions were reported, because of their
representative mass in salary analyses.
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2019 ANNUAL REPORT
Remuneration and benefits GRI 103-2, 103-3 (cont’d)
Turnover GRI 103-2, 103-3
People management
Total annual compensation ratio
GRI 102-38
Natura does not disclose this information,
considering that compensation data is
confidential.
Maternity and paternity leave
GRI 401-3
The retention rate after maternity/paternity
leave continues to follow an upward trend.
The number of male co-workers who take
paternity leave also shows a slight increase,
maintaining the upward trend observed
since 2016, when this benefit was
extended to 40 days.
Maternity and paternity leave
2017
2018
2019
Employees who took parental leave
Employees who returned to work after the end of
the leave and were still employed 12 months after
returning1
men
women
men
women
112
144
73
105
121
138
94
118
123
119
113
124
1. Frequently the leave does not end in the same year it is requested, consequently in some years there are
more people returning than leaving.
New employee hires and employee turnover
GRI 401-1
The total number of Natura co-workers showed
a slight variation in 2019 (see the table on page
177), with the total headcount reaching 6,820 –
compared with 6,625 the previous year.
The number of new hires was lower than in
2018, when the demand was due mainly to
the expansion of the Natura stores at that time.
But we continue to hire a significantly higher
number of women, which contributes to
achieving our target of equality between men
and women in leadership positions (further
information on page 127). The number of
terminations grew by 3% in 2019.
Co-workers hired, by gender – Brazil and the International Operations
2017
2018
Gender
Men
Women
Total
Number
Rate
Number
Rate
Number
414
687
38%
62%
569
910
38%
62%
511
856
2019
Rate
37%
63%
1,101
100%
1,479
100%
1,367
100%
Co-workers who left the company, by gender – Brazil and the International Operations
Gender
Men
Women
Total
2017
2018
Number
Rate
Number
Rate
Number
395
772
34%
66%
420
743
36%
64%
429
768
2019
Rate
36%
64%
1,167
100%
1,163
100%
1,197
100%
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2019 ANNUAL REPORT People management
Career development
GRI 404-2 Programmes for upgrading employee
skills – Brazil
Number of scholarships granted
Scholarships granted/enrolments1
Amount invested in the Natura Education pro-
gramme (R$ thousands)
2017
2018
2019
210
78%
690
238
49%
897
131
-
504
GRI 404-2 Courses subsidised by Natura for
co-workers and family members – Brazil
2017
2018
2019
Technical/vocational
Languages2
University entry preparation
University
MBA and postgraduate
Total scholarship holders
12
55
0
52
91
23
88
0
37
90
13
56
0
46
16
GRI 404-3 Co-workers receiving regular performance and development reviews, by functional
category and gender1 2
Functional category
2017
2018
2019
n
e
M
n
e
m
o
W
n
e
M
n
e
m
o
W
n
e
m
o
W
n
e
M
Director level
36
17
38
17
26
22
Total co-workers
Management
263
333
264
339
214
268
Administrative
776
2,832
754
1,377
726
1,955
Operational
1,280
774
1,223
698
1,267
607
Director level
36
17
31
16
24
19
Co-workers submitted to
performance and career devel-
opment reviews
Management
263
324
245
320
195
248
Administrative
726
2,638
681
1,247
607
1,013
Operational
1,188
672
1,149
658
1,254
627
Director level
100%
100%
82%
94%
92%
86%
210
238
131
Management
100%
97%
93%
94%
91%
93%
% by gender
Administrative
94%
93%
90%
91%
84%
52%
Operational
93%
87%
94%
94%
99%
103%
1. The process was conducted in 2019, but refers to 2018. The process did not take into account the sales
force, retail co-workers, interns, Instituto Natura employees, expatriates, co-workers in the United States and
operational area co-workers in Brazil admitted from November 2018.
2. The performance and development review process is ongoing and covers co-workers admitted up to
January 31, 2019.
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2019 ANNUAL REPORT
People management
Relationship quality
Co-worker engagement
GRI 102-43
The result of the engagement survey showed
an increase in the majority of the countries
in 2019 with an average rating of 4.17. In
Brazil, the rating reached 4.14 and in the Latin
American countries (grouping of countries
that excludes Brazil and France) it was 4.26.
The level of co-worker engagement
increased and the point receiving the highest
rating in the survey was recognition by co-
workers that they have the opportunity to
improve every day.
Engagement Survey – favourability (%)
2017
2018
2019
Brazil
International Businesses Board
Argentina
Peru
Chile
Mexico
France
Colombia
Overall average – Natura
3.96
4.19
4.33
4.41
4.1
4.28
4.18
4.21
4.04
4.08
4.12
4.26
4.14
4.2
4.55
3.89
4.26
4.12
4.14
4.15
4.23
4.23
4.14
4.6
4.17
4.34
4.17
1. The survey was conducted electronically via direct contact with the Gallup consultancy system. The
percentage participation in the survey was 86% – lower than the 94% rate the previous year. This was due
to an error in the participant base that year, which included people who were not supposed to take part in the
survey (people on leave and new hires).
Health and safety GRI 103-2, 103-3
Promoting worker safety GRI 403-6
In addition to the medical assistance plan
offered to co-workers and dependents,
the company has three Einstein clinics in
the Cajamar, NASP and Benevides units,
qualified to provide first aid, with family
doctors, nurses and nursing assistants. In
the units with the largest number of co-
workers (Cajamar and NASP), the clinics are
also staffed by specialists in: gynaecology,
orthopaedics, physiotherapy, nutrition and
psychology. We also provide the Einstein
Telemedicine service free of charge to all
co-workers and dependents covered by the
medical assistance plan for the treatment of
low-complexity cases. The clinics in Cajamar,
NASP and Benevides function 24 hours a day,
six days a week. Ambulances are stationed at
the units to deal with emergencies.
A healthcare committee comprising
healthcare professionals and administrators
meets every two months to analyse
epidemiological incidents, aimed at
developing wide-ranging preventive
programmes in accordance with the needs of
the work force. The data are analysed and the
programmes are proposed with the objective
of containing the most prevalent risks:
obesity, sedentary lifestyle, hypertension,
dislipidemia, among others. Physical activities
are encouraged via the leisure infrastructure
at the Natura Club in Cajamar. The sales force
is entitled to Gympass, a service providing
access to gyms with a discount. In the
company canteens, the menu is prepared
with a focus on micro-nutrients inducing the
work force to make healthy dietary choices.
Co-workers receive tips and are challenged
to adopt healthy habits and improve their
quality of life via an application. The company
also organises annual vaccination campaigns
against influenza and other diseases.
Hazard identification, risk assessment and incident investigation GRI 403-2
Activities are subject to hazard and risk
assessment to identify routine risks;
non-routine activities are subject to preliminary
risk assessments. Based on these assessments,
we define the degree of risk in each activity and,
if necessary, propose new control measures or
mitigation barriers.
To reinforce safety practices, we implemented
the Rules Save Lives programme, in accordance
with the risks in each operation (industry,
distribution, sales). Operational procedures
provide guidance for co-workers on how to
conduct their activities safely. Any co-worker is
entitled to refuse to perform any activity that he/
she understands involves risks. All co-workers
may communicate risks using the “Report a
risk” function on the co-worker application or
using the communication tools available in the
operational areas. This practice is encouraged
and any non-compliance should be reported
to the Ombudsman, with full guarantee
of anonymity.
All new co-workers and third parties receive
induction training in occupational health and
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2019 ANNUAL REPORT People management
Health and safety GRI 103-2, 103-3 (cont’d)
safety before beginning work. All co-workers
who carry out high-risk activities, such as work
at heights, confined spaces, inflammable items,
machinery operation, among others, receive
formal training in accordance with the applicable
standard.It should be noted that 100% of the
work force is covered by an occupational health
and safety management system based on legal
requirements and/or recognised standards
and guidelines. This is extended to workers
who are not employed by Natura but who work
in environments controlled by the company.
Since 2018, this system has applied both to the
operations in Brazil and to those in the other
countries in Latin America in which we operate.
The management system is based on the
requirements of the ISO 45001 standard.
GRI 403-8
Work-related injuries GRI 403-9
The increase in the accident rate from
2017 to 2018 was due to the inclusion of
the other Latin American operations in the
scope reported. These had just initiated the
implementation of a management system and
were therefore less mature than Brazil. In 2019,
there was a reduction in the accident rate in
these operations, but this reduction was offset
by the expansion in retail operations and the
opening of new stores in which a number of
accidents were recorded until the stabilisation
of the operation.
Number of work-related incidents
identified as having high likelihood of occurrence1
2017
2018
2019
56
40
42
Number of work-related near misses
2017
Not available
2018
1015
2019
643
1. The number of high potential incidents was accounted for by means of all the incidents classified as
Potential A in accordance with internal procedures.
Work-related injuries1
Freedom of association
2017
2018
2019
k
r
o
w
e
s
o
h
w
e
p
o
e
P
l
s
i
l
e
c
a
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k
r
o
w
r
o
/
d
n
a
e
h
t
y
b
d
e
l
l
o
r
t
n
o
c
n
o
i
t
a
s
n
a
g
r
o
i
k
r
o
w
e
s
o
h
w
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p
o
e
P
l
s
i
l
e
c
a
p
k
r
o
w
r
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d
n
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h
t
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b
d
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l
l
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r
t
n
o
c
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i
t
a
s
n
a
g
r
o
i
k
r
o
w
e
s
o
h
w
e
p
o
e
P
l
s
i
l
e
c
a
p
k
r
o
w
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d
n
a
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h
t
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b
d
e
l
l
o
r
t
n
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c
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i
t
a
s
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a
g
r
o
i
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k
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-
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C
10,499,748
9,626,486
13,295,488
11,247,479
13,941,792
11,841,597
2
0.19
8
0
0
14
3
5
0.23
0.44
17
1.28
24
2.13
8
0.57
20
1.43
2
0.17
23
1.94
Hours worked2
Serious injuries
Serious injury rate
Injuries recorded
Injury rate recorded
0.76
1.45
Possible breach or risk of breach of freedom of association and collective bargaining
GRI 103-2, 103-3, 407-1
Natura did not identify operations or suppliers
at which the right to exercise freedom of
association or conduct collective bargaining
had been violated.
