Natura &Co
Integrated Report
2023
Industrial Ecopark
Natura´s soap factory
in Benevides, PA - Brazil
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Overview
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Contents
CONTENTS
Introduction
Message from the Board
Message from the Holding CEO
2023 Highlights
Global footprint
2023 Financial Performance
Awards and recognitions
WHO WE ARE
Purpose and aspiration
Our business model
OUR STRATEGY
Our people
Compensation follows strategy
CORPORATE GOVERNANCE
Structure and practices
Ethics and compliance
Enterprise Risk Management
Advocacy
SUSTAINABILITY
Materiality
Commitment to life
To address the Climate Crisis and and Protect the Biodiversity
To defend human rights and be human-kind
To embrace Circularity and Regeneration
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Introduction GRI 2-2, 2-3
We are pleased to present the 2023 edition of our Integrated
Annual Report to our shareholders, employees, partners,
communities and suppliers. This marks the first cycle in which we
have opted for unified communication for Natura &Co Holding
and its business units. The presentation includes the following
division of business units:
· Natura &Co Latin America, which encompasses the Natura and
Avon brands, as well as the master franchised regional operation
of The Body Shop.
· Avon International, which includes all markets served by the
brand globally outside Latin America.
This integrated report covers the period from January 1st to
December 31st, 2023 and is constructed based on international
performance disclosure parameters, including the Global
Reporting Initiative (GRI)1 Standards, according to OCPC 9, the
International Integrated Reporting Framework ()2, the SASB
Standards of the IFRS Foundation, and the guidelines of the Task
Force on Climate-related Financial Disclosures (TCFD). We also
align our actions with the Ten Principles of the United Nations
Global Compact and the Sustainable Development Goals (SDGs).
Additionally, we are committed to complying with the Task
Force on Nature-related Financial Disclosures (TNFD), focused on
biodiversity and ecosystems.
Introduction
1 Data relating to Natura &Co Latin America business unit in accordance with the Global
Reporting Initiative (GRI) are available in the Latin America Databook.
2 This report has no omission related to the Framework.
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We are preparing for the adoption of the IFRS Sustainability
throughout the report by not adjusting data for minority
Financial Disclosure Standards (S1 and S2) in the coming years,
interests and clearly specifying scope differences in footnotes.
in compliance with the schedule provided by the Brazilian
Natura &Co’s leadership administrators are responsible for
Securities and Exchange Commission (CVM). We also prioritize
ensuring the completeness and integrity of this Integrated
transparency in relevant environmental, social, and governance
Report, as well as the application of collective thinking and the
(ESG) indices and ratings, such as the Dow Jones Sustainability
principles of the Framework in this document.
Index (DJSI).
To ensure transparency and comprehensiveness, we reference
other data sources in this report that complement our
The content of this report is divided into four sections. The
performance communication, including Consolidated Financial
first presents the unified results from the year for Natura &Co
Statements for 2023 Natura &Co, Management Reports, the
Holding. The second and third sections respectively report on
Natura &Co Sustainability Compendium, Data Book Latin
projects and indicators of the Natura &Co Latin America and
America, and the Latin America ESG Scorecard.
Avon International business units, and the fourth section
presents the results from Fable Investments.
This report has undergone external verification by KPMG to
The topics addressed in this report are aligned with our
the IFRS Foundation and the indicators and guidelines of the
materiality matrix, updated in 2022 under the concept of double
Global Reporting Initiative (GRI), in accordance with ISAE 3000.
ensure adherence to the principles of Integrated Reporting of
materiality. Another key reference is our business strategy and
GRI 2-5
sustainability agenda, reflected in our Commitments to Life, our
regeneration-oriented strategy and other causes and activities
of our brands.
Our Integrated Report follows the same periodicity as the
company’s financial report. The financial and sustainability
analysis includes data from two business units, Natura &Co
Latin America and Avon International. We maintain consistency
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Message from
the Board GRI 2-3, 2-22
Luiz Seabra, Guilherme Leal and Pedro Passos
in the name of the Board of Directors
“Let us stop the answering with lies
and fake promises. Let us end the pollution
of hollow words. Let us fight for a livable
future and present. It is always necessary to
believe this dream is possible.”
Txai Suruí
The hottest year in the planet’s history, 2023 was also one of
the most violent since World War II. While the global average
temperature rose to the point of putting us on the brink of the
climate abyss, reaching 1.48°C above pre-industrial levels, the war
between Russia and Ukraine, the outbreak of war between Israel
and Hamas, and several other armed conflicts involving non-
state actors made the world a much more unstable, divided, and
dangerous place.
Natura Founders. From left to right:
Guilherme Leal, Luiz Seabra and Pedro Passos
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The humanitarian crisis resulting from these events is
challenges of the world, offering a pathway to fortify the foundations
overwhelming and horrifies us all. We also coexist with the
upon which these companies were established.
deepening erosion of democracy in vast portions of the globe,
which further distances us from the ideal of a more balanced, just,
We face 2024 in solid financial conditions, with consistent resource
and inclusive society.
allocation and capital structure, which will enable our businesses to
advance in the commitment to generate positive impact on society.
Faced with these challenges, we reaffirm our confidence in
The climate crisis is worsening living conditions on the planet,
our beliefs and purpose to guide us. We hold steadfast to our
especially for the more than 44 thousand species threatened with
entrepreneurial vision, crafting a brighter world through the rich
extinction - about 2 thousand more than last year. The world is
tapestry of connections we nurture in our expansive network,
in need of regeneration in various aspects: in the restoration of
where business becomes a catalyst for positive transformation.
ecosystems, the reinstatement of balanced conditions for life in its
We are committed to addressing the most urgent problems of our
diverse forms, and the revival of dialogue, respect, and love as the
time: climate change and social inequalities.
foundations of human relationships.
In 2022, at Natura &Co, we made a strategic decision to decentralize
By embracing regeneration as the cornerstone of Natura’s business
our model, simplifying the group’s structure. This shift aimed to
strategy in 2023, we initiated a fresh phase of our dedication to
provide each business unit with enhanced autonomy and agility,
people and the planet, strengthening our business approach and
empowering them to attain their outcomes. In 2023, a significant
redefining the essence of Natura.
milestone in this strategy was reached with the successful
completion of the sale of Aesop and The Body Shop.
Our raison d’être, conceived over 30 years ago, resonates more
While our boldness was evident in creating the Natura &Co group
bond between individuals, each other, and nature. We believe that
and pursuing global market potential, it also required courage
within this nexus lies the catalyst for fostering peace, solidarity, and
to streamline operations and consolidate our business around
the full richness of life’s expressions. Well-being-well prevails.
profoundly with us today than ever before. It embodies the symbiotic
our core competencies. We are convinced that simplification
strengthens us and revitalizes the health of the business and we
also believe that this positions us optimally to address the present
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Message from
the Holding CEO
Fábio Barbosa
In 2023, Natura &Co underwent a
transformative journey marked by
rebuilding, refocusing, and a remarkable
turnaround. Despite facing challenges
on multiple fronts that tested our values,
I take pride in the accomplishments and
the strategic path we forged. Natura &Co
persevered without compromising its
core values, making tough yet necessary
decisions that have set the stage for
renewed growth.
In 2023, Natura &Co underwent a transformative journey marked by
rebuilding, refocusing, and a remarkable turnaround. Despite facing
challenges on multiple fronts that tested our values, I take pride in
the accomplishments and the strategic path we forged. Natura &Co
persevered without compromising its core values, making tough yet
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We take pride in our decision to r
efocus on our core strengths while upholding
our values, maintaining Natura &Co as a
business with the ESG agenda at its core.
necessary decisions that have set the stage for renewed growth.
Crucially, the year’s successes wouldn’t have been possible without
the exceptional dedication of our team. Their discipline and resilience
in navigating a year of profound change were truly commendable. I
deeply appreciate the collective effort and professionalism displayed
by the team, playing a pivotal role in positioning the company on a
stronger foundation for the future.
In 2023, our adjusted EBITDA reached double-digits, and we
successfully shifted our cash generation from negative to positive, in
line with our plans. We also successfully reduced our debt through
a robust liability management plan, including extending debt
maturities. This streamlined capital structure frees up resources and
creates a more solid financial foundation for sustainable growth in
the next years, allowing us to fully concentrate on our core strengths
and drive long-term value creation.
Over the past decade, our vision of global expansion was initially
supported by a vibrant worldwide economy influenced by
low-interest rates. However, unforeseen challenges, such as
the pandemic and subsequent inflationary pressures, posed
significant obstacles to our ambitions. By mid-2022, adverse
consumer scenarios, especially in retail foot traffic, combined
with our debt ratio, hindered our ability to make essential
investments so that all our brands could thrive as they should.
Consequently, our initial resolution was to streamline the
Holding structure, focus on working capital management, and
grant more autonomy to business units to allocate resources
and pursue strategic priorities. Importantly, we consciously
prioritized margins and cash generation over sales growth.
In 2023, we took further steps, including the sale of Aesop in August,
unlocking significant value to improve our capital structure and
deleverage our balance sheet. Simultaneously, we concluded
that The Body Shop needed additional expertise and focus for its
transformation, leading to its sale in December. It has been a true
privilege to work with both Aesop and The Body Shop, whose values
and purpose are deeply aligned with our own.
Moving forward, these strategic moves signify a return to basics
for Natura &Co, with a renewed focus on our core strength,
the relationship selling model, and the evolution towards
omnichannel capabilities. With a simplified capital structure and
a commitment to profitability, we aim to protect margins and
achieve sustainable sales growth.
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In Latin America, under the leadership of João Paulo Ferreira, our
aim is to continue the integration of Natura and Avon’s operations.
We’re focused on capturing synergies and aligning the brands to
foster future growth. This will be driven by product innovation and
the diversification of shopping experiences and occasions, facilitated
by enhanced digitalization of Direct Selling and omnichannel
integration. Avon International will continue to optimize its
operations and reduce costs, while focusing on key geographies to
return to a growth path. Gratitude is expressed to Angela Cretu for
her leadership, and a warm welcome is extended to Kristof Neirynck
as the new CEO of Avon International.
Looking ahead, we recognize the changing landscape of business
accountability and the continued importance of addressing social
and environmental issues. As we approach COP-30 in Belém, Brazil,
in 2025, we are committed to embracing partnerships to unlock the
potential of nature-based solutions. Collaboration and regeneration
will be pivotal in navigating the urgent challenges posed by climate
change.
Throughout this journey, we have remained committed to the
values upon which Natura &Co was built. Despite facing difficult
circumstances, maintaining transparency, engaging in social issues,
and prioritizing environmental impact have remained at the core of
our business. We take pride in our decision to refocus on our core
strengths while upholding our values, maintaining Natura &Co as a
business with the ESG agenda at its core.
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2023 Highlights
GRI 2-6
Financial highlights
ESG highlights
Natura &Co’s 2023 financial results reflect the benefits of a
strategy defined and implemented 18 months ago, to prioritize
1. Set science-based targets (SBTi) for emissions scopes 1, 2 and
3, as part of our Net Zero journey, focusing on an absolute
profitability and cash conversion versus revenue growth,
integrate the Natura and Avon brands in Latin America, and
divest non-core assets to deleverage and simplify its corporate
reduction of 42% by 2030
2. Guarantee equal pay between women and men
structure.
3. Living Wage for 100% of our people in over 53 countries*
Net Revenue BRL
R$ 26.7 billion
(+3.5% vs.2022 in constant
currency)
Gross margin
63.8%
(+410 bps. vs. 2022)
Adjusted EBITDA
BRL 2.7 billion
Net profit
R$ 3.0 billion
Net cash position
R$ 1.7 billion
Debt to EBITDA
ratio -0.79x
(vs. 3.49x end 2022)
4. 86.2% of recyclable, reusable and compostable packaging
5. We surpassed the mark of 10.1 thousand families positively
impacted by the Natura Amazônia program
6. Incorporation of the Regeneration concept into Natura &Co
Latin America’s business strategy
7. Regenerative pilot on six Natura &Co ingredients, based on
Union for Ethical BioTrade (UEBT) premises
8. IP&L: methodology applied to Natura found that, for every
R$1.00 of revenue, Natura generated R$2.70 of positive
socio-environmental impact
9. Natura &Co participation at COP28 and New York
Climate week
*The parameter includes the minimum income required for a person to meet basic needs
such as food, rent, health, education, among others. The calculation considers guaran-
teed remuneration and meal vouchers. All employees with a regular contract from the
base year 2023 are considered, except interns and young apprentices.
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Global footprint
GRI 2-1, 2-6
+ 1,000 stores
(owned and franchises)
22,000 employees
in more than 50 countries
6 million
Beauty Consultants and
Representatives
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2023 Financial
Performance
In 2023, Natura &Co achieved significant milestones, marking a
continuing to benefit from price increases, a richer product
transformative year driven by strategic initiatives. Key highlights
mix and marketing efforts. Adjusted EBITDA margin was
include the successful execution of our simplification strategy,
12.5% (up +250 bps YoY), benefiting from strong gross margin
demonstrated by the divestment of Aesop and The Body
improvement and meaningful YoY general and administrative
Shop, resulting in a further streamlined Holding structure and
expenses reduction, but partially offset by a YoY increase in
enhanced autonomy within Business Units.
selling expenses.
Focusing on profitability and cash conversion, as announced
Wave 2 of Natura and Avon business combination process in
early in the year, yielded tangible results: gross margin netted out
Latin America initiatives progressed, with resilient performance
at 63.8% up +410 basis points (bps), whilst adjusted EBITDA* was
from the Natura brand in Brazil and a rebounding trend from
up 31.7%. This strengthened our balance sheet, and we are now
Avon amid ongoing operational enhancements. Improvements
positioned in a net cash position, which marks a shift towards
in service levels in Peru and Colombia facilitated a smoother
positive cash flow for the 2023 fiscal year (FY23). Consolidated
integration of Natura and Avon in Chile, completed early in 2024.
net revenue was BRL 26.737 billion, achieved thanks to a solid
performance at the Natura brand, and partially offset by the
At Avon International, revenue was down 4.4% YoY in CC,
expected reduction at Avon Latin America and mid-single digit
primarily impacted by the Home & Style category, while Beauty
decline at Avon International.
showed a stable performance. Despite the decline, profitability
Looking to Natura &Co Latin America, net revenue was up 6.4%
in constant currency (CC), (down 7.2% in BRL), driven by healthy
growth at the Natura brand in Brazil, and partially offset by the
Home & Style category and by Avon decline across the region.
Gross margin was 63.8%, up +410 bps year-over-year (YoY),
*The financial and operational information listed in this report can be found in
the Company’s Earnings Release and, unless indicated otherwise, is presented
in nominal Brazilian reais, following the criteria of the International Financial
Reporting Standards (IFRS). This information should be read in conjunction with
the Company’s financial reports for the year ending on December 31, 2023, filed
with the Brazilian Securities and Exchange Commission (CVM).
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exhibited an important evolution with adjusted EBITDA margin
reaching 7.6%, up +330 bps YoY. Gross margin was 63.6%, up
+380 bps YoY, its evolution being driven by price increases and
favorable product mix.
Avon International continues to make good progress with its
digital strategy as the use of digital tools reached 34.3% of total
reps. Digital sales penetration increased by 2.2 percentage
points YoY to 8.3% of total revenue.
Looking ahead, Natura &Co remains focused on further
simplification, as evidenced by the delisting of its ADR from
the New York Stock Exchange – NYSE and the evaluation of
the potential separation of Natura and Avon. While challenges
persist, particularly the volatility in Avon’s revenue performance
in Latin America, we are poised to continue driving profitability
and cash conversion enhancements, building upon the
momentum of 2023.
As we embark on 2024, our commitment to delivering
sustainable growth and value creation remains steadfast,
guided by our dedication to operational excellence and
strategic foresight.
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Awards and
recognitions
Natura &Co has been certified as a B Corp since 2020. B
Corps meet the highest standards of verification of social and
environmental performance, public transparency and legal
responsibility by reconciling profit and purpose
Pro-Ethics seal awarded to Natura Cosméticos for the fifth
consecutive year
For CDP Climate, Natura Cosméticos maintained an A- score,
and Avon International achieved a B score for its first disclosure
in five years. Natura was also highlighted in CDP’s Supplier
Engagement Index (SER) for its work with the value chain.
Natura &Co are part of ISE for the 18th consecutive year
(considering participations prior to 2019 by Natura
Cosméticos S.A.)
Since ICO2 was created in 2010, Natura is part of this index
Globescan Top Sustainability Leaders – ranked #4
For more information on the awards and recognitions received by our
business units, please refer to the business units sections.
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Natura Perfumery House
Cajamar, SP - Brazil
Who we are
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Natura &Co is a purpose-driven group
uniting Natura and Avon, engaging
customers through 6 million dedicated
Beauty Consultants and Representatives,
more than 1000 own stores and franchises,
and 22,000 employees.
We believe in promoting real positive
economic, social, and environmental impact.
We believe that the world does not need
another big company. The world needs
symbols of change capable of blazing new
trails and inspiring others to follow.
We believe in the power of cooperation,
co-creation, and collaboration for a better
way of living and doing business.
We are Natura &Co.
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Our purpose
To nurture beauty and
relationships for a better
way of living and doing
business.
Our aspiration
We will dare to innovate
to promote positive
economic, social, and
environmental impact.
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Financial
•
Social
•
•
•
•
•
Our
Business Model
Capitals accessed
Natural
•
Natural resources (energy, water and biodiversity actives)
Shareholder and investor funds to provide support for
the execution of strategy
Credit and financing
US$ 1 billion raised with Sustainability-Linked Bond
Relationships oriented to value creation with our Beauty
Consultants
Partnership with social biodiversity supplier communities
and other service and raw material suppliers
Connection with the consumers of our brands
Manufactured
•
•
Product manufacturing and distribution centers
Physical stores, e-commerce operations and social
selling
Human
• Our 14,500 person strong work force
•
•
•
Beauty Consultants
Social-biodiversity supplier communities
Attributes and values in our organizational culture
Intellectual
• Open innovation ecosystem
•
•
Patents and new products
Traditional knowledge and knowledge generated in our
relations with social biodiversity supplier communities
Outputs:
Our deliveries &
solutions
Beauty and well-being
products in diverse categories
Business networks for
Beauty Consultants
Multichannel
commercial model
Business Units
Natura &Co Latin America
Avon International
Commitment to Life
Address the climate crisis
and protect the Amazon
Defend human rights
and be human-kind
Embrace circularity and
regeneration
Our aspiration: We will
dare to innovate to promote
positive economic, social
and environmental.
Outcomes: Value
generated and impacts
Society and the Environment
We seek to promote sustainability with an agenda
that prioritizes climate transition, protecting the
Amazon and a circular and regenerative economy.
We act in defense of human rights, education and
causes related to women and girls.
Investors
Financial return linked with business results.
End consumers
Omnichannel strategies for unique shopping
experiences, in accordance with each
consumer’s preference.
Employees we work for the well-being of
our employees, eliminating salary differences by
gender, adopting a living wage in all our labor
relations and working for diversity, with more than
50% women occupying leadership positions.
Beauty Consultants
We foster a powerful ecosystem that supports
enterprise and income generation and promotes
financial independence, improving quality of life for
women.
Supplier and relationship communities
We support income generation by means
of fair trade with cooperatives and small
producers, promoting conservation and
local development.
Suppliers
We foster the social bioeconomy with our
supply chain, focused on human rights,
innovation and traceability to create social
and environmental value.
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Our Strategy
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A new cycle for
Natura &Co
Despite navigating through a dynamic
economic and political landscape, we
have consistently executed our strategy,
safeguarding margins, streamlining
operations, enhancing our capital
structure, and prioritizing transformative
initiatives. Today, the results speak for
themselves, showing we’re on the
right track.
Strategic
pillars
In mid-2022, in a bold strategic move, we shifted our efforts to
prioritize margins rather than top-line growth, along with cash
flow conversion and generation. The discipline and consistency
in which the businesses followed this new path led to the
protection and, ultimately, the expansion of margins. To reach
this goal, we anchored our business in the following pillars,
which continued to sustain us throughout 2023:
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Natura´s factory
Cajamar, SP - Brazil
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
• Operational and commercial autonomy for the Business
Units to decide on the best way to execute the strategy
within their markets and according to each brand’s value
proposition. As expected, Natura &Co Latin America
and Avon International saw continued improvement in
profitability in adjusted base, driven by the gross margin
expansion.
•
Simplification of the Holding’s structure and focus
on our strengths, with several projects and initiatives
reducing their scope to corporate functions and policies
only, with considerably diminished involvement in the
daily commercial operations of the Business Units. This
decision reduced corporate expenses by 42% vs. 2021 (or
18% vs. 2022) and radically improved our ways of working
to make more agile and assertive decisions. Moreover, the
simplification process included the divestment of Aesop and
The Body Shop, which unlocked significant value and gave
us a strengthened balance sheet.
•
Improvement of our capital structure resulting from
the pre-payment of 60% of our debts using part of the
proceeds from the sale of Aesop. With careful and conscious
management, we moved from net debt in 2022 to net cash
position by the year-end 2023. Furthermore, not only did
the balance sheet improve, but the cash flow to the firm
also moved to a positive territory in 2023. Looking forward,
2023 Areas of Focus
Natura &Co Holding
Streamlined execution of our business simplification
strategy, enabling a concentrated focus on key regions
and our core business model.
Optimized capital structure leading to improved cash
flow conversion, reinforcing financial resilience.
Commitment to a triple-bottom-line agenda,
prioritizing people, planet, and profits in our approach
to business operations.
Natura &Co
Latin America
• Commercial
and operational
integration rollout
• Natura investing in
marketing and R&D
• Avon gaining
efficiency and
optimizing its portfolio
Avon
International
• Conclusion of
•
•
transformational
projects in R&D and IT
systems
Stabilization of the
new commercial
model
Build momentum with
brand rejuvenation
and omnichannel
opportunities
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we continue to expect improvements in our cash flow,
combined with a solid balance position pointing to further
encouraging prospects as we deliver on critical projects.
• Projects to accelerate value creation were in full force, with
the crucial integration of Natura and Avon’s commercial and
operational activities in Latin America reaching the Second
Wave in 2023, already with positive results. Meanwhile,
Avon International continues its focus on its transformation
plan, which radically reset its fundamentals in areas such
as product portfolio and commercial model, alongside a
simplified business and operational footprint.
As we continue to implement our strategy, in 2024 and beyond,
we expect that gradual revenue growth will begin to play
a more relevant role, along with the expansion of margins,
from the materialization of projects that will unlock value and
enable cash generation. We will continue to focus efforts on
simplifying the business and further improving our capital
structure.
When looking at our commitments to ESG, we are reigniting
our sustainability strategy, which continues to be core to our
business, by regularly engaging with the Board of Directors on
this crucial topic.
To gain detailed insights into our sustainability
To gain detailed insights into our sustainability
governance and its integration as a core driver
governance and its integration as a core driver
in all our initiatives, please click here..
in all our initiatives, please click
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Our people
Executing this strategy with discipline demanded substantial
Significant strides were made in implementing our succession
effort from our team, which admirably rose to the occasion
plans, appointing key roles through internal recruitment rather
and implemented the plan. Following a reorganization of the
than external hires. Notably, Kristof Neirynck, Avon’s Chief
business in mid-2022 that resized the Natura &Co Holding
Marketing Officer and Managing Director for Western Europe,
corporate team to half its previous scale, 2023 focused on
assumed the position of CEO of Avon International from 2024,
stabilizing the new organization. Embracing the concept of a
and Mercedes Stinco was appointed as the new Global Head of
Holding over a Group, we granted greater autonomy to Business
Risk Management and Internal Controls for Natura &Co. Natura
Units, offering support in policies and standards for Finance,
&Co Latin America went through an organizational redesign in
Legal, Sustainability, and Human Resources. Internal Audit and
line with structural changes to re-establish the foundations for
Corporate Governance are overseen by the Board of Directors
the future growth of its businesses.
with the support of the Officers.
Despite facing the challenges which any reorganization
decent salary to all Natura &Co employees. This commitment
entails, our Holding´s annual employee engagement survey
goes beyond the notion of a minimum wage, encompassing a
demonstrated a positive score, marking an 11-point improvement
comprehensive understanding of a dignified life. Natura &Co also
from the previous year. This is attributed to enhancements in
maintained its commitment to reducing the wage gap between
our work methodologies, fostering greater interconnectedness
men and women.
We are also proud to have achieved our goal of providing a
among teams and a heightened sense of community and
participation. We strove to set clear expectations, ensuring as
much transparency as possible. Once stabilized, these principles
will be formalized in our corporate culture project, anticipated to
be addressed in 2024.
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Compensation follows strategy
GRI 2-19, 2-20, 2-21
In 2022, we realigned our global managers’ compensation to
and also links to sustainability initiatives, such as reducing
harmonize with our strategy of simplification and consciously
greenhouse gas emissions and increasing the use of
prioritizing profitability and cash flow generation rather
post-consumer recycled plastic in product packaging.
than top line growth. To align with this, in 2023, there was a
reduction in the Board of Directors’ members from 13 to 9 and
At Natura &Co, the process of developing compensation
a pivotal shift from a joint Executive Chairman of the Board
policies involves rigorous steps to ensure fairness and alignment
and Group CEO to a singular Chief Executive Officer (CEO).
with organizational objectives. Beginning with market analysis
The realignment was ratified by our shareholders during
and objective setting, a dedicated compensation committee
the General Annual Meeting when also was confirmed our
oversees the creation of salary and benefits packages, guided
compensation spend for May 2023 to April 2024. This strategic
by transparent performance evaluations and regular reviews to
adjustment is another step to further improve our corporate
maintain competitiveness.
structure and ensures data presentation in accordance with
established practices among global listed companies.
Oversight by the General Shareholders’ Meeting ensures
stakeholder input is considered, while independent consultants
Our compensation strategy for managers and leaderships
provide impartial assessments. Stakeholders, including
is rooted in Natura &Co’s overarching mission, connecting
administrative staff and the Board of Directors, are consulted
“people, planet, and profit.” It considers market-specific
to ensure policies meet their expectations. This structured
competitive standards, regulatory requirements, business
approach fosters trust and accountability, enhancing
strategy, and alignment with shareholders’ interests. The
engagement and alignment across the organization.
compensation structure encompasses fixed and variable
components, with the latter comprising short and long-term
incentives. The variable segment, designed to be predominant,
is contingent upon meeting threshold performance levels
For further details on our compensation
policies for leadership, senior management,
and other employees, please visit the
Investor Relations (IR)section of the Natura &Co
25
Board of Directors
From left to right: Georgia Melenikiotou, Gilberto
Mifano, Pedro Passos, Duda Kertész, Luiz Seabra,
Carla Schmitzberger, Guilherme Leal, Bruno Rocha
and Andrew McMaster Jr
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Corporate Governance
Structure and practices
GRI 2-9, 2-11, 2-14, 2-17
Timely and accurate decision-making
In a transformative year for Natura &Co,
our corporate governance played a
decisive role in making strategic and
necessary decisions that bolstered the
foundation for our future growth.
Wyllie Don Cornwell, Nancy Killefer, and Fábio Colletti Barbosa
resigned, and Bruno de Araújo Lima Rocha and Maria Eduarda
Mascarenhas Kertész were elected at the General Shareholders’
Meeting. For more details on the Board of Directors composition,
please refer to our Investor Relations website.
The current composition of the Board of Directors continues to
comprise three Co-Chairmen of the Board, who are also
Co-Founders of Natura Cosméticos and part of the controlling
At the 2023 Annual General Meeting, shareholders approved
group, and signatories of the shareholder’s agreement. Pursuant
significant structural changes proposed by the Company’s
to the Company’s bylaws, one of the Co-Chairmen presides over
management culminating, among others, in the reduction of the
the Board meetings. Currently, Guilherme Pereira Leal plays this
Board of Directors, the disappearance of the positions of Executive
role. The remaining six Board members are independent, far
Chairman of the Board of Directors and Group CEO and the
exceeding the independence percentage established by Brazilian
creation of the position of Chief Executive Officer. These necessary
CVM and B3’s Novo Mercado rules that the Company must follow.
adjustments were part of the corporate governance restructuring
The Board also has one-third of women in its composition, and
process focused on the shareholders’ expectations of a leaner
two foreign members. We follow the recommendations of the
structure. Then Directors Ian Martin Bickley, Jessica DiLullo Herrin,
Brazilian Code of Corporate Governance, of the Brazilian Institute
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
of Corporate Governance (IBGC). Furthermore, we operate in line
with the requirements of the New York Stock Exchange (NYSE),
in which, until February 2024, our American Depositary Receipts
(ADRs) were listed.
Board
composition
In 2023, the average tenure for all Board members stood at
The Board of Directors dedicated a significant amount of time
2.5 years, accounting for the duration of their service within
discussing the sale of Aesop and The Body Shop, necessitating
the Natura &Co Holding since its inception in 2019. For details
some extraordinary meetings. Additionally, in 2023, the Board
regarding the complete Board composition, consult the minutes
addressed various other crucial topics such as succession
from the Annual General Meeting (AGM) of 2022 and 2023.
planning, talent acquisition and retention, diversity and inclusion
initiatives, cash flow and margin management, group strategy,
The primary role of the Board of Directors is multifaceted.
risk assessment, and sustainability efforts. To further bolster
It involves analyzing the effectiveness of the organization’s
our already far-reaching and bold sustainability goals, such as
processes concerning economic, social, and environmental
those set in our Commitment to Life, the Board established the
impacts, overseeing the implementation of processes,
Sustainability Committee as the fifth supported committee,
assessing the results, identifying any gaps or opportunities for
holding quarterly meetings.
improvement, and making strategic decisions. Ultimately, the
Board bears the responsibility for ensuring the organization
operates ethically, responsibly, and in alignment with its goals and
values. This analysis is conducted during strategic planning cycles
and at specific events.
The Board of Directors establishes the Company’s values, mission,
and culture, guidelines related to sustainable development
and communicates them through policies and corporate
Please refer to our Board Skills Matrix and the
Investor Relations website for more details on
composition, biographies, areas of expertise
and demographic details.
documents. The Board ensures alignment with the approved
strategy, considering the interests and purpose of the company,
shareholders, and stakeholders. For this, the Board of Directors
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
considers, among others, the short and long-term interests of
including the establishment of the Sustainability Committee,
the company and its shareholders, as well as the economic,
which was created to serve as an additional tool to better address
social, environmental, and legal effects on employees, suppliers,
Environmental, Social, and Governance (ESG) issues, supporting
partners, customers, other creditors, as well as the communities
the Board in these subjects and providing it with periodic reports.
in which the Company operates locally and globally.
In developing and updating guidelines related to sustainable
development the Board of Directors is responsible for establishing
guidelines, providing strategic supervision, and approving
policies and objectives. The senior executives have responsibilities
that include strategic leadership, strategy development,
implementation and supervision, and external communication.
The Board of Directors reviews and approves the information
reported in the organization’s reports. Additionally, they analyze
and approve the organization’s material issues. The preparation
of the Integrated Report is monitored by the Board’s Co-
Chairs, who ensure that the document adequately reflects the
Company’s purpose, culture, and other contents. Whilst this role
is not mandated by our bylaws, it is considered relevant by both
the Co-Chairs and the Board of Directors. The analysis focuses on
the messages of the CEO and the Founders, while the executive
teams are responsible for preparing the technical topics and
ensuring the quality of the information disclosed to the market.
To further expand the theme of sustainable development within
the Board of Directors, some measures have been adopted,
For more information on the
qualifications and responsibilities of our
governance bodies please click here.
For detailed information
regarding the selection, compensation,
and duties of Board members and
executives within the Holding, please refer
to the Corporate Governance Report click here.
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
2023
in review
In 2023, the Board of Directors held six regular and four
regarding both projects were a recurring agenda item in
extraordinary meetings with 100% attendance of their members
most meetings, with particular emphasis during
and other invited executives of the Company. During these
extraordinary sessions.
meetings, the Board reviewed matters within its purview as
mandated by law or outlined in our bylaws. This encompassed
The Board of Directors also counts on the critical support of
a wide array of topics including quarterly performance results,
five advisory committees, as described below. The annual
the formulation of management compensation packages,
self-assessment of the Board of Directors and committees results
annual assessments, risk matrix evaluations, strategic planning
in continuous improvement efforts, with its findings
discussions, and budget deliberations. As a standard practice, the
to be addressed in 2024.
Board of Directors conducted executive sessions exclusively for
its members during each meeting, ensuring candid and focused
dialogue on pertinent issues.
Furthermore, the Board of Directors undertook a comprehensive
evaluation of the challenging external landscape, considering
our financial position and our capacity for business expansion.
This analysis ultimately led to the strategic decision to divest two
of our four operations, namely Aesop and The Body Shop. The
process of arriving at these decisions involved extensive analysis
by the executive teams and rigorous and timely deliberations by
the Board of Directors, as disclosed to the market. Discussions
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Governance structure
Natura &Co
Our corporate governance structure
is structured as detailed below
General Shareholder Meeting
Fiscal Council
Board of Directors
Board of Officers
Sustainability
Committee
Organizational
Development and
People Committee
Strategy
Committee
Corporate
Governance
Committee
Audit, Risk
Management and
Finance Committee
CEO Natura &Co
Internal Audit
CEO Natura &Co
CEO Avon
Latin América
International
Executive
Team
Executive
Team
31
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The five active committees and their main deliverables in 2023 were:
Committee
Meetings
Atten-
dance
Topics Discussed
Fiscal Council
Audit, Risk
Management
and Finance
Committee
Organization
and People
Committee*
Strategy
Committee*
Corporate
Governance
Committee
Sustainability
Committee
8 ordinary
4 extraordinary
When consider-
ing the thematic
subcommittees,
all linked to the
Audit Committee,
the number of
meetings in 2023
totaled 17 addition-
al meetings
100%
5 ordinary
1 extraordinary
100%
In addition to the topics
commonly covered through the
subcommittees (Finance, Tax and
Legal, Internal Audit, and Information
Security), it also participated in the
sale process of Aesop and
The Body Shop.
