Natura &Co Holding S.A.
Annual Report 2024

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Natura &Co Integrated Report 2024 1 Overview Natura &Co Integrated Report 2024 Natura &Co who we are Natura &Co Latin America Avon International 1 1537 52 1537 159 Avon International Fable Investments Results Technical references and GRI Content Index Fable Investiments Technical references 174 177 2 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Index Presentation Our reporting practices Materiality A message from the founders A Message from the CEO of Natura &Co 2024 highlights 4 7 9 12 15 About us Our global presence Our brands Our business model Our strategy Financial Performance Corporate governance Ethics and compliance Corporate risk management Climate risk: approach, governance and metrics Commitment to Life 19 20 21 22 26 29 36 40 42 45 3 3 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our reporting practices GRI 2-2, 2-3, 2-5, 2-6 Welcome to the 2024 edition of our Integrated Report. Here we present a summary of our financial and non-financial results, our vision for the future, and our main commitments, investments and strategies, aimed at showing our shareholders, investors, communities, suppliers, employees, Beauty Consultants, Representatives partners an integrated vision of the business and its impacts, risks and opportunities. GRI 2-29 This report brings together indicators, data and a strategic narrative regarding both the Natura &Co Latin America and Avon International business units (the latter of which was reconsolidated in the Group’s economic-financial results in the fourth quarter of 2024, following the conclusion of the restructuring process set forth in the Chapter 11 proceedings of Avon Products Inc. (or API), in the United States), . The Latin America unit also includes the results of the financial platform, Emana Pay, and the beauty services platform, Bluma (which has been included in the sustainability report but not in the financial data). The reported data 4 4 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index both the business units, except for the period during been identified by means of a double materiality which API was under Chapter 11 (between August 12 process, the pillars of the Commitment to Life and and December 4, 2024). Natura’s strategic vision of regeneration. We are also reporting our actions as they align with the Ten We follow the most widely used international guidelines Principles of the United Nations Global Compact for the publication of economic and sustainability and the Sustainable Development Goals (SDGs). Our performance: Integrated Reporting (principles of the board members and executives are responsible for IFRS Foundation), the standards established by the defining the guidelines and approving the report’s Global Reporting Initiative (GRI) and the Sustainability content and structure. GRI 2-14 Accounting Standards Board (SASB), as well as the frameworks set forth by the Task Force on This report has received external assurance from Climate-related Financial Disclosures (TCFD) the auditing firm KPMG. The assurance confirms and the Taskforce on Nature-related Financial the adherence of the material to the principles Disclosures (TNFD). of Integrated Reporting published by the IFRS Foundation, the GRI Standards and the SASB content The highly detailed publication of our reporting process and norms, according to the ISAE 3000 standard, is enabled by a wide range of multimedia resources and as well as Technical Pronouncement 09 of the databases, including a Results Center, ESG Scorecard Accounting Pronouncements Committee (CPC), and a databook containing indicators relating to and Resolution 14/2020 of the Brazilian Securities Natura &Co Latin America, as well as the Natura &Co Commission (CVM). Sustainability Compendium, the financial statements, and other documents concerning materiality and risks Access all informational resources (see the table on the next page). associated with the Integrated Report. The content of the Integrated Report was defined please write to institucional@natura.net. with the business’ key-themes in mind, these having For clarification on any doubts, 5 5 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The report covers the period between January 1 and December 31, 2024 Resources and databases* • • • • • • • Integrated Report (this document) Latin America ESG Scorecard Latin America Databook Reference Form Booklet of risks Natura &Co Holding Company Sustainability Compendium (publication expected in May, 2025) Natura &Co Holding Company Management Report and Financial Statements * Other documents can be found at our Results Center on the Investor Relations website. GRI 2-29 Scope and reach: economic-financial data Natura &Co Holding Company and its business units: • • Natura &Co Latin America Avon International* * Except for the Chapter 11 period (August 12 to December 4, 2024). Scope and cover: sustainability indicators* * Exceptions detailed in the footnotes. • • • Natura &Co Holding Natura &Co Latin America Avon International Financial reporting standards and regulations • IFRS Accounting Standards and accounting standards adopted in Brazil Standards, guidelines and ref- erences for the non-financial reporting • • • • • • • • • Global Reporting Initiative (GRI) Standards SASB Standards (IFRS) Integrated Reporting Guidelines (IFRS) Task Force on Climate-related Financial Disclosures (TCFD) Taskforce on Nature-related Financial Disclosures (TNFD) Sustainable Development Goals ( SDGs) Principles of the United Nations’ (UN) Global Compact CDP Climate, Forest and Water Corporate Sustainability Index (ISE/B3) 6 6 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Materiality GRI 3-1, 3-2 The list of topics that are of greatest relevance to process, thus ensuring that any and all risks and Natura &Co, in environmental, social, governance opportunities associated with the material topics are and business terms, was last updated in 2022; we monitored and managed in a way that is properly recognize the need for constant updating and, due structured. This process strengthens the company’s to the organizational restructuring that is under resilience and boosts positive impacts. way, we will be performing our next update very soon, in order to include them in the materiality Our evaluation of the materiality is based upon matrix. We perform a double materiality quantitative studies - internal, in-depth interviews evaluation, covering both the environmental and with the sustainability managers from each business social impacts of our activities on the economy, unit, an online survey with 590 respondents including the environment, and people (including their internal and external stakeholders (Employees, human rights), and the implications of the Consultants, Consumers, Suppliers, NGOs, Investors, environmental and social aspects for the Academics, Companies), as well as in-depth operational success, financial performance, interviews during the approval phase. As benchmarks and general values of the company. for the construction of the matrix, we also used external frameworks, ratings and rankings, as well as We consider this process to be fundamental to our the materiality analyses of our competitors. ability to produce periodically updated analyses regarding the Company’s priority agendas, as well The process resulted in the establishment of five as to test the relevance of the issues covered in the material topics, which include the stakeholders’ Commitment to Life in relation to the needs of our level of interest, and the potential impact on principal stakeholders. the businesses, each of which is in line with the Natura &Co has implemented the materiality Commitment to Life and the global sustainable analysis into its Enterprise Risk Management (ERM) development agendas. 7 7 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Natura &Co material topics GRI 3-2 Material topics Specific topics Description ENGAGEMENT IN THE VALUE CHAIN Circularity Distribution of value increase sustainability in the product design, promote sustainable supply, manage water resources, reduce the use of disposable plastics, and boost innovation. Generate a positive impact on the community, foster diversity and inclusion, and prioritize employee health and wellbeing. SOCIO- ENVIRONMENTAL IMPACT Regeneration of nature Address biodiversity, promote regeneration, and combat deforestation. Social regeneration Defend human rights and combat social inequality. SYSTEMIC CHANGE Climate action achieve carbon neutrality by 2050 and reducing our absolute emissions by 42% by 2030, in compliance with the 1.5°C scenario approved by the Science Based Targets initiative (STBi). 1 Details about the material topics 11 10 12 4 9 13 14 16 5 15 17 2 3 6 7 y t e i c o s n o d n a t n e m n o r i v n e e h t n o s t c a p m I 1 8 Impacts on the business 1. Poverty/Means of subsistence 10. Collaborators’ health and wellbeing (including a decent wage) 11. Climate action 2. Managing waste and effluents 12. Circularity / packaging (except packaging) 3. Impact on the community 4. Sustainable supply (managing ingredients) 5. Diversity and inclusion 6. Biodiversity (recycling and alternative sources) 13. Water management 14. Regeneration of nature/ Managing natural resources/Land use 15. Deforestation (impact along the value chain) 7. Governance and responsibility 16. Ethics and integrity 8. Quality and safety of the products (including bribery and anti-corruption) (including management of recalls) 17. Design and life cycle of the product 9. Human Rights (including the carbon footprint) (internally and in the procurement chain) 8 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A message from the Founders GRI 2-22 From left to right, Guilherme Leal, Luiz Seabra and Pedro Passos From left to right: Roberto Marques, Duda Kertész, Guilherme Leal, Luiz Seabra, Gilberto Mifano, Pedro Passos, Carla Schmitzberger and Bruno Rocha. 9 9 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index “There is a constant and intimate contact among the things that coexist and co-evolve in the universe – a sharing of bonds and messages that makes reality into a stupendous network of interaction and communication.” “Evolving our thinking and our consciousness is a precondition of creating a better world, and dialoguing on the issues that confront us is a key to evolving our thinking and our consciousness. Let the conversation began.” Ervin László philosopher of science, systems and integral theorist In light of the disquieting realization that countries and many organizations are relinquishing their responsibilities relating to the environment and saving the planet, as well as unavoidable commitments to social causes, all of which coincides with the dramatic worsening of these crises throughout the world, it seems that a good place to begin this message would be by recalling the thoughts of Ervin László. And by suggesting greater dialog, exchanges of experiences and unity between companies, civil society and governments - initiatives that are imperative to promoting joint and firm actions to try to reverse the extremely threatening scenario we are facing. We feel that the world is experiencing a transition that has arisen from a range of different crises, that have still not been entirely overcome and have led to an unclear situation, full of uncertainty, in which democracy itself is being threatened. Meanwhile, situations that until recently had been unthinkable in democratic states governed by the rule of law, such as questions over territorial sovereignty, have appeared on the international stage. The pandemic, the wars in Ukraine and Gaza, coinciding with the digital revolution and its consequences, the polarizations that are dividing societies and even 10 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index families, have created a chaotic scenario, which is in the acquisition of Avon and The Body Shop were not desperate need of reorder and regeneration. minimal, requiring that we once again focus our attention on our areas of greatest responsibility with Regeneration is at the heart of this message and our dedication and strategic discipline. The results have company. We have maintained our now traditional focus started to appear, notably in the growth of the Natura on inclusion to transcend it and embrace the renewal brand and the improved performance of Avon in Latin and reaffirmation of our commitment to life and the America. restructuring of our business and the human relations we create every day. We are aware of our shareholders’ demands for economic results following five years of difficulties Our transformation into a regenerative business stems in the history of Natura and we will never stop from the understanding that humanity and nature nurture striving for these results with the same diligence with each other and form part of the same system. When our which we strive, every day, to improve our ethical relations are healthy, life becomes incisive and bountiful, commitment to future generations. This is what unites able to face and overcome the most varied of adversaries. the Natura of the past, present and future. This is essential to rebuild the ecosystems and restore Even when faced with signs that the planet is under dialog, respect and empathy between people and peoples. duress due to the breakdown of environmental, social The corporate world is in no way removed from this logic, and diplomatic limits, we believe we stand before a since real riches are achieved through balance: the wealth great opportunity. Future generations will look back of the few at the cost of the poverty of others creates and be able to see that this was the moment that unhappiness and instability. humanity decided, as a matter of choice rather than We began 2024 in a strong financial situation, the result they will see in our collective history the map that will of simplifying and consolidating our business, a cycle that guide them to the cure that the world needs in the will come to a close in 2025 with the simplification of the form of businesses that inspire and open up paths Avon International operation. The difficulties involving to a better world. by chance, to take care of itself and the planet. And 11 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A message from the CEO of Natura &Co GRI 2-22 Fábio Barbosa For Natura &Co, 2024 represented the consolidation of the movement towards simplification that we began back in 2022, with the aim of focusing our efforts on our strengths. This transformation has allowed us to grow our business once again and invest in increasing our ability to have a positive socio-environmental impact. In line with our values and our public commitment to our shareholders and other stakeholders, we have achieved extremely impressive results for Natura, and advanced in the process of revitalizing Avon International, through the prioritization of markets where the company was already present. The Natura &Co strategy has been adjusted in light of the specific needs of our business units, which have achieved increasingly more management autonomy. We have drastically simplified the Holding Company’s organizational design, strengthened our capital structure and sought 12 12 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index to invest in projects with great potential for value c renewal of e-commerce, and the entry into reation, principally those focused on innovation, with new marketplaces. omnichannel capabilities and the ability to serve key regions and markets. As for Avon International, we have remained focused on strengthening the brand, prioritizing our operations in A return to the heart of the business is what is driving strategic markets, improving the integration of processes, us during this new phase in the Company's history: nurturing the organizational culture, and finding ways to strengthening our differentials and investing in the reconnect with the consumers. It should be mentioned that innovation of products and channels, in order to connect the Chapter 11 proceedings, which ended in December 2024, with the consumers in who have different needs, providing resolved the issues with creditors of the Avon Products Inc. solutions that can be found in the attributes of each of our non-operational unit in the United States, opening up new brands. Taking advantage of this moment means making avenues for Avon International. difficult decisions, but decisions that are necessary for us to be able to remain prepared to achieve consistent results. Whilst transforming the business, we not only achieved targets contained in our Commitment to Life, but also made The business indicators from 2024 suggest that we are on many of them even more ambitious. The Commitment to the right path. The simplification strategy has paved the Life is a platform that mobilizes the business around the way for Latin America to once again invest in innovation public targets concerning climate action, biodiversity, human and marketing and drive the continued growth of Natura rights, social development, circularity and regeneration. (which has been beating all sorts of performance records In 2024, we celebrated a number of important milestones: in Brazil), whilst also strengthening the foundations of Avon. Natura celebrated its 55th anniversary and a whole decade The consolidation of the so-called 'Wave Two’, providing the as a B Corporation. Furthermore, our Ecopark, in Benevides foundation for the integration of the brands in the region, (PA), also celebrated its 10th anniversary of existence in the was a determining factor in the achievement of these heart of the Amazon region, acting as our main geographical results. Also in Latin America, we took important steps axis for positive impact, and combining our industrial forward in our omnichannel capabilities, the expansion of operations with innovation and partnerships with the physical retail, digitization of the Beauty Consultancy, the supplier communities. 13 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Over the course of the year, we published the Natura What we have learned from our experience as a Climate Transition Plan, which outlines how we will global group, over the last few years, has reinforced be advancing in the decarbonization of the business the importance of a better understanding the and operating in relation to the risks and opportunities markets in which we wish to operate and remain associated with climate change throughout the production as leaders. Natura’s excellent results, principally chain. We also recorded gains in our impact indicators, in Brazil, attest to the sound strategy adopted in such as Integrated Profit and Loss (IP&L) and the Beauty recent years, and we have continued to explore its Consultants’ HDI. In 2024, Avon International was awarded potential to attain even greater value. We began The Leaping Bunny seal by Cruelty Free International, 2025 confident of the solid base upon which our reaffirming our commitment to fighting against testing strategic premises and current projects are built, on animals in the cosmetics industry. These achievements even in the face of a volatile geopolitical and reflect the genuine way in which the Company cares for macroeconomic scenario. its relationships - a feature that has always run through the Natura and Avon histories, and is being reaffirmed at this We have the security and privilege to be able to moment of significant change at the Holding Company. rely on teams that are engaged and experienced, as well as on a powerful network of Beauty In response to the global uncertainties concerning Consultants and Representatives, suppliers, the direction of the ESG (environmental, social and communities and consumers. The resilience of governance) agenda, we must once again restate that our business arises not only from the principles this is not the time to step away. At the beginning of and values that we have reaffirmed, but also from 2025, we publicly stated our position on this matter, by strength that supports us and which contributes declaring that the appreciation for life and the relations every day to breathe life and meaning into our that support it is what guides all of our strategic purpose of nurturing beauty and relations for a decisions. We continue to believe that the world needs better way of living and doing business. To each more businesses that can have a positive, measurable one of the people who form part of this effort to impact and balance the relations between people, increase and improve wellbeing through beauty ecosystems and the market, through innovation, and the nurturing of relations, I would like to collaboration and the regenerative economy. extend a heartfelt thank you. Now let’s go! 14 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index 2024 highlights ESG highlights We have reduced absolute emissions in Scopes 1 and 2 by 43%, meaning we have already achieved the 2030 medium-term target endorsed by the SBTi (-42%). We launched the first sustainability-linked bond focused on biodiversity, raising BRL 1.3 billion for Natura’s sustainable use of bioactives in the Amazon region. We commemorated ten years as a ‘B Corporation’, with recertification of both the brand and Natura &Co. We founded the Regenerative Alliance, engaging 100 companies from across the value chain in actions of regeneration. Cruelty Free International awarded all Avon’s toiletries and beauty products ‘The Leaping Bunny’ seal. Natura has held this certification since 2018.. We became ambassadors for the Living Wage Movement, developed by the UN in Brazil, and we have achieved Decent Wages for all our employees. We published our Climate Transition Plan, containing guidelines and concrete actions for decarbonization of the business.. We activated the Natura &Co Latin America Calamity Committee to support the victims of climate emergencies in Brazil, reinforcing our commitment to Climate Justice. We expanded our relationship to 46 socio-biodiversity communities, thereby achieving our 2030 target earlier than expected, and strengthening the sustainable chains and socioeconomic development. IP&L: for every BRL 1.00 of revenue, the Natura businesses, including those operations forming part of Avon in Latin America, a positive social environmental impact is generated in the sum of BRL 2.50. 