The Ombudsman is available for suppliers
in Brazil and in the International Operations.
The company has also had specific codes
of conduct for suppliers from 2014 in Brazil
and from 2015 in the International Operations.
These documents address freedom of
association and collective bargaining. In 2019,
the code was reviewed and expanded to
include the entire Natura &Co group.
With this global approach, the document was
complemented with elements that reinforce
the company’s position on ethics
and transparency.
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2019 ANNUAL REPORT
Ethics and human rights GRI 103-2, 103-3
authorities is low. In view of the set of tools
in place (training, third-party due diligence
, policies and controls) and the company’s
management practices, we believe corruption-
related risks to be mitigated. Accordingly we
classify the company’s exposure to such risks
as moderate to low. We conduct corruption-
related risk assessments in 100% of the
company’s operations, including all the areas
and management areas in Brazil and in Latin
America.
Operations assessed for risks related to corruption GRI 205-1
Anti-corruption and anti-bribery measures are
coordinated and managed by the Compliance,
Legal, Internal Audit, Internal Controls and Risk
Management areas.
Natura employs documents such as the Global
Code of Conduct, which is reviewed annually,
to ensure adherence to the reality of the
business environment and to incorporate any
relevant matters identified by the control areas.
The document is available for all Natura &Co
co-workers and contains a specific section
that addresses anti-corruption and anti-bribery
measures. Natura also has a Global Anti-
corruption Policy, which is disseminated to co-
workers by means of distance and face to face
courses and internal communications, as well
as a Policy on Relations with Public Authorities.
Additionally, Natura provides: an e-learning
course on the Code of Conduct (mandatory
for co-workers), a reporting channel called
the Ethics Line, which guarantees the safe,
anonymous and confidential reporting of
any suspected breach of the code. This
is supported by the Ethics Committee,
responsible for deciding on more complex
reports, as well as the Audit Committee, which
oversees strategic direction based on the
indicators reported on a quarterly basis.
In 2019, the Compliance area, in conjunction
with Internal Controls and Risk Management,
implemented the following measures related to
Brazil’s anti-corruption legislation: face to face
training for co-workers (managers, directors,
administrative and operational staff); testing of
the controls related to the Code of Conduct
and reporting channel; communication of
pertinent guidelines; online training in the
Code of Conduct for co-workers, covering
anti-corruption, bribery and fraud; training for
medium-sized and small suppliers of products
and services; mapping of potential corruption-
related risks; and the review and formulation of
global policies.
The control activities designed by Natura
address questions such as conflicts of interest,
family relations with public authorities or co-
workers who have worked in public authorities;
monitoring of gifts presented to public
authorities; recording of minutes of meetings
with public authorities, contract clauses for
suppliers and/or service providers, donation,
support and sponsorship policies and
procedures; managing consultants, suppliers
and agents; procedures for external events
involving public authorities; due diligence of
suppliers to verify the involvement of third-
parties in corruption-related matters; and
training courses for employees, in particular
those who may interact with government
agents in the course of their work.
Given that Natura commercialises consumer
goods, the degree of interaction with public
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2019 ANNUAL REPORT
Ethics and human rights
Anti-corruption GRI 103-2, 103-3
Communication and training about anti-corruption policies and procedures
GRI 205-2
Confirmed cases of fraud and measures taken
GRI 205-3
of the Natura &Co group.
Since September 2019, Natura suppliers are
obliged to adhere to the Code of Conduct for
registration in the company’s system.
This specific code for business partners
sets forth the fundamental guidelines for
relationship with Natura.
Third-parties are also covered by the supplier
code of conduct. And this audience, as with
other suppliers, participated in face to face
workshops addressing conduct and integrity.
Among company suppliers, 1,519 business
partners in Brazil received communications
related to anti-corruption policies and
procedures, while 402 were trained. These
numbers are significantly higher than in
previous years due to the relaunch of the
code in 2019.
The Code of Conduct was communicated
to 100% of the workforce, accompanied by
mandatory training. In 2019, the document was
revised with a view to global application for all
Natura &Co co-workers and will be relaunched
in 2020, when a new distance learning course
will be developed.
The Anti-Corruption and Anti-Bribery Integrity
policy was reviewed and disseminated to
Natura &Co co-workers, and is another
instrument already adapted for global
application. The policy is designed to assess
the integrity of suppliers that may interact with
public authorities.
We conduct face to face anti-corruption
training for co-workers in Brazil who may
interact with public entities. In 2019, we
communicated and trained 80% of the work
force in Brazil and initiated reporting for the
operations in Latin America, where we trained
62% of the work force.
Moreover, we have a Code of Conduct for
suppliers, that was revised and relaunched in
2019, and is applicable globally for all suppliers
The publication of clear and specific codes
of conduct for these different audiences
helps ensure clarity about questions related
to non-conformance, as well as underscoring
the existence of the reporting channel
and the importance of ethical conduct
to the company. There was a decrease
in the volume of reports involving Natura
consultants and Business Leaders. This
was due to the review of the classification
criteria of reports and the restructuring of the
report channel. There were no cases of fraud
involving public entities.
From 2019, Natura started directing reports
of fraud and other suspected violations of
the Code of Conduct to its new Ethics Line,
which applies to all the Natura &Co group
companies. The new channel was broadly
disseminated to all co-workers.
Cases of fraud1
2017
2018
2019
Total number of confirmed cases of fraud
Total number of confirmed cases of fraud in which co-workers were
dismissed or punished for fraud
Total number of confirmed cases in which members (non
co-workers) of the sales force were dismissed or punished
for fraud
Total number of confirmed cases in which contracts with
commercial partners were rescinded or were not renewed as a
result of violations related to fraud
13
2
6
0
23
5
18
0
9
5
1
0
1. Total cases proven by the Ombudsman that involved fraud (understood to be any intentional act or
omission aimed at deceiving third-parties, resulting in a loss for the victim or a gain for the perpetrator).
Natura has never recorded any cases of corruption, this term being understood to be any offer, promise or
authorisation of a payment by an individual or company to a public authority or a representative thereof,
when this payment is aimed at influencing the person receiving it to use their position or function to obtain or
retain an unwarranted business gain or advantage.
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2019 ANNUAL REPORT Ethics and human rights
Human rights
Violation of indigenous peoples’ rights
GRI 103-2, 103-3, 411-1
Public policies
Political contributions
GRI 103-2, 103-3, 415-1
In accordance with a specific internal policy,
valid in Brazil and the International Operations,
Natura does not make contributions to
campaigns, parties and/or candidates for
public office, during or outside of electoral
processes.
Human rights
Operations and suppliers at significant risk for incidents
of child, forced or slave labour and measures taken
GRI 103-2, 103-3, 408-1, 409-1
Our suppliers declare the working conditions
they provide for their work force and are
audited periodically.
In the supplier communities we conduct audits
by means of the Social Biodiversity Chain
Verification System, which monitors the risk of
the occurrence of child, forced or slave labour,
as well as formal labour relations, ergonomics,
and worker health and safety. The system
implemented in 2016 ensures traceability in the
natural ingredient supply chain and is certified
by the UEBT (Union for Ethical BioTrade).
No cases were identified in 2019. However,
in some supplier communities there are
indications of the involvement of children and
adolescents in the production chain. These
children sometimes help their parents out,
but they do attend school regularly. This is a
cultural tradition in some communities, which
does not constitute violation of the principles
of ethical biotrade. This situation constitutes
the reality of our 39 supplier communities,
which are concentrated in the Amazon, and in
the Southeast and Northeast regions.
In 2019, there were no incidents involving
indigenous people’s in the locations in which
we operate This year, we formalised a
relationship with the Cinta Larga indigenous
group in Aripuanã, Mato Grosso (further
information on page 98). The cooperative
Coopavam (Cooperativa dos Agricultores
do Vale do Amanhecer), a community that
supplies Brazil nuts and has been a Natura
partner for years, is also located in this region.
Non-discrimination
Incidents of discrimination and corrective actions taken
GRI 103-2, 103-3, 406-1
In 2019, diverse actions were taken related
to behaviour in the workplace, including
discrimination. As a result there was an
increase in the number of reports to our
Ethics Line. Nine cases were reported during
the year, compared with one in 2018 and
two in 2017.
This is an indication of greater confidence
in the reporting channel, which was also
unified for the Natura &Co group. All the
reports received were duly investigated by
the Ethics and Compliance area, with the
applicable measures taken in accordance
with each case.
Anti-competitive behaviour GRI 103-2, 103-3
Non-compliance with social and economic laws and regulations
GRI 206-1, 419-1
As in previous years, Natura did not receive
any administrative or judicial sanctions for
non-compliance with laws and regulations
governing anti-competitive behaviour.
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2019 ANNUAL REPORT Environmental management
Emissions
Emissions of ozone depleting substances (ODS), NOx, SOx and other significant atmos-
pheric emissions
GRI 305-6/305-7
There are no indications that emissions of
ozone depleting substances, NOx, SOx and
other atmospheric emissions at Cajamar and
the Ecoparque, where the Natura production
plants are located, are significant.
Energy GRI 103-2, 103-3
ergy consumption within and outside the organisation
GRI 302-1, 302-2
En-
The company’s energy consumption
increased by approximately 14% in 2019.
This was due to the variation in production,
which was lower than projected, resulting
in overcapacity in the boiler system, which
accounts for 26% of energy consumption.
The factories were also subjected to
adjustments for international production
certifications. These require stages involving
validation and changes, resulting in higher
fuel and energy consumption.