• Short and long-term incentive plans
• Succession plans
• Talent development
• Reward strategy
• ADR delisting from NYSE
1 ordinary
3 extraordinary
100%
• Portfolio
• Business strategy review
• Organization transition
• Budget
5 ordinary
100%
• Corporate governance structure
• Management proposal for the
Annual Shareholders Meeting
• Committees’ composition
• Board compensation
• Corporate Governance Report
review
• Board and Governance annual
assessment
• Preparation of the committee rules
and dynamics
4 ordinary
100%
• Support for the reorganization of the
Sustainability area
• Commitment to Life target review
In addition, for the second year in a row, the Fiscal Council was
established during the Annual Shareholders Meeting held on 26
April 2023. The one-year mandate of the three Council members
was renewed, with two members appointed by a majority of the
shareholders, and the third member by minority shareholders.
The Fiscal Council convened eight times during the 2023
mandate, contemplating four regular and four extraordinary
meetings.
Under Brazilian legislation, shareholders representing more
than 2% of the company’s capital have the prerogative of
requesting the installation of a Fiscal Council, an optional entity
distinct and independent from both the Board of Directors and
the Company’s executive management. The Fiscal Council
represents shareholders’ interests within the Company, tasked
with overseeing management actions and ensuring compliance
with their legal and statutory obligations, especially the quarterly
financial statements. One of its primary focuses is to guarantee
the quality of the company’s quarterly and annual financial
reports.
*The composition of these committees changed in May 2023 following the resignation
and appointment of members of the Board of Directors
For further insights into our Corporate
Governance framework and committee
composition click here.
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Commitment to
best practices
The Company has undergone a substantial evolution
in its corporate governance system over the
years, demonstrating its steadfast commitment to
Capital markets and
shareholders
Natura &Co Holding operates as a stock corporation under the
Brazilian Corporation Law. Our shares are publicly traded on the
“Novo Mercado” listing segment of the B3 exchange, identified
by the ticker symbol “NTCO3”. As of December 31st, 2023, the
company’s market capitalization stood at BRL 23.4 billion, with
1,386,848,066 common shares outstanding. The free float
implementing best practices in corporate governance.
accounted for 61,02% of the total shares, while the remaining
Presently, it adheres to 94% of the recommended
practices outlined in the Brazilian Code of Corporate
Governance. In 2023, the Company dedicated significant
efforts to embrace the new corporate framework and
ensure alignment with all code principles previously
adhered to. The complete Corporate Governance Report
is available here.
38.45% were held by controlling shareholders, 0.09% by the Board
of Directors and statutory Directors, and 0.45% by our treasury.
In addition to our listing on the B3, we traded American Depositary
Shares (ADSs) on the New York Stock Exchange, represented by
the ticker symbol “NTCO”. On January 18th, 2024, we announced
to our shareholders and the market our Board of Directors’
decision to voluntarily delist our ASDs from the NYSE. The delisting
occurred on February 9, 2024. This strategic move aligns with our
long-term operational simplification objectives. We will maintain
our registration under the U.S. Securities Exchange Act of 1934 and
uphold our reporting obligations following the delisting of our
ADSs at the NYSE.
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Ethics and
compliance
Fostering positive impact
The resilience of our Ethics & Compliance
programs proved invaluable during the
significant changes which took place
at the Holding in 2023. During this time,
we steadfastly upheld our commitment
to the highest ethical standards with a
robust training and communication plan
and the introduction of a comprehensive
consolidated new Code of Conduct.
In addition to navigating the anticipated legal complexities
surrounding the divestment of two companies, we remained
committed to executing the strategy outlined in mid-2022.
The implementation of various controls at Emana Pay, our
financial services platform, and monitoring activities across
other countries further strengthened our commitment to
maintaining program effectiveness. As a result, alongside
upholding a streamlined group-level hub to ensure uniformity
Natura´s factory
Cajamar, SP - Brazil
34
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
in policy enforcement and risk management, we have now
the publication of material information and delineates the
established dedicated Legal and Ethics & Compliance teams
expected conduct of relevant parties, ensuring adherence to
tailored to the needs of Natura &Co Latin America and Avon
laws and regulations prohibiting insider trading practices.
International, granting them greater operational autonomy.
Moreover, we have begun implementing compliance tools,
The Audit Committee of the Board of Directors diligently
coupled with comprehensive training and communication
oversees the Ethics & Compliance program at Natura &Co,
strategies, including successful compliance weeks in Latin
which has once again been recognized by The Ethisphere
America, to support our sustainability efforts, addressing
Institute as the World’s Most Ethical Company. This marks
various risk factors such as human rights violations in our
the second time our consolidated program has received this
supply chain, gender or ethnicity-based harassment or
accolade from Ethisphere, building on the 11 previous wins
discrimination complaints, and compliance with regulations
by Natura Cosméticos. Furthermore, Natura Cosméticos has
governing community engagement and partnerships.
been honored for the fifth consecutive year with the Pro-Ethics
Seal, bestowed by the Brazilian federal government’s CGU
Central to this approach is the newly consolidated Natura &Co
(Controladoria Geral da União).
Global Code of Conduct, which serves as the cornerstone of
As part of our ongoing simplification initiative, we continually
Introduced in 2023, this document integrates our core
review and refine our policies and procedures, striving to make
values and beliefs with our operational policies, procedures,
them concise and easily understandable. These documents
and Commitment to Life goals, structured around four
cover topics such as privacy and data protection, conflicts of
foundational pillars, each reflecting a fundamental aspect of
our business conduct expectations across our organization.
interest, trade sanctions, transactions with related parties
our corporate ethos:
anti-trust, anti-corruption and bribery. They can be found here.
In 2023, we introduced an additional document, focusing on
policies, our commitment to fostering diversity, equity, and
Information Disclosure and Securities Trading in compliance
inclusion, and our unwavering stance against harassment,
1. People: this pillar outlines our robust health and safety
with the regulations set forth by CVM, the Brazilian Stock
violence, and discrimination.
Exchange Commission. This policy outlines procedures for
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
2. Communities: here, we detail how our values translate into
Compliance training sessions, attended by management and
concrete policies and procedures concerning our Consultants
above. These sessions, held annually across various countries,
and Representatives, Distributors and Franchisees, charitable
facilitate in-depth discussions on real compliance scenarios and
and political engagements, protection of human rights,
foster a culture of ethical conduct.
and the cultivation of safety and transparency within our
supply chain.
Furthermore, we prioritize executive onboarding and
compliance training for new hires, ensuring alignment with
3. Operating Responsibly: this pillar underscores our
our ethical standards from the outset. All Directors and officers
dedication to upholding the highest standards of governance
undergo rigorous screening and background checks upon
and encompasses policies related to information sharing and
recruitment, with further reviews conducted at each re-election
data security, managing conflicts of interest, and compliance
to maintain shareholder approval.
with anti-corruption and trade regulations.
4. Planet: in our pursuit of environmental stewardship, this
Another notable initiative is the Workplace Behavior Training
section shows our commitment to environmental leadership
program, which saw over 2,300 participants in Brazil in 2023,
and outlines the policies that guide our colleagues and
spanning from Directors to frontline employees in Operations
partners, particularly those engaged in critical supply chains,
and Logistics. Meanwhile, 267 individuals involved with our
towards minimizing our collective environmental footprint.
microcredit and financial inclusion platform, Emana Pay,
completed the Anti-Money Laundering e-learning training,
The Natura &Co Global Code of Conduct is readily accessible
representing 94.38% of the target audience. For Avon
on all Business Units’ intranet platforms and is available in
International, we had 236 associates training on General
23 different languages. All associates (including our Board of
Compliance topics, in various countries.
Directors) within the company are mandated to complete annual
e-learning sessions on the code. Notably, in 2023, 99.29% of the
targeted users at Avon International and 96.95% at Natura &Co
Latin America successfully completed the certification process.
Additionally, the code is a focal point of our regular General
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Speak Up Culture
GRI 2-16, 2-25, 2-26, 205-1, 406-1
We are committed to cultivating a culture where individuals
department), while issues involving Beauty Consultants or
feel empowered to raise concerns or seek clarification on
consumers are addressed through their respective channels.
ethics and compliance matters, as exemplified by our Speak Up
The efficacy of our work is assessed through an annual survey,
Culture initiative. Under the safeguards provided by our Global
aimed at gauging employees’ perceptions of the Ethics and
Whistleblower Policy, we encourage everyone to engage with
Compliance Program, as well as overall ethics and integrity
their line manager or reach out to designated human resources,
within the company.
legal, or ethics and compliance partners regarding potential
breaches of the Code of Conduct, encompassing internal
In 2023, the Ethics Line received 1,043 calls, each assigned
policies, laws, or regulations pertinent to Natura &Co. For those
to experienced professionals who conducted investigations
who prefer anonymity, reports can be submitted online or via
in accordance with established protocols. These call were
toll-free phone, 24/7, through the independent Ethics Line Help
comprised of 802 reports and 241 conflict of interest disclosure
line, available in 23 languages.
forms. Conversely, violations of the Code were addressed by
Investigations into reports involving potential violations of the
Ethics and Compliance, Legal and Human Resources), with
Code of Conduct are conducted by the Ethics and Compliance
actions tailored according to the risk level for the company
department, in direct consultation with specialized areas
and local laws. Disciplinary measures, including termination
whenever necessary. We unequivocally condemn any form of
of employment, may be implemented for employees found in
retaliation against those who voice complaints and concerns.
breach of the Code.
an internal management remediation committee (formed by
Complaints concerning third parties and suppliers are routed
to the appropriate legal departments (except if involving our
employees or related to potential human rights violations, in
which case they are overseen by the Ethics and Compliance
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Conflicts of Interest
GRI 2-15, 2-23
Training
GRI 2-24, 205-2
To prevent or mitigate conflicts of interest, the company
We communicate and offer training on our policies and procedures.
implements and publishes a series of measures, including
In addition to the mandatory annual training on our Code of
clear policy and procedure implementation. Natura &Co also
Conduct, which all employees, including the Board of Directors, are
promotes education and training on these policies, and has
required to complete, we conducted specific training in 2023 for
established committees to analyze cases involving Transactions
various segments of our workforce. This included specialized training
with Related Parties. This ensures transparent record-keeping
on Respect in the Workplace for operational staff (2,300 people
of all disclosures of possible conflicts of interest (real or
trained) and Money Laundering for Emana Pay employees (267
apparent), isolation of involved parties, regular policy reviews,
people trained).
and fosters a culture of legal compliance, procedures, and,
above all, the company’s values.
Following the implementation of a new supplier registration process
The company updated its Conflict of Interest Policy in
Participant selection considered areas with suppliers under due
December 2022, internally disseminating it in January 2023
diligence, risk countries by Transparency International, and
in 2022, specific training was conducted via webinars in Q1 2023.
across various languages on business unit intranets for
employee hierarchies.
employee accessibility. The update included alerts to leaders
about the new version and incorporating a specific conflict
Additionally, 523 managers and Directors were trained on ethics,
of interest module in the annual Code of Conduct training.
compliance, anti-corruption, and government interaction.
Employees are encouraged to report conflicts via an online
form, with evaluation handled by the Ethics & Compliance
Natura’s role as Co-Chair of the ICC’s Commission on Integrity and
team, ensuring transparency and anonymity.
Corporate Responsibility was also given prominence, promoting
business ethics and organizing events on corruption, transparency,
compliance, and governance. Natura also acts as President of the
Ethics Committee of the WFDSA (World Federation of Direct Selling).
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Monitoring markets
and suppliers
GRI 205-1
Political Contribution
reviews GRI 415-1
Annually, we conduct assessments to evaluate ethics and compliance
Natura &Co does not make contributions to campaigns, parties
risks across operating markets, focusing on the efficiency of
and/ or candidates during or outside electoral processes, in line
our antitrust, anticorruption, trade sanctions, and data privacy
with internal policy and no political contributions were made in
policies. These assessments involve interviews, questionnaires, and
2023. The rule is valid for all operations. The Natura &Co Code
consideration of indicators such as fears of retaliation, high-risk
of Conduct is explicit about this rule, adding that the company
expenditure, global investigation data, and Corruption Perception
does not contribute directly or indirectly to political parties,
Index rankings from Transparency International. In 2023, we
movements, committees, political organizations or unions,
evaluated 16 countries in Latin America and in 36 other markets for
their representatives, or candidates, except when required by
Avon International.
applicable laws.
Our suppliers are expected to uphold transparency and integrity,
adhering to our Supplier Code of Conduct, Conflict Materials
Position Statement, Critical Material Policies, Privacy Statement, and
Responsible Procurement Guidelines. Through a meticulous due
diligence process, suppliers undergo assessment using our integrity
and reputation protocols upon selection, and every two years
thereafter. In 2023, Natura &Co reviewed 510 suppliers and
four resellers.
Following onboarding, suppliers receive ongoing support and
training, with Avon International providing anti-corruption training
to high-risk suppliers and Natura maintaining a committee to
oversee next steps for flagged suppliers.
Charitable contribution
reviews
In 2023, we reviewed 453 proposed donations
to causes and charitable groups selected by our
business units for their shared values, to ensure
they uphold our ethical and human
rights standards.
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Enterprise
Risk Management
At Natura &Co, we know the importance
of implementing an effective Enterprise
Risk Management system. This means
identifying risks that could significantly
impact our company’s value or
reputation, while also recognizing
opportunities for growth.
COSO (Committee of Sponsoring Organizations of the Treadway
Commission), the Brazilian Institute of Corporate Governance
(IBGC), and ISO 31000.
Internally, we have a Global Risk Management Policy (see
Risk Management Policy for further details) and a Business
Risk Management Procedure for each business unit. These
methodologies do not represent a static or immutable document,
so we continually update and adapt them.
One of our main challenges has been aligning risk management
In 2023, we moved forward with a comprehensive global manual
practices with our commitment to generating positive economic,
called Risk Fundamentals. This manual provides a detailed
social, and environmental results.
overview of the methodology and ensures transparency and
alignment at all levels of the organization’s governance.
Risk management guidelines and methodology
We align with respected institutions for risk management
In Latin America, we updated our Enterprise Risk Management
guidance, integrating their insights while staying true to our
Procedure, emphasizing adjustments to increase the traceability
values. Our adaptation process ensures synchronicity between
of risks originating in the operating units, which can have material
our strategies, societal progress, and organizational ethos. Natura
impacts on the organization, and to generate greater robustness
& Co’s Enterprise Risk Management applies the guidelines of
in our risk management.
40
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Our risk management structure follows the Three Line Model
Audit, who reports directly to the Audit, Risk Management, and
proposed by The Institute of Internal Auditors (IIA), which
Finance Committee.
organizations widely recognize. In the First Line, the business
areas, including subsidiaries and controlled companies, are
Responsibilities encompass more than just overseeing the
directly involved in risk decisions, the day-to-day execution
sufficiency of risk management processes and internal controls.
of risk management, and the implementation of business
They extend to assessing and monitoring our risk exposure,
strategies. The Second Line acts in a guiding role, offering
tracking management’s efforts, and ensuring senior
support to the business areas through functions such as Risk
management remains well-informed about the efficacy of
Management and Internal Control, Compliance, Regulatory,
risk management processes.
and Information Security. Its role is to provide tools and
guidelines so First Line managers can effectively manage risks
In addition, the Audit, Risk Management, and Finance Committee,
preventively. Finally, the Third Line, formed by Internal Audit,
a representative body of the Board of Directors, guides business
independently verifies the effectiveness of the organization’s
risk assessment, monitoring, and management. This Board defines
risk management, control, and governance model. It takes a
the organization’s risk management philosophy and provides
more investigative approach, identifying possible flaws or areas
incentives and organizational structures for appropriate risk
for improvement in the risk management system.
management. It comprises seven non-executive members with
To simplify and ensure seamless integration, Enterprise Risk
the Corporate Governance section on page 26).
Management focuses on identifying threats to organizational
performance and preventing value-destructive events from
Our risk assessment methodology evaluates two vectors
slipping through the cracks. This involves vigilant monitoring
relating to potential adverse events that could impact our
and implementation of necessary mitigating measures
organization: the magnitude of their impact (on the financial and
experience in enterprise risk management (more information in
and controls.
reputational outlook) and the probability of their occurrence. Risk
management and prioritization are linked to the residual exposure
These activities are overseen at the operational executive level
of these adverse events, i.e., after considering the controls or
by the Chief of Internal Controls, Risk Management, and Internal
actions implemented.
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Reporting of risks is contingent upon the level of exposure
of the business, as outlined below:
Level of Exposure to the Risk
Sharing and Monitoring Forum
4. Severe
3. High
2. Moderate
1. Low
Board of Directors, Audit, Risk Management and
Finance Committee, and Executive Leadership
Audit, Risk Management and Finance Committee,
Executive Leadership, and Vice-Presidencies
re-sponsible for the Business Units
Officers responsible for the Business Units
Officers responsible for the Business Units
Part of the artwork “Eussência”
by Nicole Tomazi at Natura´s plant in Cajamar,
Brazil; a “Garden of Bottles” that
reused 1,500 bottles of Natura fragrances
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Risks and
Risk Factors
Natura &Co assesses risks and their associated factors based on four
As a publicly traded company listed on the Brazilian Stock Exchange
principles. We do not accept risks that could compromise these
(B3) since 2004, we are subject to the Brazilian Securities and
principles:
Exchange Commission (CVM) regulations. Until 2023, we were
subject to the rules of the Securities and Exchange Commission
•
Sustainability: A perpetual commitment to sustainability.
(SEC) (as announced in the Material Fact of January 18, 2024), which
We adopt circularity and regeneration practices to address
requires the annual submission of the Reference Form (20F).
the climate crisis and protect the Amazon, aiming to reduce
greenhouse gas emissions, water consumption, pollution,
Both forms include a crucial section, Risk Factors, designed to
solid waste, deforestation, overconsumption, and our
compile information that provides a comprehensive and descriptive
environmental footprint.
understanding of the elements that may impact our company. This
practice not only promotes transparency but also safeguards the
• Human Rights: We are committed to continuously defending
interests of stakeholders by enabling a more informed and accurate
human rights and promoting gender equality, including ensuring
assessment of the organization’s situation. This report also includes a
fair and equitable remuneration, especially for our essential
section on internal controls, which presents the results of our control
network of relationships crucial to the success of our business.
environment, which is audited by independent external auditors.
• Growth: Maintaining, modernizing, revitalizing, and improving
Below, we highlight some of our organization’s leading risk factors
our brands is essential to expanding our consumer, suppliers, and
based on residual risk exposure. For a comprehensive summary of
consultants’ work.
our risk factors, please explore our Reference Form here.
• Compliance: Compliance with the Code of Conduct and regional
Climate change also poses a significant threat, giving rise to
and local laws and regulations in jurisdictions where the group
transition and physical risks that could adversely affect our
operates and conducts business.
operations. This prompts diligent monitoring in alignment with the
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Task Force on Climate-Related Financial Disclosures (see page 62 for
In addition, each Business Unit maintains a dedicated Cyber
further details).
1. Cyber Threats
Board overseen by a senior Business Information Security Officer.
These Boards are supported by a mature risk management
structure linked to the Enterprise Risk Management Framework.
Companies that use technology and virtual environments
intensively face various cybersecurity risks, such as attacks via
We have adopted a Global Cybersecurity Program, and over
third parties, malware infection, and unauthorized access to
the past two years, since implementing this global framework,
confidential data. These threats can result in business losses,
several initiatives have been undertaken, including the adoption
information theft, and reputation damage, demanding ongoing
of market-leading solutions, review and creation of new
evolution of techniques to prevent, detect, and respond quickly
processes, and structuring of teams with defined responsibilities
to attacks.
and clear operational models. These actions have enhanced our
security level in the control environment based on NIST CSF. In
Natura &Co adopts a series of mitigation measures overseen
2023, we updated our Information Security Policy and published
by The Chief Information Security Officer (CISO) as leader of the
new technical security standards.
Cyber Hub. During 2023, the team continued to provide strategic
direction, assurance, operational services, and improvements
We also completed updated mandatory training for all staff,
to all our business units. Our governance continued to progress,
including regular phishing testing. Our improvements in
with the CISO frequently reporting to the Board of Directors
cybersecurity maturity have been independently assessed using
directly or through the Cybersecurity Subcommittee, which
the National Institute of Standards & Technology (NIST) Cyber
reports to the Audit, Risk Management, and Finance Committee.
Security Framework.
The meetings are chaired by Andrew McMaster, an independent
In 2023, our advances in cyber maturity were once more
director and member of the Audit, Risk Management, and
propelled by strategic investments in new technologies and
Finance Committee, who has extensive experience in leading
processes. We highlight the Cyber Incident Exercise up to the
technology and organization improvement programs.
Board of Directors level to strengthen our capacity to respond to
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
the most critical incidents and test our Business Continuity Plans.
3. Macroeconomic and Geopolitical Conditions
In addition, new automation and integrations to the new identity
Uncertainties in macroeconomic and geopolitical conditions,
and access management platform guaranteed further efficiency
along with prolonged and accentuated inflationary pressures, an
in this process. The expanding the Security Operations Center
increase in unemployment, and a decrease in purchasing power,
and Vulnerability Management Service has reduced the number
can affect consumers’ demand for our products and impact our
of known vulnerabilities and the company’s overall security
sales and/or operational profitability.
stance. We have also enhanced protection in various other
technologies, allowing a safer and more trusted environment for
We believe that dealing for many years with market conditions
all the company’s operations.
involving economic and political instabilities has enabled us to
operate and develop our business successfully.
2. Tax Burden
Our main economic activities currently originate from Brazil,
We maintain vigilant oversight of the political and economic
where a complex tax system is undergoing changes; recently, the
landscape across all our countries, weighing the risks and
Brazilian tax reform was approved. The full impact of this reform
rewards associated with each location. This assessment remains
on our organization remains to be determined and depends on
connected to our commercial strategy, tailored to accommodate
the regulations being finalized. We diligently follow this process
each market’s unique characteristics. To bolster resilience,
to measure eventual increases in our business’ tax burden, always
we implement various measures to diversify our investments
envisioning fair taxation. The transition to the new Brazilian tax
and operations, minimizing vulnerability to adverse events
system will be gradual, with implementation expected between
in any particular market. We implement solid enterprise risk
2026 and 2030.
management practices, continually monitoring external events
We conduct thorough evaluations of the potential financial
impacts and devise strategic business measures to position the
4. Litigation
linked to the subject.
business accordingly, following the regulatory and legal contexts.
We are currently engaged in various legal proceedings in the
To ensure compliance with all tax obligations, we maintain a
geographies where we operate and may encounter additional
dedicated team of specialists who closely monitor and interpret
ones in the future. Companies operating in our market segment
new regulations and guarantee their implementation and
compliance.
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face litigation risks involving civil, administrative, environmental,
and the large-scale collection and processing of personal data.
labor and employment, taxation, commercial sanctions, and
These characteristics are common in business models such as
sanitary compliance. The high litigiousness, uncertainty, and
ours and can expose the organization to various risks, such as
volatility in the regulatory landscape in the countries where
breaches of personal data and sensitive information, as well as
we operate can affect favorable outcomes and our financial
potential misuse by malicious third parties.
standing due to possible adjustments in the provisions. We
diligently and continuously review and update these provisions to
Privacy and security function together at Natura &Co to
reflect judicial decisions, counting on the support and analyses of
demonstrate our commitment to the responsible collecting,
top-notch law firms to safeguard the company’s rights.
using, caring for, and protecting personal data under applicable
laws and our ethical values. Privacy and data protection are
We have legal expertise areas organized by subjects that, among
embedded as fundamental enablers to the future growth of our
other responsibilities, promote orientations about the detailed
business.
standards in regulations and specific and relevant laws to fulfill
their purpose. In addition, our legal and regulatory teams
We embarked on a unified Global Privacy and Data Protection
monitor and revise our practices to ensure, preventively, that we
Program in 2022, per the GDPR (General Data Protection
are aligned with the laws applicable to our organization.
Regulation) in the European Union. This program not only meets
Furthermore, we proactively conduct thorough root-cause
tools to demonstrate compliance effectively across the
analyses of significant legal disputes and implement action
company’s entire operations, including suppliers.
plans to mitigate risks and minimize liabilities. We use a casuistic
approach to cases, agreements policies, and mediation to avoid
The company’s Data Privacy function is led by our Chief Privacy
and diminish our litigiousness index.
Officer and Group Data Protection Officer, who is responsible
regulatory requirements but also incorporates measurement
• Data Privacy
for defining and managing our strategic approach to privacy,
which incorporates the principles of lawfulness, fairness and
The company’s operations are increasingly dependent on IT and
transparency, purpose limitation, data minimization and
data management systems, particularly with the advances of
accuracy, integrity, confidentiality and storage limitation,
digitalization, the growing adoption of artificial intelligence (AI),
and accountability to be embraced by the whole company.
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Additionally, Natura &Co’s Privacy Program, Policy, and Standard
benchmarked the highest score possible within its sub-category
in the Household and Personal Products sector in the S&P
Global Corporate Sustainability Assessment for 2023. A series
of initiatives are underway to support our strategic vision
alongside continuous monitoring of the regulatory environment,
particularly concerning legal frameworks and enforcement
trends related to privacy and artificial intelligence. Audit and
monitoring programs are in place to ensure we meet applicable
regulatory requirements, such as automated and manual tools,
third parties, and internal control functions, including internal
audit.
Additionally, climate change is a relevant threat, posing transition
and physical risks that could adversely affect our operations,
requiring diligent monitoring in line with the Task Force on
Climate-Related Financial Disclosures or TCFD (more details on
page 62).
For a full summary of our factors risk,
For a full summary of our factors risk,
please consult our reference form available here.
please consult our reference form available
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Advocacy
Engaging in system
system level change
In this decisive decade, as we grapple
with the challenges presented by threats
to nature, climate change, injustice and
inequality, we remain firmly committed
to the belief that people around the
world can unite and harness their
collective power as a force for good.
Recognizing the urgency of this moment
in history, we are focused on both
addressing sustainability within our own
business operations, and also actively
advocating for system-level change.
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Principles Underpinning our
Approach to Advocacy
Establishing
our Priorities
To help us use our power and our voice to push for system change
Guided by these principles, our approach involves taking a
we have adopted five principles to guide our advocacy strategy:
principled stance on important issues which are directly
connected to our business.
Authenticity. Building a strategy based on clarity of where we’ve
come from and where we are right now, embracing transparency.
Nature and Climate: We champion the The Kunming-Montreal
Ambition. Setting stretch goals based on what is needed
Global Biodiversity Framework and partner with Business for
rather than being limited by what feels possible and being held
Nature, Taskforce for Nature-related Financial Disclosures (TNFD),
accountable to those goals.
Zero Hour and many others who are focused on the importance
Agency. Supporting employees, customers, and supply chain
accelerate the race to net zero. We engage in discussions on the
partners to understand the issues and find ways to do something
future of offsetting linked to nature-based solutions, and actively
about them.
support initiatives like The Earthshot Prize.
of taking action on nature. We use Science-Based Targets to
Activism. Engaging with social movements.
Inclusion and allyship: We champion stakeholder governance with
Allyship. Partnering through alliances and amplifying the voices
our partners at B Lab. We advocate for gender equality alongside
of others through our platform, especially those who otherwise
our partners at UN Women and She Changes Climate.
would not otherwise be heard.
Future of the Beauty Industry: We directly engage in industry
initiatives focused on building a positive future for the beauty
To learn more about these principles, you can review the
sector. We are members of the B Corp Beauty Coalition, EcoBeauty
HBR article ‘Designing a Climate Advocacy Strategy’ which
Score Consortium and Cosmetics Europe. We also believe in
we co-authored with friends at Patagonia and Ecosia.
the importance of building regenerative business models and
have supported the work of UEBT and the development of their
regeneration certification.
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Business with purpose
To enable these priorities to come alive, we recognized the
transformative potential of people’s collective power and
explored and experimented with activations designed to
mobilize people in our business. By doing so, we positioned
ourselves as a movement of people ready to join forces with
others and advocate for change in where our impact could truly
make a difference.
Taking Action: Our Focus on collaboration
Recognizing advocacy’s focus on systems-level change, our
strategy is based on working in partnership both internally and
externally to create a critical mass for widespread change.
Internally, we’ve streamlined processes to enhance collective
action through information-sharing systems such as regular
news updates and ‘Ask Me Anything’ sessions with our partners.
Our internal advocacy also involves communicating our new
goals and co-creating learning programs.
Externally, we influence change through strategic partnerships,
backing campaigns and coordinated event presence which link
Liliane Oliveira and Leidiane,
Natura Beauty Consultant,
São Luís, MA - Brazil
to opportunities to advocate for positive change in policy and
meaningful engagement for cultural change. In addition to the
culture. Connecting with policymakers, trade associations, and
organizations listed above, we are proud to stand alongside the
NGOs helps drive the necessary regulatory shifts, while sharing
work of the United Nations Global Compact, the World Business
our views in the media contributes to the amplification of new
Council for Sustainable Development (WBCSD), B20 India, We
norms, raises awareness, educates consumers, and guides
Mean Business Coalition and the B Team.
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Places where we engaged in 2023
Campaigns we backed in 2023
We participated in both London Climate Action Week and New
We supported the following key campaigns in 2023: Fossil
York Climate Week. Our CEO, Fabio Barbosa, served as a panel
to Clean campaign, Zero Hour campaign, B Lab Stakeholder
speaker, discussing strategies to mobilize business ambition
Governance campaigns (UK Better Business Act, EU
and investments towards the Sustainable Development Goals.
Interdependence Coalition, Global B Movement Builders
Another highlight of the New York Climate Week was the launch
Stakeholder Governance), signed the letter backing the
of the Taskforce for Nature-related Financial Disclosures (TNFD)
International Sustainability Standards Board, and Natura &Co
framework, which was a particularly important moment for us as
team members joined Queue for Climate and Nature.
early adopters of TNFD and participants in its development.
We engaged in many B Corp connected events including B for
Good Leaders and Encuentro +B. We provided guest lectures
at many global institutions including Schumacher College,
University of Oxford and University of Cambridge.
During COP 28, we stood alongside a diverse, growing coalition
of over 800 leaders calling on Sultan Al Jaber and all parties
to deliver a 1.5C aligned outcome in response to the Global
Stocktake. We also used COP 28’s stage to present Natura’s
2050 Vision whose fundamental principle is the search for
regeneration and positive impact, the idea that a company
must regenerate systems, society and the environment. Natura
believes the concept of sustainability is no longer sufficient to
address the restoration of what has already been degraded by
human action.
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Sustainability
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Sustainability continues to be the cornerstone
and guiding star of Natura &Co’s purpose.
With environmental concerns mounting
and the urgency to address climate change
intensifying, continuing our work, as we evolve
and push the boundaries of our sustainable
practices is imperative. This section of the
report explores the importance, challenges,
and progress of sustainability within our
organization. By analyzing data and insights,
we aim to highlight the pivotal role of
sustainability in shaping our organizational
values and societal impact, giving an update
on our goals since 2022. From conserving
resources to engaging with communities,
we’ll assess current initiatives and outline a path
toward a more sustainable future.
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Materiality
GRI 3-1, 3-2
In line with best practice, we conducted a double materiality
that are considered instrumental in achieving our Commitment
assessment encompassing both the environmental and
to Life vision.
social impacts of our activities on the economy, environment,
and people, including their Human Rights, as well as the
business implications of environmental and social issues
on our operational success, financial performance, and
overall company values. Although our priority issues may not
significantly change year-to-year, the assessment serves as
an input for analyzing and ultimately prioritizing themes and
certifies that the themes we have defined in our Commitment to
Life vision are aligned with stakeholders’ perception.
Based on quantitative surveys – internal in-depth interviews
with sustainability leaders from each business unit, an online
survey with 590 respondents composed of external and internal
stakeholders, plus in-depth interviews with internal and external
stakeholders in the validation phase. Furthermore, we used
Our material topics
Systematic Change
Climate Action
•
2. Societal and Environmental Impact
• Nature regeneration: Addressing biodiversity,
•
promoting regeneration, combating deforestation.
Social regeneration: Upholding human rights,
tackling poverty
3. Value Chain Engagement
• Circularity: Fostering product design for sustainability,
promoting sustainable sourcing, managing water resources,
reducing single-use plastic, driving innovation.
• Value distribution: Making a positive community
external frameworks, analyses of competitors’ materiality,
impact, fostering diversity and inclusion, prioritizing
ratings, rankings, risk frameworks, and internal interviews.
employee health and wellbeing.
Among other issues, climate action emerged as a universally
acknowledged priority across all our stakeholders and brands.
While climate change is a prominent concern for all companies,
it holds particular significance for Natura &Co. The assessment
identified three key clusters of issues related to climate change
To find out more about material topics for
Natura &Co Latin America, please refer to the ESG Scorecard.
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Connected
global challenges
At Natura &Co, our material topics
and Commitments to Life are
linked to the 2030 Agenda and the
Sustainable Development Goals.
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Circularity
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Nature regeneration
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CONSUMO E
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PARCERIAS E MEIOS
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Commitment to life
GRI 2-23, 2-24, 2-25
In 2023, we celebrated the third year of
our Commitment to Life sustainability
vision, launched in 2020, which aimed
at tackling some of the world’s most
urgent challenges.
During the last three years we have made significant progress
Year 3 results
in our commitments and it is rewarding to see that they remain
Starting from 2023, the reported data now encompasses the
steadfast: aligning with the urgent needs of our planet and
consolidated performance of both Natura &Co Latin America
its people by addressing the climate crisis, protecting human
and Avon International. For further information on Business
rights, and building a circular and more regenerative economy.
Unit specific goals, performance and initiatives, refer to the
Taking into consideration the targets we have already achieved
Natura &Co Latin America (pag. 76) and Avon International
and the changing landscape, in 2023 we reviewed our
(pag. 165) chapters of the Integrated Report.
Commitment to Life targets, keeping in line with our materiality
assessment.
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Natura &Co´s Commitment to Life: targets, metrics and status
Goals
Commitment to Life Target
Target
deadline
Natura &Co 2023 status
Climate Transition
Become Net zero, delivering 1.5°C in line with SBTi
criteria
2050
Deliver our Science Based Targets for scopes 1, 2 and 3
2030
We have been working on our Climate Transition Action Plan (CTAP)
which has six workstreams to address the decarbonization of our
business. For scopes 1 and 2, we are implementing action plans
across one workstream: operations. Regarding Scope 3 emissions,
our climate transition plan encompasses five workstreams:
packaging materials, home and style (applicable only for the Avon
brand), distribution and transportation, raw ingredients, and
Consultants’ materials. For further information, refer to pages 61
In May 2023, the Science Based Target Initiative (SBTi) ap-proved our
near-term target, committing to reduce our ab-solute scope 1 and 2
GHG emissions to 42% by 2030 from a 2020 base year, and to reduce
our absolute scope 3 GHG emissions from purchased goods and
services, upstream transportation and distribution, and end-of-life
treatment of sold products to 42% by 2030 from a 2020 base year,
align-ing with the Paris Agreement 1.5ºC trajectory. For further
information, refer to pages 60 and 157.