15 15 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Financial highlights R$ 24.1 billion Net revenue R$ 2.9 billion Recurring Ebitda R$ 2.4 billion Net debt (excluding leasing) The Avon International business unit was accounted as a Discontinued Operation from January 1 to August 12, 2024, and as a continued operation from December 4 to 31, 2024; between August and December, it was excluded from the Natura &Co results. Find out more on page 2. 16 16 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index About us GRI 2-6 We are Natura &Co, a group guided by objectives that unite the Natura and Avon brands, engaging clients by means of 4.8 million Beauty Consultants and Representatives,, more than one thousand stores and more than 19,000 employees. We have two business units: Natura &Co Latin America, which is responsible for the global management of Natura and the activities of Avon in Latin America, and Avon International, which manages the brand in Asia, Europe, Oceana and Africa. We believe that large corporations make a difference in the world when they use their assets, knowledge and relations to find better ways of living and doing business. We aim to achieve this through the strength of our brands , and their ability to cooperate, co-create and share knowledge for the innovation and development of regenerative solutions that address the challenges faced by the planet. 17 17 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Purpose To nurture beauty and relationships for a better way of living and doing business. Ambition We will dare to innovate to promote positive economic, social, and environmental impacts. 18 18 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our brands GRI 2-6 Founded in 1969, Natura is the leading brand in cosmetics, Founded in 1886, Avon merged with Natura &Co in 2020, personal care, and direct sales in Brazil. Recognized for its bringing with it a legacy that has been fundamental to sustainable business model, the company has worked in the the development of the direct sales model internationally. Amazon Rainforest for more than 20 years, helping to conserve Avon believes that a better world for women is a better 2.2 million hectares and generating benefits for more than 10,500 world for all. It is a beauty brand for women that families. Having been carbon neutral since 2007, and well on the embraces the power of women, inspires their belief and way towards being Net Zero, Natura creates products that are offers opportunities for them to achieve their potential. free from cruelty to animals and 95% vegan. Millions of Beauty Millions of independent women all over the world sell the Consultants spread the philosophy of Well-Being-Well across brand’s iconic product lines in the makeup, hair, perfume seven countries in Latin America. In 2024, we celebrated our 10th and Home & Style segments, helping to create a better anniversary as a certified B Corp. The Ekos line is certified by the future for all. Union for Ethical BioTrade (UEBT), and Natura’s Brazil nut line received the Regenerative UEBT certification in 2024. Find out more at www.avonworlwide.com Find out more at www.natura.com.br 19 19 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Global presence GRI 2-1, 2-6 4.8 million Beauty Consultants and Representatives More than 19,000 employees in 68 countries 1,156 stores 20 20 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Capitals Accessed Natural • Natural resources (energy, water and biodiversity assets) Financial • Shareholder and investor funds to provide support for execution of the strategy • Credit and financing • US$ 1 billion raised in sustainability-linked securities • BRL 1.3 billion was raised by means of a new bond, exclusively connected to the sustainable use of bioactives sourced from the Amazon region Social • Relationships oriented towards value creation with the Beauty Consultants • Partnerships with socio-biodiversity agro-extractivist communities and other service providers and raw materials suppliers • Connections with the consumers of our brands Manufactured • Product manufacturing and distribution centers • Physical stores, e-commerce operations and social selling Human • • 4.8 million Beauty Consultants and 19,000 employees • Representatives Social-biodiversity agro-extractivist 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 agro-extractivist communities Business Model Our deliveries and solutions Beauty and well-being products in diverse categories Business networks for Beauty Consultants Multichannel commercial model Commitment to Life Read all about our goals here. Value generated and impacts Society and the Environment: We seek to promote sustainability with an agenda that prioritizes climate transition, whilst 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 support the well being of our employees through salary equity, fair remuneration and ample diversity. Beauty Consultants: We strengthen an ecosystem that drives enterprise, income generation, and financial independence, thereby improving the quality of life of millions of people, principally 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 support sustainable development in the our supply chain, focused on human rights, innovation and traceability, to create social and environmental value. 21 21 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Natura &Co Latin America Avon International Natura &Co Strategic Directives in 2024 • Greater operational and commercial autonomy for the business units • Regenerative business model strategy • Consolidation of the Wave Two initiative in those markets that have already been integrated (Brazil, Chile, • Simplification of the Colombia and Peru) and preparation Holding Company structure for implementation of the project in Mexico and Argentina • Strengthening of the capital structure • A focus on projects that create value • Launch of the Natura brand in Ecuador • Evolution of the omnichannel strategy, through prioritization of the strategic markets, combining Sales through Relationships with the retail sector, marketplaces and digital channels • Recovery of results with the renewal of the cycle of innovation • Continuity of the profitability strategy, thereby minimizing the outflow of cash in the short- term. • Omnichannel acceleration, through prioritization of the strategic markets, with a focus on digitization, strategic presence in retail, and a focus on the consumer experience • Brand Building • Simplification, technological transformation and strengthening of our culture 22 22 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Strategy Natura’s Regeneration Strategy and the Commitment to Life, an important gauge of the public targets that are to be achieved by 2030, representing a definite In 2024, Natura &Co recorded advances in its move towards the establishment of a regenerative restructuring and simplification process, which business. began in mid-2022, and which continues to be an important driver for short-term value As such, we ensure value creation for the shareholders creation. Our priority in 2024 was to reinforce and for everyone else with whom we have a the Company's capital structure and invest in relationship, anchored in key-indicators concerning transformation projects at our business units. impact and relations guided by respect for nature, ecosystems, people and human rights (read more By looking to the future, we are continuing to about the involvement of the management in ESG concentrate on our strategic priorities: the matters in the Corporate Governance chapter pg. 29). recovery of margins, the creation and conversion of cash, and greater autonomy of the business units. This approach has allowed us to increase Strategic priorities 1) Greater operational and commercial investments to drive sustainable growth, with autonomy for the business units a solid and diversified omnichannel strategy, Our business units were focused on the expansion innovations focused on consumers, and strong of the Ebitda margin and the recovery of cash brands that are recognized by everyone. generation, with plans centered on the challenges, necessary investments and projects for the The Natura &Co Board of Directors is responsible transformation of each individual operation. The for development of strategic planning, which is Holding Company took on the role of defining then deployed at the Natura &Co Latin America the business guidelines and objectives, which business unit and Avon International business unit. took the shape of proprietary planning developed In line with our purpose and ambition, the by Natura &Co Latin America - which, in 2024, business plan is implemented together with revisited its strategy and vision based upon the 23 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index concept of Regeneration during 2024, and by International, we continued to focus on the strategy Avon International which remains committed to of prioritizing strategic markets, modernization of the strategy of seeking greater profitability in the the Relationship Selling model, the centrality of the regions in which it operates. consumers, an omnichannel vision, strengthening of the brand, and technological and operational 2) Simplification of the Holding Company transformation. structure: We have continued with the restructuring of the 4) A focus on projects that create value functions to further reduce the involvement of the Innovation, digitization of the commercial relations, Holding Company in the day-to-day operations and actions focused on the omnichannel journey were of the business units. In 2024, with this in mind, amongst the Company's investment priorities, with we reduced corporate expenses by 25.6%. We the focus being on projects capable of unlocking value also concluded the cancellation of the company’s generation and enabling renewed growth. In Latin registration with the United States Securities and America, we experienced a record year in relation to Exchange Commission (SEC), which the Board of the allocation of capital tied to the Wave Two initiative, Directors approved in 2024, whilst we continued to moving forward with the combination of the Natura trade NTCO3 shares on the Brazilian market. and Avon businesses in the region, allowing us to achieve the best results which were observed in Brazil, 3) Strengthening of the capital structure Chile, Peru and Colombia, with an impact on the The recovery of margins, the focus on cash quality of deliveries, the satisfaction of consumers and generation, and the efforts made to strengthen our Beauty Consultants, and the efficiency of the product brands in terms of market share and performance allocation processes. The process will be implemented remain priorities for the business units. The in Mexico and Argentina in 2025. At Avon International, resumption of the growth journey in Latin America our revitalization plan has continued apace, with was driven by the strong performance of the the teams dedicating themselves to investing in the Natura brand in Brazil, with positive trends being regeneration of the brand in key markets, whilst noted in the Hispanic countries, as well. At Avon focusing on the regions with greatest potential. 24 24 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Avon Products Inc. - Chapter 11 In the United States (a market where we have not pursued commercial activities since 2016), the Chapter 11 process pursued by Avon Products Inc. (“API”), a non-operational holding company of the Avon Group, was approved in 2024, with the aim of restructuring the company’s operations and its creditor relations. In December 2024, under the supervision and final approval of the United States’ Justice Department, we announced a global transaction agreement with API’s Unsecured Debtors Committee and the purchase of the brand’s operations outside the United States, by means of a US$ 125 million supply of credit. Under the terms of the agreement, we paid US$ 34 million to the estate of the API debtors in cash, as well as the total sum of the loans in the ‘DIP’ (debtor-in-possession) category - US$ 43 million. Natura has also agreed to waive all the secured and unsecured credits it had held against the API debtors, except for the US$ 125 million used as consideration for our purchase of the ex-United States operations. 25 25 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Financial performance Financial performance In 2024, Natura &Co recorded a total net revenue of R$ 24.1 billion, with Recurring Ebitda of R$ 2.9 billion and a Recurring Ebitda margin of 12.2%. A significant portion of these results arose from the exceptional performance of the Natura brand in Latin America, associated with the benefits resulting from the integration of the operations under the Wave Two plan. In Brazil, for example Natura’s revenue increased by 21.1%. Over the course of the year, the efforts made to simplify the structure of the Holding Company led to a 25.6% reduction in corporate expenses, in line with the strategy set forth by our leaders. It should be mentioned that Avon International was not continuously included in the Natura &Co financial statements due to the Chapter 11 voluntary restructuring process of Avon Products Inc. (API) in the United States. The Avon International business unit was accounted as a Discontinued Operation between January 1 and August 12, 2024. Afterwards, once the restructuring had been completed, Avon International was reconsolidated as of December 4, 2024, and as a continued operation from December 4 to 31, 2024; between August and December, it was excluded from the Natura &Co results. Under the impact of this process, along with other factors, the Group recorded a net loss of R$ 8.9 billion in 2024. Excluding 26 26 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index the non-cash and non-recurring effects totaling Following the incorporation, the leadership of the R$ 7.0 billion from API’s exclusion and other minor Group will be concentrated in the Board of Directors adjustments, the underlying net income was BRL of Natura Cosméticos S.A., which will include the 524 million, compared to the pro-forma (ex API and founders (Luiz Seabra, Guilherme Leal e Pedro subsidiaries) R$ 1.135 billion in the same period during Passos), Fábio Barbosa, Bruno Rocha, Duda Kertesz, the previous year. Gilberto Mifano, Alessandro Carlucci e João Paulo Ferreira. Carla Schmitzberger will leave the Board 2025 Material Fact: new structure following the incorporation. On March 20, 2025, we announced that Natura &Co Holding S.A. would be incorporated by its wholly The Company is continuing to explore alternative owned subsidiary, Natura Cosméticos S.A. The strategies for Avon International, including a principal objective of this incorporation is to align potential sale. Implementation of the Avon the governance with the focus on the Latin American restructuring plan, led by its CEO Kristof Neirynck, businesses, providing continuity to the simplification is continuing. strategy that began in 2022. We also announced alterations to the executive shareholders and capital market regulatory leadership and the Board of Directors: Fábio Barbosa, authorities, and are not reflected in the governance the current CEO of the Holding Company, is to leave or corporate structure data in this report, which his executive position and will be named Chairman contains the 2024 organizational scenario. These changes are still to be approved by the of the Board of Directors of Natura Cosméticos S.A.. João Paulo Ferreira is to remain as CEO of Natura Cosméticos S.A. and will become a member of the Board of Directors. Silvia Vilas Boas will remain as CFO of Natura Cosméticos S.A. but will also assume the role of Chief Investor Relations Officer as of April 25, 2025. FOR MORE INFORMATION please refer to the Investor Relations website 27 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Board of Directors From left to right: Fábio Barbosa, Duda Kertész, Guilherme Leal, Luiz Seabra, Gilberto Mifano, Pedro Passos, Carla Schmitzberger and Bruno Rocha. 28 28 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Corporate governance GRI 2-9, 2-11 Natura &Co’s corporate governance plays a fundamental role as a strategic foundation for the ethical, transparent and responsible guidance of the business, ensuring the alignment between the interests of the different stakeholders and the longevity of the organization. In 2024, the management bodies remained focused on establishing strategic directives for its business units and the growth and transformation of the Company. Despite the Annual and Extraordinary General Meeting (AGO/E), the Company's main deliberative and decision-making forum, having elected nine members to the Board of Directors, there are currently only eight members due to the resignation of two elected members. The Board of Directors has decided upon a replacement member for one of the positions, reappointing the CEO of Natura &Co, Fábio Colletti Barbosa, as one of the board members. The Board of Directors is composed of three co-chairpersons, elected from amongst the 29 29 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index board members, one of whom is also elected to the The Board Members are elected for single, two year position of Chairperson for Board meetings. These mandates. Under this process, the General Meeting positions are currently occupied by the founders of is provided with a single list of candidates and the Natura Cosmetics, who are members of the Company's members are elected by means of a majority vote, or controlling group and signatories to the shareholders' a cumulative vote, if requested. agreement. The other members of the Board are independent, exceeding the percentage required by The Company's governance structure continues the regulations established by the B3’s ‘Novo Mercado’, to be formed by a Board of Directors and a except for Fábio Coletti Barbosa, due to his position as Statutory Board which, together, are responsible an executive at the Company. for management. In 2024, the Products and Brands Committee was added to the Advisory Our Bylaws expressly establish that the positions of Co- Committees, for a total of six organs offering their chairperson of the Board of Directors and CEO cannot specialist support to the Board of Directors. At the be assumed by the same person, thereby ensuring a AGO/E, the shareholders once again requested clear separation between strategic supervision and the establishment of the Fiscal Council, a power executive functions. This structure reflects Natura’s guaranteed by Brazilian legislation. The organ commitment to independent and transparent is currently composed of three members (two governance, in order to ensure impartiality in strategic nominated by the controlling shareholders and one decisions. by the minority shareholders) and their respective substitutes. The Company can also rely upon the The Natura &Co Board includes two non-executive/ support of the executives and CEOs of its two independent members who hold four or fewer external business units as well as the CEO of Natura &Co. mandates in publicly held companies: Gilberto Mifano and Carla Schmitzberger. There is no restriction Amongst the most important legal and statutory on the total number of board memberships that responsibilities of the Board of Directors, and other members can hold, since the Company does not issues which it also handles, of special note in limit the participation of the board members in other 2024 were the alterations made to its composition companies. 