GRI 305-7 Significant atmospheric emissions (kg/h)1 2
NOx
SOx
2017
0.87
0.06
2018
0.943
0.09
2019
0.82
0.04
GRI 302-1 Total energy consumed (MWh)
Fuels from non-renewable sources
2017
3,761
2018
5,358
2019
4,356
Fuels from renewable sources
82,444
88,968
100,330
Persistent organic pollutants (POP)
Not Applicable
Not Applicable
Not Applicable
Total
86,204
94,326
104,686
Volatile organic compounds (VOCs)
Not Applicable
Not Applicable
Not Applicable
Hazardous atmospheric pollutants (HAP)
Not Applicable
Not Applicable
Not Applicable
Particulate material (PM)
0.86
2.10
1.51
Other standard categories of atmospheric emissions
identified in regulations
Not Applicable
Not Applicable
Not Applicable
1. As clean fuels (ethanol and LPG) are used in the boilers at Cajamar, there are no significant measurable
quantities of these gases.
2. At the Ecoparque, we considered the biomass boiler chimney emissions analysis reports drafted by the
consultancy Bioagri Ambiental between August and September 2019. To calculate the index, we took into
account the median of the last six measurements undertaken.
3. The number was corrected.
GRI 302-1, 302-2 Energy consumption,
by location (MWh)1
Cajamar and Benevides
Other locations in Brazil
2017
63,939
2018
68,541
2019
70,100
17,720
19,181
21,835
Third-party manufacturers in Brazil
5,380
6,652
5,067
Locations in Latin America
Not available
673
Other locations in Latin America
Not available
2,869
862
3,017
Third-party manufacturers in Latin America
Not available
1,033
2,373
Total
86,204
98,949
103,255
1. The indicator incorporated the operations in Latin America in 2019. The 2018 total was recalculated to
maintain comparability. The 2017 data only take into account the units in Brazil and are not comparable.
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2019 ANNUAL REPORT Environmental management
Energy GRI 103-2, 103-3 (cont’d)
Energy consumption within and outside the organisation
GRI 302-1, 302-2
GRI 302-1 Energy matrix (%)
Electricity (grid)
Solar energy
Briquettes
Alcohol
Diesel oil
LPG gas
Natural gas
2017
71
0.006
9.8
15
1.5
2.1
0.8
2018
2019 Total1
69
0
10
15
2.5
2
1.2
71
0.006
12
14
1.2
1.5
1.3
GRI 302-1 Consumption of fuels
from non-renewable sources (MWh)
Diesel oil (generator sets)2
LPG gas
Natural gas
Total
2017
2018
20191
1,301
2,408
888
1,784
1,852
2,133
676
1,098
1,335
3,761
5,358
4,356
1. We extended the scope of the indicator to include the operations in Latin America from 2019 .
2. Fuel used when the public power supply is interrupted. 2018 was atypical, with many interruptions. In 2019,
diesel consumption amounted to 40% of the 2018 figure.
1. The 2019 data refer to the operations in Brazil and in Latin America. Accordingly, the numbers are not
comparable with those for the previous year when the scope only covered Brazil.
GRI 302-1 Energy consumed (MWh)
GRI 302-1 Consumption of fuels
from renewable sources (MWh)1
2017
2018
2019
Refrigeration1
Electricity
Heating
Solar energy2
Alcohol3
Briquettes4
6
0
7
12,770
14,568
14,751
8,488
9,423
12,271
Electrical energy (from the grid)
61,179
64,977
73,302
Total
82,444
88,968
100,330
Steam
Total
2017
62,486
432
0
23,286
2018
53,908
799
13,477
26,141
2019
59,358
1,146
14,837
29,343
86,204
94,326
104,686
1. We estimate that 20% of the electricity is used in refrigeration, because segregated measurement is not
possible.
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2019 ANNUAL REPORT Environmental management
Energy GRI 103-2, 103-3 (cont’d)
Energy intensity
GRI 302-3
The increase in consumption, in conjunction
with the variation in production, led to an 8%
rise in energy intensity.
GRI 302-3 Energy intensity
Energy consumption within the organisation (MWh)
Energy intensity (within the organisation) (Wh/unit)
Types of energy included in the intensity rate (fuel, electricity,
heating, refrigeration, steam or all)
2017
80,819
190
All
2018 2019 Total1
87,722
96,660
178
All
205
All
Energy consumption outside the organisation (MWh)
5,380
6,652
7,845
Energy intensity (outside the organisation) (Wh/unit)
Types of energy included in the intensity rate (fuel, electricity,
heating, refrigeration, steam or all)
44
All
44
All
41
All
Total energy consumption by the organisation (MWh)
86,199
94,374
104,573
Energy intensity (total for organisation) (Wh/unit)
157.16
146.40
157.992
Types of energy included in the intensity rate (fuel, electricity,
heating, refrigeration, steam or all)
All
All
All
1. The 2019 data refer to the operations in Brazil and in Latin America. Accordingly, the numbers are not
comparable with those for the previous years when the scope only covered Brazil.
2. The amount refers only to the operation in Brazil.
Proportion of energy intensity within/outside the
organisation (Wh/unit)
Total
1. Takes into account the operations in Latin America.
2017
4.32
2018
4.09
20191
4.94
Water
Water consumption
GRI 303-1, 303-5
The production process is the main source
of water consumption at Natura, involving its
plants in Cajamar (SP) and Benevides (PA). In
2019, changes in diverse cleaning processes
elevated overall water consumption, as well
as the relative indicator, which calculates
consumption in litres per unit produced.
Studies are underway to optimise the process
and reduce consumption.
The indicators are tracked on a monthly
basis, as is the analysis of effluents at the
plants – locations where water consumption is
measured daily.
Based on this monitoring, we drafted action
plans to better understand water consumption
and/or reduce consumption. The company
applies constant measures to prevent leaks
and wastage, such as reading water meters
on a daily basis and conducting inspections.
We also monitor the consumption of the
company’s main third-party manufacturers.
In the supplier development process, there
is zero tolerance for non-compliance with
environmental legislation, which encompasses
water consumption. We do not have
information related to the distribution centres.
Water at Cajamar and the Ecoparque is
withdrawn from duly licensed wells. Effluent
is treated and discharged in water bodies
in compliance with all applicable regulatory
criteria. The company also monitors
consumption in relation to the volumes
permitted.
At the Ecoparque, located in Benevides (PA),
the company harvests rainwater. At NASP,
in São Paulo (SP), water supply and effluent
discharge is dependent on the public
utility network. The site also has rainwater
harvesting facilities.
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2019 ANNUAL REPORT Environmental management
Water (cont’d)
Water consumption
GRI 303-1, 303-5
GRI 303-5 Water con-
sumption (m3)1
Natura sites3
Other sites4
Third-party manufactur-
ers 5
2017
2018
20192 Total 2019 Brazil
245,386
276,193
335,210
323,763
19,084
20,093
41,451
25,704
25,504
39,779
44,188
29,982
2019
Operations in
Latin America
GRI 303-5 Change in water storage if water storage
has been identified as having a significant water-relat-
ed impact (m3)
Water stored at the beginning of the reporting period
Water stored at the end of the reporting period
11,447
15,837
14,206
2017
2018
2019
684
487
487
428
610
854
Total
289,974
336,065
420,939
379,449
41,490
1. Natura does not have operations in locations considered to be subject to water stress.
2. In 2019, we included the operations in the other countries in Latin America in the scope of the indicator.
3. Sites operated by Natura: Cajamar, Benevides, Lapa, NASP, SP DC and Itupeva Hub.
4. Distribution centres operated by third-parties.
5. Third-party manufacturers: manufacture finished products on behalf of Natura.
GRI 303-3 Volume of water withdrawn, by source (ml)1 2
Surface water3
Ground water4
2017
0
2018
0.35
2019
1.11
240.73
267.75
289.56
Supplied by third-parties (purchased)5
37.81
57.94
77.39
Total water withdrawn6
278.54
326.05
368.06
1. Natura does not have operations in locations considered to be subject to water stress.
2. Actual water consumption at all the Natura Brazil sites is measured by on site equipment, based on
the source described in the withdrawal permit. We use the data declared by the third-party suppliers who
manufacture finished products for Natura.
3. Rainwater harvested at Ecoparque and NASP.
4. Includes the following locations: Cajamar, Ecoparque, Itupeva Hub and the distribution centres
in Canoas (RS), Uberlândia (MG), Castanhal (PA), Jaboatão dos Guararapes (PE) and the third-party
suppliers with the highest business volumes.
5. Supply from public utility network at NASP, in the Simões Filho, Matias Barbosa and São Paulo
distribution centres, as well as suppliers.
6. We do not have detailed information for the operations in Latin America and for the third-party
suppliers in these countries.
Water sources significantly affected by withdrawal of water
GRI 303-2
The minimum standards adopted for effluent
discharge are based on Conama Resolution
430/2011, which operates on a federal level
taking into account the classification of water
bodies in each region. With the exception
of the minimum BOD value at Ecoparque,
stipulated at 70 mg/l as a condition in the
operating license.