Protect the Amazon
Contribute to the protection and/or regeneration of 3
million ha of Amazon forest (from 2 million ha in 2020)
2030
2.2 million ha.
Increase to 45 agro-extractivist sourcing
communities (from 34 in 2020)
Contribute to the bioeconomy using innovation to
develop 55 Amazonian ingredients from biodiversity)
(from 39 in 2020)
Increase spending on raw ingredients from
Amazonian socio-bioeconomy fourfold
(baseline 2020)
2030
44 communities.
2030
44 ingredients.
2030
R$ 35.31 million in spend with Amazon ingredient suppliers
Double the value shared with our communities
(baseline 2020)
Engage 20 million people annually in the Living
Ama-zon Cause (Causa Amazônia Viva)
2030
2030
R$ 42.82 million in shared value
62 million people
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Goals
Commitment to Life Target
Target
deadline
Natura &Co 2023 status
Biodiversity
Our People
Human Rights
Assess and report our global biodiversity impacts and
dependencies by 2025
2025
Achieve verified deforestation- and
conversion-free critical supply chains by 2030
2030
In 2023, Natura &Co Latin America started its journey to map and
report on the risks and dependencies of its business in relation to
nature, following the Task Force on Nature-Related Financial
Disclosures (TNFD) methodology. For further information
refer to page 142
This target will complement the actions of the critical materials
traceability and/or certification targets which extend until 2025.
The metric and methodology will be further defined in 2024.
Maintain 50% women at Natura &Co senior
leadership population from end of 2023
Equitable pay, no unexplained
gender pay gap from 2023
30% inclusion, of management to
be from under-represented communities
At least living wage for all from 2023
Full traceability and/or certi-fication – Palm Oil
Full traceability and / or certification – Mica 1
Full traceability and / or certification – Paper
Full traceability and / or certification – Alcohol
Full traceability and / or certification – Soy
Full traceability and / or certification – Cotton
Advance process to identify, prevent and mitigate
human rights risks across our supply chain and
operations by 2027; making sure to engage with
potentially affected stakeholders, promote access to
remedy, and use our leverage for positive impact
-
-
2030
2027
2025
2025
2025
2025
2025
2025
2027
49.3%
-0.74%1
In 2023, both Business Units ran their second diversity and inclusion
surveys and data mapping began to define underrepresented
communities which will include race and ethnicity, LGBTQIAP+,
people with disabilities. Considering their key markets, both Natura
&Co Latin America and Avon International are defining suitable
targets to address what ‘underrepresented’ means in a local context.
For further information refer to pages 71 and 124
100%2
Certification - 87.9%
Traceability - 99.6%
Certification - 81.2%
Certification - 68.8%
Traceability - 86.7%
Traceability - 97.6%
Building upon this foundation of our Human Rights statement,
in 2023, we embarked on a journey to enhance our approach,
aligned with the United Nations Guiding Princi-ples of Human
Rights. Central to the new ambitious target is active engagement
with stakeholders, fostering access to remedy, and leveraging
our influence for positive change. To bolster our efforts, we
are developing dynamic in-house risk mapping and targeted
assessments of identified blind spots. For further information refer
to page 40.
1 Data reflects the results of our annual pay equity study. For more information on the methodology, see pages 90 and 91 here.
2The parameter comprehends the necessary income for a person to be able to meet basic needs such as food, rent, health, education,l and among others. The calculation takes into account
guaranteed payments and food vouchers. All employees with regular contracts in the base year 2023 are taken into account, except interns and young apprentices.
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Goals
Commitment to Life Target
Target
deadline
Natura &Co 2023 status
50% recycled content for all plastic used (in weight)
2030
10.9%
100% reusable, recyclable or compostable packaging
material
2030
86.2%
Packaging Circularity
Enable collection schemes in key markets, where
suita-ble recycling infrastructure does not exist
2030
In 2023 Natura &Co started a partnership with Veolia/CIRCPACK
to improve the data and knowledge on the global recycling
infrastructure maturity for its key markets. This decision has enabled
us to design better packaging by combining in-depth knowledge
and operational know-how, bringing the best expertise on
packaging recycling data and methodologies.
95%+ biodegradable formulas
2030
96.1%
Formula Circularity
100% of new formulas to have lower environmental
footprints, measured by life cycle analysis (LCA)
2030
Regeneration
Work in partnership to build awareness, capability
and regenerative solutions which transform systems
and deliver positive envi-ronmental and social
im-pact, enabling life to thrive
30% of key ingredients to be produced using
regenera-tive practises (veri-fied/certified by
external third party)
100% of communities/small producers to adopt
ethical biotrade and regenerative practices to
produce our key ingredients
2030
2030
2030
In the last two years, we have invested resources to foster an
eco-design culture within our business and the first step was to
develop our internal LCA tool to enable formulators to make smart
decisions during the design phase of our products. During 2023,
we concluded a test and learn phase which delivered an improved
and refined database, specially to consider local value chains within
different geographies and their respective impacts on carbon, land
use, water and others. For further information refer to page 73.
Going beyond a "no harm" or "zero harm" mindset, we seek to
generate measurable, positive impacts for society. In 2023, we
concluded a regenerative pilot assessment on six of Natura &Co’s
ingredients against UEBT’s ethical and regenerative standards,
including income and living wage evaluation in five countries (Brazil,
Ghana, Namibia, Peru and Switzerland), five native species, two
production systems and 14,000 farmers and wild collectors and over
200,000 acres of land. For further information refer to page 75.
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To address the Climate
Crisis and Protect
the Biodiversity
Climate Action:
Paving the way to Net zero
Our Commitment to Life vision set ambitious targets regarding climate
transition in 2020: achieving Net zero
g Net zero11 emissions, aligning with the
Science Based Target Initiative (SBTi) 1.5°C criteria, and setting science-
based targets for scopes 1, 2, and 3 emissions for the short-term. This
decarbonization journey demands collective efforts.
Achieving the goal of limiting global warming to 1.5°C necessitates a
substantial reduction in greenhouse gas (GHG) emissions, amounting to
90% by the year 2050. To date, we have set our science-based target for
the short-term, we have established the baseline and we have mapped
the sources of our emissions. In May 2023, the Science Based Target
Initiative (SBTi) approved our target, committing to reduce our absolute
scope 1 and 2 GHG emissions 42% by 2030 from a 2020 base year, and
to reduce our absolute scope 3 GHG emissions from purchased goods
and services, upstream transportation and distribution, and end-of-
life treatment of sold products to 42% by 2030 from a 2020 base year,
aligning with the Paris Agreement 1.5ºC trajectory.
1 Zero net greenhouse gas (GHG) emissions,
as defined by the Global Compact.
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We have been working on our Climate Transition Action
for the coming years.
Plan (CTAP)2, which has six workstreams to address the
decarbonization of our business. For scopes 1 and 2, we are
Climate change also factors into our compensation strategy for
implementing action plans across one workstream: operations.
our top five employee grades. Our executives are compensated
We are exploring all avenues for enhancing efficiency in
with a fixed monthly salary and direct and indirect benefits. Their
manufacturing facilities and procuring renewable energy as
variable compensation combines short and long-term incentive
well addressing alternatives for refrigerant gases. Regarding
plans, linked to the achievement of purpose-driven results. Our
Scope 3 emissions, our climate transition plan encompasses five
Long-Term Incentive is expressed through our Performance Share
workstreams: packaging materials, home and style (applicable
Units (PSUs) Plan, which incorporates a Carbon Emission Intensity
only for the Avon brand), distribution and transportation, raw
Reduction KPI. The PSU award is performance based; the value
ingredients, and Consultants’ materials. For each workstream,
that participants receive will be dependent on the achievement of
we are establishing guidelines to contribute to the 42% reduction
multi-year performance measures and the awards will be subject
target. To achieve the reduction needed, it is important to
to performance conditions over a three-year period. This KPI,
have engagement at the supplier and value chain levels and
aligned with our 2030 Commitment to Life sustainability vision,
evaluate different low carbon scenarios. The established goals
measures 30% of the PSU award, reflecting a set of science-based
are adopted by our business units and are working on CTAPs
targets for a 1.5°C pathway, encompassing both direct and indirect
with the same workstreams, but, in 2023, we published more
emissions. In 2022, as anticipated, we also started compensating
ambitious and specific goals for Natura &Co Latin America,
our management for meeting the targets related to our 2030
considering the relevance and presence of operations in the
Commitment to Life. All metrics are measured from point to point,
region and the urgency to accelerate a transformation agenda
and we plan to conclude the first results cycle by the end of 2024,
related to climate and biodiversity.
covering the period from 2022 to 2024. Additionally, we have
established a second three-year cycle spanning from 2023 to 2025.
Over the past three years, our primary challenge has revolved
around understanding the impact of scope 3 emissions, which
account for over 96% of our total emissions. Thus, we are actively
mapping and engaging with our suppliers to develop an action
plan, identifying emissions and determining key focus areas
2 Natura &Co Latin America Climate Transition Action
Plan to be released May 2024.
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Achieving Net Zero Target Step by Step
Collaborations with suppliers have already yielded positive
Natura &Co Latin America and Avon International are
results, such as one supplier transitioning to furnace fuel,
addressing the challenges and detailing the journey from 2030
thereby reducing the CO2 impact on fragrances.
to 2050 towards Net Zero emissions. For Avon International,
the initiatives include switching from air to sea freight, using
By implementing these steps, we are making tangible progress
recycled (less carbon intensive materials), sourcing certified
towards our Net Zero goal, demonstrating our commitment to
materials / ingredients, reducing packaging weight and
sustainability and responsible environmental stewardship.
reducing brochure pages and digitization. Check out the
table below and the following pages for a summary of our
processes and management practices related to management,
Task Force on Climate-Related Financial
Disclosure at Natura &Co
governance, strategy and monitoring of climate-related risks
We are committed to continue adoption and alignment with the
and opportunities.
recommendations of the Task Force on Climate related Financial
Disclosures (TCFD). This year, we have chosen to report against
For Natura &Co Latin America, one of the key strategies to reach our
the TCFD recommendations on a ‘comply or explain’ basis.
Net Zero target involves leveraging the Second Wave of our program
This disclosure is a step on our journey to better manage and
aimed at synergizing operations between Natura and Avon.
respond to climate-related risks and capitalise on climate-related
Main actions
• Utilizing Carbon Accounting Software: To enhance our
carbon management efforts, we have adopted a carbon
opportunities. Below is a summary of our status against each of
the recommendations and where information can be found in
our reports pertaining to each disclosure.
accounting software tool developed by Sinai, a start-up
Natura &Co Holding, Natura &Co Latin America and Avon
specializing in carbon management solutions. This tool
International took a consistent approach to identifying and
enables us to calculate internal carbon pricing and prioritize
assessing climate-related risks and opportunities and conducting
CO2 reduction projects effectively, empowering us to make
climate scenario analysis. This approach has allowed Natura &Co
informed decisions towards achieving our Net Zero target.
to better understand the potential impacts of climate change
• Procurement Initiatives: Our procurement teams are actively
across its value chain.
engaged in selecting low carbon suppliers and identifying
opportunities to minimize their environmental footprint.
For more information please refer to the Sustainability
For more information please refer to the Sustainability
Compedium, to be launched in May 2024. Other details specific to
Compedium, to be launched in May 2024. Other details specific to
Latin America are available in the Databook and the ESG Scorecard.
Latin America are available in the Databook and the
==
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Pilar
TCFD Recommendation
Status
Details and references
a) Describe the Board’s oversight
of climate-related risks and
opportunities.
Partially
Comply
GOVERNANCE
Disclose the organization’s governance
around climate-related risks and
opportunities.
Refer to the Sustainability Compendium (to be released May 2024) for further information
Explain
•The Board sub-committees need to define the appropriate frequency to convene
to discuss and address climate-related issues.
• In future, we will start to incorporate climate-related considerations into our
strategic reviews, annual budgeting processes, and oversight of major capital investments
reinforcing our Commitment to Life through Climate Action.
Refer to the Sustainability Compendium (to be released May 2024) for further information
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities.
Partially
Comply
Explain
•We expect to develop processes by which management will be informed about
climate-related issues and will monitor them over time.
•We also hope to better articulate the ways in which management positions and
committees report to the Board.
a) Describe the climate-related
risks and opportunities the
organization has identified over
the short-, medium- and long-
term.
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
STRATEGY
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organization’s
businesses, strategy, and financial
planning where such information is
material.
Refer to the Sustainability Compendium (to be released May 2024) for further information
b) Describe the impact of
climate-related risks and
opportunities on the organization’s
businesses, strategy, and financial
planning.
Partially
Comply
Explain
•In 2024, Natura &Co will conduct a thorough analysis to quantify the financial impacts of
climate-related issues on its financial performance, including potential revenue and cost
variations. In 2023, we conducted a qualitative climate scenario assessment.
•Natura &Co plan to integrate climate-related considerations into our financial planning
processes in future, ensuring a strategic alignment with our sustainability goals.
c) Describe the resilience of the
company’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario.
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
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Pilar
TCFD Recommendation
Status
Details and references
a) Describe the organization’s
processes for identifying and
assessing climate-related risks.
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
RISK MANAGEMENT
Disclose how the organization identifies,
assesses, and manages climate-related risks.
b) Describe the organization’s
processes for managing climate-
related risks.
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
c) Describe how processes
for identifying, assessing, and
managing climate-related risks are
integrated into the organization’s
overall risk management.
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
Refer to the Sustainability Compendium (to be released May 2024) for further information
a) Disclose the metrics used by the
organization to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
Partially
comply
Explain
• In 2024, we will be conducting a quantitative climate scenario assessment, which will
provide us with additional forward-looking financial metrics, e.g., prices on tonnes of GHG
emissions.
• In future, we will seek to provide additional climate-related opportunity metrics, e.g.,
potential future revenue from products designed for a low-carbon economy.
METRICS AND TARGETS
Disclose the metrics and targets used
to assess and manage relevant
climate-related risks and opportunities
where such information is material.
b.) Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse
gas (GHG) emissions and the
related risks.
c) Describe the targets used by the
organization to manage climate-
related risks and opportunities and
performance against targets..
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
Comply
Refer to the Sustainability Compendium (to be released May 2024) for further information
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The parameters of our climate scenario analysis
Climate risks and opportunities were assessed across the
The TCFD recommendations encourage the consideration
following time horizons:
of different possible future climate scenarios to assess the
•
Short-term: 0-3 years, which aligns with the business
potential impacts of climate change. This is due to the inherent
planning cycles
uncertainty associated with climate change, and the need to
be able to account for that uncertainty in business planning.
• Medium-term: 4+ years up to 2030, which aligns with our
We expect Natura &Co’s business outcomes to fare differently
Commitment to Life
depending on different warming outcomes.
To ensure a comprehensive assessment of potential impacts,
impacts occur over longer time periods, and in alignment with
we have considered three scenario sets – Ambitious, Middle of
Natura &Co group’s commitment to Net zero by 2050.
• Long-term: 10+ years up to 2050, in recognition that climate
the Road, High Warming. These scenario sets describe the level
of climate policy intervention and market changes which can
lead to broad ranges of temperature outcomes. Our qualitative
climate scenario analysis was conducted using publicly available
projected data from Intergovernmental Panel on Climate
Change (IPCC), International Energy Agency (IEA) and Network
for Greening the Financial System (NGFS) scenarios which reflect
the spectrum of potential outcomes including ambitious , middle
of the road and high warming scenario pathways.
1 The ‘ambitious’ scenario pathway reflects a Paris-aligned scenario, where
global CO2 emissions are cut severely, with ambitious and gradual efforts to limit
temperature rise to between 1.4 – 1.8 degrees Celsius. It aligns with NGFS Orderly
transition, IEA NZE 2050, and IPCC SSP1-2.6.
2 The ‘Middle of the road’ pathway refers to slower, less ambitious policy action,
or, a time lag before sudden ambitious action. It assumes emissions remain stag-
nant in the near term with notable shifts occurring between 2030-2050. It aligns
with NGFS Disorderly transition, IEA Announced Pledges, and IPCC SSP2-4.5.
3Our ‘High warming’ pathway reflects limited to no action, with society con-
tinuing along past trends and emissions increasing significantly resulting in
extreme warming. This aligns with NGFS Hot House World, IEA Stated Policies and
IPCC SSP5-8.5.
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Our climate-related financial disclosure GRI 201-2
Natura &Co Holding, Natura &Co Latin America and Avon
Address the climate crisis is at the heart of our Commitment
International took a consistent approach to identifying
to Life, and Natura &Co recognises the potentially significant
and assessing climate-related risks and opportunities and
strategic issue climate change could pose to the business. To
conducting climate scenario analysis. This approach has allowed
ensure preparedness, we have undertaken a detailed climate
Natura &Co to better understand the potential impacts of
scenario analysis to inform our understanding of current and
climate change across its value chain.
future climate impacts. In 2024, the integration of climate-
related risks and opportunities into our strategic planning
processes will be underpinned by financial impact calculations,
and increased awareness and capabilities throughout the
business, to manage climate risks and opportunities.
For further information on Corporate
Governance refer to pages 27,28,29 and 88;
Risk Management refer to page 40;
Commitment to Life refer to page 56.
The full TCFD disclosure can be found
in the Sustainability Compendium (to be released May 2024).
2021 - Oct 2023 Oct 2023 - Mar 2024 2024
1. Pre-work
2. Pair review
3. Interviews
4. Risk Analysis
and Opportunities
5. Consolidation
and scoring
6. Next
steps
•
Beginning of
development of
project aimed at
driving greater
integration of
climate-related risks
and opportunities into
the global risk matrix.
•
•
•
Analysis conducted in
5 pairs.
Documentary
investigation of the
consumer goods sector.
Analysis of failures
related to the TCFD
recommendations.
•
•
•
Involvement in
company
functions.
Execution of
interviews with
stakeholders
throughout
Natura &Co and its
subsidiaries.
In-depth knowledge of
exposure throughout
the value chain.
•
•
•
Risk Analysis and
Opportunities.
Identification of
extensive list of risks
and opportunities.
Validation of risk with
the main stakeholders
through workshops.
•
Finalization of a
reduced list
of climate-related risks
and opportunities.
• Qualitative assessment
•
of reduced list
in 2024.
Conduct a quantitative
assessment of the
priority climate-related
risks and opportunities
to calculate the possible
financial impacts.
Physical risks
assessed
5 pairs assessed
24 interviews
conducted
191 climate-related risks
and opportunities were
considered
27 risks and
opportunities
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Climate resilience
Taking into consideration the climate risks and opportunities identified,
Biodiversity and deforestation
Natura &Co strongly believes in the importance of
Natura &Co and its brands are actively developing their resilience to combat
championing for nature. As a business with deep roots in the
deeper exposure and realise the opportunities presented.
Amazon, we understand the extraordinary value of nature,
to individuals, communities, business, and society at large, as
We understand that as climate becomes increasingly unstable, particularly
well as the threat it is facing. Amazônia plays a vital role in all
under warmer temperatures, our supply routes will become more
of our futures. As the planet’s largest storehouse of carbon, its
pressurised, availability of key ingredients may be compromised, and
greatest source of biodiversity, and home to 30 million people
demand trends may change as climate change plays a larger factor in
whose traditional cultures, rights, and livelihood depend
buying habits. We have underway several climate resilience projects to
upon it, it must be protected. It’s important to emphasize
improve our resilience to these risks, and to align our products with a
that economic development and forest conservation are not
greener world. For further information on these projects, refer to page 156.
mutually exclusive. Biodiversity loss is now one of the greatest
Task Force for Nature-Related Financial Disclosure
Since 2020, Natura &Co has actively participated in discussions leading to the launch of the Task
Force for Nature-Related Financial Disclosures (TNFD) Framework, and Natura is one of the early
adopters of this framework.
This framework, designed to complement and expand upon the existing disclosure framework
established by the Task Force on Climate-related Financial Disclosures (TCFD), provides
organizations with guidelines to disclose information pertaining to climate-related risks,
opportunities, and financial impacts. By aligning with both the TCFD and TNFD frameworks, we
are reinforcing our commitment to transparency and accountability in addressing both climate
and nature-related challenges, thereby advancing the transition to a greener and more resilient
economy.
A recent study conducted by the Task Force on Nature-Related Financial Disclosures (TNFD),
unveiled during the New York Climate Week, has underscored the escalating demand for
nature-related data. In response to this growing imperative, we have joined forces with 11 other
organizations to assess the feasibility of establishing a global nature-related public data facility.
This initiative will initially focus on enhancing the availability, quality, and comparability of data
regarding the state of nature. In 2023, Natura &Co Latin America started its journey to map and
report on the risks and dependencies of its business in relation to nature. We are working on the
pre-Locate phase of the LEAP methodology (Locate, Evaluate, Assess, Prepare) and by mid-2024,
we will have completed the Locate phase. For further information refer to the Natura &Co Latin
America section, in page 76.
threats to both climate change and the global economy, and
the fate of the Amazon rainforest is not solely a regional issue
for Latin America; rather, it is undeniably a concern of global
proportions.
Driven by the urgent imperative to halt and reverse nature
loss within this decade, thereby paving the way for a nature-
positive future, Natura &Co has taken proactive steps. We’ve
collaborated with like-minded organizations to advocate for
an ambitious Post-2020 Global Biodiversity Framework at
CBD COP15 in Montreal. Subsequently, we’ve maintained our
engagement with key entities such as Business for Nature and
Union Ethical BioTrade (UEBT) to advocate for the adoption
and implementation of nature policies at both governmental
and corporate levels.
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To defend Human
Rights and
be Human-Kind
Human Rights
From compliance to due diligence
Transitioning from a compliance-focused approach to a
comprehensive due diligence strategy is pivotal in safeguarding
human rights across our operations and supply chain. In 2021,
our Board of Directors endorsed a Human Rights statement,
emphasizing the necessity of robust human rights due diligence,
including providing access to effective remedy, informing our
approach with the perspectives of external stakeholders as well
as potentially affected rights holders and communicating the
outcomes of putting our human rights approach into practice.
Building upon this foundation, in 2023, we embarked on a journey
to enhance our approach, aligned with the United Nations Guiding
Principles of Human Rights. This evolution led us to commit to an
ambitious target: by 2027, we aim to identify, prevent, and mitigate
human rights risks across our supply chain and operations.
To bolster our efforts, we are developing dynamic in-house risk
mapping and targeted assessments of identified blind spots. Our
methodology is building on compliance audits towards a holistic
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approach, emphasizing shared responsibilities, system thinking,
To address these risks and enhance our commitment to
and stakeholder engagement in solution co-creation.
women’s rights as human rights, we have partnered with
We prioritize the inclusion of rights holders in all stages of
This includes:
initiative design, implementation, and evaluation, supported
• Benchmarking against peer companies to identify best
by robust grievance mechanisms. Where harm occurs, or is
practices and areas for improvement.
likely to occur, we commit to remediation and leveraging our
• Evaluation of existing commercial controls and due
influence to drive positive impacts, such as gender-based
diligence mechanisms.
violence initiatives in palm oil extraction and promoting living
• Providing recommendations to strengthen business-led due
external consultants to conduct a comprehensive assessment.
incomes in critical material mining areas. We believe, as a
diligence efforts.
group, that everyone should feel safe speaking up. Employees
and service providers have access to the Natura &Co Ethics
In addition, we are establishing a robust human rights
Line, our Global Code of Conduct for employees and the Global
governance structure to foster group-wide accountability
Code of Conduct for Suppliers. These documents outline
and improve record and data management. This includes
rules regarding human rights issues in practice, highlighting
appointing business unit sponsors and implementers to
the significance of raising concerns and seeking guidance on
integrate human rights considerations into commercial
business ethics and integrity, which are integral components of
functions, leveraging our resources to enact meaningful change
our values.
and ensure the safety and well-being of all individuals involved
Women’s rights are human rights
In the realm of direct selling, particularly in an industry
Critical material certification as a strategic opportunity
predominantly composed of women who often engage with
Certification serves as a strategic opportunity for Natura &Co,
strangers, several risks related to human rights can emerge.
allowing us to address social and environmental risks across our
These risks may include safety concerns, violence or
supply chains while fostering transparency and accountability.
coercive control.
Here are some key points regarding our certification efforts and
in our direct selling operations.
strategic initiatives:
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• Due Diligence Target: We have established group-wide
policies and action plans to address risks associated with
six materials; palm, mica, alcohol, soy, cotton, and paper.
These plans include specific traceability and certification
requirements, with annual milestones set to achieve
our targets.
• Certification Achievements: In 2023, we made significant
progress, achieving 87.9% certification for palm oil and
81.2% for paper.
•
Strategic Opportunities: We have identified strategic
opportunities to support certification efforts. For example,
we fund initiatives to promote environmental and human
rights improvements in palm-producing regions such as in
Indonesia via Kaleka, a non-profit organization that works
with management of sustainable sourcing, conservation
and restoration, agri-food systems, community
development and environmental and social governance.
•
Industry Partnerships: Natura &Co Latin America and
Avon International are active members of industry-specific
organizations such as the Roundtable on Sustainable Palm
Oil. Avon International is a member of Action for Sustainable
Derivatives, and the Responsible Mica Initiative. These
partnerships help increase transparency and promote
ethical practices in our supply chains.
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• Gender-Based Violence Initiatives: Through partnerships
that our work here is not done. We aim to achieve at least 50%
with organizations like Her Respect, we are addressing
by the end of 2024 and to do so, we are continuing to focus on
gender-based violence in our supply chain. We provide
attracting and developing women at all levels in the business.
education, training, and interventions to empower women
and safeguard their rights and dignity.
Recognizing Natura &Co’s social achievements, we proudly
reached our goal of providing a living wage for all employees
Overall, our certification efforts and strategic initiatives support
across Natura &Co in more than 53 countries. This commitment
our commitment to sustainability, ethical practices, and the
extends beyond the notion of a minimum wage, embracing
well-being of our stakeholders across the supply chain.
a comprehensive understanding of a dignified life that
Diversity and Inclusion:
Focus on underrepresented groups
includes access to food, water, housing, education, healthcare,
transportation, and other essential needs. Our approach
reflects a deep commitment to improving the quality of life
for our employees and their families, thereby contributing
Natura &Co’s commitment to diversity and inclusion is a
to the construction of a more equitable society. Natura &Co
fundamental aspect of our sustainability vision, with a focus on
also maintained its commitment of closing its unexplained
underrepresented groups and the promotion of equity across
pay gap between men and women for the group. We are also
all levels of the organization.
committed to achieving 30% inclusion of underrepresented
groups across managerial levels and business units.
We have made significant progress in achieving gender parity
in leadership positions. We reached our target of women
Considering their key markets, both Natura &Co Latin America
representing at least 50% of the senior team one year early in
and Avon International are defining suitable targets to address
2022. Due to a significant simplification of the company during
what ‘underrepresented’ means in a local context.
2023, which significantly reduced the number of employees,
we ended the year at 49.3%, just below our target. Within our
We engage employees through diversity surveys in all markets
new, more simplified structure, this percentage drop from 2022
where we operate, with high participation rates exceeding 55%,
is the equivalent of a single headcount, however we recognize
reflecting an increase in participation compared to FY22 when
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we conducted our first diversity survey. These surveys help
us gather feedback and insights to continuously improve our
diversity and inclusion initiatives.
Overall, our commitment to diversity and inclusion extends
beyond rhetoric to tangible actions and initiatives aimed at
creating a more equitable and inclusive workplace for all.
For further information about our actions
related to Human Rights refer to Natura &Co Latin America
in page 76 and Avon International in page 166.
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To embrace
Circularity and
Regeneration
Circularity and packaging: Eco by design
We have been steadfast in our commitment to circularity and
sustainable packaging, aiming to achieve measurable and positive
environmental and social impact. Our goal is to ensure that 100%
of our packaging is either recyclable, reusable, or compostable. By
2023, we reached 86.2%, building on the 82.3% achieved in 2022.
Recognizing that most of our product’s environmental impact can
be determined during the design phase, we prioritize eco-friendly
decisions such as material selection, recyclability, refillability, and
compostability. In addition, we aim to incorporate at least 50%
recycled plastic materials into our plastic packaging, often through
fair trade schemes with waste pickers or social cooperatives,
ensuring better working conditions and fair prices for collected
plastic waste.
We also prioritize biodegradability in formulas, achieving a
minimum of 95% biodegradability in our products. Moving
forward, we will utilize the science-based Product Environmental
Footprint (PEF) methodology to measure the full environmental
impact of our formulas across their lifecycle, from sourcing
ingredients to consumer usage and beyond.
Tukumã Fruit
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Working together to measure impact
Regeneration: the new frontier
In collaboration with around 70 global beauty and personal
We are committed to embracing circular and regenerative
care companies, including industry leaders like L’Oréal, P&D,
solutions to address pressing challenges and drive positive systemic
Unilever, Beiersdorf, J&J, and Shiseido, Natura &Co collaboratively
change, fostering healthier ecosystems and more resilient societies.
established the EcoBeauty Score consortium (EBS) to develop
Going beyond a “no harm” or “zero harm” mindset, we seek to
a scoring system for communicating environmental impact to
generate measurable, positive impacts for society.
consumers. The complexity of evaluating environmental impact
in the cosmetics industry, given the vast array of ingredients and
Regeneration is a dynamic concept with immense potential to
geographical variations, necessitates a robust methodology and
combat climate change and biodiversity loss while reducing
data-driven approach.
social inequalities and enhancing wellbeing. It entails promoting
biodiversity, restoring ecosystems, and harnessing their capacity
Over the past two years, the EBS consortium has laid the
to provide crucial environmental services such as carbon
groundwork, including developing the methodology, database, and
sequestration, climate regulation, water purification, and
IT prototype tool. Currently, we are conducting a large-scale pilot
soil fertility.
involving more than 4,000 products from consortium members to
refine the scoring scales, with plans to launch the system in 2024.
Our journey toward regeneration begins with regenerative
The pilot includes testing products in strategic countries such as the
agriculture, as defined by the Union for Ethical Biotrade (UEBT),
US, China, France, and Brazil to gauge consumer understanding,
which emphasizes practices that enhance biodiversity, restore
preferences, and feedback regarding the label.
soils, purify water, regulate climate, and support livelihoods.
The insights gained from the EBS pilot will be integrated into our
ingredients certified as regenerative by 2030, supporting small
internal tools, allowing us to optimize our portfolio to minimize
farmers and communities in adopting ethical biotrade and
We have set ambitious targets to have at least 30% of our key
environmental impact. Additionally, the EBS methodology will
regenerative practices.
facilitate the adoption of circular models and support substantiated
green claims. We are actively advocating for the approval of the
In 2023, we concluded a regenerative pilot assessment on six of
framework under the new green claim directive, underscoring
Natura &Co’s ingredients against UEBT’s ethical and regenerative
our commitment to transparent and environmentally responsible
standards, including income and living wage evaluation in five
practices within the industry.
countries (Brazil, Ghana, Namibia, Peru and Switzerland), five
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native species, two production systems and 14,000 farmers
and wild collectors and over 200,000 acres of land. The first
ingredient certified was the Brazil nut.
We are actively collaborating with strategic partners to
accelerate progress, not only in formula ingredients but also in
packaging materials, leveraging biotech innovations to convert
waste into polymers or chemicals, advancing sustainability
efforts across our operations.
Disclosures and data on our actions are
detailed in the sections of this report dedicated to
Natura &Co América Latina and Avon International
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Natura &Co
Latin America
Integrated Report
Latin
America
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Contents
INTERVIEW WITH THE CEO
OUR BUSINESS
Governance and leadership in Latin America
Combination of the businesses
Impact management: IP&L (Integrated Profit & Loss)
management integrated tool
Omnichannel Business
Relationship Selling
New businesses
Our brands
Innovation, science and knowledge
Natura &Co Latin America Culture
our employees’ journey
Value chain management
SUSTAINABILITY
Commitment to Life:
Latin America target updates
Biodiversity and nature
Ethical and responsible sourcing
Packaging and circular economy
Emissions and business decarbonization
Institutes and social impact
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Interview with
the CEO
João Paulo Ferreira, CEO, Natura &Co Latin
America and CEO, Natura
2023 saw many transformations in the Natura &Co global
businesses. How do you see Natura &Co Latin America’s
role in the results achieved?
Globally, Natura &Co is coming to the end of a cycle of
transformations and learning. We faced some challenging years,
dealing with a performance below expectations that put pressure on
our capital structure. We established a large corporation; however,
we realized that there would be greater benefits and efficiency with
a holding structure that promoted the autonomy of each one of the
businesses. This review process resulted in the restructuring of the
holding company and the sale of Aesop and The Body Shop..
Latin America represents our point of origin and is the Natura
&Co group’s major source of revenue (76.4%), income and cash
generation. In 2023, Latin America resumed the bases for its future
growth with a structural change. Instead of a company with
multiple businesses and using Natura as a foundation, we became a
multibrand, multichannel company By doing this, we have prepared
for a new cycle of expansion in our capacity to generate positive
impact from 2024 on.
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This change that is still underway involves two movements: one
In parallel, this boosts the social, economic and environmental
is enabling the resumption of operational efficiency, expanding
impact that we generate in the region, from the development of the
productivity margins. To do this we have integrated the Natura
Beauty Consultants to the development of the socio-bioeconomy in
and Avon operations, strengthening the omnichannel business.
the Amazon.
The second consists of developing a new course for growth and
innovation. Already in 2024, we have reconfigured our teams to
One of the main thrusts in 2023 was the combination of the Natura
drive the omnichannel business and multibrand management. In
and Avon businesses, which began in Peru, and was followed by
terms of innovation, we have focused on developing new products,
Colombia and Brazil. What were the main accomplishments and
especially for the Natura brand, and we have promoted our financial
difficulties you experienced in this integration, ranging from the
services platform, Emana Pay.
operation to the Beauty Consultant network?
To ensure that each brand resumes performance and efficiency in
America a more integrated operation - which was called Wave
line with its potential, we have implemented the journey to combine
Two in the strategy formulated in 2022. And we reached the end
the Natura and Avon brand operations. This integration will enable
of 2023 with a steady increase in profitability, driven by the robust
us to focus more closely on boosting profitability and margins
performance of the Natura brand in Brazil. In the last quarter of
in key markets and on enhancing the productivity of the Beauty
the year we could already see some initial results for the combined
Consultants – something we have already seen in the results from the
model in Peru, Colombia and Brazil, with greater productivity and
We started the year with the promise of making Natura &Co Latin
most recent quarters.