30 30 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index following the O/EGM, the revision and approval of The Company and its business units take into account the strategic planning of Natura and Avon in Latin environmental, social and economic criteria, as well America, the financial support for Avon Products as the impacts they generate, when taking decisions. Inc. in its voluntary financial restructuring process These criteria are also included when evaluating Arrow in the United States, and the substitution of the firm Right risks, impacts and opportunities connected to responsible for the Company's independent audit. sustainable development that affect all the stakeholders In addition to this, the Board of Directors approved - employees, partners, customers, suppliers, the voluntary cancellation, through the SEC, of the shareholders, investors, creditors and the communities registration on the New York Stock Exchange (NYSE) with which we have relations. GRI 2-12, 2-13 due to the fact that the majority of the transactions of the Company's shares are conducted on the We follow the market’s best governance practices, B3 in Brazil. as recommended by the Brazilian Code of Corporate Governance (CBGC). In 2024, we were 96% in These activities reflect the Board’s main compliance with the principles of the CBGC, which responsibilities, as outlined in article 20 of the is published by the Brazilian Institute of Corporate Company’s Bylaws. The Board is also responsible Governance (IBGC). for analyzing the effectiveness and execution of the business plan, supervising the executive team, The Commitment to Life and the long-term vision of taking strategic decisions, such as those involving the business units are the object of regular analysis investments and divestments, guaranteeing and monitoring by the Board of Directors, with integrity and ethics in the company’s operations, support provided by the Sustainability Committee and defining the objectives and guidelines for and assurance through the internal processes, as sustainable development. The Company also has a is the creation of this Integrated Report, which Risk Management Policy and the Natura &Co Global is subject to the co-Presidents’ evaluation of its Code of Conduct, which are both periodically revised accuracy and alignment with the Company’s and approved by the Board of Directors. purpose, culture and strategic projects. GRI 2-13 GRI 2-12, 2-14, 2-17 31 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In relation to this area, the Board of Directors is regarding issues associated with sustainability also responsible for supervising the inclusion of the and the achievement of the objectives established organization’s policy commitments. To achieve this, it in the Commitment to Life, which the Company delegates responsibilities by defining and continually undertook in 2020. Over the course of the year, the monitoring clear targets and commitments, Committee held four meetings with the results and encouraging collaboration and team work, recommendations being reported to the Board of recognizing performance, and conducting periodic Directors, thereby ensuring effective supervision reviews of the process. GRI 2-24 and the ongoing improvement of the processes related to sustainable development. GRI 2-12 We have adopted a set of measures designed to improve the Board of Directors’ understanding of The Board of Directors also has the support of issues related to sustainable development, including: executive departments, especially the Sustainability constant access to updated information, exchange Board, to which it delegates functions in its efforts of experiences between the members, constant to control impacts related to social environmental engagement of the leaders to promote sustainable matters. The responsibilities delegated include the practices; and continual education and training, thus development and implementation of sustainability providing frequent updates on global trends and best strategies, the evaluation and monitoring of practices. GRI 2-17 sustainability performance, the guaranteeing of compliance with regulations and norms, the In line with this approach, since October 2024, integration of sustainability in the operations and the Sustainability Committee has included the processes, and engagement of the stakeholders. participation of an external consultant who is GRI 2-13 specialized in the analysis of social environmental management processes; expert understandings form a part of its decisions. The Committee is principally responsible for monitoring the results and suggesting adjustments, whenever necessary, to the strategies pursued by the Company and its business units, ACCESS our 2024 Governance Report here. 32 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Highest governance bodies GRI 2-9, 2-10 The composition of the boards, committees and Executive Board on SUPERVISORY BOARD Independent members December 31, 2024, as described here, is available on the Company's Mandate of one year Investor Relations website. Supervisory Board Shareholders’ Meeting Board of Directors BOARD OF DIRECTORS Executive Board Board Members Sustainability Committee People and Organizational Development Committee Strategic Committee Corporate Governance Committee Audit Committee, Risk Management and Finance Internal Audit CEO of the Group CEO Natura &Co Latin America CEO of Avon International Group of Executives Group of Executives Independent members Eight self-declared white 4 50% independent 25% women 87.5% aged over 50 Two year mandate with the possibility of reelection (50% of the members have participated for more than three years) STATUTORY BOARD Members Three year mandate with the possibility of reelection Advisory Committees (Consultative) • Audit, Risk and Financial Management (eight ordinary meetings and four extraordinary meetings; three members, all independent; two sub-committees holding 12 meetings) • Strategic (four ordinary meetings and one extraordinary meeting; three members, two of whom are independent) • Corporate Governance (five ordinary meetings and no • Products and Brands (two ordinary meetings and no extraordinary meetings; four members, one of whom is independent) • Personnel and Organizational Development (six ordinary meetings and no extraordinary meetings; three members, two of whom are independent) • extraordinary meetings; three members, none of whom are independent) Sustainability (four ordinary meetings and no extraordinary meetings; five members, one of whom is independent) 33 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Nomination and selection to the Board of Directors GRI 2-10 The relaxing of the criteria, although not usual, was conducted transparently and within the scope of the internal regulations, ensuring the effective continuity The process for nomination and selection of members of governance, whilst preserving the integrity and of the Board of Directors and its committees is guided stability of the strategic operations. by the Bylaws and by the Administrator Nomination Policy. The process is supervised by the Corporate Governance Committee, which is responsible for ensuring that the nominations are in line with the organizational guidelines. Remuneration of the Board of Directors GRI 2-19, 2-20 The annual remuneration of the Board of Directors consists of one fixed quota, including additional, The selection criteria include the involvement of pre-established sums depending upon participation stakeholders and analysis of the candidates’ relevant or leadership of advisory committees, and one skills and experience, ensuring that the members variable quota, based upon actions, aligning the indicated are suitable to supervise the company’s Board of Directors’ business strategy with the economic, social and environmental impacts. Company's long-term success and the value creation for the interested parties. In exceptional cases, such as when a new member was elected in July 2024, the process can be relaxed. The stakeholders and members of the Board of This indication occurred after two of the members Directors are consulted on remuneration-related had resigned, following the General Assembly policies, to ensure that they meet the expectations held on April 26, 2024. Given the need for an and needs of all those involved. Furthermore, the immediate replacement, the Board prioritized the General Shareholders’ Meeting supervises the process recommendation to nominate the CEO of Natura &Co, for definition of the administrators’ remunerations. who had previous experience on the Board and could immediately assume the role. The remuneration also takes into account our commitment to equality, and we make full use of 34 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index studies developed in partnership with a consulting firm specializing in human resources. Natura performs periodic evaluations of the Board of Directors and its advisory committees, in accordance with the terms of the Regulations of the Novo Mercado (New Market). The process includes an annual self- evaluation of these bodies, the Corporate Governance Officer, and the Corporate Governance system. The methodology involves individual interviews with the Board Members, consolidation of the conclusion and suggestions obtained, analysis of this information by the Corporate Governance Committee, and, finally, a presentation to the Board of Directors. Based upon these analyses, the Board can continue with the positive points or implement improvements in line with the suggestions made. The evaluation does not include individual analyses of the Board Members or the committees. FIND OUT MORE about our performance evaluation practices, the selection criteria, the qualifications required and the profiles of our executives and board members on our Investor Relations website. 35 35 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Ethics and compliance GRI 3-3 The Ethics and Compliance team is made up of 19 individuals working specifically in this area. The team is headed by the Deputy Compliance Officer, who, in turn, reports to the Chief Legal & Compliance Officer to monitor the effectiveness of the Compliance Program and compliance with the Anti-corruption Policy. Our commitments to the Stakeholders and the unrestricted compliance with the legislation in effect in the regions where we operate are reflected in the Company's Global Code of Conduct. This publication, which was revised in 2024, guides the standards of behavior that are expected of our employees and members of the Board of Directors and is structured in the form of four commitments: • To our people: our approach to the themes of diversity, equity and inclusion; health and safety at work; and anti-discrimination, harassment and violence. • To the communities: this guides our work with the Beauty Consultants, representatives, distributors and franchisees, as well as our customers and suppliers. It also addresses philanthropic contributions and the prohibition of any donation of a political-party or electoral nature. GRI 415-1 36 36 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index • To the planet: this concerns how the Company manages the environment in its operations and those policies that are critical to the value chain. • To operating responsibly: reinforce our ethical Evaluation of risks of compliance and due diligence relating to suppliers GRI 205-1 Natura &Co undertakes an annual evaluation of standards in the preservation of Natura &Co’s assets; the risks involved in all of its operations, analyzing standardize the themes of conflicts of interest, matters concerning corruption, money laundering, tackling corruption and money laundering, anti-trust competition, data privacy, and commercial penalties. and fair competition, the regularity of the accounting In 2024, we evaluated four Latin American countries - books and records, commercial penalties, data Brazil, Chile, Colombia and Peru - and three markets in privacy and protection, security of information, and which Avon International operates - Romania, South external communications. Africa and Kazakhstan. 5 2 0 2 14 The only Brazilian company to be recognized by a program concerning exceptional compliance and a commitment to perform ethical business. A specific set of policies and internal protocols All the suppliers undergo a process of reputational and complement the Code of Conduct and these are revised anti-corruption due diligence, both as part of the initial on an annual basis. The implementation of the Code selection and once every two years, for those with of Conduct is supported by periodic evaluations of risk, current contracts. Following approval, these suppliers continuous monitoring, training sessions and internal must adhere to the Suppliers’ Code of Conduct, the communications, as well as a stringent due diligence Privacy Statement, and the Responsible Procurement process. Guidelines. Depending upon the type of relationship with the supplier, they should also adhere to the Critical We regularly report critical concerns to the highest Materials Policies. governing body by means of reports, meetings, audits and updates by the senior management. In 2024, Those suppliers considered to be “critical” also receive five environmental, social, economic and strategic continual support and training. In 2024, as part of this topics were discussed by the Executive Committee process, 798 Natura &Co Latin America suppliers and once a fortnight. 570 Avon International suppliers were evaluated. This is the fifth time that Natura has received this seal, awarded by a partnership between the Federal Comptroller General and the Ethos Institute in recognition of programs of excellence in integrity and the fight against corruption in Brazil. 37 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Training and engagement GRI 2-24, 205-2 Each year, the Ethics and Compliance, Culture, and Complaint hotlines and investigation processes GRI 2-16, 2-25, 2-26, 205-1, 406-1 Internal Communication teams draw up a Training We promote an organizational culture that and Communication Plan. These actions involve all the encourages the safe and accessible communication hierarchical levels within the Company, including the of issues related to ethics and compliance. Our Board of Directors, and begin as soon as new employees Ethics and Compliance Program provides complaint join the Company, with recycling programs and training hotlines for our employees and other stakeholders to sessions that take into consideration the specific raise any concerns they may have, settle doubts, or characteristics of the jobs performed. report suspected violations of Natura &Co’s Code of Conduct or the law. In 2024, 4,326 employees of Avon International and 12,873 of Natura &Co Latin America successfully completed The Natura &Co Ethics Hotline is the reporting the Code of Conduct certification process. Compliance channel the company offers and is available to all Weeks were conducted as a means of promoting ethical our stakeholders. Operated by an independent behavior, in Brazil, the United Kingdom, Turkey, Italy, third party, it ensures anonymity and is accessible South Africa, Malaysia and Morocco. Brazil also has a by means of an online form or a free telephone call Compliance Ambassadors Program, designed to help conducted in the official languages of the countries spread the culture of ethics. in which we have operations. The Ethics and Compliance team reviews all the accusations and Other training sessions include those focused on the questions received by the Ethics Hotline, which is also Anti-corruption Policy, Respect in the Workplace, monitored by the Board of Directors. Retaliations Data Privacy, ethical dilemmas related to our Code of against the accusers are not tolerated. All proven Conduct, the policies it references, and commercial violations of the Code of Conduct result in the penalties. The Emana Pay teams also receive training creation of an internal remediation committee, which on the prevention of money laundering, interactions is responsible for defining the disciplinary measures with government officials and regulations relating to Pix and preventive actions. instant cash transactions. In 2024, 100% of Avon International’s target users and 88% of Natura &Co Latin America’s employees successfully completed the Code of Conduct certification process. 38 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index 99% of the employees at coordinator level or above received training on our Anti-corruption Policy. In 2024, Natura received 538 accusations and 141 conflict of interest disclosure forms. Twenty-eight Conflict of interests GRI 2-15, 2-23 of the reports were resolved with remediation The Conflict of Interests Policy aims to prevent and measures. Seven cases considered to be critical mitigate any potential conflicts, be they real or were also reported in Brazil. Four of them were apparent, between the interests of the conflict of closed following the decision that they lacked interest and its employees. This issue is also grounds and three remain under investigation, addressed in the Global Code of Conduct. with outside specialists having been contracted to investigate and make recommendations regarding We conduct internal training, including annual sessions the risks and fragility of the processes. At Avon on the Code of Conduct, as a means of raising our International, 117 accusations were received as employees’ awareness of the importance of preventing well as 30 conflict of interest disclosure forms. and declaring any potential conflicts of interest. Five critical concerns were reported, covering We analyze the self-declarations and implement environmental, social, human rights, economic and remediation plans within 45 days of their receipt. strategic sustainability matters Should any conflicts be identified, mitigation measures are adopted, with the cases being duly registered The effectiveness of our complaint hotlines is on a specific platform. evaluated by means of an annual survey which also gauges the perception of our employees For those cases that involve related-party concerning ethical leadership. Under the terms transactions, there is a separate and specific policy, of the Natura &Co Whistleblower Policy, the which is available on the Company's website. cases considered to be critical are regularly It lays the foundations for an evaluation of the communicated to the highest governing body. transaction by a Working Group made up of the Legal, Compliance, Risks and Internal Controls, and Controller departments. This norm includes the demands set forth by the Brazilian Securities Commission and the B3’s Novo Mercado segment, in Brazil, where the Company's shares are listed. 39 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Corporate risk management We take an integrated approach to our corporate risks, focusing our efforts on minimizing the Company's exposure to economic-financial, operational, social, environmental, and human rights factors, as well as those resulting from climate change that are capable of shifting our perspective on value creation and performance regarding sustainability. Also in relation to this, we have begun to look at the risks and impacts as being connected to the business opportunities, in line with good market practices and a systemic vision of our operations, underpinned by our objectives, values and commitments. The management of corporate risks is aligned with the multiple factors that could affect the business, considering its capillarity, global presence and product diversity, as well as the brands, services, relationships, and social and environmental impacts. This area is overseen at the operational executive level by the leaders of Internal Controls, Risk Management and Internal Audit senior management departments, who report directly to the Audit, Risk Management and Finance Committee. 40 40 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The aim is to ensure that the analyses and decisions Audit, independently verifying the organization’s risk concerning risk are conducted correctly, that no factors management, control, and governance model. go unnoticed in the business routines, and that the senior management is duly informed and provided with the The Risk Management Policy, which was revised and proper foundations to be able to make decisions on the approved by the Board of Directors in 2024, includes matter. Specifically, the Board of Directors, the body that guidelines, remits, classification responsibilities and is the direct guardian of the Company's values, objectives regulations, and analysis and mitigation of corporate and management philosophy, is able to rely upon the risks, and is applied to all of the markets where we have Audit, Risk Management and Finance Committee in its operations and relations. Each business unit has a Risk decisions concerning risks and opportunities. Management Procedure and, since 2023, we have also The management approach We have adopted a methodology that follows globally To provide Natura &Co’s stakeholders with a clear and recognized guidelines - specifically those established objective understanding of the material risks, we have by the Committee of Sponsoring Organizations of the defined a scale of exposure which is adopted to provide Treadway Commission (COSO), the Brazilian Institute internal reports to the different management levels: had a global Causes of Risk manual. We have adopted a risk management methodology that follows globally recognized guidelines - specifically those established by the COSO, the IBGC, and ISO Norm 31000. Level of Exposure to Risk Sharing and Monitoring Forum of Corporate Governance (IBGC), and ISO Norm 31000. We also follow the Three Line Model provided by The Institute of Internal Auditors (IIA). The First Line of the Model establishes the Enterprise Risk Management (ERM) 4. Severe structure for operation of the business areas, including subsidiary and affiliate companies, that are involved in the risk decisions and the day-to-day management of the topic, including the implementation of business strategies. 