Waste and effluents
Water discharge (discriminated by quality and disposal) and water bodies affected by
water discharges and/or drainage
GRI 103-2, 103-3, 303-4
Total volume of water discharged, by
destination (Ml)
2017
2018
2019
All areas
All areas
All areas
Surface waters
187.48
234.60
204.98
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2019 ANNUAL REPORT
Environmental management
Waste and effluents (cont’d)
Water discharge (discriminated by quality and disposal) and water bodies affected
by water discharges and/or drainage
GRI 103-2, 103-3, 303-4
Waste, discriminated by type and disposal method
GRI 103-2, 103-3, 306-2
Treated effluent in Cajamar (mg/l)
BOD1
COD2
Oils and grease
Treated effluent Ecoparque (mg/l)
BOD1
COD2
Oils and grease
1. BOD: Biological oxygen demand.
2. COD: Chemical oxygen demand.
2017
10.53
56.67
15.78
2017
5.20
30.70
5.00
2018
9.73
62.72
16.10
2018
6.60
54.90
5.00
2019
24.00
43.00
10.00
2019
7.00
41.00
5.00
Indirect waste (t)
2017
2018
2019
Total
2019
Brazil
2019
Operations in
Latin America
Class I waste – Natura installations1
5,062
1,396
2,160
2,160
Non-hazardous waste – Natura installations1
7,677
9,294
9,912
8,765
Other Natura installations2
1,135
1,326
2,396
1,270
Natura third-party manufacturers3
866
1,037
1,237
885
0
1,147
1,127
352
Total
14,740
13,054
15,706
13,080
2,626
1. Refers to the facilities at Cajamar, Ecoparque, NASP+SP DC and the Itupeva Hub. In this indicator Natura
does not report the waste generated in civil construction works (rubble) undertaken at its facilities.
2. Refers to the distribution centres, with the exception of the São Paulo depot.
3. This refers to the six largest third-party manufacturers.
GRI 303-4 Suppliers with effluent discharge-related impacts
who implemented minimum standards for the quality of their
discharges
Suppliers with related impacts1
Suppliers with effluent related impacts who implemented minimum stan-
dards for the quality of their discharges3
Percentage4
2017
2018
2019
12
6
19
10
312
10
50%
53%
32%
1. Equal to total of deviations (non-conformances and opportunities for improvement) in I (indefeasible) and
IRL (Legal) aspects of effluent discharges of active suppliers audited during the year.
2. The increase in number of suppliers is due to the internationalisation process at Natura and the new sales
channels, such as stores and e-commerce.
3. Equal to the number of active suppliers audited during the year, with effluent discharges classified as non-
conformances and opportunities for improvement whose action plan was concluded.
4. Data take into account global information (Brazil and the International Operations).
Transport of hazardous waste GRI 103-2, 103-3, 306-4
Waste per unit
produced1
2017
2018
2019
Total
2019
Brazil
2019 Operations in
Latin America
25.93
22.06
23.8
20.68
103.11
1. The waste/unit produced indicator is the sum of all Natura’s direct and indirect waste, in grams, divided by
the total of units produced directly and indirectly by Natura.
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2019 ANNUAL REPORT Environmental management
Waste and effluents (cont’d)
Waste by type and disposal method
GRI 103-2, 103-3 306-2
Disposal of hazardous waste – class I (%)1
Destination
% recovery (including
energy recovery)
2017
2018
2019
Total
2019
Brazil
2019 Operations in
Latin America
46.30
96.77
96.29
96.29
% incineration (mass burn)
53.70
3.05
3.71
3.71
% landfill2
0.00
0.18
0.00
0.00
1. Disposal determined and controlled by the Natura Environment department, in accordance with the type of
waste. The sorting and transportation is undertaken by a service provider installed in our units. Final disposal
is undertaken in accordance with legal requirements.
2. Disposed of in landfills appropriate for this type of waste.
Disposal of non-hazardous waste
Destination
% recycling1
2017
2018
2019
Total
2019
Brazil
2019 Operations
in Latin America
91.25
94.34
94.12
93.73
% incineration (mass burn)
% landfill
3.15
5.60
0.25
5.40
1.97
3.91
2.19
4.08
1. Composting, co-processing and recycling processes are all considered to be types of waste recycling.
22.22
0.00
77.78
97.55
0.00
2.45
Biodiversity
Operating units inside or adjacent to protected areas or areas with a high
biodiversity rates1
GRI 304-1
Classification
Cajamar
Ecoparque
NASP/ SP DC
Geographical location
City of Cajamar (SP)
City of Benevides (PA)
City of São Paulo (SP)
Surface and underground areas
owned, rented or
administered by the organization
Position in relation to protected
area
Type of operation
Own area
Own area
Rented area
Permanent protection
area inside the unit (areas
close to Juqueri River and
a spring)
Permanent protection area
inside the unit (areas close
to a tributary of the Benfica
River and a spring)
ZIP
(Primarily industrial
zone)
Administrative and
industrial cosmetics
production cosméticos
Administrative and
industrial production of
basic soap mass and
toilet soap
Administrative and
logistics with warehousing
and distribution of
cosmetics
Size of operational unit (m²)
646,000 m²
1,729,000 m²
111,700 m²
Biodiversity value in accordance
with protection status listing2
Permanent protection
area
Permanent protection
area
Not Applicable
1. There are no preservation areas in our distribution centres because they are located in condominiums
in industrial zones. In Brazil, the distribution centres are located in rented areas, housing administrative,
logistics and distribution activities related to cosmetics in the following cities: Jaboatão dos
Guararapes (PE); Simões Filho (BA); Castanhal (PA); Mathias Barbosa (MG); Uberlândia (MG); and C
anoas (RS) – the last one was deactivated in 2019.
2. Information about the value of biodiversity and the type of ecosystem in the areas is not available.
Transport of hazardous waste
GRI 103-2, 103-3, 306-4
Hazardous waste
transported (t)1
2017
2018
2019
Total
2019
Brazil
2019 Operations
in Latin America
5,062
1,626
2,160
2,160
0
1. Natura does not import, export or transport waste internationally.
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2019 ANNUAL REPORT Environmental management
Biodiversity (cont’d)
Environmental compliance
IUCN Red List species and national conservation list species with habitats
in areas affected by operations
GRI 304-4
Non-compliance with social and economic laws and regulations
GRI 103-2, 103-3, 307-1
There were no significant fines or non-
monetary sanctions
related to environmental questions. Natura
considers significant fines to be ones in excess
of R$ 5 million or that represent medium to
high risk for the company’s image.
Brazilian biodiversity vegetable species
that are used by Natura and are on the red
lists were taken into account. In addition
to conservation projects for the most
critical species, the company implements
conservationist practices for all species to
promote sustainable usage. In addition to
non-timber related forestry stewardship
with techniques to enrich production areas,
we promote the adoption of agroforestry
systems and agro-ecological production
to encourage the conservation of natural
resources and species threatened with
extinction. In 2018, Natura was granted
international UEBT (Union for Ethical Biotrade)
certification, which attests to the traceability
and the application of best practices in the
production of these raw materials.
Species of Brazilian biodiversity present in Natura
product lines
Red lists and criteria for species threatened
with extinction1
MMA
IUCN
CITES
Ucuuba – Virola surinamensis
Vulnerable
In danger
Brazil nut – Bertholletia excelsa
Vulnerable
Vulnerable
Andiroba – Carapa guianensis
Priprioca – Cyperus articulatus
Guaçatonga – Casearia sylvestris
Jatobá – Hymenaea courbaril
Sapucainha – Carpotroche brasiliensis
x
x
x
Least
concern
x
Least
concern
Least
concern
Least
concern
Least
concern
Least
concern
x
x
x
x
x
x
x
1. The red lists of the IUCN (International Union for Conservation of Nature and Natural Resources) and
the Brazilian Ministry of the Environment (MMA), as well as the Cites (Convention on International Trade in
Endangered Species of Wild Fauna and Flora) data bank were considered in relation to traceability.
List:
http://www.iucnredlist.org
https://cites.org/sites/default/files/eng/app/2019/E-Appendices-2019-11-26.pdf
http://www.floradobrasil.jbrj.gov.br/reflora/listaBrasil
http://cncflora.jbrj.gov.br/portal/static/pdf/portaria_mma_443_2014.pdf
http://www.mma.gov.br/biodiversidade/especies-ameacadas-de-extincao/flora-ameacada
list of threatened species of flora_Ruling nº 443, December 17, 2014
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2019 ANNUAL REPORT
Natura Beauty Consultants
Suppliers
Training
For the 2019 highlights, see the text on training
for consultants on page 55.
Number of consultants in training – Brazil (units)
New consultants
Initial training1
2017
2018
2019
457,837
408,262
457,472
180,422
127,662
27,706
Participation in training courses2
6.5
16.2
13.4
Consultants trained by subject3
310,496
178,919
268,716
Percentage of single consultants trained (penetration)4
24%
15%
23%
Total training sessions conducted NCs5
2,020,587
2,895,479
3,592,006
1. Previously, the initial training was face to face. As a result of the new role of the Business Manager, they
no longer conduct this training which is now done online. The number presented in 2019 refers to training
conducted from cycle 09/2019, when new digital content was released.
2. Number of digital conclusions and attendances recorded in training sessions divided by the number of
single consultants trained.
3. Participation of the same consultant in different training courses.
4. Number of single consultants trained divided by the average number of consultants registered in the year.
5. Training courses taken by the same consultant, number of digital courses concluded and number of
consultants attending face to face training sessions.
Number of consultants in training1 – Operations in Latin
America (unit)
Argentina
Chile
Colombia
Peru
2017
9,272
2018
9,826
2019
10,980
4,584
3,955
3,463
8,426
5,653
6,268
10,291
5,643
5,341
Total Latin America
32,573
25,077
26,052
1. This indicator presents the average number of consultants trained per cycle, without repetition and without
discriminating the medium of training (face to face or digital) or the subject.
Negative environmental impacts in the supply chain and actions taken
GRI 308-2
In 2019, a new supplier management software
was brought into operation. This modified the
classification of levels of criticality for some
suppliers and affected the indicators for
previous years. The new sales channels, such
as stores and e-commerce, as well as ongoing
international expansion, led to an increase in
the supplier base.
In accordance with the eligibility criteria
in internal procedures, new suppliers are
subject to an audit whose scope includes
environmental and social criteria. The overall
result of this audit is what is taken into account
in contracting new suppliers (further information
about supplier selection on page 155).