[The integration] boosts the social,
economic and environmental impact
that we generate in the region, from the
development of the Beauty Consultants to
the development of the socio-bioeconomy
of the Amazon.
cross selling. The combination also boosted the socio-environmental
impact of our operation with the start-up of the Amazonia Program
in Peru and the extension of quality healthcare and education
benefits to our combined network.
We have renewed the value proposition for the Beauty Consultant by
unifying the Natura and Avon networks, while preserving the best of
each brand. We achieved a high level of maturity with this initiative
over a period of months and within the expected accommodation
time. This is confirmed by the gains in productivity and income for
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the Natura and Avon Beauty Consultants. We had some operational
and the opportunity to build other competencies for a multibrand
and logistics challenges, to be expected in a project as complex as
operation in the region.
this. Issues linked with product offer, supply and delivery caused
some setbacks, but we responded rapidly with creative solutions
In 2023, we reaffirmed the bases for our multibrand and omnichannel
that our Beauty Consultants in Peru and Colombia were happy with,
operation. The goal behind the omnichannel approach is to bring the
demonstrated by their satisfaction ratings at the end of the year.
brands close to the customers, enabling them to try our brands where,
As part of the business combination, we reassessed the category mix
integration of the Natura and Avon operations.
and product portfolio, seeking differentiation and profitability for
each brand and a greater focus on beauty. This led to an expected
To achieve this goal we support relationship selling with a combination
adjustment in the Home and Style category with planned reductions
of over 1,054 company-owned stores and franchises in Latin America,
in its portfolio, while productivity in the beauty portfolio for both
digital tools and e-commerce. In 2023, the growth in all the Natura
when and how they want to. This has an intrinsic connection with the
brands increased.
retail channel formats was surprising. The success of the different store
models developed by consultants was notable during the year, with
We see 2024 as a year for the consolidation of Wave Two and the
153 units opened in Latin America in the year, mainly in Brazil, but also
expansion of the benefits of the integrated model.
in Argentina, Mexico, Chile and Peru.
The omnichannel business is one of Natura’s differentiation
This is boosted by e-commerce and sales in the social networks, which
focuses in the region and reflects the group’s learnings from the
help drive increased income and the capillarity of the business.. These
different commercial and sales models. What were the advances in
are fronts in which we still need to evolve, with a less traditional vision
retail and e-commerce in 2023? How does Avon fit into this picture
of online sales and the elimination of overlaps between channels with
and what is the strategy for each brand?
very distinct dynamics. In 2023, we made key adjustments to be able
Natura and Avon have a lot to learn from each other. Natura’s success
to support Beauty Consultant sales via social networks. At Avon, we
story is marked by the strength of relationship selling which, with the
resumed heavy investments in e-commerce and obtained positive
incorporation of complementary channels, generates even greater
results, particularly in the last quarter of 2023. It is our understanding
social impact – such as the consultants’ franchises. Avon introduces
that the brand has a lot to gain from the digital experience we are
an extensive presence, capillarity, connections with other audiences
bringing from Natura.
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“Innovating only makes sense if it
generates positive impact.”
investment hub in the world. We aim to preserve the distinct
identities and the autonomy of both brands, promoting a symbiotic
environment that optimizes research and development activities.
With this change, we seek to expand the frontiers of creation in
technologies, actives and innovative products, offering the market
The global actions in the group’s transformation journey include
enhanced benefits and superior performance.
the sale of The Body Shop. However, the brand will continue to be
operated by Natura &Co Latin America using a franchise model.
How have the business integration and strategic changes
Could you explain this model?
undertaken in 2023 enabled Natura and Avon to promote
proximity and differentiation for consumers?
We are proud of the history we built globally with The Body
In its brand communication, Natura has once again embraced Well
Shop, a brand that came into being inspired by sustainability and
Being Well, highlighting the emotional and functional benefits of its
commitment to making the world a better place, clearly attuned to
products. This movement converses with behavioral trends we have
Natura’s purpose. With the sale, we will no longer run the business,
seen in Latin America, in which the focus on well- being continues to
but, in Latin America, Natura will continue to operate the brand as a
grow after the pandemic, as well as a desire for value for money and
master franchisee, including some local production for the brand in
concern about conscious consumption. It is no coincidence that the
our plants.
signature “What if” accompanies the invitation to try our products
so that each person may reflect on the transformative power of their
A passion for innovation is one of Natura &Co Latin America’s
choices. We have successfully tested this new approach with the
growth drivers. What are the main highlights of the year for
Natura Ekos Tukumã product line.
Natura and Avon?
Innovating only makes sense if it generates positive impact. With this
At Avon, we are focused on the repositioning of the brand, and this
maxim, our brand integration process enabled and encouraged us
work will be more visible to the public in 2024. In 2023, we advanced
to undertake a wide-ranging review of our organizational structure
in the portfolio review and delivered key innovations, such as the
oriented to innovation In 2023, we migrated the Avon Global
Tratamake product line. Hydramatic Matte lipstick is a pioneer
Innovation Center from the United States to Brazil, integrating it with
worldwide with the adoption of a hyaluronic acid and glycerine
the Natura Innovation Center. This transforms the situation in Latin
complex in its formulation that delivers high moisturising power and
America, which now represents the company’s largest technological
fills in wrinkles and lip lines.
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The year was marked by the definitive inclusion of regeneration
first concentrated body moisturizer in the world, with 100% plastic
as a driver for the company. The incorporation of this concept into
retrieved from riverine regions, reusable, with an impressive 81%
Natura brand strategy was announced at the 28th United Nations
saving in plastic and 55% less waste, in addition to benefits for 10
Conference on Climate Change (COP28) in Dubai. How does this
cooperatives and almost 200 families in the northeast of Brazil.
dialogue with the Vision 2030 and Natura &Co’s sustainability
GRI 3-3
ambitions as a whole?
This is a new strategic direction for our businesses: from sustainability
To regenerate it is also necessary to rethink how we measure and
to regeneration. Upon discussing this approach at COP28, we
report results It is necessary to combine financial and economic
proposed that the new frontier for businesses is the regenerative
results, enabling a complete evaluation of the impacts generated by
economy and no longer just managing impacts and mitigating the
a company’s entire operation. In this regard, the Integrated Profit &
exhaustion of the planet’s resources. This is the impact agenda we
Loss (IP&L) is an important tool, which throws light on the actions that
believe in, and we opted to start it with the Natura brand.
contribute or not to a business’s purpose and longevity.
As occurred two decades ago with sustainability, we have
From a strategic standpoint, the year was characterized by the
assumed this commitment at the same time that science, business
strengthening of the concept of regeneration and by the updating
management and mankind are discussing and searching for
of the goals of Natura &Co Latin America’s 2030 Commitment to
pathways to materialize the concept. Right off, we know that doing
Life. Could you talk about what led to these updates and which
business regeneratively does not just involve good techniques for
ambitions have been incorporated?
agricultural production, managing biodiversity, commercial models
The 2030 Commitment to Life provides clear, straightforward targets
and fostering the social bioeconomy. To regenerate is to restore
for the agendas of defending the Amazon and fighting climate
life, requalify relationships, a new cultural software that we adopt in
change; protecting human rights and driving equity and inclusion;
business, that reconnects us with what has been our reason for being
and promoting the social-bioeconomy and circularity. The idea of
for over three decades, Well Being Well.
the review was to elevate our ambitions in areas in which we can
advance more rapidly and to tighten the focus on critical themes
To exemplify this and take the first concrete step on this journey,
specific to the region.
at the beginning of 2024 we launched a product that represents
end-to-end regeneration: Natura Ekos Brazil Nut Concentrate, the
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We reviewed our 2030 carbon targets to adapt them to the
premises of the Science Based Targets initiative (SBTi), with
emphasis on the decarbonization of the value chain and achieving
net zero scope 1 and 2 greenhouse gas emissions. We proposed
to increase purchases of Amazonian social bioeconomy inputs
fourfold compared with 2020. We are also proposing to reach 25%
representation of black people in management positions by 2025
and 30% by 2030, as well as increasing the HDI of four million Natura
and Avon Beauty Consultants.
The idea of the review was to elevate our
ambitions in areas in which we can advance
more rapidly and to tighten the focus on
critical themes specific to the region
We still see a complex conjuncture in the region, with market
dynamics subject to exchange rate, political and inflationary
We also launched the target to generate BRL4 in positive impact for
contexts that differ from market to market. We will also be attentive
each BRL1 of revenue from the business, measured using Integrated
to behavioral dynamics and trends to ensure we deliver unique,
Profit & Loss (IP&L) methodology. To do this, we want to incorporate
differentiated products for our customers. We have a robust
all the socio-environmental and economic results achieved by Avon
innovation plan for both brands backed by the implementation of
in the region into the analysis.
our omnichannel strategy.
What is the outlook for Natura &Co Latin America in 2024 in
The concept of regeneration and the Commitment to Life targets
financial, environmental, social and governance terms?
updated in 2023 will orientate our activities, given the social,
In 2023, we concluded a cycle of building the foundation for a new
environmental and economic challenges in Latin America and will
moment for the organization, and in 2024 the combination of the
underscore our product differentials.
Natura and Avon businesses will continue to yield gains in margin
and efficiency. Prosperity, innovation and regeneration define how
Natura &Co Latin America will resume its success story and deliver
value in line with its potential for the Natura &Co group and for our
entire relationship network.
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Our business
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Our business
GRI 2-6
Natura &Co Latin America merges
Natura’s global operations with Avon’s
regional presence and manages
The Body Shop’s operations in Latin
America as its master franchisee.
We are driven by a passion to innovate, promote positive economic,
social and environmental impact and by the mission of promoting
beauty and well-being through our relationship network. The
Natura &Co Latin America is the regional leader in the cosmetics
Natura brand is known for its sustainability-related investments
and beauty products, hygiene and personal care segment,
and commitments. In 2014, it was the first publicly traded company
contributing 76.5% to the overall net revenue of the Natura &Co
to receive B Corp certification from B Lab, which indicates an
Group in 2023.
engagement in business that balances profit with purpose.
At the end of 2023, we had a 14,500-strong work force, with
Since 2019, Natura has been complemented by the power of the
operations in 14 countries in Latin America and an omnichannel
Avon brand, the global pioneer in direct selling and a benchmark
model that promotes relationship selling with a network of
in women’s empowerment. Our brands also hold “The Leaping
3.5 million Beauty Consultants and Representatives, as well as
Bunny” certification bestowed by Cruelty Free International
more than 1,000 company-owned stores and franchises and the
on organizations committed to not using animal testing in the
e-commerce operation.
development of products or ingredients.
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Presence & impact
GRI 2-6, 2-7
14 countries in the region
(Brazil, Mexico, Argentina, Chile, Colombia, Peru,
Ecuador, Uruguay, Panama, Guatemala, El Salvador,
Honduras, Nicaragua, the Dominican Republic)
3 operations in North America,
Europe and Asia (the United States,
France and Malaysia)*
3.5 million Natura and Avon Beauty
Consultants and Representatives
in Latin America
1,054 stores in Latin America
(932 Natura and 122 The Body Shop outlets)
5 factories,
of which with integrated Natura and Avon operation
19 distribution centers,
of which two logistics hubs, in Argentina, Brazil,
Chile, Colombia,Ecuador, Peru, Guatemala,
Dominican Republic and Mexico
Main head office in São Paulo (SP)
BRL 20,440.800 in net revenue
14,500 employees
* we also have distribution operations in Bolivia (Natura)
and Costa Rica and Paraguay (Avon).
United
States
7
Mexico
2,078
Guatemala
356
El Salvador
Honduras
61
Panama
39
65
Nicaragua
Colombia
65
786
Ecuador
227
Peru
2,107
Employees
Brazil
7,685
Chile
2,107
Uruguay
Argentina
22
2,107
Latin
America
France
11
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Strategy in the region
In 2023, we successfully unified the Natura and Avon brand operations
at the regional level, laying a solid foundation for future growth. This
consolidation project enhances our ability to generate positive impact
through our business model and expansive network in Latin America.
In accordance with our business priorities, we unified the relationship
selling platform in Brazil, Peru, Colombia and, at the beginning of 2024,
in Chile. We also focused on the positioning of the unique identity of
each brand, driving their values and purpose.
Natura made notable strides in 2023, particularly in premium product
innovations. One highlight was the introduction of the Bothânica line,
marking the brand’s venture into the home care segment. Additionally,
Natura expanded its retail footprint significantly by opening 153 new
stores across Latin America.We reviewed the brand communication
strategy to expand interactions with consumers, underscoring the
essence the products bear as points of connection with Well Being Well.
Avon went deeper into its portfolio review, striving for greater
efficiency in line with the specificities of each market in Latin America
and continued to reinforce the new brand identity launched the
previous year, reappropriating the power of womanhood and the
democratization of beauty.
We continued to evolve our Emana Pay financial platform, which
reached break even point ahead of projections and expanded its offer of
services to support and strengthen the consultant network.
Natura &Co Latin America strategic pillars
1. Brands and categories *
2. Direct selling platform *
3. Strengthening the brands *
4. Omnidigital
5. Ecosystem and new businesses
6. Internationalization
7. Organizational transformation
* Strategic priorities.
The main executive body of Natura &Co Latin America is
the Executive Committee (Comex), responsible conducting,
executing and accounting for business strategy, as well as
contributing to the formulation of long-term plans for the region.
The Comex was reorganized as part of process of combining
the activities of the Natura and Avon brands in Latin America.
In December 2023, there were 10 members on the Committee,
including the CEO and the leaders of the Finance areas; Natura
and Avon Brazil; Omnichannel Business; Natura and Avon
Hispanic; Operations, Logistics and Supply; Brand, Marketing and
Innovation Avon; Brand, Marketing and Innovation Natura; Emana
Pay, New Businesses, Data and Analytics; and Sustainability, Legal,
Government Relations, Reputation and Communication.
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Governance and leadership
in Latin America GRI 2-9
Latin
America
Our Comex in 2023 (from left to right):
Ana Beatriz Costa - VP Sustainability, Legal, Government Relations, Reputation and Communication
Diego Fernando de Leone - VP Natura and Avon Hispanic
Tatiana Ponce - VP Brand, Marketing and Innovation Natura
João Paulo Ferreira - CEO
Daniel Silveira - VP Brand, Marketing and Innovation Avon
Joselena Romero - VP Operations, Logistics and Supply
Agenor Leão de Almeida Junior - VP Natura e Avon Brazil
Silvia Vilas Boas - VP Finance
José Manuel Silva - VP Emana Pay, New Businesses, IT, Data & Analytics
Paula Ferreira de Andrade Romano - VP Omnichannel business
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Consolidating
our businesses GRI 2-6
The insights and outcomes gathered over the past four
Althoughi ntegration of the production and logistics operations
years since integrating Avon into the Natura &Co group have
began in 2020, Wave Two did produce new challenges. We
facilitated the acceleration of Wave Two in the operational
faced temporary supply and logistics setbacks during the
and commercial integration process. The new model has the
implementation of the combined operation, which we managed
potential to positively impact the income and quality of life of
to stabilize rapidly. The learnings from the first implementations
the network of over 3.5 million consultants, while preserving
have enabled the development of more agile and effective
the individualized brand and product experiences for our
remediation initiatives in the later processes.
customers. The combination of the operation of the businesses
of the two brands included Brazil, Colombia, Peru and Chile - the
As expected, there was a contraction in the sales channel, while
latter initiated officially in January, 2024.
the consultants with more developed businesses witnessed an
increase in productivity from cross selling. In the fourth quarter
In 2023, we started to offer the Beauty Consultants a unique
of 2023, Brazil had an average of 1.8 million consultants, a 15.3%
experience, with the best of each brand. The Natura and Avon
decrease compared with the previous year, due mainly to the exit
sales forces were unified and now share tools and processes to
of less productive consultants. There was an 18.1% reduction in the
leverage Beauty Consulting, with an optimized, broader and
consultant base in Hispanic America compared with the previous
more diverse product portfolio, more attractive commercial
year, due mainly to a decrease in the number of consultants with
terms and greater access to benefits. This core change in
less developed businesses in Peru and Colombia, a situation which
the business model enhances the value proposition for the
is already showing signs of stabilization and recovery. In spite of the
relationship network and has already shown positive results, with
adjustments in the commercial model, the network in Mexico has
greater productivity and higher satisfaction ratings in the last
been showing smaller quarterly decreases. One of the goals for
quarter of the year.
2024 is to stabilize the Natura and Avon Beauty Consultant base.
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Impact Management -
Integrated Profit and Loss (IP&L):
integrated management tool
GRI 2-25, 3-3, 203-2
In 2023, Natura &Co Latin America generated a net positive
impact of BRL 39.5 billion for society. The calculations
demonstrate that for each BRL 1 in revenue, Natura generated
A passion for innovating, the mission of driving beauty and well-being
BRL 2.7 in positive social and environmental impact. These
for our relationship network, and promoting positive economic,
results include the impacts of the Natura and Avon businesses
social and environmental impact are in Natura’s essence. The
in the countries in which the operations were combined: Peru,
Integrated Profit and Loss (IP&L) materializes this by accounting for
Colombia and Brazil.
the impacts, which go beyond the traditional statement of profit and
loss, integrating the gains and losses generated by our business in the
Internally, the IP&L is a valuable governance tool that qualifies
economy, the environment and in society. This measurement takes
our assessment of the costs and benefits of strategic projects
into account all the company’s activities in the year, from the supplier
and investments. The extension of the IP&L assessment to the
chain and extractivist communities in the Amazon region, through
combined operations will enable us to better direct our strategic
the direct operations, to the activity of Beauty Consulting and the use
decisions towards driving a regenerative socio-bioeconomy.
and disposal of products. We analyze the results of these operations
and measure their positive and negative impacts, applying the
The first IP&L result in 2021 showed that the absolute socio-
parameter of change in quality of life and well-being, which includes
economic impact of the business far outstripped its financial
health and life expectancy, as well as the limits of the sustainable use
performance. Since then, we have continued to enhance
of natural resources, among other factors.
the methodology and we believe that the ratio of revenue to
impact on well-being should grow as we expand our business
The differentials of this calculation compared with other forms of
qualitatively. This is why in 2023, as part of our Commitment to
impact measurement include valuation, that is, the translation of the
Life, we launched our strategy to generate regenerative solutions
positive and negative effects of the business into monetary values,
and drive a net positive impact four times greater than our
speaking the language of investors and analysts, and enabling a direct
revenue by 2030.
comparison with financial results. The impacts we generate on all the
links in our chain are monetized in three dimensions: Natural Capital
(resources); Social Capital (relations); and Human Capital (people).
Further information and details about the IP&L methodology here.
Further information about IP&L performance here.
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Omnichannel
business
The omnichannel business model enables
consumers to get closer to our brands where,
when and how they want to, responding to
the accelerated changes in consumption and
lifestyle in our society.
Through the development of diverse commercialization channels
like retail and e-commerce, alongside their complementary
nature, we’ve successfully boosted engagement with our
brands, potentially expanding our customer base and enhancing
connections with Natura and Avon Beauty Consultants
Our journey is one of continuous evolution, and among the
omnichannel interactions that have proven successful, two stand
out: “ship from store” initiatives, where customers purchase
online and the nearest store ships the product to minimize wait
times, and “click and collect,” allowing customers to buy online
and pick up their orders from their preferred store location.
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Relationship Selling
GRI 2-6
Relationship Selling, with which over 3.5 million
Beauty Consultants and Representatives
from our brands work in Latin America, has
been a symbol of female entrepreneurship
and empowerment for over 130 years. This
business model holds a key place in our
society’s affective memory and has been
leveraged by digitalization and the use of social
networks. By modernizing rituals, incentives,
and training to align with 21st-century
demands and leveraging new technologies,
we can enhance productivity and gain deeper
consumer insights. When combined with
the omnichannel experience, this approach
enables us to personalize offers and tailor sales
strategies to meet individual needs effectively.
involving aspects related to quality of life in a broader sense. To
measure this impact, since 2014 we have employed our Beauty
Consultant Human Development Index (HDI), inspired by the
United Nations Development Program (UNDP) methodology.
This survey is conducted every two years, enabling the tracking
of the dimensions assessed and acting directly on critical
themes. Added to the previously mentioned IP&L, the HDI is
fundamentally different in the way we comprehend and relate to
the Beauty Consultant network, in line with our values and with
Well Being Well.
The last assessment took place in 2022, revealing a noteworthy
enhancement in the quality of life of Natura consultants, with
a 3.6% increase compared to 2019, reaching a rate of 0.63 on a
scale from 0 to 1. This improvement was particularly driven by
advancements in the knowledge dimension, which surged by
8.9%, notably propelled by pillars such as financial education and
digital inclusion.
In addition to the HDI, we measure the consultant network
Relationship selling is a powerful driver of prosperity for
engagement in our value proposition and action plans by means
millions of people, in particular, women. We understand
of satisfaction and loyalty indices.
that this concept goes beyond generating a living income,
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Digitalization of our network
We see the incorporation of new technologies, social networks
and other digital media as potential drivers of relationship after
selling and encourage the Beauty Consultants to embrace these
evolutions in their sales strategies. In this regard, we provide
technological support and training for the development of digital
businesses, and we continuously update the sales support tools
and materials available.
A noteworthy aspect in this regard is the utilization of digital
magazines by consultants, shared with customers through
applications like WhatsApp. Moreover, for social media
publications, we offer pre-designed content crafted using data
intelligence criteria and techniques aimed at enhancing the
reach and appeal of posts. We include artificial intelligence tools
to customize promotions for each customer, who decides how
to conclude their purchase, whether via e-commerce or directly
with the consultant.
In 2023, we unified the Natura Consultant
Day and the Avon Representative Day, with
the commemoration of Natura and Avon
Beauty Consultant Day on September 22.
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In 2023, Natura &Co had a total of over 1.3 million digital spaces
Beauty Consultant Trainers, evolution of content distribution
for Beauty Consultants, with 80% of these spaces concentrated in
formats, enrichment of the repertoire with more in-depth
Brazil. Also during the year, Natura’s presence on WhatsApp was
content and face to face training, training the network for the
certified by Meta, making it the first cosmetics brand certified
Natura and Avon combined Beauty Consultancy model, and
on this platform. This has enabled us to create a community
the launch of the Natura and Avon Business School. A digital
of beauty and personal care enthusiasts, offering information
platform created to accelerate Beauty Consultant development
contents for the categories in which they are involved.
by means of a learning journey that includes online and face to
face courses with contents segmented for the different stages of
Education and training
consultant maturity.
We promote the personal and professional development of
our consultants by facilitating access to training and education
With the Natura Education Educational Credit program,
initiatives. This helps to broaden their world view, driving
consultants and their family members are able to take technical,
autonomy and income generation.
graduate, postgraduate and language courses. Managed by the
Instituto Natura and the partnering fintech Mova, the program
The priority subjects in Beauty Consultant training include
offers interest free financing repayable in up to 36 installments.
Natura and Avon products, businesses associated with Beauty
Meanwhile the “Programming my Future” initiative is oriented to
Consulting, digitalization, financial literacy and education,
technology training for the children of Beauty Consultants and
positioning (soft skills) and the causes promoted by our brands.
Business Leaders, focused on inclusion and the development of
In 2023 in Latin America, each Beauty Consultant consumed
digital skills.
on average 11 contents on our digital platforms, which track
participation in and evaluation of the training offered.
Health and Well-Being GRI 203
We reaffirmed our commitment to expand the reach of the
Consultants. We develop programs that promote self-care,
training for the Consultant base. Five macro-initiatives were
socio-emotional development and self-esteem for those in our
implemented: expansion of the reach of the
business and impact network.
We invest in Well Being Well measures for the Beauty
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and refer them to the specialized services we offer: telemedicine,
psychological counselling, support in the event of domestic
violence, financial assistance for food and medical expenses. Our
social contact channel provided donations and income transfers
for over 1,500 consultants and leaders who found themselves in
need. On another front, we arrange donations to provide help in
Retail
The retail area was particularly noteworthy for Natura
in 2023, with the opening of 153 company-owned
stores and franchises in the region.
the event of public calamities.
The major highlight was the new franchise model exclusively for
The power of recognition and donations to promote self-esteem
the robustness of the brand and its maturity in the market. We
and well-being constitutes the basis for one of Natura’s longest-
ended 2023 with 932 Natura stores in Latin America, of which 887 in
standing initiatives: The Acolher Program. Introduced in 2010 to
Brazil. Also worthy of note was the pace of growth of the channel in
recognize and reward consultants who organize consolidated
Chile, where there are 25 stores in operation and the omnichannel
the Natura brand, with over 100 new points of sale, demonstrating
social projects, in 2021 the potential to generate impact was
presence is being intensified.
expanded by encouraging Beauty Consultants to act as
community leaders by means of a Social Mobilization Education
The increase in the representativeness of the retail channel on
Journey. In 2023, we recognized 45 Beauty Consultants,
commemorative dates, such as Christmas, attests to the
including: 43 women with 28 people self-declared as black or
connection with new consumers who hitherto were not reached
mixed race. The program is funded with resources raised from a
by the company’s other channels.
percentage of sales on Natura Friday.
See the Beauty Consultant satisfaction,
training and development indicators in the
The robust results are also demonstrated by the excellent evaluation
by our consumers and their willingness to recommend the brand,
measured by Net Promoter Score (NPS) methodology. We scored 91
Databook Latin America
points, a steady increase in all the countries with stores compared
with 2022. The indicator is 24 points higher than the average NPS for
cosmetics and perfumery (67), one of the categories with the best
evaluation (fourth place) according to 2023 NPS Benchmarking (further
details in the Databook Latin America).
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E-commerce
We’re making significant strides in online
sales for our brands. Natura’s digital sales,
encompassing e-commerce and social
network platforms, have seen growth
following strategic adjustments aimed at
enhancing the omnichannel approach,
particularly focusing on e-commerce
platforms and social network sales.
Meanwhile Avon showed impressive results in the campaigns
held on commemorative dates, such as Christmas,
demonstrating the brand’s potential in this channel.
The e-commerce platform is being updated to incorporate
artificial intelligence tools that enable the delivery of targeted
offers for each customer. In Argentina, the migration of the
Natura brand was conducted in 2022, and the migrations were
concluded in Mexico and Chile in 2023. Avon is following the
same course, with new growth opportunities being enabled at
an accelerated rate based on the Natura model.
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New businesses
Emana Pay:
GRI 3-3
Emana Pay is what we call the new and expanded version of the
financial services platform previously known as &Co Pay. The
name “Emana” comes from emanate, being together, giving a
hand and not leaving anyone behind. It is a name that suggests
universality and was chosen precisely because it represents the
power of our Beauty Consultant network, showing that being
together is part of our business philosophy.
Idealized to promote the digital inclusion and financial prosperity
of our Beauty Consultants, Emana plays a key role in our financial
education area, leveraging business growth for our network.
The services are exclusively for the Beauty Consultants, at
the moment only in Brazil. It enables them to obtain financial
products and conduct operations either on better terms or ones
that would otherwise not be accessible to them.
The digital account provides services such as bill payment,
cellular phone top ups, a digital space for tracking and
managing orders placed, purchase vouchers for customers and
financial education tools. It also simplifies customer payment
management, with receipt via PIX or electronic transfer and
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a link for payment in up to 12 installments, the replacement of
for their end customers, reinforcing their security and
terminals, all this with charges below the market average.
strengthening their business.
2023 saw the consolidation of the company’s strategy to drive
We believe that the greater the financial literacy and inclusion,
financial inclusion and the democratization of access to digital
the better will be the lives and opportunities for our Beauty
financial services. In financial terms, the venture broke even in
Consultants, a belief confirmed by the Beauty Consultant HDI.
just over two years of operation.
In recent years, Emana Pay has exercised a positive influence on
With the progression of the Natura and Avon integration,
boosting financial education and digital inclusion indicators by
we now have over 800,000 Beauty Consultants in Brazil
over 20% in the assessment of the knowledge dimension.
the Beauty Consultant HDI in Brazil (further information here),
embracing Emana Pay. Around 40% use the tool in each
sales cycle, boosting their business productivity by 10%, with
The digital solution has also been adopted in retail – 100% of the
delinquency reduced by around 30%. The main impact,
Natura-owned stores and 60% of the Natura franchises now use
however, is in the platform’s power to promote financial
Emana Pay. The system is also used to process the payments
education: in 2023 alone, over 24,000 Beauty Consultants
of the The Body Shop master franchisee stores and Natura
consumed financial education contents.
and Avon e-commerce. The Brazilian PIX system stands out as
In 2023, we launched the Emana Pay credit card. This enables
system processed over 17 million transactions during the year.
the consultants to use credit within Natura, facilitating
In all the channels, the total payments in 2023 exceeded BRL 40
management of their businesses. We also inaugurated the
billion, an increase of 60% over the previous year.
the main tool used for capturing and receiving payments. The
remunerated account, as we begin to foster the habit of
saving and planning and undertaking short and medium
The introduction of Emana Pay in the rest of Latin America is
term financial measures. Moreover, we developed a product
proceeding according to plan. In Argentina, 100% of payments are
called Aproxima Aê. This permits a cellular phone to be
processed on the platform. Digital accounts and credit cards will
used as a contactless terminal for debit or credit payments,
be launched shortly. In the coming years, this should become an
providing consultants with an array of payment options
exclusive platform for inclusion and financial services in the region.
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With the exponential rise in Emana Pay accesses and the
expansion of its benefits, we’re intensifying efforts to segment
the service even further. This involves considering the diverse
profiles of channels and Beauty Consultants, aiming to fortify the
foundation of our network.
Natura
Natura
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99
Our brands
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Natura positioned for the future
The performance of the Natura brand in 2023
was excellent, particularly in Brazil. This was
driven by the strength of the omnichannel
business model, which elevated the Beauty
Consultants’ income generation potential and
boosted their productivity.
In parallel, the retail channel enjoyed robust growth in Brazil
propelled by impressive store sales and the accelerated pace of
store openings, both company-owned and franchise outlets,
indicating the potential future growth in this channel. Meanwhile,
digital sales benefited from adjustments in the e-commerce
platforms and the social networks to enhance the omnichannel
connection, as well as seasonal sales on commemorative dates
such as Christmas or Natura Friday. The Natura brand showed a
resilient performance in the implementation of Wave Two in Peru,
Colombia and Brazil and faced challenges in the adjustments
made in the commercial model in Mexico.
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Product innovations also supported the positive result, worthy
of note being the Todo dia Toda Noite line and the Essencial Ato
fragrances. After the launch of the Biome zero plastic bar product
line, Natura positioned itself in the premium market with its entry
into the home products segment thanks to the Bothânica line, a
new brand with exclusive fragrances and essential oils in products
that care for, transform and integrate into different spaces.
What if?
In 2023 we revisited the Natura brand narrative in Latin America
to position cosmetics as a transformative vehicle, capable of
opening up the world for each individual, combining science and
nature for the well-being and beauty of all forms of life. Based
on the new product lines and in connection with the business
expansion cycle, we created communication campaigns and
marketing strategies to forge close links between the company
purpose and consultants and consumers, reinforcing attributes
such as innovation and high performance.
“What if the Amazon imbued
your skin with the power
of hyaluronic acid?”
.
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By presenting products as tangible expressions of our purposes, we
invite the public to interact with the brand reflecting on the power
of their choices, with a simple but not obvious provocation, “What
if?”. With this question, Natura proposes that people reflect on the
transformative power of their choices, presenting the product at
the core of the communication, as a spokesperson and point of
connection with Well Being Well.
In response to the growing interest in skincare evident through
social media searches, we’re reevaluating our approach. Why limit
skincare tutorials and campaigns to facial care when the term
encompasses broader aspects of skin health? Natura EKOS extended
an invitation to rethink body skin care with a special edition of
Natura Ekos Tukumã, a complete anti-signs of ageing line that leaves
the skin firmer and more even, boosting natural hyaluronic acid
production by 77% based on a fruit from Amazonian biodiversity,
transformed into a powerful cosmetic bioactive through research,
technology and innovation.
Natura Musical
For 18 years the Natura Musical Program has fostered culture
the country’s culture. In partnerships with festivals and the Casa
Natura Musical venue, the platform promotes encounters aimed at
transforming the world through art.
A total of BRL 11 million was invested in Natura Musical projects in 2023,
of which BRL 3.9 million from tax incentive laws and BRL 7.1 in company
funds. During the year, the program supported more than 90 projects,
resulting in the launch of 130 cultural products. Highlights were the
launch of the unprecedented album Canto Coral Afro-Brasileiro, by
Os Tincoãs, much awaited for 40 years, and the award winning album
from Latin Grammy winner João Donato, Seratonina. Moreover, the
program promoted new talents such as the singer from Bahia Melly,
through the responsible and transparent use of funds from tax
winner of the Prêmio Multishow de Artista Revelação; it also supported
incentives. On this journey, it values music as a vehicle for well-
collective initiatives, such as the Festival Latinidades, which toured a
being, connection and personal and collective transformation. To
number of state capitals. The Casa Natura Musical, in São Paulo (SP),
date it has sponsored more than 600 artists and projects all over
promoted more than 120 shows by artists from all over Brazil, with a
Brazil, promoting musical experiences that reveal the diversity of
total audience of over 65,000 people in the year.
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Launches
Natura Tododia Todanoite:
What if you didn’t wait till tomorrow to sleep? Developed
by the Natura Well-Being Sciences area in partnership
with Instituto do Sono, the product line proposes a
pre-sleep routine that cares for the skin, reduces the
time to go to sleep and improves the quality of sleep
up to fourfold, with proven effectiveness. The product
line comprises prebiotic nutrition, vitamin B5 and
chamomile tea and lavender fragrance.
Natura Bothânica
The line offers well-being in every
detail, from the skin to the home
ambience. With the launch, Natura is
evolving in the premium categories,
inaugurating the home care segment
with perfumery for the home. Focused
on e-commerce and retail sales, the
products seek to harmonize body, the
home and the planet, by means of
natural formulas, exclusive fragrances
and essential oils.