3. High The Second Line (orientation) is composed of key-areas, such as Management of Risks and Internal Controls, 2. Moderate Board of Directors, senior management, and the Audit, Risk Management and Finance Committee Audit, Risk Management and Finance Committee, senior management, and the Vice- Presidencies responsible for the Business Units Executive Boards of the business units Compliance, Regulatory Aspects and Information Security. The Third Line, meanwhile, involves the Internal 1. Low Business units’ Executive Boards 41 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Climate risk: approach, governance and metrics GRI 3-3, 201-2 1. Consumer behavior and preference: the consumers’ preference for more sustainable products with lower carbon emissions may often be limited by issues related to price, The perspective we have adopted in relation to risks and aesthetics and functionality. To engage them opportunities is aimed at evaluating how the Company more broadly in decarbonization actions, should be adapting itself to the new realities imposed we need to work on continually improving by climate change. This means understanding how the our brand, marketing, and Research and transition to a low-carbon economy, and the greater Development strategies, thereby allowing us to frequency of extreme events and climate changes, communicate clearly, highlighting the value of affects all aspects of the business, the chain of more sustainable attributes and habits. value and the stakeholders, especially our suppliers, agro-extractivist communities, and Beauty Consultants 2. Regulations: the regulations on climate issues, and Representatives. We have consolidated the actions restrictions on the use of plastic, and reverse that are to be developed that will allow us to adapt and logistics in the countries and regions where we become more resilient in our operations, whilst creating operate are constantly evolving. The evolutions protocols regarding disasters to be able to support our related to the regulation and pricing of carbon partner network. can affect our production and distribution costs. At the same time, the evolution achieved, or The identification and evaluation of the risks and planned, for our packaging could significantly opportunities are performed in line with the reduce our exposure to such risks. recommendations set forth by the Task Force on Climate-related Financial Disclosures (TCFD). In 2024, 3. Supply chain, inputs and biodiversity: extreme we took great steps forward in the identification, climate events can have an effect on our evaluation and prioritization of 27 risks and chains. The transition to low carbon can also opportunities that are of most relevance in terms of cause volatility in the supply of agriculture or their potential financial and strategic impact. They biodiversity-based inputs. were grouped into seven areas. 42 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index 4. Government and collaboration: the climate 7. Reputation and stakeholders’ expectations: transition also depends upon national and with climate change assuming an ever more local governments to implement regulations central role in both the political agenda and infrastructure, such as carbon pricing and and public consciousness, we hope that restrictions on plastic materials, as well as create companies will assume greater responsibility bases upon which the energy transition can be in their duty to society, requiring adaptation accelerated. actions and the provision of strategies for the transition to low carbon. READ ABOUT this in more detail in the Risk Management Booklet and in the Reference Form. 5. Physical threats: climate change is influencing the type, location, frequency and severity of extreme events. These events could damage our infrastructure and cause the operations to be halted, leading to the need for adaptation actions. They can also be damaging for the suppliers, partners, customers and the regional infrastructure. 6. Operational processes: decarbonizing the operations requires Capex investments, and also carries additional costs related to technology and renewable fuels, which are subject to increasingly greater competition. The physical impact of climate change also creates risks for the offices, factories and logistics centers. This requires investments that will allow us to adapt in order to ensure our operational continuity, and safe and comfortable working conditions for the employees. SOME OF THE MOST PRESSING RISKS: • Cyber threats • Tax burdens • Climate change (physical and transition risks) • Geopolitical and macro-economic conditions • Lawsuits 43 43 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Guidelines for analysis of the climate scenario GRI 3-3 In line with the recommendations of the TCFD, we consider different future climate scenarios when evaluating their potential impacts on our operations and, consequently, the related risks and opportunities. There exist three possibilities: ambitious, middling, and extreme heating. As well as the intensity of the scenarios, we also consider three time frames: • Short-term: from one to three years, aligned with the business planning cycles. • Medium-term: four to ten years, in line with our Commitment to Life. • Long-term: 11 to 30 years, in alignment with our commitment to decarbonize our businesses by 2050. The qualitative analysis of the 27 risks and opportunities identified, which was performed in 2024 and has allowed us to group them into the seven categories, was performed using the three scenarios of intensity and the three different time frames. The data used are drawn from the Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency (IEA), and the Network for Greening the Financial System (NGFS). Over the course of 2024, based upon the advances made in relation to the TCFD (Task Force on Climate- related Financial Disclosures), we improved the calculation of the financial impacts of climate change on our business, identifying the most important risks and opportunities. The potential financial impact of the physical risks of climate change was analyzed from two angles: the impact on productivity (revenue) resulting from the interruption in operational continuity, and damages to the assets and stock due to extreme weather events. In addition to these, three impacts arising from the transition to a low-carbon economy were evaluated: new regulations for plastic packaging; changes in the prices of critical materials; and carbon pricing and changes in the prices of energy. In 2025, Natura continued to improve its understanding of the potential financial effects related to the climate and to assess the opportunities that exist to integrate these results and metrics into its financial planning, reports and risk management processes. GRI 201-2 READ MORE about this in the Risk Management Booklet In 2024, we launched the Natura &Co Latin America Climate Transition Plan, bringing all our actions together into a single platform embracing climate governance and resilience. 44 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life GRI 2-23, 2-24, 2-25, 3-3 Sustainability and regeneration are fundamental concepts for the success of the execution of our strategy. Since 2020, we have been publicly reporting our progress and initiatives related to these themes by means of our Commitment to Life structured within three pillars: biodiversity and the climate; human rights; and circularity and regeneration. After having more closely analyzed Latin America’s specific targets considering the region’s most urgent needs, and reviewing Natura’s 2050 Vision (read more on this in the chapter entitled Our Strategy for Latin America p. 62), within a context of broad restructuring for the region, we experienced a year of important progress regarding the climate pillars, socioeconomic impact and engagement of the value chain. In the table on the following page, we provide a consolidated report on our progress concerning the targets, covering both those that are both general to the Group and those that are specific to Natura &Co Latin America. 45 45 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Indicators with specific targets and deadlines for Latin America. Commitment to Life - 2030 Sub-pillar Indicators Target SDGs* Achieve zero net emissions (Net Zero) in line with the trajectory of 1.5° by 2030 and hitting the science-based targets for scopes 1, 2 and 3. 2050 Latin America Natura &Co 2050 7, 9, 12, 13 Natura &Co Latin America - 2024 We hit the Scope 1 and 2 emissions target established for 2030, as endorsed by the SBTi (-43%), earlier than expected. We have reduced the Scope 3 emissions through the implementation of biomethane-powered trucks (a reduction of more than 90% vs diesel trucks), and achieved a 5 p.p. increase in the use of recycled plastic (18.2%). Natura &Co - 2024 Avon International has eliminated the use of cellophane in the packaging of fragrances, substituting it with two simplified tickets, meaning an estimated reduction of 13% in the associated emissions. Climate Transi- tion Reduce emissions from our own installations (Scopes 1 and 2) by 90%. 2030 Latin America 7, 9, 12, 13 -43% Reduce the greenhouse gas emissions in the value chain (Scope 3) by 42%, engaging suppliers and consumers. Continue offsetting 100% of Natura’s remaining emissions, acquiring at least 50% of the carbon credits in projects in the Amazon region, prioritizing agro-extractive communities. Contribute to the protection and/or regeneration of three million hectares of Amazon Rainforest (up from two million in 2020). Extend our partnership to 45 agro-extractive communities (up from 34 in 2020). 2030 Latin America 2030 Latin America 2030 Latin America 2030 Latin America 7, 12, 13 -28% 12, 13, 15 46% 2, 6, 15 2.2 million hectares1 15, 17 45 communities Contribute to the bioeconomy in the form of innovation, reaching the figure of 55 bio-ingredients sourced from the Amazon region’s socio-biodiversity (up from 39 in 2020). 2030 Latin America 9, 15 46 ingredients Protecting the Amazon Purchase four times as many raw materials from the Amazon region’s socio-biodiversity (in relation to 2020). Double the resources shared with our communities (in relation to 2020) 2030 Latin America 2030 Latin America 9 R$ 37.2 million 2, 15 R$ 48.51 million Engage 20 million people per year in actions connected to the Amazônia Viva cause. 2030 Latin America 12, 13 Around 54 million interactions. The result refers to the total engagement which adds together the number of people reached and the interactions with the communications and/or the actions disseminated and which refer to the topic of the Amazon region. Indicators with specific targets and deadlines for Latin America. 1 Leasings relating to 2.16 million hectares. of conserved and/or regenerated land. * United Nations Sustainable Development Goals (SDGs). - - - - - - - - - 46 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life - 2030 Sub-pillar Indicators Target SDGs Work to ensure that countries cooperate with each other to establish standardized regulations for benefit- sharing, directed principally to the traditional peoples and communities. 2030 Latin America 2, 15, 16, 17 Report our impacts and reliances in relation to biodiversity by 2025, based on internationally recognized standards. 2025 Latin America Natura &Co 2025 12, 15, 17 Ensure that 100% of our critical supply chains are independently verified to be deforestation-free and native vegetation conversion-free by 2025: for the direct sourcing of palm, soy, paper and ethanol. 2025 Latin America 12, 15 Protecting Biodiversity Natura &Co Latin America - 2024 At the COP16 conference, held in Cali, Colombia, we worked on advocacy actions together with the Amazon Cooperation Treaty Organization (ACTO) and the Brazilian Government, participating and leading discussions with representatives from Brazil, Colombia and Peru focused on standardized legislation and digital sequence information(DSI). Using the methodology developed by the Taskforce on Nature-related Financial Disclosures methodology, we conducted a comprehensive survey within Natura and established 14 clear recommendations to be able to strengthen our sustainability practices. (more details on page 90) Natura &Co - 2024 - At Avon International, we performed an initial evaluation to understand our impacts and reliances on biodiversity this work will continue in 2025. The methodology used to ensure that our raw- materials are Deforestation and Conversion Free (DCF) was established by means of a study of the relationship between the different certification regulations and fulfillment of the specific requirements. A detailed table is to be included in the critical raw materials policies, which will be made available in the first half of 2025. - Ensure that 100% of our critical supply chains are free from deforestation and conversion of native vegetation, with independent inspection; by 2030: expand this to the direct sourcing of palm, soy, paper and ethanol. Our People Guarantee that 50% of senior management positions are occupied by women as of 2023. Equitable pay: no unexplained gender pay gap from 2023. 2030 Latin America Natura &Co 2030 2023 Latin America Natura &Co 2023 2023 Latin America Natura &Co 2023 12, 15 The methodology used to ensure that our raw- materials are Deforestation and Conversion Free (DCF) was established by means of a study of the relationship between the different certification regulations and fulfillment of the specific requirements. A detailed table is to be included in the critical raw materials policies, which will be made available in the first half of 2025. For Avon International, a plan to fight deforestation in certain selected chains is to be developed by the end of 2025. 5, 10 51.5% 49.1%. Number affected momentarily due to restructuring. 5, 8, 10 -0.6%. We kept the gap at zero. - 0.7% We kept the gap at zero. Indicators with specific targets and deadlines for Latin America. 47 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life - 2030 Sub-pillar Indicators Target SDGs Natura &Co Latin America - 2024 Natura &Co - 2024 Equitable pay: no unexplained gender pay gap since 2023. 2023 Latin America 10 -0.11%. We have eliminated any gaps which do not have justifiable reasons and which could indicate salary inequalities due to race or ethnic origin. - Our People Ensure that at least 30% of management positions are occupied by people from under-represented groups (Blacks and indigenous people, LGBTQIAP+, disabled persons and others, depending upon the local context). In Brazil: guarantee that 25% of management positions are occupied by Black people as of 2025; and 30% as of 2030. A decent living wage, or higher, for all employees, as of 2023. Increase the Consultants’ Human Development Index by 10%. Improve the social progress of the agro-extractivist communities, generating a measurable impact on decent income, health and wellbeing, education and citizenship - factors that are fundamental for gender and racial equity. 2030 Latin America Natura &Co 2030 2025 Latin America 2030 Latin America 2023 Latin America Natura &Co 2030 2030 Latin America 2030 Latin America 5, 10 5, 10 Our Broader Network: Consultants and Communities Encourage and facilitate citizens’ participation in our network, primarily in those causes focused on the Amazon region, education, female healthcare and violence against women and girls. 2030 Latin America 4, 12, 16 Promote human rights in the agro- communities, including indigenous and traditional peoples. 2030 Latin America 8, 16 Indicators with specific targets and deadlines for Latin America. 10 15.2%. 13.3%. 10 15.8%. 8, 10 100% - 100% Brazil: 0.653 (+3.3%). Hispanic America: 0.619 (+8.9%). We have improved the Community Social Progress Index (IPS) as a means of monitoring our impact on the communities, adjusting the methodology to include all the regions in which Natura operates by December 2025. (more details on page 97). We engage the Beauty Consultants in social environmental responsibility by means of actions such as raising awareness of breast cancer, support for those suffering domestic violence by means of Ângela (the Natura Institute virtual assistant), promotion of conscientious voting, Regional Meetings and communications on the environment and human rights. (more details on page 115). Commitments and guidelines published in the Biodiversity Policy (access the policy here). All of Natura’s socio-biodiversity chains meet requirements established by the UEBT (Union for Ethical Biotrade). - - - - 48 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life - 2030 Sub-pillar Indicators Intolerance to- wards the abuse of Human Rights Full certification for the critical supply chains – Palm oil. Full certification for the critical supply chains – Mica. Full certification for the critical supply chains – Paper. Full certification for the critical supply chains – Ethanol. Full certification for the critical supply chains – Soy. Full certification for the critical supply chains – Cotton. Intolerance towards the abuse of Human Rights Target 2025 Latin America Natura &Co 2025 2025 Latin America Natura &Co 2025 2025 Latin America Natura &Co 2025 2025 Latin America Natura &Co 2025 2025 Latin America Natura &Co 2025 2025 Latin America Natura &Co 2025 SDGs Natura &Co Latin America - 2024 Natura &Co - 2024 8, 12, 16 94.1%. 94.2%. 8, 12, 16 96.6%. 8, 12, 16 98.8%. 8, 12, 16 85.6%. 8, 12, 16 97.7%. 97.9%. 81.0%. 75.1%. 97.6%. 8, 12, 16 99.7%. 99.9%. Full traceability and/or certification for the critical supply chains in Latin America (including deforestation and land free from conversion). 2030 Latin America 8, 12, 16 In addition to the six critical supply chains already mapped, we identified seven more: carnaúba, candelila, canola, corn, essential fragrances, green polyethylene and recycled materials. Specific policies for each one will be published in the first half of 2025. - Indicators with specific targets and deadlines for Latin America. 49 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life - 2030 Sub-pillar Indicators Target SDGs Intolerance towards the abuse of Human Rights Identify, prevent or mitigate risks to human rights in our value chain by 2027, promoting access to remediation and leveraging a positive impact. Circularity of Packaging 50% of all the plastic used must have recycled content (in weight). 100% of our packaging will be reusable, refillable,1 recyclable or compostable. Assume responsibility for the correct disposal of packaging materials, certifying collection systems in regions where a sufficient recycling infrastructure does not exist. Include ingredients that are at least 95% renewable or of natural origin in Natura products. Make at least 95% of the formulas biodegradable. Ensure that 100% of the new formulas have a lower environmental footprint, measured by a life cycle assessment (LCA). Indicators with specific targets and deadlines for Latin America. 1 Refillable only for LatAm. 2027 Latin America Natura &Co 2027 2030 Latin America Natura &Co 2030 2030 Latin America Natura &Co 2030 2030 Latin America Natura &Co 2030 2030 Latin America 2030 Latin America Natura &Co 2030 2030 Latin America Natura &Co 2030 Natura &Co Latin America - 2024 Natura &Co - 2024 We have achieved 55% Responsible Procurement Due Diligence. In 2025, we have remained diligent, intensifying our audits, strengthening negotiations with suppliers, and implementing a specialist resource to ensure the stability and advancement of this essential practice, in line with the United Nations’ Guiding Principles on Business and Human Rights. At Avon International, we have expanded the Responsible Procurement Due Diligence Program, employing the Sedes Radar tool to evaluate the risks inherent in the supply chain and prioritize actions in those areas which have a critical impact on the environment and human rights. 8, 16 12 18.2% 12 84.6% 16.7% 84.5% 12 We believe that recycling is most effective when we combine the design of quality products and the quality of the existing local infrastructure to ensure the correct collection, sorting and handling of the waste. We are studying recycling chains in the regions where we operate, with the aim of finding solutions for materials that are difficult to recycle. 