Suppliers screened for environmental impacts
Suppliers screened for environmental impacts
Suppliers identified as having significant actual
and potential negative environmental impacts
2017
2018
2019
239
280
96
165
415
134
Significant actual and potential negative environmental impacts identified in the
supply chain
140
211
227
Suppliers identified as having significant actual and
potential environmental impacts, with whom improvements were agreed as a
result of the assessment
45
60
46
Percentage of suppliers identified as having significant actual or potential negative
environmental impacts, with whom improvements
were agreed as a result of the assessment
46.9% 36.4% 34.3%
Suppliers identified as having significant actual and potential environmental
impacts, with whom relations were ended as a
result of the assessment
0
0
0
Percentage of suppliers identified as having significant actual or potential negative
environmental impacts, with whom relations were ended
as a result of the assessment
0%
0%
0%
1. With the new management system and the reclassification of suppliers, records were updated to maintain
comparability. Data refers to the operation in Brazil and the International Operations.
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2019 ANNUAL REPORT Suppliers
Negative social impacts in the supply chain and actions taken
GRI 414-2
As with the assessment of environmental
impacts, the analysis of negative social effects
in the supplier chain was influenced by the
change in management and the increase
in the supplier base due to the new sales
channels, such as stores and e-commerce,
and international expansion.
concern with guaranteeing an integral supply
chainadherent to the company’s requirements
and guidelines. In 2018, the supplier
assessment process was complemented by
consulting transparency portals for suppliers
in Brazil and regulatory authorities for each
country for the international operations.
The deviations observed represent potential
risks principally associated with the
management of internal conduct and/or the
adequate dissemination of the Natura Supplier
Code of Conduct. This question is audited due
to Natura’s
Selection depends on fulfilment of
requirements related to commitments to
ethical conduct (code or declaration of ethical
conduct and dissemination to employees);
commitments to human and labour rights and
compliance with pertinent legislation.
GRI 414-1 Percentage of new suppliers
that were screened using social criteria
Bio qlicar assessment
2017
3.97%
2018
4.05%
2019
4.33%
New supplier communities
3.03%
8.82%
5.41%
Suppliers screened using social criteria
2017
2018
2019
Suppliers screened using social criteria
239
280
415
Suppliers identified as having significant actual and
potential social impacts
143
192
149
Significant actual or potential negative social impacts identified in the supply
chain
218
290
245
Suppliers identified as having significant actual or potential negative
social impacts, with whom improvements were agreed as a result of the
assessment
55
70
51
Percentage of suppliers identified as having significant actual or potential
negative social impacts, with whom improvements were agreed on as a result
of assessment
38.46%
36.46%
34.23%
Number of suppliers identified as having significant actual or potential
negative social impacts, with whom relations were terminated as a result of
assessment
Percentage of suppliers identified as having significant actual or potential
negative social impacts, with whom relations were terminated as a result of
assessment
0
0
0
0%
0%
0%
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2019 ANNUAL REPORT
Consumer health and safety
Support and sponsorship actions GRI 203-1
Society
Assessment of the health and safety impacts of product and service categories
GRI 416-1
All of the products commercialised by
Natura are assessed to promote
improvements related to impacts on
consumer health and safety.
Formulations only use safe ingredients in line
with the most up to date scientific criteria, and
are fully compliant with pertinent international
legislation. In many cases, we exceed the
requirements of the legislation in force.
The company has definitively banned the
use diverse controversial ingredients from
its portfolio, the case of triclosan, parabens
and phthalates.
Other ingredients banned by
Natura are:
• 5-Bromo-5-Nitro-1,3-Dioxane
• Formaldehyde
• Bronopol
• Parabens
• Diazolidinyl Urea
• Dimethyl Oxazolidine
• Glutaral
• Methyldibromo Glutaronitrile
• Phenylmercury
• Triclosan
• Quaternium-15
• Thimerosal
• Musk Xylene
• Phthalates
• Octamethylcyclotetrasiloxane (D4)
• Isoamyl p-Methoxycinnamate
• Polyethylene terephthalate
• Polyaminopropyl biguanide
(Further information on consumer
safety on page 84).
Incidents of non-compliance concerning the health and safety impacts of
products and services
In 2019, Natura did not receive any fines
or sanctions for the violation of laws and
regulations related to the supply and use of
products and services, to product labelling or
to putting customer health and safety at risk.
Requirements for product and service information and labelling
GRI 417-1
Natura products contain information about
how they should be used, as well as about
socioenvironmental impacts, guidance on
how to dispose of the product, indication of
the number of times the pack may be reused;
labelling meets all legal requirements.
Our support and sponsorship strategy is
focused on connecting us with society,
building bridges for dialogue and conveying
messages aligned with our Essence
and our brand positioning. Valuing music
in culture continues to be an important
investment front, with the celebration of the
15th anniversary of Natura Musical (further
information on page 147).
Brasileiro para o Desenvolvimento Sustentável)
and Instituto Ethos. With Ethos, we supported
two regional editions of the Ethos Conference,
in Belém (Pará), for the third time, and in Recife
(Pernambuco), which hosted the meeting for
the first time. The purpose of our support was
to give voice to the leaders in our networks
involved in combating climate change and,
especially, in conserving the Amazon.
Another important front is the strengthening
of civic organisations, in which we focus
investments on bodies that help us to build
collaborative networks and dialogue in areas
such as ethics, sustainability, innovation
and diversity. Examples of this support are
events such as Sustainable Brands and the
organisations CEBDS (Conselho Empresarial
On a global level, by means of the Natura &Co
group, our investments were concentrated
on connecting the company with society on
a global level. Particularly worthy of note in
this area were the Global Compact, the World
Business Council for Sustainable Development
(WBCSD) and the International Chamber of
Commerce (ICC).
Investments undertaken with Natura funds
(R$ thousands)
Brazilian music
Fashion
Strengthening of civil society organizations
Investments via tax incentives (R$ thousands)
Brazilian music
2017
6,706
2,845
552
2017
2,751
2018
7,212
0
817
2018
3,710
2019
8,024
0
957
2019
5,900
Total private and tax incentive funds
12,854
11,739
14,881
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2019 ANNUAL REPORT
Society
Leadership and social influence GRI 102-12, 102-13
Through industry associations, in 2019 Natura
was active in the public sphere in questions
related to sustainability, in particular in the
implementation of the Biodiversity legal
framework, in defence of the Pan-Amazon
region and in the debate on banning animal
testing. Other key topics during the year were
the strengthening of direct selling, female
entrepreneurship, innovation and diversity, in
addition to tax-related questions.
Active institutional representation was
concentrated on the committees of the direct
selling association ABEVD (Associação das
Empresas de Vendas Diretas): Legal and Tax
Affairs, Institutional Affairs, Communication
and Research. These movements reinforce
our belief in relationships and the direct
selling model as the basis of our business.
The 2nd National Direct Selling Congress,
promoted by the ABEVD in Brazil, was aimed
at strengthening the sector and represented
an opportunity to share our experience related
to the revitalisation of relationship selling, a
model that stimulates enterprise, empowers
our network and generates better results and
prosperity for all involved.
We are also extremely active in the working
groups of the CFT sector association
ABIHPEC (Associação Brasileira da Indústria
de Higiene Pessoal, Perfumaria e Cosméticos).
The main working groups in which the
company participates are: Environment,
Tax, Regulatory, Labour Relations, Overseas
Trade and Communication, in addition to their
respective sub-groups.
Natura maintains an active representation
in the Instituto Ethos (Instituto Ethos de
Empresas e Responsabilidade Social) focused
on areas such as sustainability, ethics, integrity
and transparency. We are on the Ethos Board
and Steering Council, as well as participating
in the Climate, Companies and Human Rights,
Integrity and Anti-corruption working groups.
The Natura Sustainability director, Denise
Hills, is a member of the board of the UN
Brazilian Global Compact Committee. The
vice president of Marketing, Innovation and
Sustainability, Andrea Alvares, is on the
CEBDS (Conselho Empresarial Brasileiro
de Desenvolvimento Sustentável) Leaders’
Committee, on the WBCSD (World Business
Council for Sustainable Development)
executive committee and participated in the
Business for Nature coalition and the Global
Environment Fund (GEF).
We also monitor and participate in the
discussions taking place among companies
in the B System. In the Movimento Mulher
360º, we take part in the dialogues among
associates and the meetings of the Board of
Directors.
Natura participates in the national industry
association CNI (Confederação Nacional
da Indústria) forums on the environment,
taxes and overseas trade. The company
participates in the Amcham Brasil Government
Relations Committee and the CEOs Brazil-
USA agendas. The Natura CEO, João Paulo
Ferreira, attended the CEOs Brazil-USA
Forum, participating in the session held in
Washington (USA), in which he presented
Natura’s performance in sustainability and in
the generation of positive impact in the rounds
of trade talks between the two countries.
Also as part of the international public
agenda, the Natura &Co executive chairman,
Roberto Marques, attended the UN
Climate Week, held in the United Nations
headquarters in New York (USA).
Our co-founders are also board members of
diverse associations. Pedro Passos is a board
member of Iedi (Instituto de Estudos para o
Desenvolvimento Industrial) and a member
of the CNI’s MEI (Mobilização Empresarial
pela Inovação) Business Leaders Committee.
Guilherme Leal is part of the B Team, a global
group of leaders for social, environmental and
economic transformation, and is a member/
curator of the Instituto Ethos. Since 2018, Leal
has been on the UN Global Compact board,
the highest governance body responsible for
defining strategies and policies for the initiative.
There is a listing of the main organisations with
which we are connected on pages 172-174.
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196
2019 ANNUAL REPORT About the report
Natura will be
a group of global
brands, identified
with the community
of people committed to
building a better world
The world of Ivone, 48, is made of
strong women. Who believe that valuing
local culture is a way to generate
income and prosperity. Ivone
has been a Natura Beauty Consultant
for 18 years. For 25 years she has been
a volunteer in initiatives that promote
the autonomy of women in Soure (Pará)
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197
2019 ANNUAL REPORT About the report
The 2019 Natura Annual Report presents the company’s principal
economic-financial and socioenvironmental results for the
year. The publication is aligned with the Global Reporting Initiative
(GRI), a methodology for communicating sustainability that we
have adopted since 2001. This Annual Report was prepared in
accordance with the GRI Standards Comprehensive option.