Natura Ekos Brazil Oil Concentrate
The first concentrated moisturizing body cream in the world, the
results of three years of study by the Natura R&D team, it represents the
combination of innovation and positive impact. The launch, available
for sale in 2024, represents a global innovation in the cosmetics market,
reinforcing the brand’s commitment to sustainability, noteworthy being
its refillable pack. Made from 100% plastic retrieved from riverine regions,
it contributes to a significant reduction in waste and the development of
sustainable post-consumer plastic chains in riverside communities, as well
as fostering recycling cooperatives.
Essencial Ato
An olfactory creation from Verônica Kato, Natura,’s exclusive
perfumer, in which we capture the smell of the Brazilwood
flower combined with Amazonian power of priprioca root
essential oil. An exclusive innovation from Natura Perfumery,
that took five years to develop a fragrance equal to that of
the Brazilwood flower, enabling its use in perfumery while
leaving the flowers on the trees using Headspace sustainable
technology, which absorbs the molecules responsible for
producing the odors, which are then subject to a series of
laboratory essays to identify the molecules responsible for
creating this olfactory identity.
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Our
certifications
B Corp In 2014, Natura became the first publicly traded
company to receive B Corp certification. In 2020 we received
our third consecutive certification with the highest score in our
historical series (153 points), growing 39% compared with the
initial certification. We are one of the few companies in the world
to score in seven impact business models (IBMs). In 2023, Natura
undertook a new recertification process, which will be concluded
in 2024.
The Leaping Bunny: Bestowed by Cruelty Free International,
one of the oldest and most respected organizations fighting to
eliminate animal testing. The certification attests to Natura’s
commitment to ban animal testing at all product development
stages, which has been in place since 2006. Natura was the first
company to receive this certification in Brazil in September 2018.
UEBT (Union for Ethical Biotrade) certification: For the sixth
consecutive year the certification guarantees that all the
vegetable ingredients in Natura’s Ekos line product formulations
were sourced with respect for people and the environment.
The process involves a rigorous system that verifies UEBT ethical
biotrade principles in the field, such as the existence of practices
that guarantee the maintenance of ecosystems, fair sharing of
benefits from the use of biodiversity and associated traditional
knowledge, as well as safe working conditions. The Ekos line has
had UEBT certification since 2018 and is one of the few products
that have it worldwide.
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Awards and
recognitions
Brand Finance:
For the third time running, the
strongest cosmetics company in
the world in the Brand Finance
2023 report.
Folha Top of Mind:
Winner in the Moisturizing Cream and
Environmental Preservation categories
Clean Production Award (Peru):
Award granted by the Environment
Ministry, in the Sustainability and
Commitment to Society and the
Environment category
Monitor Empresarial Corporate
Reputation (Merco):
•
•
1st place in Brazil for the ninth
consecutive year
5th place in Argentina
Valor Innovation Award:
6th most innovative company in
Brazil.
Amcham Award(United States
Chamber of Commerce in Argen-
tina): Winner in the Transparency
and Ethics category,
for the IP&L case study.
Best Corporations for
Start-ups:
Merco ESG:
1st place in Brazil
2nd in Argentina, Chile and Peru
9th in Mexico
Exame - Biggest and best:
Special recognition for winning
the most awards in the segment
(12 times).
POY Award (Chile):
Best product of the year, with
the Ekos Tukumã moisturizer
Startups Awards 2023:
Distinction in the Corporate
category
Merco Talento:
1st place in Brazil
10th in Argentina
Aberje Award:
Regional winner with the Voto
Consciente case study.
Private social investment index
(Colombia):
Leading company in the ranking.
Open Startups Ranking:
TOP Open Corps.
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Avon
Prepared for growth
In 2023, as part of a global movement in the brand, Avon
Throughout 2023, we streamlined brand expressions across
Latin America with a fresh identity, revitalized portfolio, and
concluded the first cycle of its transformation, whose
revised communication strategies. We revamped product
first wave began in 2020. This stage re-established the
presentations by integrating new technologies and reexamined
foundations of its business model, including optimization of
our relationships with consultants and consumers.
its portfolio, improved product quality and renewal of the
brand expression, incorporating key innovations in priority
We also boosted the momentum of digitalization, with the
categories, such as make-up, as well as sustainability in its
internalization and relaunch of the e-commerce channel in
operations.
These fundaments were aimed at preparing Avon for the
Brazil, which produced very promising results, especially on
commemorative dates.
second wave of the combination of operations with Natura
It was a period in which perception of brand quality was
in Latin America, which began in 2023 in Peru, followed
changed based on the “Olha de Novo” (Watch me now)
by Colombia and Brazil. With the integration, the Beauty
campaign. We invited people to rediscover Avon and its
Consultant network gains an enhanced value proposition
products using a more direct and immediate language.
aimed at boosting productivity gains as well as enabling
It was successful and made consumers reconsider the brand
access to a series of benefits hitherto only available to Natura
and reconnect with its purpose.
consultants, such as financial services and education for them
and their families. The integration also permitted investment
The brand was positioned as the leader of the make-up category
to ensure the Avon operations in the countries adopting the
in Brazil (Kantar), underscoring the Power Stay product line and
combination become carbon neutral as early as 2024.
the Tratamake platform.
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Launches
Matte Hydramatic Lipstick
The first with the powerful
tratamake nucleus, which
combines intense color and a
matte finish with moisturizing
properties. The formula contains
hyaluronic acid and glycerine,
known for their high moisturizing
power. The launch inaugurates
a treatment platform within the
make-up category.
Renew Line
This consists of products that reinforce care
in the skincare routine.They range from cleansing
to anti-signs of ageing treatment, including
moisturizing and protection. The key components in
the formulation include protinol, an exclusive brand
ingredient that promotes the production of the two
types of collagen present in our skin. The result is
greater softness, plumping and firmness.
Power Stay
Long-wearing make-up for a complete
look every day. It comprises lipsticks,
foundations, concealer, eyeliners and
mascara. The launches for the year include
new lipstick colors and a liquid eyeliner.
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Awards and
recognitions
Instituto Ethos:
Best company for black women
Aberje Award:
Regional winner with the Avon Olha de Novo case study
Lápiz de Oro Award (Argentina):
Best advertising with the “La voz” campaign
Colombia Women’s Department:
Award for being a company made up
of Powerful Women
Bosque Urbano Award (Mexico):
Awarded to companies committed to recycling paper packaging
Violeta Magazine (Ecuador):
Equality and Inclusion certification
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The Body Shop
In line with global strategy, The Body Shop focused on stabilizing
its main distribution channels and reducing costs in Latin
America, with a view to driving cash generation and resumed
growth in tune with the market.
With the sale of the brand finalized by the end of the year, we
transitioned into our role as master franchisees in the region,
proud to uphold the brand’s positioning and attributes.
Awards and recognitions
• Glamour de Beleza Award 2024:
Winner in the Skin category, with Edelweiss Night Mascara
• GQ Brasil Grooming Awards:
Winner in the Body Skin category, with the dense
butter for long-wearing moisturizing Body Butter
Avocado (Vegan) and Moringa bar soap
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Launches
Jamaican Castor Oil Line
Developed especially for coily
and curly hair, its formula
contains vegan keratin,
shea butter – from Ghana
Community Fair Trade – and
Jamaican castor oil, with a
recyclable and 100% recycled
pack with Community Fair
Trade plastic retrieved from
the streets of Bengaluru in
India. All are dermatologically
tested and certified by the
Vegan Society.
Flor do Limoeiro
(Lime tree flower)
The new product line consists of
Shower Gel, Body Yoghurt and
Face and Body Mist with fresh,
citric floral aromas. All are vegan
and dermatologically tested with
a minimum of 92% ingredients of
natural origin.
Wellness Line
Anchored on three special pillars (Sleep,
Breathe and Boost), it is oriented to self-
care to re-energize the body and mind.
The Sleep line contains a minimum of
90% ingredients of natural origin and
upholds ethical principles in the essential
oil sourcing chain. In the Breathe line,
noteworthy are the 100% natural eucalyptus
essential oils from China and rosemary
from Spain, with at least 95% ingredients
of natural origin. Mean while the Boost
line contains 100% natural tangerine
and bergamot oils, as well as other
ingredients from Fair Trade programs with
communities in Europe, Asia, Africa
and Latin America.
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Innovation, science
and knowledge
With the integration of our businesses, we consider the role of
trends. In parallel, the restructuring has resulted in teams that
research and development (R&D) and investments in them to be
work in synergy, seeking opportunities to optimize processes,
even more important. For us, nature, technology and beauty
infrastructure and technology. Some areas are now shared
should go side by side to generate value for society and for the
between Natura and Avon, such as advanced skin research and
environment.
the Perfumery Development Nucleus.
Our Research and Development (R&D) area is manned by a highly
These modifications were enabled by the installation of the
qualified multidisciplinary team of researchers that, based on the
Avon Global Innovation Center beside the Natura Innovation
application of in-depth knowledge of skin, hair and microbiota
Center in 2023. Both are located in the municipality of Cajamar
sciences, develops high performance products that are proven
in Brazil. This move has made Latin America the group’s main
to be effective and safe for human beings and the environment.
technological investment hub in the world. Together, the two
We use machine learning, big data and artificial intelligence (AI)
form the largest cosmetics innovation center in the southern
to boost the processing capacity of the information generated
hemisphere.
by these professionals. This process is further enhanced by
leveraging other technological solutions, such as augmented
Beyond the synergies, Brazil is also strategic because of the
reality and the Internet of Things.
diversity of its climate and consumption habits, as well as the
In 2023, we reviewed our entire innovation process, including
region in geographical, cultural and ethnic-racial factors helps
our organizational structure, aimed at accelerating our creations
to leverage the creation process for products that meet the
in the market. The R&D teams for each brand continue to
demands of consumers on all the continents. Avon, for example,
work independently, ensuring each one’s exclusive “way of
is the major benchmark for black skin, with four times greater
making products”. Natura maintains its investments in Brazilian
market share than the competition, and will benefit from this
biodiversity actives, while Avon has a strategy linked with global
proximity to the consumer market. In parallel, executing this
different skin and hair types found in the country. Such a diverse
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development from Brazil will drive knowledge sharing with other
We believe that companies not only have the potential but rather
Avon centers worldwide and foster the development of new
have the duty to generate solutions for socio-environmental
talent in the organization in Latin America.
challenges. We see these as opportunities for innovating
The installation of a pilot plant for make-up together with the
guarantees the perpetuity of our businesses in conjunction with
innovation centers is scheduled for 2024. This will be used to
sustainability and the R&D area focused on beauty products. We
conduct tests both for Natura and Avon, functioning as a factory
innovate in our commercial model to increase our capacity to
and generating positive impact. Innovation is the front that
on a smaller scale.
generate prosperity for our network, in new businesses such as
Emana Pay to drive digital and financial inclusion for our network,
Combining actives from nature with human knowledge and
in the way we measure our impacts not only in terms of finance
sensitivity and state-of-the-art technology enables us to develop
but in socio-environmental factors by means of the Integrated
high performance products with proven effectiveness and safety
Profit & Loss (IP&L), throughout our value chain to guarantee
for people and for the environment.
human rights and foster the protection of social biodiversity, as
Natura innovation indicators
2021
2022
2023
Investment in innovation (BRL million)
262
297
292
well as promoting social innovation tools such as the Financial
Mechanism to protect the Amazon. We also innovate constantly
in the way we connect with our customers, not only offering
them solutions for their needs, but also fostering their connection
with more sustainable behaviors. In this context, our investment
Percentage of net
revenue invested in innovation (%)
2.2
2.3
2.1
in innovation in its broadest sense has increased over the years.
Number of products launched1 – Brazil
367
222
273
1The number of products launched includes only products that represent a new
value proposition for the consumer, such as new packs and formulations.
2Share of sales of products launched in the last 24 months in total gross revenue
in the last 12 months.
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Innovation Centers
in Latin America
Natura Innovation Center in Cajamar (São Paulo)
Our R&D center leverages innovation and the development
of more natural formulas with exclusive, powerful and safe
ingredients from Brazilian biodiversity, especially the Amazon,
without conducting tests on animals to prove the safety and
effectiveness of our products. The technology park has latest
generation laboratories and equipment to identify in depth the
Inauguration of the Avon Global Innovation Center
in Cajamar - São Paulo, Brazil.
vocation of the ingredients and to transform this knowledge into
initiative include the Federal University of Pará (UFPA)
science applied to the products, ensuring optimal performance.
and Embrapa. As part of our expansion strategy for the
It also houses collaborative spaces such as the sensory
Pan-Amazon region, we also have a partnership with the
laboratories and the Co-creation Space in which consultants and
Instituto Sinchi in Colombia.
consumers are invited to participate in the process of developing
our products. The center also conducts activities aimed at
• Among the notable fronts of activity in 2023 are:
dissemination, inspiration and co-creation with universities,
The launch of two new bioingredients of Amazonian origin,
start-ups, suppliers and partners.
raising the total from 42 to 44 ingredients. With the expansion
of our area of activity, we are contributing to the conservation
Natura Amazonia Innovation Nucleus (Nina)
of 2.16 million hectares of land and initiating a partnership
Nina is installed in the Ecoparque in Benevides, Pará, where
with new communities.
there is a biorefinery for developing processes to obtain extracts,
fixed oils, butters and essential oils from Amazonian biodiversity.
The center is part of the Natura Amazonia Program strategy to
• Acquisition of new equipment for our biorefinery, expanding
production and technology capacity for the development of
promote innovation and technological development in the region
new eco-efficient extraction processes to obtain Amazonian
and add value for sustainable local production. Partners in the
bioingredients.
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•
technological processes that drive digital transformation in
scientific research into biodiversity and the democratization
of access to leading edge technology, benefiting the
communities.
• Development of a simple device with a virtual communication
interface to capture, measure and process data from remote
regions in the interior of the Amazon.
Global Avon Innovation Center in Brazil
In 2023 we brought the Avon Global Innovation Center from the
United States to Brazil, in the municipality of Cajamer, driving
synergy between the structures. The new hub is responsible for
innovation, product research and development for all the brand’s
categories for some 50 markets worldwide.
The decision was also taken to bring the brand even closer to
the Latin American public. The idea is to ensure the investment
makes the products more rapidly available for the end consumer.
More than 300 scientists are focused on the development of
formulas, packs and new technologies, constituting a significant
competitive differential in the cosmetics industry.
At the forefront of
new technologies
We invest in in vitro models and methodologies for research
into skin physiology and hair biophysics, as well as their reaction
with the environment, with microbiota and with processes
in the human organism, such as ageing. By means of these
methodologies, in 2023 we conducted studies that identified new
cosmetic intervention mechanisms for treating the skin, scalp and
hair strands. This approach allows for the selection of the most
appropriate ingredients for each intervention, directly impacting
the development of efficient and innovative cosmetic products
tailored to meet specific consumer needs.
Among the innovations under development or application,
worthy of note is the investment in a machine that simulates
exposure to the sun for conducting product tests. This will
join other leading edge technology products for research and
development, such as high performance chromatographs,
capable of separating complex compound mixtures, effectively
targeting the application of exclusive raw materials in products.
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Artificial Intelligence
with the most recent scientific criteria and in compliance with
The expansion of the use of AI and data in all our R&D processes is
relevant Brazilian and international legislations.
part of our strategy, with a focus on accelerating and ensuring the
effectiveness of technical decision making. In 2023, we developed
We have a specialized team of researchers that uses advanced
big data tools for simulations and the ecodesign of formulas that
in vitro modeling techniques, such as bioprinted 3D skin. The
enable real-time comparative analyses with the complete Natura
integrated methodologies strategy enables safety assessments
portfolio. The goal is to simulate the impacts of substitutions of
for the brand’s proprietary raw materials, combining different
ingredients, formulas and packs, as well as Commitment to Life
computational models to predict the toxicity of an ingredient and
indicators to boost agility in decision making and choices that
biological models.
reduce environmental impact.
An example is the Human-on-a-chip methodology, developed by
We implemented AI models to forecast safety parameters for
Natura in partnership with LnBio (National Biosciences Laboratory
natural ingredients as an evolution in new alternative methods
of CNPEM – Centro Nacional de Pesquisa em Energia e Materiais).
to the use of animals. We also leveraged analysis flow in omic
The procedure simulates the functioning of the human organism
technologies, involving structured data bases and artificial
in laboratory for assessing the safety of ingredients or products.
intelligence computational models and machine learning in
In 2023, the technology was incorporated into the company’s
transcriptomics and metabolomics, the process used to assess the
routine safety tests. The method enables us to understand
vocations and chemical signatures of proprietary bioingredients.
whether a raw material with no historical usage data is critical or
Ingredient safety and consumers
GRI 416-1, 417-2
not for relevant toxicological components.
In 2023, we also incorporated and used three new in vitro
We are fully committed to the health and safety of consumers,
biological models and a computational model that enables
assessing 100% of our product and service categories. In 2023, we
us to study, accelerate and innovate in safety assessments of
had 11 significant product and service categories, all rigorously
ingredients of natural origin, pursuing greater possibilities for
assessed in terms of their health and safety impacts. This process
the application of proprietary technologies to maximize their
ensures that each product commercialized by Natura complies
performance.
with the highest safety standards, using safe ingredients in line
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In our portfolio we only use ingredients that have been proven
No animal testing
to be safe in line with the international scientific community.
The adoption of alternative methods to animal testing is a
We ban any ingredients of concern to human and environmental
Avon R&D teams employ a technological platform based on data
health, going beyond regulatory prohibitions. We monitor
science to advance in robust, integrated alternative approaches
international lists of controversial ingredients and movements
capable of supplying the highest possible volume of information
among the scientific community and other influencers related to
for safety assessments of proprietary raw materials. Moreover,
strategic choice for Natura &Co Latin America. The Natura and
these substances.
the company has partnerships with research institutes and
universities in Brazil and abroad to develop alternative methods
The controversial ingredients banned by Natura include triclosan,
for assessing product safety and effectiveness.
parabens, phthalates, Glyoxal and Imidazolidinyl Urea, in function
of human health and/or environmental safety concerns.
Vegan products
We also prohibit the use of any material that may be considered a
portfolio is beeswax, used mainly in make-up, and which is
microplastic (polymers and/or synthetic copolymers in particulate
gradually being substituted. In 2023, 95% of the Natura portfolio
The only non-vegan ingredient currently present in the Natura
solid form, with a particle size lower than 5 mm, insoluble in water
was vegan.
and non-degradable), to prevent the risk of these components
polluting rivers and oceans.
There have been no cases of non-conformance and incidents
with our products related to sanitary laws in the countries in
which Natura has commercial operations in Latin America.
You can verify the list of banned
ingredients and details of
consumer safety practices
in the Databook Latin America.
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and drive results in scientific development, innovation and
technology. Natura Campus houses diverse collaboration
formats. We invest in interconnected research areas active in the
generation, growth and diffusion of knowledge and that deliver
benefits for the company’s entire relationship network.
In 2023, we expanded our strategic partnerships with some
collaborative initiatives deserving attention, such as the
partnership with Solubio and the Instituto SENAI de Inovação
em Biomassa, aimed at developing solutions based on micro-
organisms to boost palm production through socially and
ecologically responsible innovations. Another was hosting the
Packaging & Sustainability event, organized by the Instituto
de Embalagens, at Cajamar in Brazil. This brought together
representatives of diverse sectors engaged in enabling
circularity in Brazil.
Natura Startups
Open innovation
For over 20 years, we have believed in the collective purpose of
Created in 2016, Natura Startups pursues solutions for the
creating via networks, with open innovation projects executed
company’s challenges by means of collaboration. Thousands of
jointly with research institutes, universities, start-ups and large
startups have been involved in this initiative. Its multiple points of
companies worldwide. These initiatives enable diverse actors
contact disseminate an innovation culture, the digital mindset,
to connect with Natura’s challenges, fostering science and
entrepreneurship, collaboration and promote agility across our
technology through partnerships involving the private sector and
different business areas, helping drive Natura’s organizational
an extensive network of partners.
transformation. The initiative is monitored and assessed using
This is the reason for Natura Campus, a program that stimulates
from the initial analysis to the contracting of approved partners.
connection via networks to strengthen the innovation ecosystem
In 2023, the project addressed 21 challenges in diverse areas,
resulting in the conclusion of nine tests and interaction with over
a start-up funnel indicator, which measures the entire process
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Singu: our first startup acquisition
In 2023, we acquired our first startup. This is the home beauty
digital service platform Singu. The company had already been
a Natura investee initiative for two years. With the purchase,
we assumed management of the company. The decision
permitted the combination of major business fronts on this
platform because a significant part of our Beauty Consultant
network works with or is engaged in the beauty service segment
(manicures, pedicures, massages, hairdressing).
The platform brings these professionals closer to the end
customer’s needs by putting them in contact and shortening
distances. This direct contact gives the professional access to a
much more inclusive level of income compared with working in a
beauty salon.
Check the results of Natura Startups in the
Databook Latin America
.
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Latin
Latin
America
America
Natura &Co Latin
America Culture:
our employees’ journey
GRI 2-7, 3-3
In 2023, Natura &Co Latin America reviewed its people and
organization strategy, in line with the new moment in our
business journey. Starting from the Organizational Transformation
strategic pillar we determined five major focuses:
1 Develop and accelerate leaders, focused on proactive mindsets,
innovation, entrepreneurship and orientation to economic,
environmental and social results, in addition to the formation of a
strong succession pipeline;
2 Guarantee the critical competencies necessary for the
growth of the businesses by means of a strategy to acquire
or develop key competencies;
Natura &Co Latin America
employees in our headquarters
in São Paulo, Brazil
In 2023, we achieved:
Gender and race salary equitty in the region
Living wage for 100% of our employees in Latin America
Over 50% women in leadership positions
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3 Simple, agile and efficient organization: reduction in complexity
Our team in detail GRI 2-7
by means of an organizational design, governance, decision
In 2023, we reduced the headcount in function of the review
making process, performance indicators and incentives that
of the organizational design and the business and operational
support current, combined and future businesses;
simplification and integration.
4 Culture: we believe that this is a major enabler of strategy. We
Latin America in numbers GRI 405-1
aim to provide clarity about our essence and the way we expect
people to act: Our Way of Being and Doing Things.
5 The employee value proposition: In addition to a benefits
package focused on the well-being and health of our employees
and their families, we promote a diverse and inclusive work
environment, with well-defined targets.
The results of the Natura culture and people journey are already
palpable. We achieved our target of having over 50% women
occupying leadership positions in 2022 and maintained it in 2023.
We reached equitable pay, eliminating any unjustified salary
difference by gender for Latin America and by race for Brazil. We
also guaranteed a living wage for 100% of our employees in 2023.
We measure employee engagement by means of favorability
index. In November 2023, the engagement survey showed 87%
favorability, a 1 p.p. increase over 2022. GRI 2-29
Around
14,500
direct
employee**
>1% did not declare
their gender
40%
men
60%
women
7,600
6,900
employees in
Brazil
in Hispanic
America
*These data do not take into account Holding company and Instituto Natura employees,
or interns and apprentices. This total is accounted for as total employees, not as full time
equivalents, and was not reported as an average during the course of the period.
Further details and indicators in the Databook Latin America.
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Living wage
In December 2023, we communicated the achievement of a
living wage for 100% of our employees in Latin America – a target
contained in the pillar “Defend Human Rights and Be
Human-kind”, from our Commitment to Life.
In establishing a living wage for employees, we are not only
addressing economic questions, but also promoting human
dignity and contributing to the elimination of inequality.
The living wage is calculated based on a survey of the local cost
of living and what is needed for a decent standard of living in a
determined place, with normal working hours. This concept is
different from that of the minimum salary, which is regulated by
government and updated based on economic indicators and
which frequently does not correspond to an updated decent
standard of living.
To guarantee a living wage throughout the region in which we
operate, we assess all the amounts paid, including benefits, such
as meal vouchers/allowances, and variables. The calculation is
reviewed annually in the process of reviewing salary grades in
each country.
Talent development GRI 404-1
2023 was characterized by a transformation in education and
training practices in our Learning Ecosystem. Training for the
Sales Force*, including Natura and The Body Shop, was reported
in this cycle, adjusting the scope to exclude France, the United Sates
and Malaysia from the total training hours considered, focusing on
Natura &Co Latin America.
In addition to thematic workshops and cultural measures
for leaders, we launched a language program and education
subsidies, by means of partnerships and discounts for
employees and their families.
108,295.38 hours of training
BRL 2,902,396 invested in full time
equivalent (FTE) training
over 200 groups with workshops
on Exceptional Results, Innovation Mindset
and Our Business Model
Leadership training
Executive development, including directors and board members, is
centered around the pillars of Well Being Well, focusing on fostering
harmonious relationships with oneself, with others, and with the
surrounding environment.In 2023, the Leadership Formation program
was resumed with four meetings which addressed subjects such as
strategy and the use of artificial intelligence in management. Moreover,
a program was offered for the exclusive development of leaders who
are successors to critical positions or who occupy critical positions to
facilitate self-learning and self-direction of leaders in development and
career plans, fostering a continuous learning environment.
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Diversity
equality and inclusion GRI 405-1, 3-3
We intend to be a benchmark in affirmative actions and in attracting
and retaining talent with diversity and advocacy in the key agendas of
equality and inclusion. Our main instruments in this area are the Human
Rights policy and the Diversity, Equality and Inclusion policy. We are
also aligned with the Sustainable Development Goals (SDGs) established
by the UNO. In a broad sense, our activities seek to promote gender
equality, the inclusion of the disabled, while valuing sexual and gender
diversity, promoting ethnic-racial equality and generational integration.
We develop initiatives for our internal audience on the fronts of gender
equality and inclusion of under-represented groups in management
positions and the elimination of salary disparities by gender in our
business. We continuously conduct awareness and education measures
in these areas for our employees.
The second edition of the Natura &Co
Diversity and Inclusion Survey in 2023
revealed a 57% employee participation
rate across the group in Latin Ameri-
ca, marking an impressive 11% increase
compared to the previous year.
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In 2023, we promoted an education journey on racial diversity for
Gender
the Executive Board, involving subjects such as communication,
We are signatories to the Women’s Empowerment Principles, a
products, businesses, culture, compliance and people.
UNO document that addresses gender equality in social activities
to strengthen economies, drive businesses and improve the
In Brazil, since 2018 we have had affinity groups related to under-
quality of life of women, men and children.
represented groups among our employees: Nós (Us - related
to gender), Eficientes (Efficient - PwD), Raízes (Roots - color and
We are also part of another UNO initiative, the Coalition for
ethnic origin-race) and LGBTQIA+. In the other Latin American
Ending Violence against Women and Girls from the Unstereotype
countries we have employee Diversity Committees that address
Alliance, a platform that seeks to eradicate gender stereotypes
different areas according to the reality in each country.
in all media and advertising contents. We participate in groups
dedicated to this subject in Brazil, such as Movimento Mulher 360,
The company’s overall targets for 2024/2025 include a minimum
a business initiative to promote female economic development.
representation of women in leadership positions in Latin America
of 50%; elevating the percentage of black people in management
Salary equality
positions to 25% by 2025, and having a work force with 40%
In 2023, we achieved gender and race salary equity in the region
black employees by 2025 in Brazil. Our previous commitment
and in Brazil. This means greater equality and a fairer work
of including 6.2% disabled people in our work force in Brazil has
environment, incentives for diversity and inclusion, motivation,
already been achieved, having reached 6.25% in 2023. These
performance and talent retention. To do this, in conjunction
efforts reflect our medium to long-term commitment to create a
with Mercer, a leading human resources consultancy, we have
truly inclusive and diversified work environment.
developed annual studies on salary equality in the group,
encompassing over 15 individual factors, such as salaries,
positions, level of experience, length of time in function,
performance, country and, among others, gender and race.
The first initiatives to reduce the differences identified took place
in 2021. Since then, we have invested BRL 6.6 million and applied
corrections for almost 700 people to eliminate non explainable
salary differences.
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Race
We trained internal procurement teams and initiated a
Avon is the precursor in combating racism in the group, with
process review to promote greater equality in the company’s
the launch of its anti-racist commitment, “Black lives matter”
supply chain. We also established a partnership with the
in 2020. This led to a series of actions such as the global study
Empreendedores Pretos platform, aimed at including black
of the conjuncture which gave rise to the #EssaéMinhaCor
suppliers.
movement and the development of makeup products that
include tones and sub-tones of black skin, and the DIVA (Diversity
In 2023, we developed the first Anti-racist Communication
+ Avon) project to retain and develop black women. In 2022,
Manual, focused on promoting not only practical guidelines,
the Natura Anti-racist Commitment was launched, with targets
but also literacy in the ethnic-racial area in the brand. Going
that impact the business as a whole, including employees
beyond including black, mixed race and indigenous people in
and consultants, encouraging progression in professional
our communication, the purpose is to represent new aspirations
development.
and new narratives created by and for these people.
It is our understanding that combating racism involves the
Disabled people
adoption of anti-racist measures by the whole of society, we
The installations of the Natura plant in Cajamar (SP) were
address actions directed at all stakeholder groups. Regarding
conceived incorporating accessibility in 2001. The São Paulo
our employees, we developed affirmative actions on different
Distribution Center (from 2013) was conceived especially to
fronts to guarantee equality in the inclusion of black people
include employees with hearing and intellectual impairment.
in selection processes at all levels, such as the program
The sorting lines adopt picking by light technology, with the
CorageNatura, for trainees, Avante, focused on career
use of lights to indicate the tasks to be executed intuitively,
acceleration, and an intern program with at least 50% of the
facilitating product sorting by disabled people.
places reserved for self-declared black university students.
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We offer our employees learning trails and workshops on
self-knowledge, emotional and relationship intelligence and
a proactive professional stance. Among other accessibility
initiatives, we implemented a godfather program for hearing
impaired persons, which included training in the Brazilian sign
language, Libras, and training for managers and employees.
Moreover, we provide a Libras translation platform for
employees, that was used for over 300 hours, demonstrating the
organization’s strong commitment to inclusion and accessibility.
We conduct inclusion laboratories in partnership with Fundação
Inclúyeme - a social organization that connects disabled
people with job vacancies at companies committed to building
inclusive and equitable workplaces - and with the Inter-American
To combat discrimination, the company ensured that all
Development Bank (IDB), to improve services and employability
employees would undergo compliance training based on our
for the disabled in the entire region. 106 people were trained in
Code of Conduct, addressing areas such as racism, capacitism,
Mexico, Peru, Colombia, Argentina, Chile, Ecuador and Venezuela.
LGBTQIA+phobia, and other forms of discrimination. These efforts
are aimed at guaranteeing a safe and inclusive workplace for all.
LGBTQIAP+
In addition to encouraging hiring, we guarantee the right to use
Corporate Citizenship
the chosen name. For 15 years, we have provided healthcare
Following the example of the Conscious Vote campaign held
benefits for LGBTQIA+ couples in our headcount, of which
in Brazil in 2022, in 2023 we implemented the “Tu voto suma:
approximately 13% declare belonging to this group. We strive to
Participar hace la Democracia” initiative in Argentina, in which we
advance in processes and systems for non binary practices that
fostered Natura and Avon consultant and employee participation
cover the full range of gender diversity.
in the presidential elections held in October.
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Occupational health and safety
We offer a series of occupational health services, ranging
GRI 403-1, 403-2, 403-3, 403-4, 403-6, 403-7
from medical examinations to first aid programs, aimed at
Our commitment to occupational health and safety is
protecting the health of our employees, preventing accidents
reflected in the implementation of an extensive management
and promoting quality of life. We also have programs that go
system complying with legal requirements and international
beyond occupational health services, including supplementary
standards such as ISO 45001, as well as Brazilian Ministry of
healthcare and dental services, psychological assistance, well-
Labor and Employment regulations. This system, which covers
being programs and disease prevention initiatives. We also
all employees, company workplaces and activities, including
offer life insurance and private pension programs. This holistic
Natura, Avon, and The Body Shop, as well as service providers,
approach underscores the importance of health and well-being.
is validated by independent external audits, guaranteeing safe
practices and well-being.
The company not only complies with regulations and
international standards, but goes beyond, promoting a
responsible safety culture that covers all aspects of occupational
health and safety. We adopt a proactive methodology for
identifying and assessing work-related risks, addressing risks in a
variety of contexts, including outside our direct operations.
Health and safety training is extensive, ranging from the
induction of new employees to specific training. We also
promote an open communication policy, enabling employees
to report hazards without fear of reprisals. This approach
ensures the continuous improvement of the health and safety
management system, reducing risks and promoting a
safe workplace.
See all the Natura &Co Latin America
occupational health and safety indicators
in the Databook Latin America.
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Value
chain management
GRI 2-6, 2-23, 2-29, 3-3
Operating in the consumer goods and agro-industry sectors,
we engage an extensive value chain, ranging from inbound
and outbound logistics, operations, marketing, sales, services,
infrastructure, human resources management through
technology development, procurement, raw materials,
suppliers, distribution to product and service use and end of life,
sustainability, communications and institutional and government
The updating of our Commitment to Life
includes targets for the entire ecosystem:
reducing greenhouse gas emissions (scope 3)
by 42% by 2030, increasing the purchase of
Amazonian inputs fourfold compared with
2020 and critical chains free from
deforestation and conversion of
native vegetation.
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We have close, long-term relations with our suppliers, sharing
to enhance relations. Moreover, an ESG (Environment, Social and
the challenges and driving the organization’s purpose
Governance) assessment was conducted with suppliers representing
throughout the value chain. These activities are guided by the
80% of the total procurement spend, aimed at improving
Natura &Co Declaration of Human Rights, which directs orientates
management of the chain based on sustainability criteria.
the assessment of risks of violations throughout our supply structure,
including agricultural and factory workers, local communities,
Our relations with the supply chain are oriented by the Supplier Code
women, minority groups, temporary workers, indigenous
of Conduct, which sets forth guidelines that underpin the Natura &Co
populations and NGOs. Additionally, we seek the certification and full
commitment to negotiating ethically with these partners. Adhesion
traceability of critical chains, aimed at generating positive impact, as
to the rules and principles is mandatory for the group’s supply
well as reducing and mitigating negative impact.
chain. The subjects covered by the code include anti-corruption,
sustainability, ethics and integrity, decent working conditions and
Our way of doing business also includes engaging
best environmental practices.
our suppliers, in line with science-based targets (SBTi), in addressing
climate change and the loss of biodiversity.