6, 9 94.8% 6, 14 97.3% - 97.0% 6, 12 In 2025, we will be integrating life cycle analysis into the packaging formulas, thereby aligning them with the best global practices and strengthening our database on the impact of ingredients and materials. We will be continuing to increase the sustainability of the products, improving our analyses, so that the environmental footprint of each new formula is reduced. 50 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Commitment to Life - 2030 Sub-pillar Indicators Target SDGs Operate in partnership to increase awareness and develop regenerative abilities and solutions that transform systems and generate a positive environmental and social impact, allowing everyone to prosper. Ensure that 30% of the key ingredients supplied by the communities and small farmers are produced by means of regenerative practices that are verified/certified by an independent third party. Investment in Regenerative Solutions Ensure that 100% of the communities and small farmers supplying key ingredients make use of ethical supplies and employ regenerative practices. 2030 Latin America Natura &Co 2030 2030 Latin America Natura &Co 2030 2030 Latin America Natura &Co 2030 9 2, 15 3.4%. 8, 15 9.8%. Natura &Co Latin America - 2024 We launched the Regenerative Alliance involving more than 100 suppliers in efforts to support the climate transition, circularity and human rights. We have also developed Natura Ekos Brazil nut tubes that are 100% manufactured from recycled aluminum, with 10% coming from Nespresso coffee capsules, thanks to the partnership established between the brands Natura &Co - 2024 Avon International aims to expand the use of renewable and regenerative technologies and ingredients, testing new beauty applications. We are also exploring processes such as cotton from small farmers employing regenerative management techniques (Cotton Made In Africa - CMIA). Ensure that 100% of the volume of at least two of the principal commodities of our business is produced using regenerative practices. 2030 Latin America 8,12, 16 Generate a measurable positive socio- environmental impact of US$ 4.00 for each US$ 1.00 of reported revenue. 2030 Latin America 3, 16, 17 Definition of the two main commodities and a plan for the implementation and monitoring of regenerative agricultural practices, that will be approved in the second half of 2025. For every BRL 1.00 of revenue, Natura businesses, including those operations forming part of Avon in Latin America through until 2024, resulted in a positive social environmental impact of BRL 2.50. - - Indicators with specific targets and deadlines for Latin America. 51 52 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Index Interview with Latin America CEO 1. Our Identity: We are Natura 2. Regeneration and prosperity: Our strategy for Latin America Wave 2: business integration From sustainability to regeneration Impact management: IP&L The employee journey Certification Awards and recognitions 3. Climate, biodiversity and nature Climate Transition Plan Biodiversity management Amazon, innovation and regeneration Sociobioeconomy in practice 4. Brands positioning Natura Avon 5. Omnichannel Journey Direct Selling Well-being for Beauty Consultants Retail E-Commerce Bluma Emana Pay 6. Innovation: transversal approach Open and collaborative innovation Technology & data R&D Bioinnovation and Amazon Packaging and circularity 7. Infrastructure and value chain Business decarbonization Integrated Management of Environment, Health, and Safety Supplier Development Ethical and sustainable sourcing 8. Human rights and investments in society Natura Institute Crer para ver 52 59 62 67 68 69 72 77 78 81 84 89 92 96 100 102 109 113 114 115 119 120 121 122 123 125 127 129 133 133 139 143 144 147 150 153 156 157 53 53 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A message from the CEO of Natura &Co Latin America João Paulo Ferreira I CEO of Natura &Co Latin America The Natura &Co global business restructuring agenda moved forward at the two business units over the course of the year. How did Latin America deliver results and contribute to the execution of this plan? Latin America is the starting point and the main source of Natura &Co’s economic, social and environmental results. recent years, the company has experienced a journey of transformation and learning, centered on the simplification of its global structure and the recovery of its performance levels. In 2024, as part of the Executive Committee’s responsibilities, we looked closely at the role that Natura in Latin America plays as part of this new moment. We constructed goals for the current strategic cycle which can be expressed in two words: Regenerate and Prosper. This means making a move towards more regenerative models - the next level in sustainable development - and combining this move with the creation of value for our entire network of business and relations. 54 “We have constructed goals for the current strategic cycle which can be expressed in two words: Regenerate and Prosper.” Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In addition to this there is also a project designed For us, regeneration is a dynamic process aimed to recover our Reason for Being -Well-Being-Well - at restoring life to individuals, society, nature and called ‘We are Natura’. This is all about a return to our the relations between each of them. This is directly origins, a project to strengthen our identity focused related to the way in which we can access our supplier on understanding how to focus on a dynamic and communities, research new bioactives and build adaptable future without losing sight of the values that partnerships, develop products, position our brands, and we have been building for decades at Natura Cosmetics, ensure ethical, transparent and long-lasting commercial which celebrated its 55th anniversary and a decade relationships. as a B Corp in 2024. By means of We are Natura, we have given special meaning to this new stage in the The omnichannel journey is one of the paths for Company’s history in Latin America and reinforced the growth that has been announced for Latin America, bases that support our ability to innovate and grow. combining Relationship Selling with other channels, with the aim of attracting a broader range of consumer So how does the business strategy involve sustainable profiles. What progress was made during the year, and development and keep it at the center of the decisions, how does it impact the Beauty Consultants? even at a time when we face such challenges and To expand Natura’s origin-based vision, it is essential changes? to be present in different purchase occasions and The incorporation of the concept of regeneration into motivations, becoming part of customers’ daily lives. This the corporate strategy reaffirms our commitment to ambition goes beyond a simple commercial transaction; activities that generate positive social, environmental it requires deep cultural relevance across the various and economic impacts. We believe that the search for geographies in which we operate and a comprehensive regenerative models says everything about how we business strategy, with a presence in multiple locations, have established a business that works for the future of categories, and brands. humanity, with the use of the assets found in biodiversity at its heart and as a way of delivering beauty and We have been steadily advancing in our omnichannel wellbeing to the world. journey, aiming to further digitalize Relationship Selling 55 55 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index while also diversifying the offering to customers through The growing adoption of digital tools by our Consultants multiple channels, moving toward the challenge of is a clear sign of how technology is enhancing the reach achieving full omnichannel integration. and effectiveness of direct selling within an omnichannel In 2024, we opened our virtual store on the Mercado landscape. Livre platform in Brazil and Chile, revamped our own The Wave 2 initiative for the integration of the Natura and e-commerce platform, and continued with our retail Avon operations is one of the most important structural expansion plan, opening more than 1,000 physical projects in Latin America. How was the project developed in Natura stores (including our own and franchises), with 2024 and what are the next steps? some of these being opened for the first time in In 2024, our main focus was on consolidating Wave Colombia. At the same time, we have managed to move 2 in combined countries. The logistics consolidation the Avon brand into the Brazilian specialist market, with implemented in the third quarter of 2024 began generating partnerships that connect us to tens of thousands of efficiencies, we expect these positive impacts to intensify new clients. People like people. Excellent service is built throughout 2025. These efficiencies even allowed us to on intimacy—understood as trust, knowledge, and increase investments in the region and accelerate Natura’s closeness. These pillars are essential for building market share gains in Brazil. long-lasting and healthy relationships, anywhere in the world and across all customer interaction channels. Peru, Colombia, and Chile—markets that also operate under a combined model—reported positive revenue growth. Omnichannel strategy is, therefore, a path to broaden We also began the gradual and phased implementation our vision and bring our products to a wider audience, of Wave 2 in Mexico and Argentina.Wave 2 is intrinsically while respecting consumers’ diverse preferences and connected to our omnichannel journey. The integration of needs. It complements and strengthens Relationship operations allows us to offer a more seamless and integrated Selling by creating more opportunities for our Beauty experience for our Consultants and customers across all Consultants and offering customers convenient access touchpoints, combining the strength of Relationship Selling to our products. with thegrowing relevance in digital channels and retail. 56 56 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The investment in innovation also forms part of the efforts to gain a market share and improve the brands’ results. What was the strategy adopted by Avon and Natura in 2024? Cross-cutting innovation, driven by the goal of generating positive impact and supported by the complementarity between Natura and Avon, enables us to maintain leadership in the cosmetics and personal care sector in Latin America. “Cross-cutting innovation, driven by the goal of generating positive impact and supported by the complementarity between Natura and Avon, enables us to maintain leadership in the cosmetics and personal care sector in Latin America.” For Avon, our 2024 innovation strategy focused on In 2024, we reviewed our entire innovation governance strengthening key categories such as makeup and and R&D structure, marked by the arrival of the Avon skincare, both of which showed encouraging results. We Global Innovation Center at our Cajamar (SP) complex. also executed the strategic relaunch of iconic products like Our goal is to develop products with a local perspective Far Away. For 2025, we have ambitious plans to accelerate that truly meet the needs of our customers. Avon’s innovation efforts, leveraging the brand’s strong recognition and driving deeper consumer engagement At Natura, launches such as Ekos Brazil Nut Concentrate through high-quality offerings at competitive prices. and Ekos Ryos exemplify how innovative technologies can be combined with a regenerative approach. The For both brands, innovation investments were also debut of Natura’s High Perfumery line and the brand’s linked to the omnichannel journey, with technology and entry into the home care segment with the Bothânica systems designed to support this strategy. We believe line reinforced Natura’s positioning in the premium that translating the direct selling experience—defined by segment. The launch of Tododia Jambo Rosa and Flor personalized attention and service—across the entire de Caju was another important milestone, highlighting organization embeds this valuable knowledge into all of our commitment to diversity, equity, and inclusion. our processes. These products were tested on more than 120 skin tones to ensure optimal performance for Black and We dedicated a significant year of preparation to mixed-race skin. strengthening our brand and product innovation 57 57 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index platforms, with the aim of laying the foundations for a company: all of our operations will need to go powerful brand presence and fostering deeper cultural beyond mitigating and offsetting negative impacts relevance. This movement began in Brazil and we are by actually generating a systemic positive impact for now structuring its expansion across Latin America. people (both individuals and collectively) and During the 29th United Nations Conference on Climate for nature. Change (COP29), in Azerbaijan, Natura reinforced the IP&L (Integrated Profit and Loss) continues to be the incorporation of the concept of regeneration (which metric used to monitor this target. Our business will had already been mentioned at COP28, in Dubai) and be truly regenerative when the impact is positive in announced that itwould form an integral part of the each of the capitals, individually and simultaneously. Company’s new 2050 Vision. This vision, which has Our business model provides the opportunities we been under development for a decade, announced need to achieve regenerative status. To move forward Natura’s ambition to be a leading creator of positive, on this journey, we developed initiatives such as our economic, social, environmental and cultural impact. Climate Transition Plan, in which we clearly define our Could you tell us a little more about the differences and business decarbonization strategies, grounded in the details of the revised concept? pursuit of resilience and climate justice. The main difference lies in the depth and nature of the intended impact. Our 2050 Vision provides a The Latin America region has perhaps the widest long-term perspective in support of our business range of biodiversity in the world, and the Amazon decisions and strategies, considering the company’s region plays a crucial role in ensuring the planet’s legacy and potential impacts on the market, people climate balance. As such, we believe that we, along and nature from the perspective of sustainability. We with other companies and governments, should are currently reviewing this perspective, as part of our be developing local communities to work with the approach to regeneration. sociobioeconomy, transferring technology and With the 2050 Vision initiative, which we are innovation and technical and scientific cooperation. promoting regional development through access to currently updating, we will become a regenerative 58 58 1 Our identity 59 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Together, we can sow a new world. Together, We are Natura. The We are Natura movement, more than a definition Now that we are commemorating Natura’s 55th anniversary, of our organizational culture, is an identity choice for we are able to take a broader look at how its history is Natura &Co Latin America and its brands. connected with the surrounding region. As such, we have Structured to provide our cultural foundation, this corporate philosophy - We are Natura - scattering the seeds returned to our roots and reasserted the strength of Natura’s movement will enable the strategy to be adopted in with which to grow our future. relation with our personnel, integrating them under a single objective: to form part of the Well-Being-Well With our clarity of purpose and the way in which we Ecosystem that connects the brands, businesses and operate, we have constructed a means for the company to people with the same reason for being and shared stand out in the market, connecting culture and strategy beliefs, to drive a regenerative company. We have in support of the business’ objectives and results. This united all our employees in the region under a single movement has marked the beginning of the alignment objective, set of beliefs, behaviors and corporate of Natura and Avon’s entire personnel management identity. The central message is that “We are all strategy in Latin America, providing full transparency and Natura”, regardless of the business, area or region in creating mechanisms to empower a high-performance which we operate. organization. 60 60 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our commemoration of the 55th anniversary of Natura strengthened our connection with Well-Being-Well Manifesto Roots take time to grow. They require patience, perseverance and resistance to the elements. They defy the seasons to become strong, solid and secure in their place in the world. These are our roots. Deep and strengthened by our connection with nature. Our nature: Well-Being-Well. This is the representation of the harmonious relationship that we have with each other, with others and with the world. And it is what reverberates through our products, services, brands and people. We honor our roots and we believe that, to carry Well-Being-Well even further, we need to become seeds. Fulfilling our promise of the new and achieving our maximum potential to take root in other regions. They allow us to go beyond our limits to regenerate life in all its different forms. We have begun a cycle of Regeneration and Prosperity. One in which we act as agents of transformation to foment Well-Being-Well and, together, create the future we dream of. A future of renewal and restoration. 61 61 2 Regenerate and Prosper: strategy for Latin America GRI 2-1, 2-6, 3-3 62 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index “ Natura is recognized by the WBCSD (World Business Council for Sustainable Development) as a global and Latin- American leader in sustainable business, with clear commitments on the climate, nature and equity. The brand is making a pioneering contribution to impact calculation, with concrete experiences in the gauging and appreciation of natural, social and human capitals, such as, for example, in the Amazon region supplier communities and the consultant networks. This broad vision has directly influenced the discussions that take place at the WBCSD, including those on the development of IP&L (Integrated Profit and Loss) and the contributions made to initiatives such as the TNFD (Taskforce on Nature-related Financial Disclosures) and the TISFD (Taskforce on Inequality and Social- related Financial Disclosures), which promote the transparency of environmental, social and economic risks and impacts. For the WBCSD, the future demands more than simply mitigating risks. Building a regenerative economy requires the development of businesses that actively contribute to the health of the social and environmental systems. This vision lies at the heart of the WBCSD’s 2050 Vision, which recognizes regeneration as one of the great shifts in mentality that are necessary for the global population (now estimated at more than 9 billion people) to be able to live well, whilst respecting the planet’s limits. Natura, with its history of listening, innovation and commitment to making a positive impact, continues to shape transformative paths.” FIONA WATSON Vice-President of Corporate Performance & Accountability at WBCSD 63 63 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Strategy for Latin America GRI 2-1, 2-6, 3-3 Our anniversary in 2024 was the right moment to lay the foundations of a new strategic cycle, anchored i n objective of nurturing beauty and the relations to necessary generate positive economic, social and environmental impacts, while sowing the seeds of the Well-Being-Well Ecosystem. Latin America is responsible for the majority of Natura &Co’s net revenue as well as Natura’s global operations and the Avon. We operate in 14 countries. The last two years have been a period of intense deliveries and results and, at the same time, of dedication to the drafting of a new cycle for Latin America. Our strategy involved advancing in the integration of regional operations and evolving in the construction of a multi-brand, multi-channel and multi-market business model. This year, we consolidated the foundations of our Regenerate and Prosper strategic cycle. Our Reason for Being - Well-Being-Well - helped us to create an ecosystem that shares the common objective of innovating to make us a regenerative business that creates a positive impact in all it does. The Well-Being-Well Ecosystem is currently composed of two lmajor brands, Natura and Avon, service platforms such as Emana Pay and Bluma, and an extensive network of people: customers, employees, Beauty Consultants, agro-extractivist communities, suppliers and other business partners. Our innovative differential is our ability to mobilize this powerful ecosystem in the creation of regenerative solutions in line with the growth of our business. Strategic pillars for Latin America • Multi-brand, multi-channel and multi-market: an ecosystem that forms an integral part of the consumers’ broad range of needs and experiences, with the knowledge and capacity to provide important innovation in the different categories and key-markets. • Regenerative innovation: a vision of the unique characteristics and leading position of our brands, demonstrating their attractiveness and • importance, which applies the ‘Being Natura’ approach in products, services, processes and business models based upon the concept of regeneration. • Focus on the customers – we are present at every moment and in every choice of our customers’ journeys, with wonderful and distinctive experiences. 