GRI 102-50, 102-51, 102-52, 102,54
at the end of the publication, we include other GRI information
and specific information related to the company (Complementary
disclosures). GRI 102-48, 102-49
The disclosures in the 2019 Natura Annual Report are overseen by
the Vice President of Marketing, Innovation and Sustainability and
by the CEO of the company, by means of the Corporate Affairs area.
The document was submitted to external assurance by KPMG.
The content of the publication, which covers the period from January
GRI 102-32, 102-56
Any doubts, comments or requests for additional information about
the Annual Report may be addressed to relatorioanual@natura.
net. We also respond to comments about our performance and
our management practices in our social network profiles and in
meetings with stakeholder groups. GRI 102-53
1 to December 31, 2019, was defined based on the commitments
assumed in Natura’s 2050 Vision, as well as the topics deemed most
relevant for the business and the company’s stakeholders, set forth in
our materiality matrix (further information ahead). The Annual Report
also provides data relative to our communication of progress in the
principles of the United Nations (UN) Global Compact, an initiative to
which we are signatories. GRI 102-46
The most part of the socioenvironmental information refers to the
Natura operations in Brazil and in Latin America. Any exceptions are
explained together with the specific data. The financial information
covers all the Natura operations. Any changes compared with the
data reported in previous years or alterations in the calculation
bases and measurement techniques are informed throughout
the content of the report. As in previous years, the GRI content
summary only presents the most relevant (material) disclosures for
the integrated management of the business. In a specific section
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198
2019 ANNUAL REPORT Communication of
Natura &Co results
The economic-financial data of the Natura &Co group,
which until the end of 2019 comprised Natura, Aesop
and The Body Shop, were disclosed in the Management
Report, published in the March 6th, 2020 edition of the
newspaper Valor Econômico. As part of the results
disclosure process, the group also published a printed
report, with the main highlights for 2019.
It should be mentioned that the Natura &Co group
continues to study the feasibility of preparing and
disclosing an integrated document covering the financial
and socioenvironmental performance of all its companies
– at the beginning of 2020, Avon became part of the group.
GRI 102-45, 102-48
Definition of material topics
GRI 102-40, 102-42, 102-43, 102-47
We maintain different processes for communicating with and
engaging our main stakeholder groups – many of which are
described in the Every Person Matters section of the report (from
page 41). Periodically, we involve stakeholders in the definition of
the priority topics that should be incorporated into the integrated
management of the business. The most recent process was
conducted in 2014 and engaged co-workers, consultants,
customers, suppliers, supplier communities and representative of
the communities around our sites, as well as Natura leaders and
some of our shareholders. More than 4,200 online questionnaires
were answered, complemented by 40 personal and telephone
interviews and a discussion panel with 18 participants from different
stakeholder groups.
Six topics were defined in this process: water, education for the
development of employees and consultants, climate change, waste,
transparency and origin of products and valuing social biodiversity.
Since then, we have continued to listen to our stakeholder groups
and have accompanied the main global discussions and trends
concerning sustainability. In 2018, we formally included another two
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199
2019 ANNUAL REPORT priority topics already addressed in the company’s 2050
Sustainability Vision and in management processes in the
materiality matrix. These are: diversity and equality and
generation of work and income. In the following table, we
present a description of the company’s material topics and
their main impacts.
In 2019, we sought to relate the eight material topics in the
matrix to the three causes established by Natura – Standing
Forest, More Beauty, Less Waste and Every Person Matters
(further information on page 41). We also decided to
postpone updating our materiality matrix, initially scheduled
for 2019. At that time, it was our understanding that it would
be more effective to conduct a new consultation process
after concluding the consolidation of the Natura &Co group,
which will enable us to reflect a more integrated vision of the
group, as well as to consider the 2020-2030 commitments
assumed by the four Natura &Co companies.
GRI 103-1
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200
2019 ANNUAL REPORT Materiality
GRI 102-43, 102-44, 102-46, 102-47, 103-1
Material topic
Water
Diversity and equality
Education for the
development of
co-workers and consultants
Description
Where it occurs [103-1]
Related aspects and disclosures
Correlation with the SDGs
Relative reduction of
water consumption and pollution
throughout the value
chain and neutralisation
of water impact.
_Water sources and
environment
_Supplier
communities
_Operational units
_Society in general
_Consumers (use and post-consumer
disposal)
_Water
_Effluents and waste
GRI 103-1, 103-2 and 303-3
SDG 6. Clean water and sanitation
Progress in promoting equality in the work environ-
ment, in particular concerning gender and women’s
participation in leadership.
_Co-workers
_Diversity and equality of opportunities
GRI 405-1, 405-2
SDG 5. Gender equality
SDG 8. Decent work and economic growth
SDG 10. Reduction in inequalities
Development of the
consultant network and
co-workers, including
measures to promote
improvements in public
education.
_Natura Beauty Consultants
_Co-workers
_Instituto Natura
_Society in general
_Indirect economic
impacts;
_Training and education
GRI 203-1, 203-2, 404-1 and 404-3
SDG 4. Quality
Education
Generation of work and income
Support for the development of Natura consultants
and supplier communities
_Natura Beauty Consultants
_Supplier communities
_Indirect economic impacts;
GRI 203-1, 203-2
SDG 1. Eradication of poverty SDG 5.
Gender equality SDG 8. Decent work and
economic growth SDG 10. Reduction in
inequalities
Climate change
Waste
Reduction in greenhouse
gas emissions
throughout the value chain
and neutralisation by means
of projects that drive
social benefits.
Development of lower
environmental impact
packaging that
promotes conscious
consumption.
Transparency and product origin
Expanding visibility of
business practices and product origin.
Valuing social biodiversity
Promoting sustainable
businesses through
the use of products and
services mainly
from the Pan-Amazon
region.
_Suppliers
_Freight haulage operators
_Operational units
_Environment
_Product conception
_Operational units
(zero dejects)
_Freight haulage operators
_Recyclable material
cooperatives
_Consumers (post-
consumer disposal)
_Environment
_Supplier chain
_Supplier communities
_Operational units
_Corporate management
_Consumers
_Product conception
_Supplier communities
_Procurement policies
_Consumers
_Pan-Amazon region
_Economic performance
_Emissions.
GRI 201-2, 305-1, 305-2, 305-3, 305-4, 305-5 and
305-6
SDG 13. Combating
climate change
_Materials
_Effluents and waste
_Products and services
GRI 301-2, 306-2 and 301-3
SDG 12. Responsible
consumption and production
_Supplier environmental assessment_Supplier as-
sessment for labour practices_Supplier assessment
for human rights _Supplier assessment for impacts
on society_Product and service labelling_Products
and services GRI 102-9, 308-1, 414-1 and 417-1
Economic performance_Indirect economic impacts_
Biodiversity_Local communities_Child labour_Forced
or slave labour_Supplier assessment in human rights_
Grievance and complaint mechanisms concerning
human rights_Products and services GRI 201-1, 201-2,
203-1, 203-2, 304-1, 304-2, 413-1, 408-1, 409-1, 414-1
and 103-2
SDG 12. Responsible
consumption and production
SDG 15. Life on land
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201
2019 ANNUAL REPORT GRI content index GRI 102-55
GRI content index
GRI 102-55
GRI Standard
Disclosure
Page
Omission
GRI 101:
Foundation 2016
No disclosures
The GRI SDG Mapping Service verified that
The GRI SDG Mapping Service verified that
the disclosures included in the Content
the disclosures included in the Content
Summary are correctly mapped against
Summary are correctly mapped against
the SDGs
the SDGs
(Sustainable Development
(Sustainable Development
Goals). This verification was conducted
Goals). This verification was conducted
in the Portuguese version of this report.
in the Portuguese version of this report.
Sustainable
Development
Goals
Global
Com-
pact
Standard disclosures
Organizational profile
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 102: Standard disclosures 2016
102-1 Name of organization
102- 2 Activities, brands, products and services
102-3 Location of headquarters
102-4 Location of operations
102 -5 Ownership and legal form
102-6 Markets served
27
27
27
27
162
27
102 -7 Scale of organization
27, 53, 177
102 -8 Information about employees and other workers
27, 177
102-9 Supply chain
27, 154-155
102-10 Significant changes in the organization and its
supply chain
There were no significant changes
in terms of location, operation and
supply chain.
102-11 Precautionary principle or approach
102-12 Initiatives developed externally
102-13 Participation in associations
84
172, 196
172, 196
8
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202
2019 ANNUAL REPORT Strategy
GRI Standard
Disclosure
GRI 102: Standard disclosures 2016
102-14 Declaration from senior decision maker
102-15 Main impacts, risks and opportunities
Ethics and integrity
GRI Standard
Disclosure
GRI 102: Standard disclosures 2016
102-16 Values, principles, standards and norms of
behaviour
102-17 Mechanisms for advice and concerns
about ethics
Page
19
167
Page
4
170
Omission
Omission
Governance
GRI Standard
Disclosure
Page
Omission
GRI 102: Standard disclosures 2016
102-18 Governance structure
102-19 Delegating authority
102-20 Executive-level responsibility for economic,
environmental and social topics
102-21 Consulting stakeholders on
environmental and social topics
102-22 Composition of the highest governance body
and its committees
102 -23 Chair of the highest governance body
102-24 Nominating and selecting the highest govern-
ance body and its committees
102-25 Conflicts of interest
162
162
162
162
165
162
There are no specific diversity
criteria for selecting members,
but inclusion and equality are
valued and are a focus of specific
Natura policy. The company has
as a target 50% women
in executive leadership positions
by 2020. Read more on pages
162 and 164.