The harmonized Global Procurement Policy requires that suppliers
comply with all relevant policies and procedures, including the
The updating of our Commitment to Life includes targets for the
Supplier Code of Conduct. The organization recognizes the
entire ecosystem: reducing greenhouse gas emissions (scope 3) by
existence of risks associated with child labor and the exposure
42% by 2030, increasing the purchase of Amazonian inputs fourfold
of young workers to hazardous working conditions in its value
compared with 2020 and critical chains free from deforestation and
chain, as well as the risk of forced or compulsory labor in its global
conversion of native vegetation.
supply chain. For this reason, organizational policies are aligned
In 2023, we spent BRL13.8 billion on purchases, with a chain of 7,665
Guiding Principles on Business and Human Rights and the ILO
suppliers, of whom 364 accounted for 80% of the amount spent.
Labor Standards, encompassing due diligence, application of
Analysis of the segmentation of strategic suppliers takes into account
the precautionary principle and respect for human rights, with
innovation, sustainability and risk. Natura &Co maintains close
emphasis on the non toleration of child and forced labor. Further
communication with critical suppliers, sharing strategies, future plans
information about this subject and critical chains in the link.
and good practices, and conducts an annual satisfaction survey
GRI 408-1, 409-1
with intergovernmental instruments such as the United Nations
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Verification of supplier adherence to the Global Code of Conduct
In 2023, we worked on overcoming two major challenges identified
is conducted through assessment, positive engagement and the
and monitored in accordance with our supplier risk matrix. One of
promotion of continuous improvement via the Embrace Program.
these is the dependence of some Avon suppliers in Latin American
Local suppliers GRI 204-1
countries. In Argentina and Mexico, for example, there were
suppliers that depended on the company to sustain and enable
In 2023, 46% of Natura &Co Latin America purchases were from local
the continuity of their businesses. During the course of the year, we
suppliers, that is, ones located at less than 80 km from the operation,
sought to introduce measures to ameliorate this situation, aimed
in accordance with criteria adopted by BCorp, among acquisitions
at establishing healthier commercial relationships. Another factor
made by the most important units - Cajamar (SP), Benevides
requiring attention was logistics. We worked on preparing all our
(PA), Interlagos (SP, sold recently), Moreno (Argentina) and Celaya
partnering freight operators to achieve the high quality and service
(Mexico). Specifically in the case of Natura in the region, there was
levels adopted by Natura.
an important increase in this figure, which rose from 49% in 2022 to
54% in 2023.
In 2023, we evolved in the global integration of procurement
processes. In Waves One and Two of the Natura and Avon business
We prioritize relations with local suppliers, particularly in the
combination in Latin America, the procurement area was focused
acquisition of Amazonian biodiversity ingredients for Natura
on seeking cost synergies between the brands, transforming
products. This involves working closely with agro-extractivist
this operational integration into a driver to boost efficiency. By
cooperatives, traditional peoples and communities, and family
combining volumes from the same supplier for both brands, it is
agricultural producers, establishing commercial relationships
possible to economize and ensure higher standards in deliveries,
that include ethical supply and regenerative practices,
quality and efficiency in the chain.
guaranteed purchases, benefit sharing from the use of genetic
heritage and traditional knowledge, as well as positive social and
environmental impact. These practices are deemed fundamental
for strengthening local cooperatives and associations, economic
diversification and promoting the sustainable development of the
company’s regions of activity (further information in Ethical and
149).
responsible sourcing, on page 149).
Further information on local suppliers
in the Databook Latin America.
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Supplier socio-environmental assessment
GRI 308-1, 308-2, 414-1, 414-2
Through the Global Supplier Approval Policy, launched in 2022,
pertaining to responsible purchases, we established criteria for
conducting audits in areas such as human rights, decent working
conditions, diversity and inclusion and social responsibility. Upon
identifying some frailty or non-conformance, we we undertake
remediation measures to help the supplier adapt. In cases where
the contract must be interrupted, the company undertakes
tracking measures aimed at protecting the partner’s employees.
In 2023, 219 audits were performed and 22.88% of new suppliers
were screened for social and environmental criteria.
GRI 308-1, 414-1
Embrace Program
GRI 2-29, 308-1, 308-2, 414-1
We aspire to guarantee quality and long-lasting relationships
with our suppliers, creating value for society and for the planet.
By means of the Embrace Program, we develop our supply
chain, as well as mobilizing it to promote sustainable practices.
The program, which monitors supplier performance in an
ethical and transparent manner, is based on six pillars: quality,
service, innovation, competitiveness, capacity, and Commitment
to Life. There is an annual award to celebrate the power of
these relations, to thank suppliers for their efforts and their
commitment to the value chain.
See details on our projects and indicators related
to managing agro-extractivist communities and
suppliers in the chapter Biodiversity
and Nature (page 142).
Suppliers in critical chains participate in specific events in which
Natura &Co shares its strategy, plans for the future and best
practices. GRI 2-24
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Sustainability
Vision
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Sustainability vision GRI 3-3
In light of the escalating global socio-
environmental imbalances, simply striving
to maintain existing resources to mitigate
further depletion of the planet, as traditionally
perceived in sustainability, is no longer
adequate. Instead, there’s an urgent need for
businesses to adopt a more transformational
impact agenda, focusing on restoring what
has been degraded or permanently lost due to
human actions. This approach is underpinned
by the concept of regeneration, emphasizing
the imperative of actively replenishing and
revitalizing our ecosystems and communities.
Commitment to Life targets up to 2030 and the Natura Vision
2050, guiding the company’s upcoming decisions.
The regeneration strategy reconnects with one of our beliefs
registered over 30 years ago, and with the Natura Reason for
Being: “Well Being Well”. This is the harmonious relationship of the
individual with himself as the definition of “well-being”, and the
empathetic, successful and pleasurable relationship with others
and with nature as the expression of “being well”.
Many of the initiatives undertaken by Natura over recent decades
reflect regenerative practices, including the choice of the direct
selling model and the involvement with traditional peoples and
communities and family smallholders in the Amazon, grounded in
the social bioeconomy.
A recent example is the Biōme line of personal care products.
Doing business regeneratively goes beyond practices applicable
Made with palm oil produced in agroforestry systems that the
to agricultural production and the reclamation of soil and forests.
company started to develop over 15 years ago with Embrapa
Natura &Co Latin America believes that human and social factors
(Empresa Brasileira de Pesquisa Agropecuária) and the CAMTA
are indissociable from environmental challenges and are essential
cooperative (Cooperativa Agrícola Mista Tomé-de-Açu), changing
for a new strategy based on regeneration. This is a course we
the reductionist viewpoint that palm can only be produced by
have initiated and linked directly with the new Natura &Co
monoculture.
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Biōme: products for regeneration
At the end of 2021, Natura entered the solid cosmetics
market with Natura Biōme, currently only available in Brazil
and Chile (e-commerce and retail). With a product portfolio
for hair and skin care, the brand was launched with the
manifesto of rethinking the present to recreate the future.
The main Biōme ingredient is palm oil obtained from the
first agroforestry system in the world for the production of
this ingredient, the Palm Oil or Dendê AFS. This initiative with
the participation of Natura in Pará, brings the cultivation
of this oilseed close to its original environment in the
forest, through the association with diverse plants in the
production system. The line also has plastic free recycled
and recyclable packaging.
The Biome packs were developed with recyclable
and recycled post-consumer paper with an internal
protection made of biodegradable cellulosic film made
from renewable sources.
To store or transport the bars after they are opened, the
brand commercializes an accessory with an exclusive
design produced in partnership with the Californian startup
Mango Materials, which employs an original technology
that captures methane gas and transforms it into bioresin,
turning a gas potentially harmful to the environment into a
compostable and biodegradable material.
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Social Regeneration:
what it is and how we apply it
GRI 3-3
“Social Regeneration” is a material topic for Natura
&Co Latin America’s management. Positive impacts
on communities involved in the actions and projects
developed by Natura are: increases in income and
improvements in education, diversity, health and well-
being. In parallel, the company monitors potential
negative impacts that could arise, such as not achieving a
living income and the risk of violations of human rights in
the supply chain: harassment, discrimination, minors’ and
community rights, and the right to a healthy environment.
Commitment to Life:
target updates in Latin America
The review of the Commitment to Life resulted in a focus on
Latin America, underscoring the force the region represents for
our businesses, especially after the arrival of Avon. Currently, the
group brands operate in 14 Latin American countries, accounting
for 76.5% of Natura &Co net revenue and 66% of its employees.
We understand that the business unit’s potential for impact – and
responsibility – should be leveraged by more ambitious targets.
What we changed
We evolved in the specificity of some commitments, and we
recalibrated and added some targets to make them more
challenging. We approved our short-term Net Zero targets in
accordance with the SBTi (Science Based Targets initiative) and
took an important step towards regeneration with specific
We adopt policies and practices that go beyond legal
commitments to certify Natura &Co ingredients.
requirements. We participate in key social initiatives and
pursue a leadership role in the sector, defending actions
and public policies aligned with the company’s positioning.
The Sustainability and Institutional and Government
Relations areas are responsible for managing this
topic. Stakeholder engagement, involving advocacy,
communication, participation and cooperation provided
support for Natura’s actions and helped inform about the
effectiveness of these measures.
In 2023, we increased the number of metrics to monitor our
progress towards the vision 2050 from 31 to 37. See some of the
new commitment and target highlights (further details in the full
version of the updated document, available here):
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and Protect Biodiversity
Adjustments in the carbon targets to adapt to the premises
defined by the SBTi (Science Based Targets initiative). As a result,
the 2030 commitment becomes reduce net scope 1 and 2
greenhouse gas emissions by 90% and decarbonize 42% of our
value chain for scope 3 emissions; prioritizing the acquisition of
credits from projects in the Amazon, especially involving
agro-extractivist communities.
Defend Human Rights
and Be Human-kind
• Reach 25% black people in management positions
in Brazil by 2025 and 30% by 2030;
•
Increase the Beauty Consultant HDI by 10%.
Embrace Circularity
and Regeneration
•
Increase purchases of Amazonian social bioeconomy
inputs fourfold compared with 2020;
• Generate BRL 4 in positive socio-environmental
impact for each BRL 1 in revenue.
The renewal of the Commitment to
Life launch event on September 5,
2023, at the venue Casa Natura
Musical, in São Paulo, Brazil.
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Our targets in Latin America
Indicator
Commitment
Net zero emissions, reaching 1.5°C in line with SBTi criteria in our own
installations (90% reduction in scopes 1 and 2 by 2030) before the UN
commitment
Target
deadline
Natura &Co Latin America 2023 Status
2050
-37% reduction (Reduction vs 2020 baseline ).
42% reduction in greenhouse gases throughout our value chain (scope
3), enhancing engagement with our suppliers and consumers
2030
-29% reduction.
Climate Transition
Adopt the Science Based Targets initiative, SBTi, for all the companies,
scopes 1, 2 and 3
2023
The holding company’s short-term science-based targets were
approved in 2023 and cover our Natura &Co Latin America
operation, affirming alignment with the 1.5°C target.
Continue offsetting 100% of the remaining Natura &Co Latin America
emissions, acquiring at least 50% carbon credits from the Amazon, as a
priority from agro-extractivist communities
2030
33%
Contribute to the protection and/or regeneration of 3 million ha of Ama-
zon forest (from 2 million ha in 2020)
2030
2.2 million hectares.
Increase to 45 agro-extractivist sourcing communities (from 34 in 2020)
2030
44 communities
Protect the Amazon
Contribute to the bioeconomy using innovation to develop 55
Amazonian biodiversity ingredients (from 39 in 2020)
Increase purchases of Amazonian social bioeconomy inputs fourfold
compared with 2020
Double the funds shared with our communities
(compared with 2020)
Engage 20 million people per year in actions linked with the Living Amazon
Forest Cause
Work towards getting countries to cooperate with each other to es-
tablish harmonized rules for access and benefit sharing, in particular
regarding traditional peoples and communities
2030
2030
2030
2030
2030
Assess and report our impacts and dependencies regarding global biodi-
versity by 2025, based on recognized international standards
2025
Biodiversity
Have 100% of our critical supply chains free from deforestation and con-
version of native vegetation, with independent verification, by 2030
*
44 ingredients
BRL 35.31 million.
BRL 42.82 million.
62 million people.
The commitment to promote a multilateral mechanism related
to ABS (Access and Benefit Sharing) is already expressed in
our Biodiversity Policy relaunched recently. We are mapping
partnering organizations.
In 2023, Natura &Co Latin America initiated its journey to map
and report on the nature-related risks and dependencies of its
businesses, employing Task Force on Nature-Related Financial
Disclosures (TNFD) methodology.
The methodology for this recent commitment will be defined
in 2024, and we will seek strategic partners to implement
independent verification.
*Final deadline: by 2025 for direct purchases of palm,
soy, paper, and alcohol.
** final deadline by 2030 for direct purchases of palm,
soy, paper, alcohol and cotton
Further information in the Databook Latin America.
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Indicator
Commitment
Target
deadline
Natura &Co Latin America 2023 Status
50% of women occupying senior leadership positions at Natura &Co by
end of 2023
Equitable salary: eliminate non-justifiable salary differences from 2023
Equitable salary: eliminate non-justifiable salary differences from 2023.
-
-
-
50.5%.
-0.8%.
-0.11%1.
Our
People
Increase under-represented groups to 30% at management levels
2030
Reach 25% black people in management positions in Brazil by 2025 and
30% by 2030;
2025
2030
At the minimum, a living wage for all employees from 2023
Increase the consultants’ human development index by 10%
Improve social progress in agro-extractivist communities, generating
measurable impacts in a living wage, health and well-being, education
and civic awareness
Encourage and facilitate public participation in our network, as a priority
in the causes related to the Amazon, education, women’s health and
violence against women and girls
Our broader
network
-
2030
2030
In 2023, the mapping of data to define under-represented
groups was begun. These will include black and indigenous
people, LGBTQIAP+, the disabled and others, in accordance with
the local context.
12.14%. In Brazil, efforts are concentrated on increasing inclusion
and promoting the advance of the black population, with
represents the majority of the population, and to achieve
greater coverage for racial self-declaration.
100%2
Further information from page 92,
Relationship Selling.
Beginning in 2024, we will customize the Community Social
Progress Index (IPS).
2030
Further information on pages 161 to 164 and on page 127.
Promote the human rights of our agro-extractivist communities, includ-
ing indigenous and traditional peoples
2030
Certification and/or full traceability for critical supply chains
Human Rights
Full certification – palm oil
Full traceability - Mica
Full certification - Paper
Full certification - Alcohol
Full traceability – Soy
Full traceability – Cotton
Traceability and/or full certification for critical supply chains in Latin
America (including deforestation and free from conversion)
2025
2025
2025
2025
2025
2025
2025
2030
In addition to UEBT certification, we published the review of the
Social-Biodiversity Policy, which includes clear guidelines on
relations with traditional and indigenous communities. Further
information on page 141.
In 2022 we approved and published specific policies for each
one of the materials considered critical for
Natura &Co (https://www.naturaeco.com/cadeias- de-
suprimento-críticas-políticas/).
87.5%.
98.5%.
80%.
78.8%.
86.7%.
92.6%.
The expansion of monitoring of critical chains for Latin America
will be defined in 2024.
Further information in the Databook Latin America.
1 Data reflects the results of our annual pay equity study. For more information on the methodology, see pages 90 and 91 here.
2The parameter comprehends the necessary income for a person to be able to meet basic needs such as food, rent, health, education,l and among others. The calculation takes into account
guaranteed payments and food vouchers. All employees with regular contracts in the base year 2023 are taken into account, except interns and young apprentices.
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Indicator
Commitment
Target
deadline
Human
Rights
Advance the process of identifying, preventing and mitigating human
rights risks in the operations and the entire supply chain by 2027; ensure
engagement with stakeholders who are affected, promoting reparations
and using our influence for positive impact
2027
Natura &Co Latin America 2023 Status
Based on the foundations of our declaration of human rights,
in 2023 we started to improve our approach in line with the
United Nations Guiding Principles on Business and Human
Rights. Active engagement with stakeholders is essential in
these efforts, promoting access to reparations, and harnessing
our influence for positive change. To bolster our efforts, we
are developing a dynamic in-house risk mapping exercise with
specific assessments of blind spots identified. We are making
progress in the identification of the main risks of impacts to
human rights and the prevention and mitigation of these risks in
our value chain.
Packaging
Circularity
Formula
circularity
Regeneration
50% of all the plastic in our packs must have recycled content (in weight)
2030
13.1%
Packaging materials will be 100% reusable, refillable, recyclable or
compostable.
2030
87.8%
Offer collection schemes in the main markets in which suitable recycling
infrastructure does not exist
2030
We understand that recycling effectively occurs when we ally
product design with existing quality local infrastructure to
guarantee the adequate collection, sorting and treatment of
the waste. In 2023, we initiated a mapping exercise that will
help us to start strengthening local recycling chains and enable
adequate collection and disposal systems where they do not
exist.
95%+ natural or renewable ingredients for Natura
95%+ biodegradable formulas
2030
2030
94.8%.
97.1%.
100% of new formulas to have lower environmental footprints, measured
by life cycle analysis (LCA)
2030
Work in partnership to build awareness, capability and regenerative
solutions which transform systems and deliver positive environmental and
social impact, enabling life to thrive
30% of the main ingredients supplied by the communities/smallholders
that employ regenerative practices
(verified/certified by external third-parties)
100% of the volume of at least two of the main commodities in our busi-
ness produced using regenerative practices
100% of communities/small producers to adopt ethical biotrade and
regenerative practices to produce our key ingredients
Generate positive socio-environmental impact of BRL 4 for each BRL 1 of
reported revenue
2030
2030
2030
2030
2030
In line with the strategy of our holding company, in the last
two years we have developed an internal Life Cycle Assessment
(LCA) tool. In 2023, this underwent a testing and learning phase
which enhanced our data base for improved assessment of the
environmental impact of local value chains.
In our regeneration journey, we are reviewing the company’s
vision, taking into consideration social and environmental
perspectives, a process which should extend throughout 2024.
Moreover, as part of this process, in 2023 we undertook an
alignment process with the UEBT for Regenerative Certification,
derived from Ethical Sourcing Certification. We also prepared
two case studies using the new methodology (Palm Oil and
Brazil nut AFS). We are validating the methodology, with
a view to beginning to apply it in 2024. To strengthen our
commitment to protect biodiversity, Natura is participating in
the development of the UEBT regenerative module. This module
underwent a pilot test in two supply chains in 2022 and 2023.
BRL 2.7 (according to the IP&L calculation).
Further information in the Databook Latin America.
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Biodiversity
and Nature
GRI 2-6, 2-23, 2-29, 3-3
The future of the planet depends on an
integrated approach to climate, biodiversity
and human rights. Aware that climate change
and the loss of biodiversity provoked by human
activities pose a real threat to all forms of life
on Earth, we act as agents of mobilization
and cooperation through partnerships that
generate positive transformations.
We advocate political action at all levels - from global to local -
that transforms current models of development so that trends
that accelerate climate change and the exacerbated loss of
biodiversity may be reversed.
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Highlights and advances in 2023:
from commodities in the supply chain to the direct operations.
• We relaunched the Natura &Co Latin America Biodiversity
It also reflects our activities with communities, particularly in
Policy
• We established our first supply chain in the Peruvian Amazon
• We started up the operation of the Amazonia Viva financing
mechanism
• We impacted 44 agro-extractivist communities and suppliers
with total funding of BRL 46 million, of which BRL 42.8 million
for communities in the Amazon
• We launched the Natura &Co Regeneration Strategy
Biodiversity Policy
In 2023 we relaunched our Biodiversity Policy, expanding its
guidelines for decision making and for the implementation of
actions that impact our relationship network. The standard also
offers clarity on how to effectively disseminate our values and
commitments regarding biodiversity, providing guidance on
the Amazon, as well as benefit sharing and product research
and development. Although they have specific approaches to
biodiversity, Avon and Natura will advance hand in hand on a
regenerative journey involving people and nature. There are
seven key areas of activity in our value chain:
• Science and Technology;
• Formula and Packaging Development;
• Relations with Traditional Peoples and Communities
• Ethical Sourcing with Regenerative Practices;
• Benefit Sharing and Incentives for Ecosystem
• Services;
• Purchase of Inputs from Private Producers or Companies;
• Direct Operations; and
• Communication and Marketing.
the most impactful ways to communicate and uphold these
Managing the Biodiversity Policy is the responsibility of the
principles. Our aim is to drive transformative change in the
Sustainability area. The Sustainability Governance Committee for
relationship between people and biodiversity in response to the
Latin America oversees strategic direction in this area, as well as
call for action from the Kunming-Montreal Global Biodiversity
tracking results to ensure its application in all pertinent business
Framework for 2050, adopted in 2022 during the Convention on
processes.
Biological Diversity (COP15).
The policy aims to guide the company on a harmonious journey
involving people and nature, expanding its scope ranging
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Biodiversity-related impacts and dependencies
To help map risks and opportunities related
to biodiversity and natural capital, we undertook an initial steps
The Amazon:
people and nature
in 2023 to comply with the parameters of the Taskforce on
The Amazon represents our main platform for innovation and for
Nature-related Financial Disclosures (TNFD).
generating positive impact. This essential connection between
We made a diagnosis for the application of the methodology in
include promoting environmental conservation and regeneration,
Natura &Co Latin America, in order to address the new target of
the sustainable use of biodiversity and the implementation of fair and
reporting our biodiversity-related impacts and dependencies
equitable benefit sharing. Our activities seek to generate benefits,
by 2025, based on recognized international standards,
principally for the agro-extractivist communities with whom we
published in the Commitment to Life.
maintain relations through initiatives aimed at conserving the forest,
biodiversity and our business model orientates our guidelines, which
promoting a low carbon economy and social inclusion.
To create science-based targets, we network with
partners such as the UEBT (Union for Ethical BioTrade), a non-
In 2023, we advocated the need for harmonizing the rules on benefit
profit organization that defines practices of respect for people
sharing and access to Amazonian biodiversity with governments
and biodiversity, SBTN (Science Based Targets Network), which
and civil society at the level of Latin America. The goal is to establish
aims to transform economic systems and protect common global
normative frameworks that permit the development of transnational
goods; and BfN/WEF, a global coalition comprising Business for
research and chains for the supply of Amazonian biodiversity
Nature (BfN), the World Economic Forum (WEF) and the World
actives, with transparent and fair rules that acknowledge the rights
Business Council for Sustainable Development (WBCSD).
of the traditional peoples, recognize their knowledge and expand
opportunities for development and income generation based on the
standing forest bioeconomy. These activities were more prominent
during the Amazon Summit and its preparatory stages, with the
subject addressed in the Belém Charter, published at the end of the
event in August. The document was signed by the eight nations that
make up the Amazon Cooperation Treaty Organization (ACTO): Brazil,
Bolivia, Colombia, Ecuador, Guyana, Peru, Surinam and Venezuela.
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The Amazon is the major source of biodiversity in the
world and has a population estimated at around
38 million people. Approximately 28 million of these inhabitants
live in Brazil. There is great potential for the development
of sustainable chains of Amazonian biodiversity inputs
that generate income for the local population and stimulate
preservation, of key importance in the global
sustainability agenda.
In this respect, we actively seek to share the
experience acquired by Natura in its more than 20 years
of working in the region with Brazilian authorities. We have
identified the more promising crops in terms of demand,
we have shared technical data and information about
equipment and machinery that optimize production and
improve product quality, as well as underscoring
needs in research and development, agricultural
assistance, access to credit and infrastructure that
that national and state governments could work on with
effective impact on people and the environment. Documents
such as Nova Indústria Brasil (New Industry Brazil) and the
Ecological Transition Plan incorporate positive advances in these
areas in the public agenda for the coming years.
Similar work has been done in Columbia, given that
Natura’s recent experience with cupuaçu production
has shown that many of the challenges are the same. Also
Cupuaçu fruit from
Colombian Amazon
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in Colombia and resuming the vision of integrating chains
and research, we signed a new technical cooperation
agreement with Sinchi.
Natura Amazonia Program
GRI 3-3, 203-1, 413-1
The implementation of the Natura Amazonia Program in 2011,
made it possible to scale up actions in the region. Our initiatives
are aligned with the mitigation of the effects of climate change
and seek to staunch the loss of the biome’s biodiversity in line
with science-based targets. With this vision, we seek to transform
socio-environmental challenges into business opportunities
and sustainable local development. Our strategy in the Amazon
region is based on three pillars, in addition to Advocacy and the
engagement of our network for the Amazon:
• Science, technology and innovation: a research
and development strategy to increase the use of
Amazonian vegetable inputs and social biodiversity
ingredients in our portfolio;
• Social biodiversity production chains: a relationship strategy
with agro-extractivist communities and family smallholders,
oriented to the generation of work and income and their
social and economic development;
•
Institutional reinforcement (sustainable territories):
networking with a view to consolidating the bioeconomy,
leveraging socio-economic prosperity for related
communities and territories and strengthening
environmental conservation and regeneration.
10,191
families in the Amazon
(from a total of 11,713)
44
Amazonian
bioingredients
44 bioactive
supplier communities
in the Amazon region (from a total of 51 communities)
94 supply chains
in the Amazon
that harvest bioactives respecting the forest’s limits
and the harvest calendars, as well as local ways of life
BRL 42.8 million in funds allocated
to communities / territories in the Amazon in 2023
We contribute to the conservation of 2.2 million hectares
of forest by means of our business model
Certified production chains, with verification by independent
third-parties, such as the UEBT, with a focus on ethical sourcing and
regenerative practices;
In 2023, Natura established its first supply chain in the Peruvian
Amazon for the supply of cupuaçu butter. A total of 206 families
work together to supply this ingredient. The Colombian front
supplying this input, which was initiated in 2022, continues
to gain strength.
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Supplier communities GRI 2-29
Our business is oriented to the use of natural ingredients
and bio-ingredients coming mainly from Amazonian social
biodiversity, sourced and developed ethically and sustainably,
with respect for people and for biodiversity.
In 2023, we shared
BRL 42.8 million
in direct funds
for 44 communities
Our research model values the traditional and ethno-biological
the Amazon every two years. The survey findings in 2023
knowledge of local peoples and communities, promoting
showed a loyalty rate of 48%, indicating a recovery from pre-
conservation, regeneration and the sustainable use of
pandemic levels, after a drop in 2021 due to the restrictions
biodiversity.
imposed by Covid-19. The goal for the next cycle is to exceed
We conduct loyalty surveys with supplier communities in
Upon purchasing raw material, we establish a fair price for
a loyalty rate of 50%.
the inputs jointly with the cooperatives and groups of family
2023 was also important for the expansion of the Natura social
smallholders, incentivizing the maintenance of the standing
biodiversity supply chains in Latin America, with the start-up
forest together with the communities. We promote training to
of the supply of cupuaçu butter from the Peruvian Amazon.
strengthen these communities, in particular in organizational
In parallel there were advances in the cupuaçu chain in the
management and development. Additionally, we incentivize
Colombian Amazon, with efforts aimed at generating capacities
best stewardship practices, sustainable agriculture, and
in the field and monitoring the producers.
occupational health and safety. We do not conduct operations
with the potential for negative impact on biodiversity supplier
Benefit sharing
communities. GRI 413-2
In our relationships with traditional communities and family
smallholders, we adhere to the principle of sharing monetary
We have the target of ensuring that 100% of the agro-
and non-monetary benefits as a means of maintaining fair
extractivist communities and family smallholders in our
relations between the companies that work with biodiversity
social biodiversity chain, in addition to ethical supply, adopt
and the supplier communities. The Convention on Biological
regenerative practices by 2030.
Diversity (CBD), to which we are signatories, stipulates that
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that use genetic heritage or the traditional knowledge associated
with it for commercial purposes should return part of the benefits
generated to the traditional peoples.
Natura prioritizes payment of benefit sharing directly to the
communities to ensure autonomy in management, to promote
environmental conservation and the sustainable use of
biodiversity, with a view to strengthening the production chain
and socio-economic development, while valuing and bolstering
the communities’ way of life.
Social bioeconony in practice GRI 203-1
See some of the projects the Natura brand engages in to enable,
enhance or expand supplier community operations:
• Construction of the first community essential oils agro-
industry in the Brazilian Amazon, in Santo Antonio do Tauá,
with the Aprocamp association (Associação de Produtores e
Produtoras Rurais da Comunidade de Campo Limpo Santo
Antonio do Tauá), in the state of Pará, with support in training.
• Central de Serviços da Amazônia no Brasil - the partnership
between Natura, the cooperative Camtaua (Cooperativa
Mista Agroextrativista de Santo Antônio do Tauá) and the
German company providing technical cooperation in
sustainable development Deutsche Gesellschaft
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•
für Internationale Zusammenarbeit (GIZ), enabled the
cooperative’s governance and commercialization strategies.
development of crushers, pulpers and sorting tables for
Project activities will start up in 2024.
murumuru, tucumã and andiroba kernels. The initiative
integrates traditional knowledge with technology for
•
In Peru, by means of a supply contract established with
the creation of equipment that boosts efficiency and
Candela, a local organization that works with social
production capacity. Created in 2023, the center has become
biodiversity value chains, the first batch of cupuaçu butter,
a benchmark for the processing of social biodiversity
totaling 26.46 tons, was shipped in 2023. More than 200 family
ingredients. The communities’ income increased from BRL
producers from the Madre de Dios region participated in the
400,000 in 2022 to BRL 2.5 million in 2023. The center also
project. As a result, Natura is consolidating its plan to maintain
enabled the implementation of a circularity project to make
a presence in the three strategic countries in the region (Brazil,
use of the energy value of over 70 tons of husks, that were
Peru and Colombia), as well as in Ecuador, and is continuing to
used to fuel industrial boilers in Natura’s Ecoparque.
strengthen its operation in the region.
•
In 2023, the RECA cooperative (Cooperativa de
Reflorestamento Econômico Consorciado e Adensado)
• By means of a project in partnership with the Instituto Sinchi,
funded by the UK-Pact program, interchanges between
obtained tax exemptions for the commercialization of
producers and researchers in Colombia and Brazil were
cupuaçu butter, generating greater value for the producers.
organized, was well as training in best production practices
The cooperative also approved a project with Funbio
in the field, agro-industrial processing and meetings with
(Fundo Brasileiro para a Biodiversidade) to strengthen social
community organizations.
biodiversity production arrangements in the value chains
of inclusive and sustainable agroforestry systems in the
Ponta do Abunã region, in the states of Acre, Amazonas and
• Natura supported the Agrosolidaria Florencia association
in Colombia with assistance in adjustments to machinery
Rondônia in Brazil. The purpose is to enhance the income and
to boost processing efficiency, to build a nursery for the
quality of life of family smallholders by means of technical
production of agro-forestry essence seedlings, to increase
accompaniment in the field, stewardship, the recovery of
agro-forestry system growing areas and to strengthen
agroforestry systems and the implantation of new production
technical assistance and support teams in the field. These
areas. Moreover, the project is aimed at strengthening the
measures are designed to drive a gradual increase in the
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• volume of cupuaçu butter supplied, as well as to strengthen
the social arrangement with producers involved in the value
Sustainable Territories
GRI 203-1
chain.
Palm Oil AFS
To drive focus on sustainable territories allied with institutional
strengthening, we prioritize development measures such as the
implementation of the Living Amazon Financing Mechanism,
The first agroforestry system for cultivating palm oil in the world
adhesion to the Plataforma Territórios Sustentáveis and the Rios
was created by Natura in 2008, in partnership with Embrapa
Vivos project
(Empresa Brasileira de Pesquisa em Agropecuária) and the Camta
cooperative (Cooperativa Agrícola Mista de Tomé-Açu), in the
(page 157).
(page 154) and the Circular Carbon Program (page 157).
(page 154)
Brazilian Amazon. The project proved that palm - or dendê, as
it is known in Brazil -, is more productive and sustainable when
The Living Amazon Financing Mechanism came about from
produced in agro-forestry systems than in monoculture systems.
the realization that the Amazonian social bioeconomy is a
promising sector but lacks investment to improve production
The cultivation practices in the areas are based on agro-
capacity, technology, knowledge and infrastructure. To help
ecological stewardship, without using crop defence products, to
reverse this situation, Natura, VERT Securitizadora and Funbio
promote the regeneration of the local ecosystem and capture
(Fundo Brasileiro para a Biodiversidade) developed a blended
carbon from the atmosphere. The stewardship permits the
finance mechanism. It comprises a credit vehicle – structured
constant incorporation of organic material into the soil, which
in the form of an agribusiness receivables certificate (CRA
favors the relationship network between plants, soil and micro-
in the Portuguese acronym) managed by VERT –, and a
organisms, while also removing and stocking carbon in the soil.
non-reimbursable investment fund – known as an Enabling
The growing system produces palm olein for the Biōme line of bar
Conditions Facility (ECF), managed by Funbio, both aligned
cosmetics.
under the same governance process.
The Living Amazon mechanism came into operation in December
2023. In addition to Natura’s initial investment, the Good Energies
Foundation and the Fundo Vale invested in the initiative. In this
initial stage, there is approximately BRL 6 million in agribusiness
receivables certificates and BRL 6 million in the ECF.
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At the end of 2023, Living Amazon Mechanism
came into operation with an initial investment
of BRL12 million (CRA + ECF)
Ethical and responsible
sourcing GRI 2-23, 2-29
The first CRA disbursements benefited 10 cooperatives and
associations supplying social biodiversity ingredients to
Natura. In parallel, the ECF is beginning to operate providing
technical assistance to strengthen the financial management
of these bodies. Our goal is to drive sustainable economic
development in around 16 territories in the coming years, to
increase the production in more than 40 agro-extractivist
cooperatives and associations and to benefit more than
10,000 families in the Amazon.
Meanwhile the Territórios Sustentáveis Platform is an initiative
from the Pará state government, which Natura has joined. This
policy supports projects that help the state to achieve public
targets to regenerate 7.4 million hectares of forest, become
carbon neutral, generate income from the bioeconomy, monitor
and accelerate high impact initiatives related to deforestation,
as well as driving the restoration of degraded areas. This is an
interconnected system of shared information between the public
and private sectors to ensure that projects fulfill the region’s
priorities and are accelerated by means of specific projects and
coordinated public administration activities.
Further information on the Rios Vivos project
157.
on page 154 and on the Circular Carbon Program on page 157.
Our relations with the supply chain are guided by our Biodiversity
Policy (further information on page 141) and other internal
standards such as the group’s Declaration of Human Rights. Our
target is to ensure the full certification and traceability of critical
supply chains in Latin America by 2025. As expressed in our
Commitment to Life, we want to ensure that these chains are free
from deforestation and the conversion of native vegetation and
to prevent, identify and mitigate human rights risks. The critical
chains are: palm, paper, alcohol, mica, cotton and soy.