64 64 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Impact presence GRI 2-6, 2-7 14 countries in Latin America: Argentina, Brazil, Chile, Colombia, El Salvador, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Dominican Republic and Uruguay More than 3.1 million Beauty Consultants 1,076 stores, including our own and franchises 5 factories, 3 of which manufacture for both Natura and Avon 18 distribution centers, in the following countries: Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Peru and Dominican Republic Headquarters in São Paulo, Brazil R$ 23.4 billion in net revenue 14,800 employees United States 8 Mexico 1,978 Dominican Republic 114 Guatemala El Salvador 331 Honduras 60 Panama 38 62 Nicaragua Colombia 56 692 Ecuador 238 Peru 302 * we also have local distributors in Bolivia (Natura) and and in Costa Rica and Paraguay (Avon). We also have e-commerce operations in the United States and France. Employees Brazil 8,482 Chile 570 Uruguay Argentina 22 1,848 France 2 65 65 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Executive Committee From left to right: Agenor Leão de Almeida Junior – VP of Brazil Business; Silvia Vilas Boas – VP of Finance; Paula Benevides – VP of People; Joselena Romero – VP of Operations, Logistics and Procurement; Paula Ferreira de Andrade Romano – VP of Omnichannel; João Paulo Ferreira – CEO; José Manuel Silva – VP of Emana Pay, New Businesses, IT, Data & Analytics; Tatiana Ponce – VP of Brand, Marketing and Innovation; Diego Fernando de Leone – VP of Hispanic America Business; Ana Beatriz Costa – VP of Sustainability, Legal, Reputation and Government Affairs 66 66 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Wave 2: integration of the businesses The strategy of integrating the business operations of the Natura and Avon brands, which we call ‘Wave 2, progressed in 2024. We ended the year having made progress in Brazil, Peru, Colombia and Chile and, in the second half of the year, we launched the Natura brand in Ecuador based upon the Avon operational structure. We took on board all that we had learned in the first countries that were integrated, making the work more fluid and achieving the expected return on results in less time with each new market. The integration of the organizational culture and the operations made, Wave Two a more attractive proposal for the Beauty Consultants (read more in the Omnichannel Journey chapter). With the option of selling both Natura and Avon products, they were provided with a much larger and more diverse portfolio, and, with the new commercial platforms, they had access to combined tools and processes, more attractive commercial conditions, and more possibilities for increasing client loyalty and earning more. Wave 2 will be finalized in 2025, with the operational and commercial integration of the brands in Argentina and Mexico. In 2024, the Natura brand opened for business in Ecuador 67 67 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index From sustainability to regeneration GRI 2-22, 3-3 We began 2024 with the challenge of designing a plan of the Integrated Profit and Loss (IP&L). By attributing a monetary value to the impacts we have, we can make more assertive decisions, with financial results and value for humanity and the planet. for the transformation of our businesses, connecting Our proposal is to evolve from the compensatory logic of economic success with increased ambitions in sustainability and move towards the systemic operation of sustainability. We have arrived at a point where the regeneration. The source of the revenue and profit should world’s resources are reaching exhaustion, and it is no be the same source of regeneration. Only in this way can longer possible to operate simply to support nature, the ability to regenerate and prosper be the exact same the climate and the wellbeing of communities. That size as the business or enterprise. This means making every is our belief. Due to the wide range of changes that activity undertaken, and each aspect and location impacted, humanity has imposed upon the planet, these systems regenerative, with no exceptions. have lost their intrinsic capacity for constant self-renewal and consequently, the ability to guarantee their own We believe that the source of the revenue and profit should stability for future generations. This is why we needed be the same source of regeneration. Only in this way can to take a step forward and incorporate the concept of the ability to regenerate and prosper be the exact same regeneration. For Natura, being a regenerative business size as the business or enterprise. This means making each means promoting life amongst individuals, communities action undertaken, and each aspect and location impacted, and nature, as well as the relationships between each of regenerative, with no exceptions. This is a proposal that them. This is an expression of Well-Being-Well. begins with the offsetting logic of sustainability and moves towards the systemic logic of regeneration. One action provides the foundation for the other. Our understanding is that regeneration is only possible when In practice, doing this is an enormous challenge, since it not the positive impact results from the business itself, going only involves simply calculating the value of life in order to beyond simply compensatory measures. This change guide the decision making. It is a challenge that we accepted increases the importance of gauging the impact of the many years ago, ever since we adopted the Integrated Profit businesses, which is currently performed by means and Loss (IP&L) method in our day-to-day operations. 68 Diversity and inclusion Clmate change Health and safety Salaries and benefits Income and indebtedness Training and education Community strengthening HUMAN CAPITAL SOCIAL CAPITAL Use of water Water pollution NATURAL CAPITAL Air pollution Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Management by impact: IP&L GRI 2-25, 3-3, 203-2 Natura believes that the longevity and value of a company are directly linked to its capacity to Impacts affect relationship between people and the environment Diversity and inclusion Clmate change Health and safety contribute to the sustainable development of its Use of surrounding area and, as such, it also needs to understand and gauge its natural, social and human impacts, in addition to financial performance. It was thus that, after a decade of innovation together with partners such as Capitals Coalition and Valuing land Impact, we were able, in 2022, to implement the pioneering Integrated Profit and Loss (iP&L). This integrated management tool allows us to calculate the monetary value of aspects that go beyond financial results, such as the impact of our business activities in the natural, social and human dimensions. The results include numerous different areas of the company’s activities, such as climate transition, circularity of waste, regeneration and conservation of biomes, and the creation of revenue for the network, as well as impacts on health, always aligned with the promotion of well being. In 2024, we calculated a net positive impact of Forest conservation Taxes & Development of infrastructure Utility of products Benefit sharing Use of non-renewable resources Salaries and benefits Income and indebtedness Training and education Community strengthening HUMAN CAPITAL SOCIAL CAPITAL NATURAL CAPITAL Use of water Water pollution Air pollution Use of land Forest conservation Taxes & Development of infrastructure Utility of products Benefit sharing Use of non-renewable resources The methodology drivescomprehensive actions for regenerating life thatbecome part of the business 69 69 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index BRL 50.5 billion for society in our Latin American operations. This last year, for each BRL 1.00 in revenue obtained by the company, BRL 2.50 was generated in positive social and environmental impact. Our aim, as established within the Commitment to Life, is to generate a positive net impact that is four times greater than our revenue result by 2030. Our actions now have a positive result in relation to the Social and Human capitals which offset a result that is still negative in terms of Natural Capital. To achieve our target of becoming a regenerative company, we need to obtain positive balances in each category of capital individually. READ MORE about the results and the iP&L methodology in more detail here. This last year, for each R$ 1.00 in revenue obtained by the company, R$ 2.50 was generated in positive social and environmental impact. 70 70 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index At the beginning of 2025, due to the setbacks in the ESG Agenda, Natura published a letter reaffirming its commitment to sustainable development, the protection of human rights and collective mobilization. We highlighted that the Commitment to Life does not accept setbacks and reinforced our intention to drive regenerative business, going beyond the offsetting of impacts. READ the full letter here New 2050 Vision: the path towards a regenerative business With the launch of the 2050 Sustainability Vision a decade ago, Natura publicly announced its dream of becoming a business which has a positive social environmental impact. This dream became a reality when, in 2022, the results of the Integrated Profit & Loss (IP&L) confirmed that our total impact on nature, society and people showed a positive balance. In 2024, due to the current global social environmental challenges, we have renewed this dream to guide our business in the direction of regeneration. This means that our business model should evolve to systematically increase its ability to regenerate the life and relationships that support it. By 2050, we intend to make Natura a fundamentally regenerative company, individually and systemically generating a positive impact in the Natural, Social and Human capitals, without one needing to offset another. 71 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The employee journey GRI 2-29 In 2024, the personnel strategy in Latin America underwent a significant transformation with the launch of We are Natura. This initiative marks a strategic step forward in the construction of an even stronger organizational culture, connecting objectives, development, performance and experience. As such, we are accelerating the employee journey, which was revised in 2023, structured around five pillars that support our future vision and provide a base for driving the evolution of the business: 1. Accelerate the development of strong leaders, innovators and entrepreneurs, capable of generating exceptional results with positive impacts in the economic, social and environmental spheres, inspiring talents, creating future leaders, and cultivating a collaborative, high performance environment. 2. Ensure the acquisition and development of critical and cross-sectional skills, aligned with the Natura culture, to drive the growth and evolution of the businesses, preparing both leaders and employees for the challenges of the future and enabling the successful implementation of strategies. 3. Simple, efficient and agile organization: reduction in complexity through evolution of the organization design, simplification of the decision-making process, acceleration of the agility model, and expansion of the ecosystem of talents, ensuring operational models that support the current and future business. 4. We are Natura: the culture as the main means of enabling the strategy. By providing full clarity regarding our Essence, identity and attitudes as central elements in our strategic decisions, we aim to drive the coordinated action by means of priorities, engagement and achievement of high performance, transforming our leaders and employees into agents of transformation and expansion of the Well-Being-Well initiative. 5. Evolution of the value proposal for the employee by means of the strategic mapping of their journey, prioritizing Well-Being-Well, diversity and the positive impact of our actions, seeking a (re)connection with Natura’s purpose and strategic objectives. We ended 2024 with positive results, indicating the success of the strategy adopted. Our employee engagement survey, undertaken in two annual cycles, aims to collect inputs on the Our team in Latin America in numbers GRI 2-7, 405-1 14,806 direct employees 39% men 61% women 8,482 in Brazil 6,324 in Hispanic America 72 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index work experience, objective, happiness and stress. In 2024, the approval of the engagement, measured by means of a survey involving 92% of the employees in Latin America, was 91% - the best result in the last three years. Remuneration and a decent salary GRI 2-19, 2-20 We have adopted a transparent process for definition of our remuneration policies, in line with best corporate governance practices. This process includes the establishment of objectives and the remuneration philosophy, considering the competitiveness of the market and attractiveness for talent, as well as the creation of the Remuneration Committee, which is responsible for evaluating and approving adjustments to the salary policies and practices. We incorporated fixed a variable components, including short and long-term incentives. Part of the variable calculation involves fulfillment of performance and sustainability targets, such as the reduction of emissions and use of recycled post-consumption plastics in packaging. 73 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In 2024, Natura became We have also included our public commitment o an ambassador of the to equity (read more here). We have continued to Living Wage Movement, eliminate non-justified salary differences based upon part of the ‘Rede Brasil’ gender - a point contained in the Commitment to of the UN’s Global Life that we achieved in 2022, three years prior to the Compact. We began to established target date. support the initiative, promoting actions that In 2023, we achieved our goal of paying a decent encourage and drive salary to all our employees in Latin America. This goes the adoption of decent beyond the minimum wage, since it considers the living wages in Latin amount necessary for a person or family to maintain America. Going beyond a decent standard of living, or in other words, the remuneration of that allows employees to cover their basic needs, our own employees, we without losing sight of their basic human rights. This also operate throughout amount varies depending upon the country and the the sector and together city. Furthermore, we continued to eliminate non- with our supply chain. justified salary differences based upon gender - a point contained in the Commitment to Life that we achieved in 2022, three years prior to the established target date. READ MORE ABOUT all of the profile, development and evaluation indicators of our team in the ESG Scorecard and the Latin America Databook. 74 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A learning culture GRI 404-1 Living wage ambassadorsIn In At Natura, we believe that continual learning is essential for the success of the company. Curiosity and openness to the new drive the development of people, the business and the world. This is why we are constantly investing in innovative learning solutions, always placing the customer at the center of our journey. In 2024, we provided more than 125,000 hours of training, with R$ 3.5 million being invested in full-time equivalent (FTE) training. In 2024, we launched the ‘I am a Natura Leader’ program, aimed at coordinators and managers as part of the Well-Being-Well platform. We have also lent extra weight to the training in skills that are strategic to the business, especially the Omnichannel initiative, Agility and Marketing. We have also developed initiatives focused on the development of skills in Artificial Intelligence, data management and decision-making based on strategic insights. Another highlight was the launch of Eleva Carreiras, an acceleration program for a group of Black coordinators, focused on strengthening self- awareness and preparation for future challenges, improving the levels of readiness for new responsibilities at Natura. We ended 2024 by performing a comprehensive diagnosis designed to map the learning tools used by our employees and identify opportunities for the improvement of our Learning Ecosystem. This study will form the basis of a new strategy that is to be implemented in 2025, aimed at increasing and strengthening the different ways that knowledge is disseminated and exchanged, extending beyond formal and traditional methods, helping us to become more aware of the true needs of the individuals and the business. In 2024, we offered an average of More than 125,800 hours of training provided for our employees in 2024 GRI 404-1 READ ABOUT our team in more detail in the ESG Scorecard and Latin America Databook 75 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Diversity, equity and inclusion (DE&I) GRI 3-3, 405-1 Reflecting the paths traveled by Natura and Avon in this area, we have evolved and consolidated the company as a benchmark for affirmative actions, capable of attracting and retaining talents that display diversity, and being an important voice in the equity and inclusion agendas. These actions are related directly to the management of the material topic of Distribution of Value, the impacts of which can affect people and their human rights. We monitor the positive impacts connected to these issues (with Black and female employees assuming management positions), as well as the potential negative impacts of our activities, such as issues regarding harassment, violations of rights and/or discrimination, including any which may arise in the supply chain. Our work is guided by the Human Rights and Diversity, Equity and Inclusion policies. All of our actions in this area are performed in line with the Sustainable Development Goals established by the UN. We reached 6.6% of employees with disabilities, surpassing our target of 6.2% We have 11% of management positions in Latin America were occupied by Black people, with 15.8% in Brazil 76 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index ; Memberships In 2024, we conducted the PertenSer Campaign, which encouraged employees to fill out forms declaring their own understandings of their ethnic and racial, gender identity, sexual orientation and disability positioning. A total of 67% of the employees took part in the campaign, of which 16% were from underrepresented groups and 15% occupied management positions. Affinity groups We have had affinity groups in Brazil, made up of our employees, since 2018. These are powerful networks offering forums for discussion and the expansion of internal awareness regarding the importance of diversity and inclusion within Natura and in society in general. The theme-based groups are: • Nós ('Us’ - gender); • Eficientes ('Efficient’ - PwD); • Pratas da Casa (‘Elderly at Home’ - generational); • Raízes (‘Roots’ - ethnic and racial identification); and • Cores (‘Colors’ - LGBTQIAP+). In the other Hispanic American countries we have Diversity Committees, also made up of employees, that address different issues, depending upon the reality of each country. Business organizations focused on racial and ethnic diversity: • • Business Coalition for Racial and Gender Equity (Ethos Institute and Center for the Study of Labor Relations and Inequalities – CEERT); • Business Initiative for Racial Equality; • Equity is a Priority Program (UN Global Compact Network Brazil and CEERT); • Pact for the Inclusion of Black Youth in the Labor Market (MPT-SP); • Center for the Study of Labor Relations and Inequalities (CEERT). • • • • Business movement for diversity and the inclusion of disabled people: • Business Network for Inclusion - REIS Business movements for gender equity: • UN Women; Movimento Mulheres 360; Gender and Race Coalition (Ethos and CEERT); • Business Coalition to End Violence Against Women and Girls (Unstereotype Alliance). Business movement for sexual diversity and gender: • Companies and LGBT+ Rights Forum. Cross-sectional business movements: • Ethos Institute; • American Chamber of Commerce in Brazil - AMCHAM; • System B 77 77 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Certifications Natura has been a ‘B Corporation’ for ten years now: in 2014, Natura became the first publicly held company to be awarded B Corp certification. Today, we are still one of the few companies in the world to score in six Impact Business Models (IBMs): Mitigation of Poverty in the Chain, Land/ Wildlife Conservation, Micro-distribution, Employee Development, Reduction of Toxins, and B Statute. CDP Climate: For CDP Climate, Natura maintained a leadership score (A-) and Avon International kept its B rating. In addition, Natura began reporting on Forests and Water, reflecting its commitment to market transparency. ISE: Natura &Co has been part of the ISE B3 for the 19th consecutive year (including Natura Cosméticos S.A.’s participation prior to 2019). ICO2 : In 2024, we were awarded our fourth certification, Natura &Co has been included in B3’s Carbon receiving special mention in the Community pillar, Efficient Index (ICO2) since its creation in 2010. which evaluates the social impact companies on inclusion, diversity and social justice. There was ISS ESG Rating: a 32% rise in the scoring in this pillar compared We improved from C+ to B-, with positive highlights to 2020, reflecting significant advances in in the Environmental and Social dimensions. entrepreneurship and economic development. We performed well on the micro-distribution Morningstar Sustainalytics: IBM, connected to our actions with the Beauty We increased our rating score and reached Consultants, as well as the Amazônia Program and the lowest risk level recorded by the company its actions performed in of the development of in recent years. the socio-biodiversity chains. 