We value best corporate
governance practices. All
decisions about operations
are submitted to senior
management, in accordance
with the competencies established
in the company by laws.
Sustainable
Development
Goals
Global
Com-
pact
Sustainable
Development
Goals
Global
Com-
pact
16
16
Sustainable
Development
Goals
Global
Com-
pact
16
5, 16
16
5, 16
16
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203
2019 ANNUAL REPORT GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
In the event of a potential
conflict of interest between a
question under analysis and a
member of our decision making
bodies, we comply with
corporate legislation whereby the
respective member abstains from
voting, with the decision being
taken by the other members who
have no connection with the
matter in question. Further
information may be found in our
Reference Form.
102-26 Role of highest governance body in setting
purpose, values and strategy
162, 165
102-27 Collective knowledge of highest governance
body
102-28 Evaluating the highest governance body’s
performance
102-29 Identifying and managing, economic,
environmental and social impacts
165
164
165
102-30 Effectiveness of risk management processes
166
102-31 Review of economic, environmental and
social topics
It is the function of the Executive
Committee and the Board of
Directors to monitor performance
towards the Sustainability
Vision, which addresses Natura’s
main socioenvironmental and
business topics. However, there
is no pre-established interval for
monitoring by the board. Read
more on pages 165 and 166.
102-32 Highest governance body’s role in sustainability
reporting
198
102-33 Communicating critical concerns
The board members analyse
Natura’s quarterly and annual
management reports,
which include the main
socioenvironmental indicators
considered relevant for the
company. Board members
also analyse the definition and
review of strategic planning,
expansion projects and
investment programmes,
4
16
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204
2019 ANNUAL REPORT GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
risk management and profit
share plan payouts
to Natura co-workers.
The board members analyse
Natura’s quarterly and annual
management reports,
which include the main
socioenvironmental indicators
considered relevant for the
company. Board members also
analyse the definition and review
of strategic planning,
expansion projects and
investment programs,
risk management and profit
share plan payouts to Natura
employees. Read more on
page 167.
Our senior management
remuneration policy and
practices are set forth in item 13
of our Reference Form.
Our senior management
remuneration policy and
practices are set forth in item 13
of our Reference Form.
Our senior management
remuneration policy and
practices are set forth in item 13
of our Reference Form.
102-34 Nature and total number of critical concerns
102-35 Remuneration policies
102-36 Processes for determining remuneration
102-37 Stakeholders’ involvement in remuneration
The critical concerns that are not described are related
to strategic information which is restricted to senior
management and the Board of Directors.
102-38 Annual total compensation ratio
179
102-39 Percentage increase in annual total
compensation ratio
Natura does not disclose this information because it is
considered to be confidential.
Natura does not disclose this information because it is
considered to be confidential.
Stakeholder engagement
GRI Standard
Disclosure
GRI 102: Standard disclosures 2016
102-40 List of stakeholder groups
Page
199
Omission
6
16
Sustainable
Development
Goals
Global
Com-
pact
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205
2019 ANNUAL REPORT GRI Standard
Disclosure
Page
Omission
102-41 Collective bargaining agreements
All employees are covered by
collective agreements, which
are coordinated by the Human
Resources area and comply with
the standards and limits set forth
in local legislation.
102-42 Identifying and selecting stakeholders
199
102-43 Approach to stakeholder engagement
144, 147, 156, 181, 199
102-44 Key topics and concerns raised
56, 102, 144, 147, 156
Sustainable
Development
Goals
Global
Com-
pact
8
Reporting practice
GRI Standard
Disclosure
GRI 102: Standard disclosures 2016
102-45 Entities included in the consolidated
financial statements
102-46 Defining report content and topic boundaries
102-47 List of material topics
Page
199
198
199
Omission
Sustainable
Development
Goals
Global
Com-
pact
102-48 Restatements of information
198-199
102-49 Changes in reporting
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the
report
102-54 Claims of reporting in accordance with
the GRI Standards
198
198
198
198
198
The report was prepared in
accordance with the Comprehensive
option of GRI Standards.
102-55 GRI Content Index
102-56 External assurance
202-216
198, 217
Material topics
Economic performance
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
Sustainable
Development
Goals
Global
Com-
pact
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206
2019 ANNUAL REPORT GRI Standard
Disclosure
GRI 201: Economic performance 2016
201-1 Direct economic value generated and distributed
103-2 Management approach and its components
103-3 Evaluation of management approach
201-2 Financial implications and other risks and
opportunities due to climate change
201-3 Obligations of the defined-benefit and other
pension plans
201-4 Financial assistance received from government
Omission
Page
32
32
34
167-168
Sustainable
Development
Goals
1, 5, 8, 16
Global
Com-
pact
2, 5, 7, 8, 9
13
7, 8, 9
Not applicable. Since this disclosure does not
significantly impact Natura’s business, it has not been
taken into account since 2018
Not applicable. Since this disclosure does not
significantly impact Natura’s business, it has not been
taken into account since 2018.
7, 8, 9
Indirect economic impacts
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
97, 137, 148, 150
103-3 Evaluation of management approach
97, 137, 148, 150
GRI 203: Indirect economic impacts 2016
203-1 Infrastructure investments and
services supported
94, 97, 99, 137, 148, 150, 151,
153, 195
203-2 Significant indirect economic impacts
54, 97, 98, 99
Procurement practices
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 204: Procurement practices 2016
103-2 Management approach and its components
103-3 Evaluation of management approach
204-1 Proportion of spending on local suppliers in
important units of the operation
152-153
152-153
152-153
Sustainable
Development
Goals
Global
Com-
pact
2, 5, 7, 9, 11
1, 7, 8, 9
1, 2, 3, 8, 10, 17
Sustainable
Development
Goals
Global
Com-
pact
12
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207
2019 ANNUAL REPORT Anti-corruption
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
1 03-2 Management approach and its components
103-3 Evaluation of management approach
205-1 Operations assessed for risks related
to corruption
205-2 Communication and training about
anti-corruption policies and procedures
205-3 Confirmed cases of corruption and
measures taken
183
183
183
184
184
GRI 205: Anti-corruption 2016
Anti-competitive behaviour
Confidential information: the company considers
the nature of the cases investigated to be confidential.
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 206: Anti-competitive behaviour 2016
103-2 Management approach and its components
103-3 Evaluation of management approach
206-1 Legal actions for anti-competitive behaviour,
anti-trust, and monopoly practices
185
185
185
Materials
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
107-108, 110
103-3 Evaluation of management approach
107-108, 110
GRI 301: Materials 2016
301-1 Materials used by weight or volume
301-2 Recycled input materials used
301-3 Reclaimed products and their
packaging materials
108-109
110
Not applicable. This disclosure has not been reported
since 2018 because the real impact of this topic for Natura
is reflected in the disclosures GRI 301-2 and GRI 301-3.
Sustainable
Development
Goals
Global
Com-
pact
16
16
16
10
10
10
Sustainable
Development
Goals
Global
Com-
pact
16
Sustainable
Development
Goals
Global
Com-
pact
8, 12
8, 12
8, 12
7, 8, 9
7, 8, 9
7, 8, 9
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208
2019 ANNUAL REPORT Energy
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 302: Energy 2016
302-1 Energy consumption within the organization
186-187
103-2 Management approach and its components
103-3 Evaluation of management approach
186-187
186-187
302-2 Energy consumption outside of the organization
186-187
302-3 Energy intensity
188
302-4 – Reduction of energy intensity
302-5 Reduction of energy consumption
Not applicable. This disclosure has not been deemed
applicable since 2018 because of Natura's focus on the
reduction of energy intensity and the
diversification of renewable sources.
Not applicable. This disclosure has not been deemed
applicable since 2018 because of Natura's focus on the
reduction of energy intensity and the diversification of
renewable sources.
Water
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
123, 189
103-3 Evaluation of management approach
123, 189
GRI 303: Water and Effluents 2018
303-1 Interactions with water as a shared resource
compartilhado
123, 188, 189
303-2 Management of water discharge related
impacts
303-3 Total water withdrawal
303-4 Water discharge
303-5 Water consumption
189
189
189-190
188-189
Sustainable
Development
Goals
Global
Com-
pact
7, 8, 12, 13
7, 8, 12, 13
7, 8, 12, 13
7, 8, 9
7, 8, 9
7, 8, 9
7, 8, 12, 13
7, 8, 9
7, 8, 12, 13
7, 8, 9
Sustainable
Development
Goals
Global
Com-
pact
7, 8, 9
7, 8, 9
7, 8, 9
7, 8, 9
7, 8, 9
7, 8, 9
7, 8, 9
Biodiversity
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
92, 95
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209
2019 ANNUAL REPORT GRI Standard
Disclosure
GRI 304: Biodiversity 2016
103-3 Evaluation of management approach
304-1 Operational sites owned, leased, managed in,
or adjacent to, protected areas and areas of high
biodiversity value outside protected areas
304-2 Significant impacts of activities, products, and
services on biodiversity
Omission
Page
92, 95
191
304-3 Habitats protected or restored
304-4 IUCN Red List species and national conservation
list species with habitats in areas affected by
operations organização
192
Not applicable. This disclosure has not been deemed
applicable since 2018 because biodiversity has a more
relevant impact for Natura in its supplier chain.