We have UEBT (Union for Ethical Biotrade) certification for the
Ekos line, which was certified for the sixth consecutive year in
2023. The certification attests that the brand obtains ingredients
from nature with respect for people and biodiversity, which
involves the fair and equitable sharing of benefits and safe
working conditions for the communities in its production chain.
Natura has been a member of the UEBT since 2007, and the
Ekos brand is one of the only ones in the world to receive this
certification. GRI 308-1
All the communities directly supplying biodiversity ingredients
are subject to annual audits that comply with UEBT certification
standards and assess biodiversity conservation measures
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and organizational management, such as good production
practices and respect for human rights. Currently, the company
maintains relations with 11,713 families, distributed throughout 51
communities all over Brazil and in Hispanic America. 44 of these
are located in the Amazon region - and supply 44 Amazonian
social biodiversity ingredients, also known as bioactives.
GRI 308-1
In the Natura Elos post-consumer recycled material reverse
logistics program we guarantee respect for human rights and
working conditions for the effective social inclusion of waste
pickers and recyclable materials collectors. By means of full
traceability and audits of each link in the supplier chains, we are
able to influence and directly support the development and
professionalization of more than 60 waste picker cooperatives in
Brazil, benefiting over 2,000 people (Further information about
the Natura Elos program on page 153).
We also keep track of global principles and legislations such as the
Accountability Framework, focused on the protection of forests,
natural systems, human rights and providing support for
more than 11,700 families in 51 communities in
Latin America are part of our social biodiversity
ingredient supply chain
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forest conservation solutions in high conservation value areas.
Formulations
Additionally, for Latin America our ethical supply process sets
The principles of circularity and regeneration underpin all our
forth guidelines for managing the carnaúba palm chain; the
product choices, including formulas and packaging. The choice of
current volume used by the Natura brand is Fair Trade certified.
the best ingredients from the origin to final disposal is monitored
GRI 308-1
Circularity and regeneration
GRI 2-29, 305-1, 305-2, 305-3 and 3-3
by means of indicators such as the percentage of natural/
renewable origin inputs and the percentage biodegradability of
rinsable products, which are based on global references such as
ISO 16128 for natural origin and OECD 301 A-F for biodegradability.
Nature’s capacity to regenerate nature and produce actives and
These are references that permit comparability and transparency
services vital for human beings is being significantly reduced over
while ensuring safety and technical rigor in our commitments.
time. Cooperation is necessary to promote the transition to a low
carbon, circular and regenerative economy that respects the
In 2023, the natural origin or renewable rate for ingredients in the
Earth’s ecological limits through robust initiatives.
Natura product portfolio was 94.8%. Meanwhile the Natura vegan
product rate reached 95%. Regarding the biodegradability of the
In this respect, we are advancing with ever more natural
ingredients in formulas, we achieved the target ahead of schedule
formulations and the development of recycling chains for the use
in 2022. In 2023, the biodegradability rate of rinsable products for
of post-consumer plastics, glass and paper in our packaging and
Natura and Avon rinsable products in Latin America was 97.1%.
support materials. For example, the Natura Ekos line moisturizers
contain 96% ingredients of natural origin. Additionally, the bottles
are made from 100% recycled PET.
In line with our Commitment to Life, we have the target of
increasing formula and packaging circularity for the entire Natura
&Co group by 2030 (see the detailed Commitment to Life targets
on page 137).
See the full table of indicators in
the Databook Latin America.
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Packaging and
circular economy
CG-HP-410a. 2, GRI 3-3
We employ a proactive approach to product life cycle
Examples of good practices are the Natura Biōme solid
personal care products (further information on page 134),
our first regenerative cosmetic bar product line.
Another initiative which shows the company’s commitment
to circularity is the launch of Ekos Castanha, the first
management. We conduct a detailed mapping of the production
concentrated body moisturizer in the world.
process for the main inputs, enabling the identification of
opportunities to reduce environmental impacts throughout
the suppliers’ value chain. This collaborative work is aimed at
ensuring the visibility of processes generating higher carbon
emissions throughout the value chain, enabling the development
carbon emission reduction projects. In 2023, we finalized the
review of the carbon footprint methodology for inputs and
packaging materials not only in order to update the supplier
base but also the methodological bases of the study. The tools
used to assist in the development of new products include
the Environmental Calculator. This tool, developed by Natura
15 years ago and constantly updated, enables researchers to
anticipate and quantify the environmental impact of products in
the development phase, assessing how different design choices
affect pre-established environmental indicators.
This type of approach is also being extended to assist in
decarbonization throughout the development of Avon products.
Packaging and refills
SASB CG-HP-410a.2
We have an R&D team dedicated to researching solutions and
technologies to reduce the environmental impact of packaging,
with a prevailing focus on material circularity. To do this, we
prioritize the development of reusable materials, minimizing
waste generation. We favor the use of post-consumer recycled
and renewable materials and seek to improve the recyclability
and compostability of our packaging.
In 2023, 87.8% of our packs were recyclable, reusable or
compostable. We reached 13.1% use of post-consumer recycled
plastic, compared with 10.6% in 2022. Considering only the Natura
brand, we increased the use of post-consumer recycled plastic
from 20% to 21.8% and avoided emissions of 3,359 tons of GHG.
SASB CG-HP-410a. 1, GRI 301-2
Further information about life cycle management
of our packaging in the Databook Latin America.
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The post-consumer recycled material (PCR) rate in 2023 was 10.6
% for the Natura brand and 1.2% for the Avon brand. Considering
Natura &Co Latin America the rate was 7.67 %, an approximate
14% increase in the use of PCR compared with the previous year.
GRI 301-2
Reverse logistics
and circularity CG-HP-410a.2, GRI 3-3
Natura Elos Program GRI 308-1
Created in 2017, the Natura Elos reverse logistics program seeks
We have a pipeline of projects to increase the incorporation of
to strengthen plastic, glass and paper recycling chains and
PCR in all the brands up until 2030. Avon, in particular, continues
shared responsibility with our packaging suppliers, including
to invest in research to improve its performance. The major part
cooperatives, recycling operators and manufacturers.
of the brand’s bottles already include at least 30% PCR in their
composition. Recycled polyethylene (PE) and polypropylene (PP)
The goal is to foster a sustainable ecosystem for the supply of
resins are currently being validated for future inclusion in other
post-consumer recycled material. The activities comprehend
packaging.
40 years of refills
A pioneer in the use of refills, Natura commemorated 40 years
of the first launch of this type of packaging. In 2023, the Natura
refills avoided the generation of 2,131 tons of waste - equivalent to
the volume of waste produced by 3.9 million people in one day -
and the emission of 5.4 tons of GHG.
support for training suppliers, driving professionalism and
fostering a proactive mindset throughout the chain with a
view to fulfilling elevated standards of compliance and good
practices to guarantee the traceability and sustainability of the
production chains. It also includes the development of waste
picker cooperatives, strengthening work relations and gains in
efficiency, in addition to valuing and recognizing the services
these workers render for society.
All of our operations have engagement measures and
development programs for recycling cooperatives, although
we do not conduct assessments or formal complaint processes,
neither do we publicly disclose impacts for these stakeholders.
Our activities are concentrated in Brazil and Mexico, but in all the
countries in the region the cooperatives are submitted to
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internal audits to ensure adequate work, administrative and
We also promote the correct disposal of solid waste by means of
environmental practices. GRI 413-1
participation in the Brazilian CFT industry association Abihpec
(Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria
In 2023, BRL 803,500 was invested in the project, of which BRL
e Cosméticos) program Mãos para o Futuro since 2016. This
386,900 in the form of direct investment, mainly in infrastructure
initiative has already collected more than 1 million tons of waste
for the deposits, in administrative management, in improving
nationwide.
working conditions for waste pickers in the partnering
cooperatives and in increasing productivity.
Rios Vivos
The Rios Vivos (Live Rivers) project, the Amazonian arm of the
The remaining BRL 416,600 was invested in partnerships in
Natura Elos program, involves the mobilization of riverine
the programs Adote um Condomínio, which improves the
communities in Amazonas and Pará for the collection of plastic
volume and the quality of the waste reaching the cooperatives,
waste in the forest and in the communities and urban districts
Circulaflex, which seeks to boost Plastic; and Cataki+, a pilot to
around rivers in the region. The major part of the plastic that
test parameters for involving individual waste pickers in post-
reaches the oceans is transported by rivers, and the Amazon
consumer recycling chains in a dignified manner. The amount
basin is the main conduit to the sea for these materials in South
also includes the investments for the diagnosis and implantation
America. This is an important initiative because it values the
of a program to foster and incentivize selective waste collection
positive impact we have over ecosystems, in particular riverine
in the municipalities in which two of the group’s factories are
and maritime systems.
located in Brazil - Cajamar and Benevides, in partnership with the
NGO Espaço Urbano. GRI 203-1
In 2023, we initiated the operation of a new post-consumer plastic
In 2023, the number of supplier cooperatives and participants
Brazilian city of Belém. This project avoided the disposal of 39.5
in the Natura Elos projects increased from 47 to 64. There are
tons of waste in rivers and, consequently, in the ocean.
material supply hub in partnership with a cooperative in the
another 9 cooperatives that serve the Recicle com a Natura
program exclusively. The number of waste pickers involved in
the projects reached 3,091. We recovered 14,900 tons of post-
consumer packaging material at Natura and at Avon.
GRI 301-3
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Elo Verde Program GRI 413-1
In 2023, we formulated a public-private partnership with the
local government of Cajamar, where the company’s largest
manufacturing facility in Brazil is located. This involves a reverse
logistics initiative for recyclable materials. The program, called
Elo Verde, promotes recycling by means of a connection with
public schools, the selective waste collection infrastructure and
support for waste pickers, incentivizing our suppliers to use waste
as inputs for the production of new packaging. City residents are
rewarded with Avon products for participating in the initiative. To
get the program started, Natura &Co Latin America donated BRL
4.7 million worth of Avon beauty products.
The initiative will help Natura &Co Latin America to achieve its
public target of employing 100% reusable, refillable, recyclable or
compostable materials in its packaging by 2030.
Recicle com a Natura (Recycle with Natura)
In 2023, the company relaunched its reverse logistics program
with a view to stimulating a change in behavior and developing
positive habits in consumers and its network in relation to
recycling. Called “Recicle com a Natura” (Recycle with Natura),
the program increased its capillarity, with more than 680
collection points in over 280 Brazilian cities. The packs, which
should be delivered empty, are collected and sent for recycling.
Emissions and decarbonization
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Emissions and business
descarbonization GRI 3-3
In 2023 we elaborated a climate transition plan that was
Climate justice
presented to the Board of Directors, with four main thrusts:
Although climate change is a global reality,
1. Climate integrity through methodological rigor in accounting
This is why we advocate for the regulation of the global
for the company’s carbon footprint, including the GHG inventory
carbon market and for socio-environmental policies that recognize
encompassing scope 1, 2 and 3 emissions and alignment with the
the role of indigenous peoples, traditional communities and
SBTi targets for the 1.5ºC trajectory.
family smallholders in environmental conservation,
its consequences impact the population in an unequal manner.
particularly in the Amazon region.
2. Governance and reporting, involving the Board, leadership
accountability, employee engagement and the integration
We understand that the populations that are most vulnerable in the
of financial planning with climate issues, addressing risks and
climate crisis are the ones that least contribute to the current
opportunities in line with the TCFD recommendations (Further
carbon emissions situation. However, they end up suffering
information on page 62);
the biggest impacts, such as extreme events caused by global
warming.These groups have fewer resources to create adaptation
3. Engagement and influence, seeking the commitment of
mechanisms and solutions for surviving events such as extreme
suppliers and the value chain in the transition to a low carbon
temperatures, droughts, flooding and pandemics.
economy, advocacy for the evolution of the carbon market in
Brazil and cooperation between economic sectors to accelerate
Carbon market
the implementation of initiatives for a low carbon economy;
We participate actively in discussions on the regulation of the
4. Integration of biodiversity, nature and society by means
in some economic sectors in the country. The evolution of this
of offsetting measures (inside and outside the value chain),
discussion could drive new technologies, help in the decarbonization
residual emission removal plans and working towards a
of our supply chain and impact the voluntary carbon market.
Brazilian carbon market and how it could leverage decarbonization
fair and inclusive transition, in accordance with the Natura
positioning on climate justice.
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Regulation of the carbon market worldwide should incorporate
at paying for the environmental service of regenerating and
mechanisms for income generation for local communities,
conserving the forest. The initiative captured around BRL
especially those keeping forests standing. We advocate for
960,000, through the Parceiros pela Amazônia Platform (PPA).
financial mechanisms that promote the reduction or removal of
These funds were invested in improvements to the Circular
carbon, as well as fixing income for agricultural producers.
Carbon Project, the result of our partnership with the RECA
cooperative (Cooperativa de Reflorestamento Econômico
In this context, Brazil could conduct the development of an
Consorciado e Adensado). The funds were also used to accelerate
innovative low carbon social bioeconomy with social inclusion.
the establishment of new partnerships with communities in
Studies by the International Chamber of Commerce Brasil and
the region, in line with our target of prioritizing carbon credit
the consultancy WayCarbon, to which we contribute, project that
generation in our value chain in the Amazon. In 2023, 33% of our
the country’s participation in the global carbon credit market
carbon emissions compensation occurred through projects in the
could reach US$ 120 billion a year by 2030 and could correspond
Amazon region, with 13% coming from within our value chain.
to 49% of global demand, with the potential to create thousands
of jobs. In this journey, offsetting models involving nature-based
Towards decarbonization GRI 3-3
solutions are a path towards accelerating regeneration and the
The Natura &Co group is part of the Global Compact’s Net Zero
conservation of biodiversity.
Circular Carbon Program
Ambition, which challenges companies to assume ambitious
climate-related commitments to accelerate the reduction of
greenhouse gas (GHG) emissions in line with SBTi criteria. Based
The project for the payment of carbon compensation within
on the review of our Commitment to Life and the process of
our production chain, a practice known as carbon insetting, is
validating targets with the SBTi, we assumed the commitment to
the result of an integrated vision of our initiatives oriented to the
achieve net zero emissions (scopes 1 and 2) in our own installations
Amazon. Circular Carbon remunerates family smallholders not
by 2030 and to reduce greenhouse gas emissions throughout
only for the purchase of inputs and benefit sharing, but also for
the value chain (scope 3) by 42%, increasing the engagement of
environmental conservation services.
suppliers, consumers and society in the decarbonization process.
In 2023, we had a specific team working on the development
of projects in partnering communities in the Amazon aimed
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A key example is the use of recycled materials, such as glass in our
In 2023, Natura invested around R$ 15 million in carbon offsetting
packaging, which helps to reduce our carbon footprint.
projects, including the payment for environmental services
rendered by local communities, as well as regenerative agricultural
Internal activities for the decarbonization of our businesses include
systems resilient to climate change (sustainable livestock
the automated management of our carbon inventory, with the
production and extractivist activities and agroforestry systems).
capacity to simulate decarbonization projects. Through marginal
abatement cost curves (MACC), we are able to compare diverse
initiatives for each emissions reduction project as a basis for
resource allocation decisions.
In 2023, we detailed our decarbonization plan for logistics
processes in Brazil, drafting an integrated roadmap with
strategic planning, guaranteeing financial optimization and
carbon reduction.
On the transition towards the use of renewable fuels front, in addition
to using ethanol in the manufacturing boilers in Cajamar in Brazil,
we are studying the use of biomethane and green hydrogen. Units
in Mexico, Argentina and Colombia are also going to implement
projects for the transition to renewable energies in this area.
Other drivers of decarbonization include the process of digitalization
of magazines. In 2023, we had a 32% decrease in printing in Latin
America compared with the previous year. This was due to the
intensified use of digital channels by the Beauty Consultants.
R$ 15 million invested
R$ 15 million in
in carbon offsetting
Map of value chain
In 2023, we identified emissions hotspots through the assessment
of links and processes in the supplier chain. This initiative
facilitates measurement and decision making in new product
developments, as well as the process of choosing partners.
In addition to updates to reflect the current supplier chain, the
review led to important methodological improvements regarding
the measurement of changes in land use, the segregation of
biogenic emissions and the updating of end of life premises,
with the incorporation of CFF (Circular Formula Footprint)
methodology, which takes resource efficiency, recyclability and
the use of renewable materials into account to ensure these are
accounted for in our circularity programs.
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In these analyses of the chains, we identified the substitution
operation (Category 5), upstream leased assets (Category 8)
of natural gas with biomethane in the glass production kilns,
and direct and indirect use of products (Category 11). Despite
significantly reducing carbon emissions in the production of our
the inclusion of these categories, they are not part of the SBTi
perfumery packaging.
validated target, with the exception of direct in Category 11.
Emissions performance
In 2023, we also advanced in the strategy of acquiring renewable
The calculation of our impacts on natural capital is based on
energy certificates (I-RECs) in all the countries in which the
the greenhouse gas inventory, which covers scopes 1, 2 and 3
company operates, which guarantees the use of 100% renewable
in accordance with the GHG Protocol. The inventory, audited
energies in our direct operations. Moreover, we progressed in
by an independent third-party, takes into account direct
studies for the use of solar energy.
operations (scope 1), indirect emissions from the consumption
of energy (scope 2), and indirect emissions associated with the
The main challenge in emissions from our operations (scopes
transportation, distribution and use of our products, as well as the
1 and 2) is to improve energy efficiency and increase the
business’s entire value chain (scope 3).
consumption of renewable energy, as well as improving our
refrigeration systems and reducing fugitive emissions. In Brazil,
Our emissions reporting presents three dimensions,
we already prioritize the use of ethanol in the executive and sales
demonstrating the evolution and the robustness of the method:
force vehicle fleets. In the other countries in Latin America, we
the total emissions scope, that takes into account all the emissions
face the challenge of a lack of a structured supply of renewable
related to our business; the SBTi scope, which encompasses the
fuels. One of the options is the electrification of the company
emissions categories for which we assume reduction targets; and
fleet, which depends on the evolution of local infrastructure.
the Natura Carbon Neutral program scope, established in 2007.
With the unification of the Natura &Co Latin America inventory,
For indirect emissions (scope 3), we defined another five
we included management of other scope 3 categories necessary
work fronts for decarbonization: packaging,
to ensure the completeness and validation of the science-based
formulas, Home & Style (Avon), logistics and consultancy
targets targets: non-productive services (Category 1.b.), capital
material. Moreover, for the Avon brand we maintain continuous
goods (Category 2); activities related to fuels and energy not
improvements for refining historical emissions, ensuring greater
included in scopes 1 and 2 (Category 3); waste generated in the
data accuracy and better emissions management.
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Natura performance
At Natura, specifically, we publish our GHG inventory, audited
with an extensive organization of emissions data, the result of
Natura Cosméticos S.A.’s long-term experience in this dimension.
In the 2023 inventory, scope 3** emissions were reduced by -3%
In the 2023 inventory, scope 3** emissions were reduced by -3%
This category mainly covers activities in the production chain,
This category mainly covers activities in the production chain,
including the extraction of raw materials, distribution, and the
including the extraction of raw materials, distribution, and the
disposal of products.
disposal of products.
Natura emissions
(tons of CO2)
Scope 1
Scope 2
(Location Based)
Scope 2
(Market Based)
2021
3,312
9,844
1,502
2022
4,839
4,838
543
2023
4,965
4,754
1
Scope 3*
314,901
288,529
276,521
* Scope 3 only covers the decarbonization workstreams dimension.
* Scope 3 only covers the decarbonization workstreams dimension.
The complete inventory can be accessed in the Databook
The complete inventory can be accessed in the Databook
Check all our performance indicators in the
ESG Scorecard and in the Databook Latin America
For information on our governance, strategy,
risk and opportunity management and
climate metrics and targets, read pages 63 to 65.
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Institutes and
social impact GRI 203-1, 413-1
In 2023, we initiated the process of merging
the Natura and Avon institutes in Brazil and
the Avon foundations in Latin America.
The proposal is to join forces and generate synergies to promote
the causes and increase the capillarity of initiatives, boosting
the impact of social change measures in the region, as well as
benefiting our Beauty Consultant network. From the standpoint of
management and governance, there will be a single organization
that will oversee all the causes.
The merger will be conducted in a manner that maintains the
purposes and connections of the original brands. Accordingly, all
the measures related to initiatives in the public education area will
continue to be connected with the Natura brand. Topics related to
women’s rights, combating violence against women and girls, and
women’s health will continue to be linked with the Avon brand.
With this new configuration, we will be one of the biggest private
social investment organizations in Latin America.
Among the changes that are already notable in the activities of the
organizations will be the unification of services and guidance for the
Beauty Consultants, which have been extended to the entire network.
These are: measures to strengthen the educational development for
the network, which encompass formal education, digital and financial
literacy, Portuguese language, mathematics and civic awareness; and
measures oriented to combating violence against women and girls, as
well as those promoting women’s health.
Instituto Natura
The entity’s work is based on three major pillars: support for the
implementation of public education policies; the articulation of priority
education agendas; and education and mobilization for the Beauty
Consultants. Through partnerships, the consultants have access
to educational opportunities, including study grants for
higher education, language, vocational and preparatory courses.
The funding for these activities comes from the sale of the Natura Crer
Para Ver product line. The institute promotes the engagement of the
consultants in communication and mobilization around educational
causes, in particular literacy by the age of seven and full-time
secondary education.
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Latin
America
In 2023, the main initiatives included a key measure in the
Crer para Ver GRI 203-1
technological innovation area to support the public education
The Crer para Ver product line mobilizes our consultant network
center Centro de Políticas Públicas e Avaliação da Educação
around education in Argentina, Brazil, Chile, Colombia, Mexico
(Caed) in the development of artificial intelligence (IA) tools to
and Peru to promote support for the implementation of public
automate the process of correcting reading fluency assessments
education policies focused on literacy and secondary education,
in order to streamline the process and enhance its effectiveness.
as well as educational offerings for the development of the
In the ongoing expansion of the literacy program in Brazil, we
Beauty Consultants’ earnings from the sale of these products is
reached Pará and Bahia, making a total of 17 states. Worthy of
invested in education projects managed by the Instituto Natura.
note was the increase in the literacy rates in Amapá, Mato Grosso
Accordingly, by purchasing the Crer para Ver line, the end
do Sul and Espírito Santo. We also initiated activities in Pará
consumer also participates in changing the country’s education
consultants and Business Leaders. All the company’s and the
with measures to promote full-time secondary education in the
system.
technical and technology areas.
Moreover, we supported policies to promote the 100% Integral
all over Brazil, including public school students and teachers,
program, via which all the municipal and state schools in
business leaders, Beauty Consultants and their families. This
the participating municipalities adopt full-time education.
stimulus for education is also cyclical, driven by the consultants
The program, now in place in the cities of Sobral (Ceará)
themselves, who bring the school and teaching closer to their
More than eight million people have been impacted by this work
and Benevides (Pará), fosters enrolment at all stages of basic
surroundings.
education, increasing the time children spend at school to
guarantee full learning development.
In accordance with our strategy to build collaborative networks,
we articulated coalitions with other organizations to work in the
public policy areas in Argentina, Chile, Mexico, Colombia and
Peru. Regarding the Beauty Consultants, our work focused on
functional, digital and financial literacy and on notions of civic
awareness.
Further information in the
Databool Latin America
and in the ESG Scorecard.
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Latin
America
Instituto Avon and Avon Foundations GRI 203-2
In 2023, thousands of people were impacted by free
mammograms, educational campaigns and courses on women’s
rights and gender violence in all the countries in which we
operate. Our vocation and focus on supporting women’s issues
was translated into actions in Argentina, Chile, Uruguay, Mexico,
Colombia, Peru, Ecuador and Brazil.
In Brazil, the Instituto Avon employs the principle of promoting
progress in these causes from the inside out, recognizing that the
Beauty Consultants are simultaneously the beneficiaries and the
agents of social transformation.
One of the main highlights in Brazil in 2023 was the consolidation
and expansion of the Acolhe Program, which offers
supplementary assistance to women served by the public
gender violence network. The measures encompass temporary
accommodation in a hotel, psychological counselling, and
social and legal support. Furthermore, the program provides
support for public agencies working to provide protection for
women, seeking to enhance services for the victims. This year,
the program was extended to five new states – Acre, Piauí, Pará,
Paraná and Espírito Santo – and was employed in 256 Brazilian
municipalities, providing support for 734 women and their
dependents.
Information about actions in all
the countries in which the institute is
present in our Databook Latin America
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:
R$ 85 million invested in
education in Latin America
4.6 million students benefited
450,000 consultants benefited
13,000 schools impacted
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Latin
America
Another highlight was the launch of the National Gender Violence
Map in Brazil, fundamental for monitoring high quality data
produced with statistical rigour. This is an interactive dashboard
with data on violence against women, elaborated by the Federal
Senate’s Observatory of Women against Violence, together with
the Instituto Avon and the Social Gênero e Número organization.
Available on the Federal Senate portal – Painel interativo de
Dados — the Federal Senate institutional portal –, this is a national
repository of healthcare (DataSUS – SIM e Sinan), Justice (CNJ-
DataJus) and Public Safety (Sinesp) data, as well as data from the
National Violence against Women Survey, conducted by by the
Instituto de Pesquisa DataSenado.
Another important factor was the launch of the Recomeça (New
With a focus on female employees, extensive mobilization
Beginning) Program, which reserves vacancies in Natura &Co
campaigns were conducted in 2023. In Pink October, the ‘Se
selection processes for women in a vulnerable situation due
Toque, Se Cuide, Se Conheça e Se Conecte’ (Touch, Care, Know
to domestic violence who have received support from public
and Connect) campaign provided information for all women
programs or the Acolhe program. A pilot was implanted in the
on cancer risk factors, signs of the disease and what to do about
distribution center in the municipality of Simões Filho in Brazil,
breast cancer. Similarly, the ‘Entrelaçadas’ campaign and the “Por
in partnership with the logistics operator TPC and the local city
mim, por você, por nós” program disseminated information for
government. Together, these organizations are responsible for
women to learn to recognize and name the different types of
the selection process and for accompanying the women selected,
violence and how to obtain help from the notification channels
paving the way for their empowerment and professional placement.
and support services made available by Natura.
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2023 results
Avon Internacional
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Contents
MESSAGE FROM THE CEO
INNOVATION
OUR BUSINESS
Performing while transforming
Efficiency in direct sales
New visual identity
Corporate Campaigning, Giving and Volunteering
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Message from
the CEO
Kristof Neirynck
In December 2023 it was announced that I
would be taking on the role of CEO at Avon
in 2024, continuing its evolution in becoming
the leading omnichannel, relationship selling
business, with Representatives at its core.
Having had the privilege of working as Chief Marketing Officer
under Angela Cretu’s leadership for over two years, I have had the
opportunity to see this incredible business evolve and modernize,
whilst remaining unequivocally connected to its purpose,
empowering women to embrace their power and improve their
lives with accessible world-class beauty and flexible earning and
learning opportunities. I was thrilled to take on the role of CEO to
continue Avon’s journey.
Looking back to 2023, we see a year marked by successes
and significant evolutions. We launched a global initiative to
strengthen the brand, including a comprehensive visual identity
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overhaul, and introduced a modern voice tailored for the
contemporary woman. The brand’s new positioning, “Embrace
Your Power,” is a compelling reminder to women of their innate
strength in overcoming obstacles to achieve their goals.
While Natura and Avon collaborate in Latin America, Avon
International manages global operations in all other markets.
The business has undergone a radical transformation plan
aimed at resetting fundamentals. This strategic journey, to Open
Up & Grow, involves improving the value proposition in the
In the fight against gender-based
violence, Avon provided
US$6.2 million in grants to
30 NGOs worldwide
direct selling channel, expanding omnichannel capabilities, a
MORE to raise awareness and provide support services. They
comprehensive brand reappraisal and portfolio optimization, and
also championed the 16 Days of Activism against Gender Based
a focus on streamlining the operational model. The results have
Violence campaign.
been extremely promising, showing sequential improvements in
revenue, gross margin and EBITDA growth.
Since 1992, Avon has raised over US$955 million for breast cancer
charities, educating 180 million women. Our #FeelTheBoobLove
Avon’s unwavering commitment to women’s causes has been the
campaign promotes monthly self-checks, offering resources and
cornerstone of its business for 138 years. The business continues to
education globally, including partnerships with NGOs for school
be a leading advocate for initiatives combating breast cancer and
programs.
addressing gender-based violence. Through the Avon Foundation,
over US$1 billion has been contributed to these causes since 2021,
For Women’s Day 2023, Avon launched a global report on female
with US$6.2 million donated in 2023 alone.
entrepreneurship and flexible working, advocating for equal
opportunities and breaking barriers to economic participation for
In the fight against gender-based violence, Avon provided
women worldwide.
US$6.1 million in grants to 30 NGOs worldwide, partnering with
NO MORE to raise awareness and provide support services.
In 2023, we also made substantial progress on our broader
They also championed the 16 Days of Activism against Gender
sustainability journey. We continued to manage our impact
Based Violence campaign. worldwide, partnering with NO
on the environment, reducing waste, water usage and carbon
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emissions across our operations. We also accelerated our use
to earn and learn on their own terms and support causes
of recycled plastic and have engineered over 230 tonnes of PCR
that encourage women to embrace their power and realizing
(post-consumer recycled) content into our packaging since
their ambitions.
2020. This is also contributing to an overall reduction in Avon
International’s carbon footprint.
I am excited to collaborate with associates and Representatives as
we continue to chart our course for the future.
We also built on our 30-year commitment to animal welfare
achieving approval from Cruelty Free International’s Leaping
Bunny Programme for Fragrance, Avon Care and Anew, with all
other Avon product ranges due to obtain approval in 2024.
As we look to the future, we are laser focused on delivering
sequential growth in revenue and profits by leveraging the power
of productivity, volume and access. We have aspirational plans
that build on our Open Up & Grow strategy, which we have seen
successfully step change the business thus far.
We will continue to enable our Representatives to grow with us
using a rich and rewarding omnichannel experience, further
accelerating our progress in this space, with an emphasis on
modernization and digitization. And we will continue to put our
customers at the center of our plans, meeting them wherever
and whenever they want to shop with us, while using our brand
as an amplifier to attract and engage new audiences.
Avon is not just a beauty brand. Our business is developing
innovative, world-class beauty accessible to all, and our purpose
is helping women progress. We create opportunities for women
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Innovation
Far Away Beyond the Moon
This latest addition to Avon’s best-selling
Far Away family is the most intriguing yet.
It uses a higher concentration of fragrance oil
powered by the Belle de Nuit, a nocturnal flower that
blooms in the full intensity of moonlight. The floral
oriental scent is soft and creamy with rich balsamic
milky facets. The fragrance is sustainably captured
from the Hawaiian island of Kauai through headspace
technology, which doesn’t require flowers to be picked
and doesn’t disturb its natural environment.
Anew Renewal Power Eye Cream
The breakthrough harnesses Avon’s world
exclusive Protinol™ technology to instantly blur
and brighten the eye area with light diffusion
technology, reducing the look of puffiness,
lines, and wrinkles. When paired with Anew
Renewal Power Serum, this eye-and-face-duo
helps restore years of collagen loss for smoother,
plumper, and firmer-looking skin.
Exxtravert Mascara
Using exclusive Gel Fiber Technology, Exxtravert’s
unique formula coats lashes from root to tip with the
boldest pigment and silk-like fibers. The result is a
clump-free instant volume with extreme buildability
and lash impact. It features a new and exclusive
channeled brush designed to coat each lash evenly
with the perfect quantity of product.
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Hydramatic Matte Lipstick
Avon asked thousands of women worldwide to share what they would love
in their dream lipstick. The answer was “a matte finish that doesn’t feel dry
on the lips”. A team of scientists and experts created the world’s first matte
lipstick with a central core powered by an exclusive blend of hydrating
skincare ingredients (hyaluronic acid and glycerin) and surrounded with
intense matte color.
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Our Business
Performing
while transforming
After a significant transformation, Avon International has
While macroeconomic pressures are expected to persist, Avon has
returned to operational profitability and improving cash
gained knowledge and agility, becoming more resilient with an
conversion. Furthermore, Avon International debunked a
optimized portfolio that enhances its ability to face challenges.
myth and broadened its legacy of high relationship selling by
Technology remains a huge enabler to Avon’s transformation,
embracing omnichannel capabilities.
and it remains an ongoing focus into 2024, with updates to
back-end systems and the introduction of a new CRM platform
Avon has had a transformative year in 2023. Whilst navigating
in partnership with Salesforce.
challenges head-on, the business remained strong and carried
on pursuing its long-term Open Up & Grow strategy. This involved
Through 2023, Avon transitioned its Research & Development
protecting margins, simplifying the business, empowering people,
operations from Suffern (USA) to new centres in Brazil and
reigniting the brand and building on its core direct selling model
Poland, two of the largest markets in its business. Locating
with omnichannel expansion in e-commerce and retail. The
R&D in key Avon markets will enable closer connections
business is also prioritizing its healthy and profitable markets.
with Representatives and Consumers and build seamless
communities with its supply chain operations, increasing
In 2023, Avon International achieved total net revenue of BRL
local relevancy and speed to market. The Brazil lab opened in
6,286.7 million, primarily impacted by the Home & Style category.
November and the pilot plant in Poland is due to open in the first
The adjusted EBITDA reached BRL 475.9 million, marked by a
half of 2024, following a significant knowledge transfer process
significant improvement in gross margin resulting from factors
and the hiring of new talent in both locations.
like pricing, product mix, innovation, and further cost reduction.
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Efficiency in
direct sales
GRI 203-1
A significant goal of the Open Up & Grow strategy was to
redefine the commercial model to be more appealing and
profitable for Avon Representatives. Once fully implemented in
all markets, the focus in 2023 was to stabilize the most productive
segments of Representatives with differentiated incentives and
communications.
Further simplification was possible by reducing the number of
brochures from 20 to only one across Europe, creating significant
synergies and efficiencies. Representatives’ productivity grew
12%. The total number of Representatives at the end of 2023 was
2.3 million.
Digitalization continued to increase, although the Avon ON app
use was behind target, impacted by lower new Representative
numbers and instability in some markets. Total digital sales
increased by 1.5%, with a 6.9% contribution driven by online sales
and marketplaces.