78 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The Leaping Bunny: bestowed by Cruelty Free International, one of the UEBT Regenerative Seal in 2024, Natura was awarded the UEBT Regenerative oldest and most respected organizations fighting to Seal for our Brazil nut chain. This recognition is also eliminate animal testing. The certification attests to awarded by the Union for Ethical BioTrade. The Seal Natura’s commitment to be free from such testing in all reflects the incentives provided for regenerative methods the stages of its product development, which has been in the Brazil nut chain since this is an important raw in place since 2006. Natura was the first company to material for the company as part of its socioeconomic receive this certification in Brazil, in September 2018. journey. The recognition demonstrates an approach that UEBT (Union for Ethical Biotrade) certification: supports the preservation of biodiversity, restoration of the land, carbon sequestering, the efficient use of water, the fair sharing of benefits and safe working for the sixth consecutive year the certification conditions for the supplier communities, as well as the guarantees that all the vegetable ingredients in contribution to a living wage for the families involved and Natura’s Ekos line product formulations were sourced the guaranteeing of compliance with international and with respect for people and the environment. Together domestic legislation. with the partner agro-extractivist communities, we have established three types of UEBT certification: VCMI The ESS (Ethical Sourcing System), that performs due in 2024, we received the Carbon Integrity Platinum diligence on the network of suppliers; the IMS (Internal Seal, the prestigious recognition awarded by VCMI Monitoring System), which monitors the ingredients (Voluntary Carbon Markets Integrity Initiative). The connected to the socio-biodiversity value chain; and seal refers to 2022 and was awarded in recognition Regenerative Practices, which testifies to the positive of Natura having fulfilled requirements such as impact of the farming and extractivist practices in the efficient governance, traceability and process of environmental regeneration. transparency regarding its carbon credit GRI 308-1, 308-2, 413-1 projects, and appreciating initiatives developed within its value chain. 79 79 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Recognition • Awards and recognition Brand Finance: Voted the world’s strongest cosmetics brand for the fourth year running, by the Brand Finance 2024 report Sustainability Leaders 2024 Natura was the third most sustainable company in the world in 2024 Brand Inclusion Index Kantar Natura recognized as the most inclusive brand in Brazil Corporate Reputation Company Monitor (Merco): • 1st place in Brazil for the tenth year running • 5th place in Argentina Folha Top of Mind: Winner in the Moisturizing Cream and Environmental Preservation categories AmCham Award (United States Chamber of Commerce in Argentina): Winner in the Corporate Citizenship category (special mention) Forbes Recognized as the best company for women to work for Merco ESG: 1st place in Brazil 2nd place in Argentina and Chile 3rd place in Peru Época Negócios 360° Natura was the third most sustainable company in the world in 2024 Los Boscare Awarded 1st place in the Bóscares Perú 2024 for our work in the Peruvian Amazon Reporting Matters Brasil Integrated Report recognized among the top 15 in Brazil for two consecutive years. Merco Talent: 1st place in Brazil 13th place in Argentina World’s Best Brands 2024 - Brazil. Natura and Avon ranked among the best cosmetics and makeup brands in Brazil. Natura ranked in the TOP5 for skin care. AmCham Award 2024 Product of the Year (POY) in Chile for ‘Humor Liberta’ and ‘Shampoo Biome’ Open Startups Ranking: TOP Open Corps in Brazil 80 3 Climate, biodiversity and nature 81 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index For a long time, we used to take the Brazil nut from the forest and sell it without knowing whether the price was fair. We simply accepted whatever amount was offered. We worked hard and, even so, saw little in return. It felt like our effort had no value. When we began our partnership with Natura more than 30 years ago, things started to “ ELIZABETE FREITAS DOS SANTOS Extractivist at the Iratapuru Sustainable Development Reserve change. It was one of the doors that opened for our community—and for my own life. Today, I’m part of Comaru, an extractive cooperative that has strengthened our organization and given us greater autonomy. Throughout this journey, we’ve learned to transform the Brazil nut into a product with more added value, made with our own hands and with the knowledge that comes from the forest. We managed to build the infrastructure to process the oil from this asset right here in our community—and that made all the difference. From that point on, we began selling 100% of our production to Natura through long-term contracts. This brought income, jobs, and dignity to our families. It brought security, stability, and the real possibility of growth. We learned to calculate our costs and negotiate a fair price. With this work, we structured a fund together with Natura that gives the children of extractivist families the opportunity to study. Four of my children received scholarships. Sandra was one of them. Today, she works with us at the cooperative, bringing back the knowledge she gained and strengthening what we’ve built together. Each product carries a story: it starts deep in the forest and continues in the hands of those who respect what it offers. This is how, day by day, we build an economy that keeps the forest standing. This is how we ensure that the forest remains a home, a source of livelihood, and a horizon for future generations.” 82 82 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Climate, biodiversity and nature GRI 2-23, 2-24, 3-3, 101-1, 101-3, 101-4 In order to be able to regenerate, a company needs to operate systemically to promote the conservation and regeneration of biodiversity, raise the standard of wellbeing and improve the quality of life amongst the communities and business partners, whilst at the same time implementing comprehensive initiatives designed to tackle climate change. To achieve this, we have always adopted an holistic approach, involving everyone we work with. With this 360° vision, our ambitions and targets also involve all aspects of regeneration. Natura’s Commitment to Life and 2050 Vision initiatives define the integrative approach we take to the key-issues of our business - its relationship with the socioeconomic development of the regions, the responsible use and regeneration of natural resources, and the seizing of opportunities related to the climate. Highlights and progress in 2024 We renewed the future vision of the Natura Amazônia Program, that aims to position the region as a hub of wealth, innovation and technology, strengthening our regenerative business model (read more on page 92). We commemorated the tenth anniversary of the Ecopark, Natura’s technological, industrial, and innovation complex in Benevides, in the Brazilian state of Pará (see more on page 141). The Living Amazon funding mechanism began operations and has already raised R$ 21 million. The initial actions have benefited 13 agro-extractivist cooperatives and associations in the region, having a positive impact on more than 2,500 families. We developed the Socio-climactic Vulnerability Index and implemented actions in support of those affected by the floods in Rio Grande do Sul, and the droughts that hit the Northern, Northeastern and Midwestern regions. We inaugurated an essential oils agribusiness in partnership with the Campo Limpo Community Farmers Association (Aprocamp), based in Santo Antônio do Tauá in the Brazilian state of Pará. 83 83 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Climate Transition Plan: systematizing our climate-related actions GRI 201-2, 3-3 In 2024, supported by regenerative thinking, we created our The Climate Transition Plan includes our target for Climate Transition Plan, made up of the following pillars: achieving zero net emissions at our own installations • Build resilience; mitigate climate risks by means of (Scopes 1 and 2) by 2030, and in our value chain (Scope regenerative solutions. 3) by 2050, with an intermediary target of achieving a • Achieve decarbonization of the business using science- 42% reduction in the latter case by 2030, as set forth in based targets, aligned with the 1.5° commitment (Paris the Commitment to Life. Agreement). • Pursue a fair and balanced transition, with It is important to highlight that, until we achieve our comprehensive regeneration for society and nature. targets, we will continue to purchase trustworthy carbon credits at sums equal to our remaining emissions that have By means of this plan, we are presenting the path and the yet to be reduced. The choice of the projects for which targets that we have constructed to achieve Net Zero, guided we purchase credits focused on generating benefits by the Science Based Targets initiative (SBTi). Essentially, for society, increasing the incomes of the communities this means going beyond the classical mechanisms for involved, and enabling new low carbon technologies and offsetting impacts and neutralization, such as the acquisition nature-based solutions that can accelerate the transition of carbon credits, to achieve the actual reduction of total of the global economy to Net Zero. We are committed to greenhouse gas emissions in our operations - both the direct 50% of our credits originating from those communities ones, generated by the company itself, and the indirect with which we have partnerships in the Amazon region ones, generated by our value chain (read more on this in the by 2030 (read more about the Amazon Program later on, Decarbonization of the Business chapter). starting on page 92). The Climate Transition Plan includes our target for achieving zero net emissions at our own installations (Scopes 1 and 2) and in our value chain (Scope 3) 84 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The carbon market in Brazil In 2024, the Brazilian Government approved the law that created the Brazilian Greenhouse Gas Emissions Trading System (SBCE). Since the beginning of the discussions on the creation of a regulated carbon market in Brazil, Natura has been in favor of the fair distribution of the carbon credits amongst the local communities and the inclusion of socio- environmental safeguards in the market mechanisms, in order to ensure environmental integrity and equality in the participation of the interested parties in the mitigation of climate change. For the company, regulation of the market could lead to billion-dollar revenues and create thousands of jobs, improving the public’s quality of life, and allowing the country to position itself as an important global agent in the fight against the climate crisis. We are partners in alliances aimed at streamlining the paths that will allow society to be Net Zero by 2050. Through our membership in organizations such as the ICC, WBCSD, VCMI, the Global Compact’s Net Zero Ambition Movement, the Brazilian Voluntary Carbon Market Initiative (BR VCM), CEBDS, Commitment to the Climate, and the Brazilian Coalition on Climate, Forest and Agriculture, we aim to give a voice to, and amplify, our position in global forums and in the articulation of public policies and regulations. 85 85 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our decarbonization plan GRI 3-3 We have created six working fronts designed to address the decarbonization of the business: Operations, Formulas, Packaging, Logistics, Magazines and Support Materials, and Non-Cosmetic Products. Together, they account for 75% of the total inventory of Latin America, and 100% of the scope of our SBTi targets. The working fronts are focused on both internal actions and the engagement of suppliers and the value chain, as part of a systemic and holistic approach which is based upon regeneration to reduce and end carbon emissions. 1. Operations: focused on actions at our factories, distribution centers and vehicles, implementing more efficient initiatives involving less energy and the elimination of fossil fuels. 2. Formulas: we invest in Research and Development to substitute ingredients of mineral origin with those of plant origin, and adopt low carbon regenerative practices throughout the value chain. 3. Packaging: we are looking to provide refills, materials which include recycled materials or which originate from a renewable source, use green plastic, and reduce the generation of waste. 4. Logistics: the focus lies on increasing the use of renewable and less polluting fuels, and improving the efficiency of the logistics DA network. 5. Magazines and Support Materials: we have optimized the portfolio, design and format of our publications, with a reduction in the print run and in the average weight of the magazines, whilst also looking for technological solutions so that, in the future, with the improved usability of digital materials, we can fully end printed materials. 6. Non-cosmetic products: just like in Natura’s Crer para Ver line, and Avon’s Home& Style category, we are working to reduce the generation of waste, increase the incorporation of post-consumption recycled plastics and green plastic, and increase the recyclability of the items and the traceability of the supply chains. In ratio to our Scope 3 emissions, we should highlight the creation of the Regenerative Alliance (read more on this in the ‘Development of Suppliers’ p. 147)), an initiative which brings together Natura and around 100 strategic partners whose contributions are decisive for the success of our climate plan. READ ABOUT our Climate Transition Plan in more detail in the Latin America Databook. 86 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Climate justice GRI 3-3 Climate justice guides the disproportionate impacts of climate change in different social groups, and is used as a tool for the preservation and protection of the environment and all forms of life, regions and communities. Climate change is the result of a set of environmental inequalities, meaning that tackling environmental injustice needs to be prioritized with an intersectional vision of gender, race and class issues. Climate justice means recognizing the disproportionate impacts on traditional, marginalized and Black communities. The perspective of environmental racism is therefore crucial to this discussion.Based upon this context, 2 - Resilience To mitigate the impacts and risks that directly affect income, we have been working to reduce the social vulnerability of the network. Furthermore, in 2020, we structured a protocol to provide support in the event of calamities, focused on the wellbeing of the network of Beauty Consultants, employees, suppliers and civil society. We have evolved in this area to be able to act preventively, acting before disaster situations occur. 3 - Education and citizenship We focus our actions on providing training sessions and communicating about the issue of climate change and climate justice to ensure that our network of relations understands these issues and can begin to act as agents of change and support in their communities. we have developed a strategy to address climate justice and environmental racism based upon three axes: Calamity Committee GRI 203-1 The Calamity Protocol, structured as a guide for immediate 1 - Mitigation and adaptation action by Natura in the event of crisis situations has already We have developed the Socio-climatic Vulnerability been enacted 20 times since it was created in 2020. Over Index, to be able to create protocols, and prevention, the course of the year, it worked in those regions that remediation and adaptation plans. By means of this index, suffered flooding, in Rio Grande do Sul, and those which we map the regions at climate risk to be able to identify the suffered record drought levels in the second half of the year. vulnerabilities and prevent the threats that could harm our A total of more than BRL 226 million was invested to provide network of relations. support for the communities in these locations. 87 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In the case of Rio Grande do Sul, where we have relationships with more than 80,000 People, including Beauty Consultants and employees, we offered social, medical and psychological support in the form of telemedicine and a Social Support Center, as well as financial support for the payment of debts and local suppliers. We encourage our employees to volunteer, and we donated five tons of warm clothing and personal hygiene products worth BRL 10 million to the Department of Civil Defense and UNICEF, as well as water and logistics support. We have also created a matchfunding campaign whereby Natura doubles every Brazilian Real donated. By means of this action R$ 900,000 was donated to support the affected people. Amongst the actions developed to tackle the effects of the droughts in the North, Northeast and Center-West regions, we offered financial support, with the deadlines for payment of debts being postponed and the provision of food and water supplies. As a means of contributing to tackling the depletion of the rivers in the Amazon region, in areas where Natura’s supplier communities operate, we have established activities involving the Ekos Ryos perfumes: for each unit sold, we donate R$ 5.00 to initiatives fighting the effects of the drought. As such, R$ 180,000 was raised, which, once the counter entry from Natura was included, was doubled to BRL 360,000 in funds donated to providing emergency services. The Calamity Protocol has already been enacted 20 times since it was created in 2020. 88 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Management of biodiversity GRI 3-3, 2-24, 2-25 The loss of biodiversity is a very real threat to the different forms of life inhabiting the planet. We have adopted a regenerative approach which combines the Climate Transition Plan with human rights and the management of biodiversity, privileging the sustainable bioeconomy. We value and favor ecological processes, guaranteeing maintenance of the ecosystemic services - with the provision of water, land support, and climate regulation – which are fundamental for the survival of people an the productive systems. The Sustainability Board manages the Biodiversity Policy, with strategic targeting and monitoring by the Sustainability Committee. Its scope covers our direct operations and those of the value chain in relation to: 1. Science and Technology; 2. Formula and Packaging Development; 3. Relations with Traditional Peoples and Communities; 4. Ethical Sourcing with Regenerative Practices; 5. Benefit Sharing and Incentives for Ecosystem Services; 6. Purchase of Inputs from Private Producers or Companies; 7. Direct Operations; 8. Communications and Marketing. We focus first and foremost on a sustainable sociobioeconomy to support the ecological processes and maintain ecosystemic services. 