Not applicable. This disclosure has not been deemed
applicable since 2018 because biodiversity has a more
relevant impact for Natura in its supplier chain,
which is already monitored
Emissions
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions
103-2 Management approach and its components
103-3 Evaluation of management approach
305-2 Energy indirect (Scope 2) GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
305-4 GHG emissions intensity
305-5 Reduction in GHG emissions
305-6 Emissions of ozone-depleting substances (ODS)
camada de ozônio (SDO)
305-7 NOx, SOx and other significant atmospheric
emissions atmosféricas significativas
114
114
117-118
117-118
117-118
117
118, 120
186
186
Sustainable
Development
Goals
Global
Com-
pact
6, 14, 15
7, 8, 9
6, 14, 15
7, 8, 9
6, 14, 15
7, 8, 9
6, 14, 15
7, 8, 9
Sustainable
Development
Goals
Global
Com-
pact
3, 12, 13, 14, 15
7, 8, 9
3, 12, 13, 14, 15
7, 8, 9
3, 12, 13, 14, 15
7, 8, 9
13, 14, 15
13, 14, 15
3, 12, 13
7, 8, 9
7, 8, 9
7, 8, 9
3, 12, 13, 14, 15
7, 8, 9
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210
2019 ANNUAL REPORT Effluents and waste
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
190
190
GRI 306: Effluents and waste 2016
306-1 Water discharge by quality and destination
Not applicable. In this cycle Natura adhered to the 2018
version of the GRI water and waste protocol, understanding
that this topic is covered broadly in the specific 303 topics.
306-2 Waste by type and disposal method
190-191
3, 6, 12
7, 8, 9
306-3 Significant spills
Not applicable. In this cycle Natura adhered to the 2018
version of the GRI water and waste protocol, understanding
that this topic is covered broadly in the specific 303 topics.
306-4 Transport of hazardous waste
190-191
3, 12
7, 8, 9
306-5 Water bodies affected by water discharges
and/or runoff
Not applicable. In this cycle Natura adhered to the 2018
version of the GRI water and waste protocol, understanding
that this topic is covered broadly in the specific 303 topics.
Environmental Compliance
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 307: Environmental compliance 2016
103-2 Management approach and its components
103-3 Evaluation of management approach
307-1 Non-compliance with environmental
laws and regulations
192
192
192
Supplier environmental assessment
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 308: Supplier environmental
assessment 2016
308-1 New suppliers that were screened using
environmental criteria
308-2 Negative environmental impacts in the supply
chain and actions taken
155
155
155
193
Sustainable
Development
Goals
Global
Com-
pact
16
7, 8, 9
Sustainable
Development
Goals
Global
Com-
pact
7, 8, 9
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211
2019 ANNUAL REPORT Employment
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 401: Employment 2016
401-1 New employee hires and employee turnover
103-2 Management approach and its components
103-3 Evaluation of management approach
179
179
179
401-2 Benefits provided to full-time employees that are
not provided to temporary or part-time employees
401-3 Parental leave
127, 179
Not applicable. Since this disclosure does not significantly
impact business it has not been taken into account since
2018. As to employees, the company has been investing
in promoting diversity.
5, 8
8
5, 8
Occupational health and safety
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
181-182
181-182
GRI 403: Occupational health and safety
2018
403-1 Occupational health and safety
management system
403-2 Hazard identification, risk assessment
and incident investigation
181
403-3 Occupational health services
403-4 Worker participation, consultation, and
communication on occupational health and safety
403-5 Worker training on occupational
health and safety
403-6 Promotion of worker health
181
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature
in the company, which has opted to report only the
disclosures that portray its performance in this respect.
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature
in the company, which has opted to report only the
disclosures that portray its performance in this respect.
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature
in the company, which has opted to report only the
disclosures that portray its performance in this respect.
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature
in the company, which has opted to report only the
disclosures that portray its performance in this respect.
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
212
2019 ANNUAL REPORT GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
403-7 Prevention and mitigation of occupational health
and safety impacts directly linked by business relationships
403-8 Workers covered by an occupational
health and safety management system
403-9 Work-related injuries
182
182
403-10 Work-related ill health
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature in the
company, which has opted to report only the disclosures
that portray its performance in this respect.
Not applicable. This topic does not impact Natura’s
business significantly. This aspect is mature in the
company, which has opted to report only the disclosures
that portray its performance in this respect.
Training and education
GRI Standard
Disclosure
Page
Omission
Sustainable
Development
Goals
Global
Com-
pact
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
133
133
GRI 404: Training and education 2016
404-1 Average hours of training per year per employee
133, 135
404-2 Programmes for upgrading employee skills and
transition assistance programmes
Regarding layoffs resulting from
restructuring we provide
co-workers with a special
package to facilitate career
transition. Further information on
pages 134-135, 180
404-3 Percentage of employees receiving
regular performance and career
development reviews
180
Diversity and equality of opportunities
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
126, 178-179
103-3 Evaluation of management approach
126, 178-179
GRI 405: Diversity and equality of
opportunities 2016
405-1 Diversity of governance bodies and
employees
126, 131, 132, 165
405-2 Ratio of basic salary and remuneration
of women to men
178
4, 5, 8
8
5, 8
Sustainable
Development
Goals
Global
Com-
pact
5, 8
5, 8, 10
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213
2019 ANNUAL REPORT
Non-discrimination
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions
taken
185
185
185
Freedom of association and collective bargaining
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 407: Freedom of association and
collective bargaining 2016
103-2 Management approach and its components
103-3 Evaluation of management approach
407-1 Operations and suppliers in which the right to
freedom of association and collective
bargaining may be at risk
182
182
182
Child labour
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
408-1 Operations and suppliers at significant risk for
incidents of child labour
185
185
185
GRI 408: Child labour 2016
Forced or compulsory labour
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 409: Forced or compulsory labour
2016
409-1 Operations and suppliers at significant risk for
incidents of forced or compulsory labour
185
185
185
Sustainable
Development
Goals
Global
Com-
pact
5, 8, 16
6
Sustainable
Development
Goals
Global
Com-
pact
8
3, 6
Sustainable
Development
Goals
Global
Com-
pact
1, 5
Sustainable
Development
Goals
Global
Com-
pact
8
1, 5
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
214
2019 ANNUAL REPORT Rights of indigenous peoples
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 411: Rights of indigenous peoples
2016
411-1 Incidents of violations involving rights of
indigenous peoples
97, 185
97, 185
97, 185
Local communities
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
90, 103, 152
103-3 Evaluation of management approach
90, 103, 152
GRI 413: Local communities 2016
413-1 Operations with local community engagement,
impact assessments, and development programs
90, 97, 153
Sustainable
Development
Goals
Global
Com-
pact
2
1, 2
Sustainable
Development
Goals
Global
Com-
pact
413-2 Operations with significant actual and
potential negative impacts on local communities
97, 153
1, 2
Supplier social assessment
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
GRI 414: Supplier social assessment 2016
103-2 Management approach and its components
103-3 Evaluation of management approach
414-1 New suppliers that were screened
using social criteria
414-2 Negative social impacts in the supply
chain and actions taken
154
154
155, 194
194
Sustainable
Development
Goals
Global
Com-
pact
1, 2,
4, 5
1, 2,
4, 5
5, 8, 16
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
215
2019 ANNUAL REPORT Public policy
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 415: Public policy 2016
415-1 Political contributions
Consumer health and safety
185
185
185
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
83-84
83-84
GRI 416: Consumer health and
safety 2016
416-1 Assessment of the health and safety impacts of
product and service categories
83-84, 195
416-2 Incidents of non-compliance concerning the
health and safety impacts of products and services
195
Marketing and labelling
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of material topic and its boundary
200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
83
83
GRI 417: Marketing and labelling 2016
417-1 Requirements for product and service information
and labelling
83, 195
417-2 Incidents of non-compliance concerning
product and service information
195
417-3 Incidents of non-compliance concerning
marketing communications
Socioeconomic compliance
Not applicable. Since this disclosure does not significant-
ly impact Natura’s business, it has not been taken into
account since 2018
GRI Standard
Disclosure
Page
Omission
GRI 103: Management approach 2016
103-1 Explanation of the material topic and its boundary 200-201
103-2 Management approach and its components
103-3 Evaluation of management approach
GRI 419: Socioeconomic compliance 2016
419-1 Non-compliance with laws and regulations in the
social and economic area
185
185
185
Sustainable
Development
Goals
Global
Com-
pact
16
10
Sustainable
Development
Goals
Global
Com-
pact
16
7, 8, 9
7, 8, 9
Sustainable
Development
Goals
Global
Com-
pact
12, 16
16
7, 8, 9
7, 8, 9
Sustainable
Development
Goals
Global
Com-
pact
16
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
216
2019 ANNUAL REPORT Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
217
2019 ANNUAL REPORT Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
218
2019 ANNUAL REPORT Credits
NATURA &CO
SUSTAINABILITY AND
CORPORATE AFFAIRS
Marcelo Bicalho Behar
NATURA
MEDIA, CONTENT
AND COMMUNICATION
Communication Manager
Fábio Peixoto
Annual Report Coordinator
Tainara Machado
Art editing
Carolina Almeida
Reporting
Juliana Bordignon
MARKETING,
INNOVATION AND SUSTAINABILITY
Sustainability
Denise Hills, Keyvan Macedo, Luciana Villa Nova,
Thais Espildora and Bruna Menezes
Brand
Renato Winnig and Marcel Vieira
FINANCE
AND INVESTOR RELATIONS
Financial information
Bruno Medeiros, Walter Ribeiro
da Costa Junior and Everton Ribeiro Correa
Investor Relations
Viviane Behar, Luiz Palhares and Tamires Parini
PRODUCTION OF THIS EDITION
ART DIRECTION AND GRAPHIC DESIGN
Manuela Novais
Isabella Bianco Bortolani (intern)
COPY AND CONSULTING:
REPORT SUSTENTABILIDADE
Editing
Michele Silva
Reporting
Talita Fusco
Special participation
Estevam Pereira
Project and relationship management
Ana Souza
GRI consulting
Juliana Fullmann and Karina Simão
PHOTOGRAPHY
Natura archives
Juliana Milasseno
Paulo Vitale
TRANSLATION TO ENGLISH
Raymond Maddock
Summary Our Essence COVID-19 Presentation Our strategy Our businesses Evolution based on our causes Overview of the 2050 Sustainability Vision Company information Complementary disclosures About the report
219
2019 ANNUAL REPORT