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New visual identity
Avon implemented a full brand refresh in 2023 with its new brand
From transformation to growth
positioning “Embrace Your Power”, celebrating the belief that
The favorable outcomes stemming from the brand rejuvenation,
every woman possesses her own unique power. The rebranding
streamlined portfolio, and updated commercial model have
extends across visual and verbal identity, encompassing a new logo,
motivated Avon to take a proactive stance in maximizing value.
packaging design, website, and social media assets. Initial results
This involves evolving operations to meet the needs of women in
indicate a positive return on investment, with Avon ranking among
the modern world, wherever they are and however they prefer
consumers’ preferred ads in key markets, according to System 1.
to shop. In a new chapter for Avon International, the business
increased investments in e-commerce and, notably, ventured into
Moreover, Avon has continued to streamline and harmonize its
new retail opportunities to enhance its reach through diversified
portfolio, with fewer, bigger and better innovations and a focus
and compelling consumer access points.
on its hero products and gifting to make these a sizeable part of
the business. Initiatives including consolidating distribution and
In Turkey, Avon has an established Representatives’ retail business
removing unproductive products have led to a 40% reduction in
and is leading the way in omnichannel expansion, reaching 72
total size of line and 71% reduction in innovation since 2020 while
stores and kiosks in 2023. Buoyed by this success, the business
growing average Representative spend, up over 20% since 2020.
is set to extend this strategic approach into other markets,
In 2023, all fragrances, Avon Care, and Anew products received
equipping representatives with tools to optimize their retail
certification by the Cruelty-Free International Leaping Bunny
ventures, be it through a shop-in-a-bag, community retail, or a
program, reinforcing Avon’s longstanding commitment against
franchise outlet. Additionally, in Turkey, Avon forged a partnership
animal testing.
with the online retail marketplace Trendyol, contributing to the
overall effectiveness of the omnichannel strategy.
Elsewhere, Avon is embarking on strategic partnerships with
retailers. In the UK, Avon initiated product sales on Amazon, while
also offering a curated range on the high-street at drug store
Superdrug both online and across 100 physical stores. In Italy, Avon
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collaborated with Naima AllScent, featuring an exclusive selection
During 2023, Avon supported those affected by the Ukraine conflict,
of gifting and premium products in 25 beauty stores, with
providing over 34 tonnes of hygiene products and clothing. They
additional offerings on their online platform. These initiatives mark
also aided earthquake victims in Turkey with a US$100,000 donation
an exciting path for future growth and profitability for Avon.
and sales profits dedicated to psychological support.
Corporate Campaigning, Giving and Volunteering
For International Women’s Day 2023, Avon launched a global report
Purpose has always been at the heart of Avon, with a dedication
on female entrepreneurship and flexible working, advocating
to empowering women around the world, educating and raising
for equal opportunities and breaking barriers to economic
awareness of, breast cancer and working to end gender-based
participation for women worldwide.
violence. Through the Avon Foundation, over US$1.1 billion has
been contributed to these causes to date, with US$6.2 million
donated in 2023 alone.
As part of its commitment to help end gender-based violence,
Avon provided grants to more than 30 NGOs in 2023, also
partnering with global charity NO MORE to raise awareness of the
signs of abuse, and to signpost vital support services for those in
need. They also championed 16 Days of Activism against Gender
Based Violence with a compelling campaign highlighting how
makeup can be used as a form of dominance and control with a
Reverse Makeup Tutorial.
Since 1992, Avon has donated over US$955 million to breast
cancer charities, educating 180 million women and funding over
20 million mammograms. Their #FeelTheBoobLove campaign
promotes monthly self-checks, offering resources and education
globally, including partnerships with NGOs for school programs.
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2023 results
Fable Investments
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Fable Investments
Fable Investments
Overview: capital for
purpose-driven start-ups
Fable Investments, a corporate venture capital wholly owned and
Innovation
funded by Natura &Co, showed strong double-digit growth in
2023 proved to be a highly rewarding year for brands equipped
2023, with significant developments across its portfolio.
with omnichannel capabilities, displaying resilience in the face of
The overarching purpose of Fable, operating autonomously, is
the notable surge in digital marketing costs. Despite refraining
to deploy growth capital strategically into emerging, innovative,
from adding new investments to its portfolio during the year,
and high-growth enterprises within the beauty and wellness
Fable strategically participated in a follow-on round for Perfumer
domain. Fable takes on the role of a nurturer, aiming not only
H, a niche fragrance brand. This move aligns with Perfumer H’s
to fuel the growth of these ventures but also to foster a positive
remarkable growth trajectory, particularly within a category that
impact across the broader industry. The objective is to inspire
has garnered significant attention and interest. Fable’s decision
and support start-ups, enabling them to reach their full potential.
to reinforce its support for Perfumer H underscores the brand’s
Fable boasts a vibrant pipeline of opportunities and remains
promising expansion and the strategic vision that Fable embraces
eager to expand its portfolio. The focus is on partnering
in navigating dynamic market trends.
with purpose-driven founders who are deeply passionate
about their ventures, brands that exhibit strength and
resonance in the market, and products that demonstrate
exceptional effectiveness. Through these investments, Fable
seeks to contribute to the continued evolution and positive
transformation of the beauty and wellness sector.
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Fable Investments
Maude
the modern intimacy
company closed a
significant funding round
in a challenging market
environment, securing the
necessary resources for
growth. After consolidating
its successful presence
at Sephora as the first
sexual wellness brand to
launch in more than 200
stores, maude continued
its international expansion
through partnerships with
LBM, Selfridge’s, and Oh My
Cream.
Perfumer H
known for bringing
craftsmanship back to
perfumery and for creating
subtle and highly original
fragrances, the brand
opened three additional
stand-alone retail stores
in Hong Kong, Taipei, and
London. The growth of the
business was supported
by product launches
and collaborations with
inspiring partners. The
company also made
key hires, setting a solid
foundation for further
growth and expansion.
LOLI
besides successfully
onboarding a new investor,
which brought robust
operational expertise to the
team, LOLI launched a new
product that is the cornerstone
of the brand’s revitalized
strategy of upcycling organic
superfood waste materials.
Sumo Citrus Cleansing
Jelly is made from unused
mandarin orange peels that
are sustainably processed into
an effective, concentrated
product.
Stratia
the brand showed improved
profitability supported
by enhanced operational
efficiency as it transitioned
the fulfillment operations in-
house, achieving full vertical
integration. It also revamped
packaging, transitioning to
greener, more sustainable
solutions with 30-100%
recycled content. Stratia is
obsessed with research and
science-backed ingredients
that work, a principle applied
to developing the Lipid
Gold Eye Cream, which
strengthens the skin around
this sensitive area.
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GRI content
index
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Declaration of use
Natura &Co reported based on the GRI Standards and Natura &Co Latin America in accordance with the GRI Standards for the period from
January 1, 2023 to December 31, 2023*.
GRI 1 used
GRI 1: Foundation 2021.
GENERAL DISCLOSURES
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
2-1 Organizational details
12. Natura &Co Holding S.A. is a publicly traded company, with its headquarters
in the state of São Paulo, Brazil, at Avenida Alexandre Colares, 958/960, Parque
Anhanguera - São Paulo (SP).
2-2 Entities included in the
organization’s sustainability
reporting
4 and 5. The subsidiaries included in the scope of this report are Natura
Cosméticos S.A., which operates in ten countries, and Avon Products, Inc., with
operations in over 70 countries.
2-3 Reporting period, frequency
and contact point
4 and 5. Report published on April 15, 2023. Any doubts or suggestions may be
addressed to institucional@natura.net
2-4 Restatements of information
In accordance with material facts disclosed to the market Natura & Co Holding
S.A., through its subsidiary Natura Cosméticos S.A., concluded the sale of Aesop
on August 30, 2023, and of the The Body Shop, on December 29, 2023. Starting
from this cycle, due to the sale of The Body Shop and AESOP, we have ceased
to consider these entities in our indicators, with the exception of indicators 2-7,
405-1, and the series of indicators 305, which contains information from The
Body Shop Latin America master franchisee.
2-5 External assurance
5, 195, 196. Databook Latin America
GRI 2: General
Disclosures 2021
2-6 Activities, value chain and
other business relationships
12, 85, 86, 87, 89, 90, 92, 93, 94, 128, 129, 130, 131, 140, 144
2-7 Employees
108, 120, 121. Databook Latin America with information on the region. Natura
&Co information will be available later in the Sustainability Compendium, on
the Investor Relations website.
2-8 Workers who are not
employees
Databook Latin America
2-9 Governance structure and
composition
27, 28, 29, 88
8, 10
8
5, 16
* Data relating to Natura &Co Latin America business unit in accordance with the Global Reporting Initiative (GRI) are available in the Latin America Databook.
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GENERAL DISCLOSURES
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
2-10 Nomination and selection of
highest governance body
LOCATION
SDG
The organization implemented a structured process to nominate and select
members for its highest governance body and committees. This process
is guided by a number of principles and recommendations, including the
involvement of a nomination and governance committee, a competencies
profile and a commitment to transparency, diversity, candidate assessment,
independence, as well as consideration of the time each candidate has
available to dedicate to the role. The criteria applied in the assessment
emphasize the importance of diversity, independence and experience to
ensure the selected members are well equipped to effectively contribute to the
organization’s governance.
5, 16
GRI 2: General
Disclosures 2021
2-11 Chair of the highest
governance body
2-12 Role of the highest
governance body in overseeing
the management of impacts
2-13 Delegation of responsibility for
managing impacts
In 2023, the average tenure of all the members was 2.5 years, considering the
time Natura &Co Holding has existed (from 2019).
For details regarding the complete Board composition, consult the minutes
from the Annual General Meeting (AGM) on the Investor Relations website.
Databook Latin America with information on the region.
27. The chair of the company is occupied by the three co-founders of Natura
Cosméticos. The main executive of the Natura &Co Group is the CEO, Fábio
Barbosa. Since 2022, he has no longer accumulated the position of chief
executive of the Board of Directors.
The Board of Directors establishes the company’s values, mission and culture,
communicating them by means of policies and corporate documents. With the
assistance of the Strategy and Sustainability Committees, the Board analyzes,
approves and tracks the execution of the annual strategic plans, expansion
and investment programs, including those focused on sustainability. To do
this, the Board of considers, among other things, the short and long-term
interests of the company and its shareholders, as well as the economic, social,
environmental, and legal effects for employees suppliers, partners, customers,
other creditors, as well as for the communities in which the Company operates
locally and globally.
2-14 Role of the highest
governance body in overseeing
the management of impacts
29
2-15 Conflicts of interest
38 Databook Latin America
2-16 Communication of critical
concerns
37 Databook Latin America
2-17 Collective knowledge of the
highest governance body
27 and 28
16
16
16
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GENERAL DISCLOSURES
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
GRI 2: General
Disclosures 2021
2-18 Evaluation of the
performance of the highest
governance body
Databook Latin America
2-19 Remuneration policies
24 and 25
2-20 Process to determine
remuneration
24 and 25
2-21 Annual total
compensation ratio*
24 and 25. As in the previous year, the annual total compensation of the highest
paid employee in the organization was over 30 times the average annual
compensation of all the other employees, excluding the highest paid one. To
calculate this indicator, the average annual compensation of all the employees
of all the brands and countries was considered, converting the salaries to
United States dollars (US$). Additionally, the percentage increase in the highest
compensation paid was 23%, compared with an average increase of 15%.
Databook Latin America with information on the region.
2-22 Statement on sustainable
development strategy
6, 7, 8, 9, 10
2-23 Policy commitments
38, 56, 128, 140, 149. Natura &Co information will be available later in the
Sustainability Compendium, on the Investor Relations website
16
2-24 Embedding policy
commitments
2-25 Processes to remediate
negative impacts
38, 56, 131. The Board of Directors is responsible for overseeing the
embedding of the company’s policy commitments to ensure responsible
business conduct in all the organization’s business activities and relations.
The delegation of responsibilities occurs by means of the clear definition of
targets and commitments, the identification of the hierarchical levels involved,
the attribution of responsibilities based on skills and competencies, the
establishment of authority and accountability, the effective communication
of responsibilities, the implementation of a tracking system, promotion
of collaboration and team working, the adjustment of responsibilities as
necessary, recognition and reward for performance, and the periodic review
of the delegation process. Natura &Co information will be available later in the
Sustainability Compendium, on the Investor Relations website.
37, 56, 57, 58, 59, 90, 91. Our Board participates in overseeing processes of
identifying and managing impacts on the economy, the environment and
people by means of continuous monitoring, oversight of the implementation
of processes, assessment of results, identification of gaps and opportunities
for improvement, strategic decision making and ultimate responsibility. This
analysis is conducted during strategic planning cycles and at specific events.
Databook Latin America with information on the region.
2-26 Mechanisms for seeking
advice and raising concerns
37
16
*The result of more than 30 times was reported in accordance with the ISE 2023 standards
181
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
GENERAL DISCLOSURES
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
2-27 Compliance with laws and
regulations
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on
theInvestor Relations website.
2-28 Membership of associations
Databook Latin America
2-29 Approach to stakeholder
engagement
121, 128, 129, 131, 140, 145, 149, 151
2-30 Collective bargaining
agreements
Excluding interns, apprentices, the holding company and the Instituto Natura,
81% of the employees were covered by collective bargaining agreements.
For employees who are not covered by these agreements, the organization
establishes working and employment conditions in line with best competitive
market practices. Natura &Co information will be available later in the
Sustainability Compendium, on the
Investor Relations website.
8
3-1 Process to determine material
topics
54, 55. Databook Latin America
3-2 List of material topics
54, 55. Databook Latin America
GRI 2: General
Disclosures 2021
MATERIAL TOPICS
GRI 3: Material
Topics 2021
CIRCULARITY
GRI 3: Material
Topics 2021
3-3 Management of material
topics
151, 152, 153, 154. Databook Latin America
301-1 Materials used by weight or
volume
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
GRI 301:
Materials 2016
301-2 Recycled input materials
used
152 and 153. Databook Latin America with information on the region. Natura
&Co information will be available later in the Sustainability Compendium, on
the Investor Relations website.
301 -3 Reclaimed products and
their packaging materials
154. Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
8, 12
8, 12
8, 12
SASB:
Management of
packaging life
cycle
SASB-CG-HP-410a.1
(1) Total weight of packaging, (2)
percentage made from recycled
and/or renewable materials and (3)
the percentage that is recyclable,
reusable and/or compostable.
152
182
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
CIRCULARITY
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
SASB:
Management of
packaging life
cycle
SASB-CG-HP-410a.2
Discussion of strategies to reduce
the environmental impact of
packaging throughout its life cycle
152 and 153
302-1 Energy consumption within
the organization
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
302-2 Energy consumption outside
the organization
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
GRI 302:
Energy 2016
302-3 Energy intensity
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
302-4 Reduction of energy
consumption
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
302 -5 Reductions in energy
requirement of products and
services
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
303-1 Interactions with water as a
shared resource
Databook Latin America
303-2 Management of water
discharge-related impacts
Databook Latin America
GRI 303: Water
and Effluents 2018
303-3 Water withdrawal
Databook Latin America
303-4 Water discharge
Databook Latin America
303-5 Water consumption
Databook Latin America
SASB: Water
Management
SASB-CG-HP-140a.2
Description of water management
risks and discussion of strategies
and practices to mitigate those
risks
Databook Latin America
7, 8, 12, 13
7, 8, 12, 13
7, 8, 12, 13
7, 8, 12, 13
7, 8, 12, 13
6, 12
6
6
6
6
183
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
DISCLOSURE
LOCATION
SDG
CIRCULARITY
GRI STANDARD /
OTHER SOURCE
SASB: Water
Management
SASB-CG-HP-140a.1
(1) Total water withdrawn, (2) total
water consumed, percentage
of each in regions with High or
Extremely High Baseline Water
Stress
Databook Latin America
306-1 Waste generation and
significant waste-related impacts
Databook Latin America
306-2 Management of significant
waste-related impacts
Databook Latin America
GRI 306:
Waste 2020
306-3 Waste generated
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
306-4 Waste diverted from
disposal
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
3, 11, 12
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
3, 6, 11, 12, 15
3, 6, 11, 12
3, 6, 11, 12
3, 6, 11, 12, 15
GRI 416:
Consumer Health
and
Safety 2016
GRI 417:
Marketing and
Labeling 2016
306-5 Waste directed to disposal
416-1 Assessment of the health
and safety impacts of product and
service categories
416-2 Incidents of non-compliance
concerning the health and safety
impacts of products and services
417-1 Requirements for product
and service
information and labeling
Databook Latin America
Databook Latin America
Databook Latin America
417-2 Incidents of non-compliance
concerning product and service
information and labeling
Databook Latin America
16
12
16
184
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
CIRCULARITY
GRI STANDARD /
OTHER SOURCE
SASB: Product
environmental,
health, and safety
performance
SASB: Revenue
from products
designed with
green chemistry
principles
SASB:
Environmental &
social impacts of
palm oil supply
chain
DISCLOSURE
LOCATION
SDG
SASB-CG-HP-250a.3
Discussion of process to identify
and manage emerging materials
and chemicals of concern
SASB-CG-HP-250a.4
Revenue from products designed
with green chemistry principles
- Clean Revenue
SASB-CG-HP-430a.1
Volume of palm oil acquired;
percentage certified by the
Roundtable on Sustainable
Palm Oil (RSPO), as: (a) Identity
Preserved, (b) Segregated, (c) Mass
Balance, or (d) Book & Claim
Databook Latin America
Databook Latin America
Databook Latin America
DISTRIBUTION OF VALUE
GRI 3: Material
Topics 2021
3-3 Management of material
topics
97, 98, 99, 123, 128. Databook Latin America
201-1 Direct economic value
generated and distributed
Databook Latin America
8, 9
GRI 201:
Economic
Performance
2016
201-3 Defined benefit plan
obligations and other retirement
plans
Databook Latin America
201-4 Financial assistance received
from government
Databook Latin America
GRI 202:
Market presence
2016
202-1 Ratio of lowest wage
compared to local minimum wage
by gender
Databook Latin America
1, 5, 8
185
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
DISTRIBUTION OF VALUE
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
203-1 Infrastructure investments
and services supported
94, 144, 146, 148, 154, 161, 162, 172. Databook Latin America
3, 5, 9, 11
GRI 203: Indirect
economic
impacts
2016
GRI 204:
Procurement
practices 2016
203-2 Significant indirect
economic impacts
90, 91, 163, 164. Databook Latin America
204-1 Proportion of spending on
local suppliers
130. Databook Latin America
401-1 New employee hires and
employee turnover
121. Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
GRI 401:
Employment 2016
401-2 Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
Databook Latin America
GRI 403:
Occupational
Health and
Safety 2018
401-3 Parental leave
Databook Latin America
403-1 Occupational health and
safety management system
127. Databook Latin America
403-2 Hazard identification,
risk assessment and incident
investigation
127. Databook Latin America
403-3 Occupational health services
127. Databook Latin America
403-4 Worker participation,
consultation, and communication
on occupational health and safety
127. Databook Latin America
403-5 Worker training on
occupational health and safety
127. Databook Latin America
1, 3, 8
8
5, 8, 10
3, 5, 8
5, 8
8
8
8
8, 16
8
186
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
LOCATION
SDG
DISTRIBUTION OF VALUE
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
GRI 403:
Occupational
Health and
Safety 2018
403-6 Promotion of worker health
127. Databook Latin America
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
127. Databook Latin America
Databook Latin America
403-9 Work-related injuries
Databook Latin America
403-10 Work-related ill health
Databook Latin America
404-1 Average hours of training per
year per employee
122. Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
GRI 404: Training
and Education
2016
404-2 Programs for upgrading
employee skills and transition
assistance programs
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
404-3 Percentage of employees
receiving regular performance and
career development reviews
Databook Latin America
GRI 405: Diversity
and Equal
Opportunity 2016
GRI 415: Public
policy 2016
405-1 Diversity of governance
bodies and employees
121, 123, 124, 125, 126. Databook Latin America with information on the
region. Natura &Co information will be available later in the Sustainability
Compendium, on the Investor Relations website.
405-2 Ratio of basic salary and
remuneration of women
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
415-1 Political contributions
39. Databook Latin America
3
8
8
3, 8, 16
3, 8, 16
4, 5, 8, 10
8, 10
5, 8, 10
5, 8
5, 8, 10
16
187
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
LOCATION
SDG
DISTRIBUTION OF VALUE
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
207-1 Approach to tax
Databook Latin America
207-2 Tax governance, control, and
risk management
Databook Latin America
GRI 207:
Tax 2019
GRI 417:
Marketing and
Labeling 2016
207-3 Stakeholder engagement
and management of concerns
related to tax
207-4 Country-by-country
reporting
GRI 417-3 Incidents of non-
compliance
concerning marketing
communications
SOCIAL REGENERATION
Databook Latin America
Databook Latin America
Databook Latin America
GRI 3: Material
Topics 2021
3-3 Management of material
topics
Databook Latin America
GRI 202: Market
presence 2016
202-2 Proportion of senior
management hired from the local
community
Databook Latin America
205-1 Operations assessed for risks
related to corruption
37 and 39
GRI 205:
Anti-corruption
2016
205-2 Communication and
training about anti-corruption
policies and procedures
38. Databook Latin America
205-3 Confirmed incidents of
corruption and actions taken
Databook Latin America
GRI 206:
Anti-competitive
behaviour 2016
206 -1 Legal actions for anti-
competitive behavior, anti-trust,
and monopoly practices
The organization does not have any pending or concluded legal actions for
anti-competitive behavior, anti-trust, and monopoly practices in any of the
countries in which it operates.
1, 10, 17
1, 10, 17
1, 10, 17
1, 10, 17
16
16
16
16
16
188
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
SOCIAL REGENERATION
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
GRI 402: Labor/
Management
Relations 2016
402-1 Minimum notice period
regarding
operational changes
We have established a minimum notice period of four weeks to
inform workers about significant operational changes.
Databook Latin America with information on the region.
GRI 406: Non-
discrimination
2016
GRI 407: Freedom
of Association
and
Collective
Bargaining 2016
406-1 Incidents of discrimination
and corrective actions taken
37. Databook Latin America
407-1 Operations and suppliers
in which the right to freedom
of association and collective
bargaining may be at risk
The company does not have operations at risk of violations of the
workers’ right to exercise freedom of association or collective bargaining.
GRI 408: Child
labor 2016
408-1 Operations and suppliers at
significant risk for incidents of child
labour
130. Natura &Co information will be available later in the Sustainability
Compendium, on the Investor Relations website.
GRI 409: Forced
or Compulsory
Labor 2016
409-1 Operations and suppliers
at significant risk for incidents of
forced or compulsory labour
130. Natura &Co information will be available later in the Sustainability
Compendium, on the Investor Relations website.
5, 8
8
5, 8, 16
5, 8
GRI 411: Rights
of indigenous
peoples 2016
411-1 Incidents of violations
involving rights of indigenous
peoples
In 2023, we did not identify any cases of violations involving the rights of
indigenous peoples, both regarding indigenous people working in the
organization and in indigenous communities with whom we maintain relations.
2
GRI 413: Local
communities
2016
413-1 Operations with local
community engagement, impact
assessments, and development
programs
154, 155, 161, 162. Natura implemented engagement actions, impact
assessments and development programs both for its consultants and for its
supplier communities, achieving full implantation in these areas. Moreover,
100% of the operations have engagement actions and development programs
for the recycling cooperatives, although there is no assessment or public
disclosure of the impacts on these cooperatives. Regarding communities, the
company engages in sustainability, social support and economic development
actions in the states of Pará, São Paulo and Bahia, focused on environmental
conservation, professional training, support for victims of gender violence and
incentives for recycling and the bioeconomy. In Pará, worthy of note is the
Plataforma Territórios Sustentáveis (Sustainable Territories Platform), aimed
at the regeneration of 7.4 million hectares (further information on page 148);
in São Paulo, the company donated BRL 4.4 million in Avon products for the
Cajamar local government to stimulate selective waste collection whereby
the pubic may exchange recyclable waste for Avon products. In Bahia, Avon
launched its Recomeça (Restart) program with the local government of Simões
Filho and the Instituto Avon. Databook Latin America with information on the
region.
189
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
SOCIAL REGENERATION
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
LOCATION
SDG
GRI 413: Local
communities
2016
413 -2 Operations with significant
actual and potential negative
impacts on local communities
We do not have operations with actual or potential negative impact on
biodiversity supplier communities or communities in the vicinity of the units.
Databook Latin America with information on the region.
1, 2
GRI 414: Supplier
Social Assessment
2016
414-1 New suppliers that were
screened using social criteria
131. Databook Latin America
414 -2 Negative social impacts in
the supply chain and actions taken
131. Databook Latin America
GRI 418:
Customer Privacy
2016
418-1 Substantiated complaints
concerning breaches of customer
privacy and losses of customer
data
REGENERATION OF NATURE
Databook Latin America
GRI 3: Material
Topics 2021
3-3 Management of material
topics
82, 90, 133, 134, 140, 144 Databook Latin America
GRI 304:
Biodiversity 2016
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
Databook Latin America
Databook Latin America
304 -3 Habitats protected or
restored
Databook Latin America
304-4 IUCN Red List species and
national conservation list species
with habitats in areas affected by
operations
Databook Latin America
5, 8, 16
5, 8, 16
6, 14, 15
6, 14, 15
6, 14, 15
6, 14, 15
190
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
REGENERATION OF NATURE
GRI STANDARD /
OTHER SOURCE
DISCLOSURE
308-1 New suppliers that were
screened using environmental
criteria
308-2 Negative environmental
impacts in the supply chain and
actions taken
GRI 308: Supplier
Environmental
Assessment 2016
CLIMATE ACTION
LOCATION
SDG
131, 149, 150, 151, 153. Databook Latin America
131. Databook Latin America
GRI 3: Material
Topics 2021
3-3 Management of material
topics
57, 156, 158, 159, 160. Databook Latin America
GRI 201:
Economic
Performance
2016
201-2 Financial implications and
other risks and opportunities due
to climate change
62 and 66. Databook Latin America with information on the region. Natura
&Co information will be available later in the Sustainability Compendium, on
the Investor Relations website.
13
305-1 Direct (Scope 1) GHG
emissions
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
305-2 Energy Indirect (Scope
2) GHG emissions from the
acquisition of energy
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
305-3 Other indirect (Scope 3) GHG
emissions
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
GRI 305:
Emissions 2016
305-4 GHG emissions intensity
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
305-5 Reduction of GHG emissions
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
3, 12, 13, 14, 15
3, 12, 13, 14, 15
3, 12, 13, 14, 15
13, 14, 15
13, 14, 15
305-6 Emissions of ozone-
depleting substances (ODS)
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
3, 12
305-7 305-7 Nitrogen oxides (NOx),
sulfur oxides (SOx) and other
significant air emissions
Databook Latin America with information on the region. Natura &Co
information will be available later in the Sustainability Compendium, on the
Investor Relations website.
3, 12, 14, 15
191
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Indicators reported by Natura &Co Holding S.A.
The indicators summarized below by Natura &Co Holding consider its business units:
• Natura &Co Latin America, which includes the Natura and Avon brands and the master franchisee operation in The Body Shop region; and
• Avon International, which includes all markets served by the brand globally (excluding Latin America).
Pillar
Climate Transi-tion
Climate Transi-tion
Protect the Amazon
Protect the Amazon
Protect the Amazon
Standard /
Framework
Description
Integrate
report page
Databook reference
C2L
C2L
C2L
C2L
C2L
Become Net zero, delivering 1.5°C in line with SBTi criteria
Page 57
Tab “C2L – Climate Transition”
Deliver our Science Based Targets for scopes 1, 2 and 3
Page 57
Tab “C2L – Climate Transition”
Contribute to the protection and/or regeneration of 3 million ha of
Amazon forest (from 2 million ha in 2020)
Page 57
Tab “C2L – Protect the Amazon”
Increase to 45 agro-extractivist sourcing communities (from 34 in 2020)
Page 57
Tab “C2L – Protect the Amazon”
Contribute to the bioeconomy using innovation to
develop 55 Amazonian ingredients from biodiversity (from 39 in 2020)
Page 57
Tab “C2L – Protect the Amazon”
Protect the Amazon
C2L
Increase spending on raw ingredients from Amazonian
socio-bioeconomy fourfold(baseline 2020)
Page 57
Tab “C2L – Protect the Amazon”
Protect the Amazon
C2L
Double the value shared with our communities (baseline 2020)
Page 57
Tab “C2L – Protect the Amazon”
Protect the Amazon
C2L
Engage 20 million people annually in the Living Amazon Cause (Causa
Amazônia Viva)
Page 57
Tab “C2L – Protect the Amazon”
Biodiversity
Biodiversity
Our people
Our people
Our people
Our people
Human rights
C2L
C2L
C2L
C2L
C2L
C2L
C2L
Assess and report our global biodiversity impacts and
dependencies by 2025
Page 58
Tab "C2L – Biodi-versity"
Achieve verified deforestation- and conversion-free critical supply
chains by 2030
Page 58
Tab "C2L – Biodi-versity"
Maintain 50% women at Natura &Co senior leadership population
from end of 2023
Page 58
Tab "C2L – Our People"
Equitable pay, no unexplained gender pay gap from 2023
Page 58
Tab "C2L – Our People"
30% inclusion, of management to be from under-represented
communities
Page 58
Tab "C2L – Our People"
At least living wage for all from 2023
Page 58
Tab "C2L – Our People"
Full traceability and/or certi-fication – Palm Oil
Page 58
Tab "C2L – Human Rights"
192
Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Human rights
Human rights
Human rights
Human rights
Human rights
Human rights
Packaging Circularity
Packaging Circularity
C2L
C2L
C2L
C2L
C2L
C2L
C2L
C2L
Full traceability and / or certification – Mica
Page 58
Tab "C2L – Human Rights"
Full traceability and / or certification – Paper
Page 58
Tab "C2L – Human Rights"
Full traceability and / or certification – Alcohol
Page 58
Tab "C2L – Human Rights"
Full traceability and / or certification – Soy
Page 58
Tab "C2L – Human Rights"
Full traceability and / or certification – Cotton
Page 58
Tab "C2L – Human Rights"
Advance process to identify, prevent and mitigate human rights risks
across our supply chain and operations by 2027; making sure to engage
with potentially affected stakeholders, promote access to remedy, and
use our leverage for positive impact
Page 58
Tab "C2L – Human Rights"
50% recycled content for all plastic used (in weight)
Page 59
Tab "C2L – Packa-ging circularity"
100% reusable, recyclable or compostable packaging material
Page 59
Tab "C2L – Packa-ging circularity"
Packaging Circularity
C2L
Enable collection schemes in key markets, where suitable recycling
infrastructure does not exist
Page 59
Tab "C2L – Packa-ging circularity"
Formula Circularity
Formula Circularity
Regeneration
Regeneration
Regeneration
C2L
C2L
C2L
C2L
C2L
95%+ biodegradable formulas
Page 59
Tab "C2L – Formula circularity"
100% of new formulas to have lower environmental footprints, measured
by life cycle analysis (LCA)
Page 59
Tab "C2L – Formula circularity"
Work in partnership to build awareness, capability and regenerative
solutions which transform systems and deliver positive environmental
and social impact, enabling life to thrive
Page 59
Tab "C2L – Regene-rative Solu-
tions"
30% of key ingredients to be produced using regenerative practises (veri-
fied/certified by external third party)
Page 59
Tab "C2L – Regene-rative Solu-
tions"
100% of communities/small producers to adopt ethical biotrade and
regenerative practices to produce our key ingredients
Packaging materials
DJSI
% recycled content in plastic packaging
Board Diversity 1.1.3
DJSI
Number of women on the company’s board of directors/fiscal council
GRI 2-1
GRI 2-1
GRI
Organizational details
GRI
Entities included in the organization’s
sustainability reporting
Page 59
-
Pages 27
and 28
Page 12
Page 4
Tab "C2L – Regene-rative Solu-
tions"
Tab "Strategic Management - DJSI
001-4 NTCO"
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GRI 2-4
GRI 2-9
GRI 2-10
GRI 2-11
GRI 2-12
GRI 2-13
GRI 2-14
GRI 2-17
GRI
GRI
GRI
GRI
GRI
GRI
GRI
GRI
Restatements of information
Governance structure and composition
Nomination and selection of the highest governance body
Chair of the highest governance body
Role of the highest governance body in overseeing the management of
impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability reporting
Collective knowledge of the highest gov-ernance body
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Pages 27
and 28
Page 180
Page 180
Page 180
Page 180
Pages 27
and 28
Page 27,29
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Limited Assurance
Report of
Independent
Auditors
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Natura &Co Holding Natura &Co Latin America Avon International Fable Investments GRI content index
Credits
NATURA &CO
NATURA &CO LATIN AMERICA
CONTRIBUTIONS
Group Chief Legal and Compliance Officer
Itamar Gaino
External Communications
Emilia Lebron and Alisha Syal
Sustainability
Keyvan Macedo
Investor Relations
Helena Villares and Ana Sartori
Corporate Governance
Moacir Saltzstein and Aline Klein
Legal
Daniela Anversa
Risk Management
Mercedes Stinco and Estela Favaron
Ethics & Compliance
Juliana Darini and Marco Barreto
People
Beth Powell
Advocacy
Char Love
Reputation, Sustainablity,
Legal and Corporate Affairs
Ana Costa
Institutional & Government Affairs
Paulo Dallari and Ana María Lee
Institutional Communication
and Media Relations
Ana María Lee
Sustainability
Angela Pinhati, Ines Francke,
Thais Espildora and Giovana Gouveia Costa
Art Direction
Renato Winning and Cássio da Costa Silva
AVON INTERNATIONAL
Global Communications
Jo Newark
Sustainability
Natalie Deacon
GRI Consulting, Copy and Editing
Grupo Report: Fabio Peixoto, Ana Souza, Guto
Lobato, Fernanda Mori, Alisson Cardoso, Livia
Frossard, Ana Paula Cardoso, Camila Freire, Leslie
Diorio, Fábio Vernalha and Camila Severgnini
Gestão Samaúma Consultancy
Natália Noleto and Karina Baratella
Design
Manuela Novais, Ana Tereza Carneiro
and Gabrielle Balceskis
Board Photography
Paulo Vitale
Additional thanks to
Jonathan Lloyd White, Evie Stenhouse,
Samantha Jacobs and Roberta Roesler
Our special thanks to
Luiz Seabra, Guilherme Leal, Pedro Passos,
Fábio Barbosa, Guilherme Castellan,
João Paulo Ferreira and Kristof Neirynck
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