89 89 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index For management of plant-based and natural ingredients, (TNFD). The aim of the application of the TNFD is we use the system linked to the UEBT (Union for Ethical to provide integrated and adaptable science-based BioTrade) certification, and, for the socio-biodiversity guidance, that will allow companies to evaluate and chains, we also use the Natura GIS system to provide publish their nature-related risks and opportunities, monitoring and tracking services. To actively engage employing an approach that is integrated with the suppliers, we work through the Regenerative Alliance, climate-nature relationship, and analysis of the double the coalition that we support with the aim of increasing materiality focused on the nature-related impacts and the adoption of regenerative practices. dependencies. This evaluation is being conducted with a For our direct operations, we have an ambitious Force on Climate-related Financial Disclosures) process. environmental methodology, covered by the For now, we are presenting our Declaration in relation Integrated Management System Policy, to meet to Natura (read more in the ‘Risk Management’ booklet) the demands of the ISO 9001 (Quality Management and we will be finalizing our evaluation of Avon Latin Systems) and 14001 (Environmental Management America by the second half of 2025. view to taking an integrated approach to the TCFD (Task Systems) norms, the latter of which includes the adoption of a circular approach and the reduction We have applied the ‘LEAP’ (Locate, Evaluate, Assess and control of carbon emissions related to the and Prepare) methodology to value chain, with the manufacture, transportation and storage of products, aim of reporting our impacts and reliances in relation in line with the highest international standards. to biodiversity based on recognized international standards. Risks and opportunities related to the Natural Capital Natura is committed to publishing the results of In 2024, we continued to map the risks and the mapping of risks and opportunities regarding opportunities related to the Natural Capital, with Natural Capital by 2025, in line with the Kunning- the aim of following the guidelines set forth by the Montreal Global Biodiversity Framework and our own Taskforce on Nature-related Financial Disclosures Commitment to Life. 90 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Participation in the COPs Latin America has a central role in the climate agenda and in relation to global biodiversity, especially considering that the COP16 was hosted in Cali, Colombia, and COP30 is to be held in Belém, Brazil. These events represent strategic moments for the region to consolidate its leadership in climate actions and those related to biodiversity. Natura recognizes the importance of these conventions in boosting nature-based solutions and promoting a fair transition to a low-carbon economy, in line with the Paris Agreement. The integration of the biodiversity and climate agendas, connecting the COP 16 and COP29 in Baku, Azerbaijan is crucial due to the interconnection between the two environmental crises. At COP16, we emphasized the integration of biodiversity perspectives into business practices. We actively participated with: 13 representatives 60 panels 2 agreements signed in support of Amazonian socio-biodiversity 91 91 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Amazon: innovation and regeneration GRI 2-29, 3-3, 203-1, 413-1 Our work in the Amazon region symbolizes our Positive results • Six years earlier than planned, we achieved our target of establishing relations with 45 communities within the socio-biodiversity, strengthening the sustainable chains and the socioeconomic development of the region; • We have built relationships with more than 10,000 families in the Amazon region; proposal to regenerate and prosper. The region is • We use 46 bio-ingredients sourced from the Amazon home to approximately 38 million people people, the greatest biodiversity in the world, and a forest that is essential for the climate balance of the planet. It represents our main platform for innovation and for generating positive impact. In our business, we prioritize the use of natural ingredients and bio-ingredients, sourced, primarily, from the socio-biodiversity of the Amazon region. To obtain them, we work ethically and directly with the local communities, encouraging responsible agro-extractivism and agroforestry systems, with sustainable and safe management practices, whilst practicing the fair and equitable distribution of benefits amongst these partners. We also maintain an important focus on payment for environmental services. region; • We developed 94 supply chains in the region, collecting bioactives whilst respecting forest conservation, the harvest calendars and the local ways of life, and surpassing the target established for 2030; • We shared R$ 48.5 million in resources with the communities, with R$ 24.5 million relating to the purchase of inputs extracted from the socio-biodiversity.; • We contribute through inclusion of approximately 2.2 million hectares of protected forest; • The Brazil nut chain was the first to receive UEBT Regenerative Certification - five supplier communities have received the certification. In 2024, 3.4% of our ingredients held regenerative certification. • Evolution in the development of the supply chains with communities in Colombia, Peru and Ecuador. READ ABOUT our sustainability and human rights activities as they relate to the value chain in more detail in the Ethical and sustainable supply chapter. 92 92 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index New Natura Amazon Program Since 2011, we have been running the Natura Amazonia Program, which aims to transform social environmental challenges into opportunities for business and sustainable local development. The program combines initiatives focused on mitigating the effects of climate change and halting the loss of biodiversity, using science-based targets. In 2024, we proposed that the program should evolve to position itself as a catalyst for an ecosystem of regenerative business and solutions, based upon innovation and traditional knowledge, that will allow diversification of the operations, increased impact, and the generation of wealth in the region. Under this new configuration, the program is based upon three operational drivers for a regenerative transition: • Science, Technology and Innovation • Strengthening communities and regions • Ecoparks and new business STRATEGIC LEVERS Ecopark and new business Science, technology and innovation Strengthening communities and regions OBJECTIVE To strengthen the leadership position in sustainable science and technology in the Amazon region, driving the local ecosystem and innovations which value biological diversity, local knowledge and traditions, and regenerative practices; OBJECTIVE To strengthen and diversify the operations and the business model by means of continuous and expanded innovation based upon the bioeconomy and nature. OBJECTIVE To promote the Well-Being-Well initiative through the strengthening of communities and their regions, whilst making the system more resilient and scaling up the impacts for all (win-win-win). 93 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Supplier communities GRI 2-6, 2-29, 413-2 25 years ago, we decided that one of our differentiating features should be the use of natural ingredients and bio- ingredients sourced from socio-biodiversity, principally in the Amazon region, having been acquired and developed with respect for both people and nature. As such, we do not have operations which have significant negative impacts on these supplier communities. In relation to the Commitment to Life, we managed to hit our target of extending our partnership to 45 agro-extractive communities (up from 34 in 2020) six years earlier than planned. We shared R$ 48.51 million in resources with the communities, with R$ 24.52 million relating to the purchase of inputs extracted from the socio-biodiversity. In 2024, our business impacted the lives of 10,548 families. In the Colombian Amazon region, we invested in the development of the cupuaçu chain, with more than 78 families benefiting from the initiative, and plans under way to also develop the buriti, murumuru, patauá and ucuuba chains. Investment in the region was also boosted by 94 94 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index means of the agreement signed with the One of the tools used to monitor our relationship German Cooperation Agency (GIZ), ensuring the with these stakeholders and identify opportunities for sum of R$ 700,000. improvement is the loyalty survey that is conducted every two years amongst the supplier communities More than R$ 225,000 was invested in machinery, in the Amazon region. In the most recent survey, reforestation and knowledge, thus driving the conducted in 2023, the index measured was 48%, production chains and supporting the Climate suggesting a recovery to pre-pandemic levels. The Transition Plan. aim for the forthcoming cycle, planned for 2025, is to In the Peruvian Amazon region, the development of the cupuaçu, buriti and murumuru chains, benefits Benefit sharing surpass 50%. GRI 413-1 more than 2,300 people in three different communities Natura also works on the longevity of the partnerships (Parinari and Río Blanco-Iquitos, in the Loreto region, as with the local agro-extractivist communities well as the Madre de Dios region). More than 29 tons of through the fair sharing of both monetary and cupuaçu butter were exported to Brazil. non-monetary benefits. We have remained adherent to the Convention on Biological Diversity (CBD), We also managed to receive recognition for our work which determines that companieswhich use genetic in the Pan-Amazon Region in the form of the Boscares resources or the associated traditional knowledge for Award for the Peruvian Amazon Award. commercial purposes should return part of the benefits generated to the traditional peoples. We promote training to strengthen management and organizational development, encourage good Along these lines, we prioritize payment involved in the management practices, and involve the communities distribution of the benefit directly to the communities. in our procurement policies, as well as human rights By doing so, we aim to ensure management autonomy, and safety at work (read about this in more detail in the promotion of environmental conservation, and the Latin America Databook). sustainable use of biodiversity. 95 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Social bioeconomy in practice GRI 203-1, 413-1 Our presence in the Amazon region involves projects and long-lasting and sustainable relationships with the local communities. Read about some of them below. Agroforestry: Palm Oil AFS The Palm Oil Agroforestry System (AFS), is a partnership between Natura, the Brazilian Agriculture Research Company (Embrapa), the Tomé-Açu Mixed Agricultural Cooperative (Camta), the United States Agency for International Development (USAid), and the International Centre for Research in Agroforestry (ICRAF). The initiative follows the guidelines of the Roundtable on Sustainable Palm Oil (RSPO) and the UEBT. It is a nature-based solution for the production of palm oil via regenerative agricultural practices. The solution mimics the dynamics of a biodiverse forest. The project was launched in 2008 and, in 2021, after 13 years of research, it began supplying the raw- materials for the Biōme line of bar-shaped products and plastic-free packaging. 96 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The Palm Oil AFS will also have a positive social environmental impact by enabling carbon sequestration, increasing climate resilience and doubling the income of the farmers. In 2024, Natura signed a cooperation agreement with the Department of Family Farming of the State of Pará (Seaf ) as a means of moving ahead with the project. This step forward meant that a partner was brought into the initiative, demonstrating a strategic commitment to the development of public policies that involve the adoption of regenerative practices. The project, that is currently in a phase of expansion, covers 413 hectares through its partnership with Camta (Tomé-Açu Mixed Agricultural Cooperative), and is set to occupy 650 hectares during the present 2024/2025 harvest year. We aim for 45,000 hectares to be occupied by a Palm Oil AFS by 2035, based upon our own investments and those made through partnerships with other companies and institutions. The Palm Oil AFS will also have a positive social environmental impact by enabling carbon sequestration, increasing climate resilience and doubling the income of the farmers due to the greater diversity of producers, when compared to the palm monoculture. Association of Female Agro-extractivists GRI 414-1 In 2024, we established a new relationship with the Association of Female Agro-extractivists of Médio Community Social Progress Index (IPS) We use the Social Progress Index (SPI) to measure the social and environmental performance of the agro-extractivist communities and regions where we also operate to inform the Strengthening of Communities and Regions aspect of our strategy, based upon a model that combines environmental conservation and regeneration with the generation of revenue. The SPI was applied to three territories in the states of Amazonas and Pará (Juruá, Tapajós and Baixo Tocantins) between 2015 and 2022, an initiative that involved the collection of primary data. In 2024, we revised and customized the methodology, with the aim of making the collection more agile and easier, allowing for a gain in scale for application throughout the area in which we operate in the Amazon region. The revised methodology was applied in the form of a pilot scheme in four regions (Juruá, Baixo Tocantins, Marajó and Acre- Alto Madeira) in 2024, and is to be expanded to the other regions as of 2025. 97 97 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In 2024 we paid R$ 1.9 million in payments for environmental services to the community, preventing 68,000 tons of greenhouse gas emissions. In total, the Reca project has already prevented more than 368,000 tons of CO2 emissions. READ ABOUT our team in more detail in the ESG Scorecard and the Latin America Databook. Juruá (ASMAMJ), located in the municipality of Carauari Amazônia Viva Funding Mechanism (AM). By means of this partnership, we achieved our This mechanism began operations in 2024, and target of 45 communities in the Amazon region. has raised BRL 21 million for the credit vehicles [Agribusiness Receivables Certificates (CRA) and Payment for Environmental Services the Enabling Conditions Facility (ECF)], whilst also Since 2016, in partnership with the Consortium and involving the Vale Funding Fund, Good Energies Densified Economic Reforestation Cooperative (Reca), Foundation, Natura and the International Finance based in Porto Velho (RO), we have been running a Corporation (IFC) as investors. The project, Payment for Environmental Services (PES) project developed by Natura, in partnership with VERT focused on carbon offsetting. This operates together Securitizadora and the Brazilian Biodiversity Fund with the Reca production chain and family farmers, (Funbio), began with an operation that benefits 13 with a strategy designed to recompense the farmers agro-extractivist cooperatives and associations in for the efforts they make to conserve the forest and the region, having a positive impact on more than employ sustainable production methods in the farming 2,500 families. of socio-biodiversity assets. In 2024, we paid BRL 1.9 million for environmental services, preventing 68,000 In 2024, as a means of strengthening the tons of greenhouse gas emissions. governance of the mechanism, we created the Advisory Board, involving the participation of In total, the Reca project has already prevented the Natura, the Vale Fund, two representatives from emission of 368,000 tons of CO2. Reca has had a close relationship with Natura since 2001, focused on the supply of capuaçu butter, and andiroba and Brazil local communities and one representative from wcivil society. nut oils. The project has already seen BRL 7.8 million All the cooperatives and associations that accessed in payments for the creation of carbon credits, which the CRA in 2024 received financial management have positively impacted 270 families and conserved support from a consulting firm. This contributed 2,650 hectares of forest area. to there being no cases of default in the first year of 98 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index the initiative. At the end of the year, seven participants returned to access the mechanism to fund their harvests in 2025. Operation of the Funding Mechanism is made possible by means of two principal instruments: • The issuance of CRAs by VERT, which provides agro-extractivist cooperatives and associations with advance financing. The funds can be used as working capital for the annual harvests, making the operations more efficient and increasing productivity. • Enabling Conditions Facility (ECF), a fund containing non-reimbursable (philanthropic) financial resources created by Funbio. The aim is to support initiatives designed to strengthen the operational and institutional aspects of the socio-biodiversity chains and address structural challenges in the regions, providing specific support for young people and women. Over the coming years, we estimate that the Amazônia Viva initiative will boost economic and sustainable development in 16 regions, increase the production of more than 40 agro-extractivist cooperatives and associations, and benefit more than 10,000 families in the region GRI 413-1 The aim of the Amazônia Viva initiative is to provide the region’s agro-extractivist cooperatives and associations with access to funding systems. The objective is to strengthen the socio-biodiversity chains and their territories in the Amazon region, based upon a model that combines the generation of income with environmental conservation and regeneration. The issuance of debentures strengthens the bioeconomy In 2024, Natura became the first Brazilian company to issue debentures tied to the bioactives of the Amazon region. We raised BRL 1.32 billion, with the International Finance Corporation (IFC) contributing BRL 300 million, and the Inter-American Development Bank (BID) another BRL 200 million. Under this model of debentures emissions, in the format of sustainability-linked bonds (SLBs), there are specific sustainability targets attached to the funds. One of the leading commitments is the development of Amazon bio-ingredients. With the IFC and IDM as investor, the contributions undergo a process of rigorous due diligence, ensuring compliance with international standards of sustainability and ethics. 99 99 3 Brand and positioning 100 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Twenty years ago, when I started working as a Consultant, very few people had heard of Natura in Argentina. I remember being in a class and nobody knew about the company. I was touched when, many years later, the same university asked me to speak about our practices. Natura has become the fifth most reputable brand in the “ country and the first in direct sales. Seeing this sort of recognition makes me very proud. And I was fortunate enough to experience this transformation! This shift didn’t happen overnight - it was developed consistently over time, with bold decisions and honesty. We are now a benchmark company. Now we have a different challenge: to integrate brands with different histories into the same ecosystem. Natura and Avon are both very powerful, each one in its own way, having taken different paths. This is not about integrating channels and brands, but about expanding perspectives. The challenge is to transform this multi-brand and multi-channel reality into a coherent movement and a shared objective. The reputation we build now needs to grow together with this new configuration. It is now time to build without losing our strength, to integrate without losing our character. As one of our leaders reminded us, we have a responsibility to demonstrate that doing the right thing is the right way to go.” VERONICA MARCELO General Manager at Natura Argentina 101 101 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Natura: innovation, sensory experience and proximity The year was notable for Natura’s growth in Latin America, anchored in the strength of the brand and driven by the multichannel presence which, with a more robust value proposal, increased the financial success of the Beauty Consultants. With more than one thousand retail stores, the renewal of the e-commerce and the digital tools available to the Beauty Consultants, as well as inroads into marketplaces (read more on this in the Omnichannel p. 112), the brand is increasingly more connected with the different consumer experiences. Natura has reinforced its connection with its publics by reviving the concept of Well-Being-Well, which invites people to reflect upon their choices and their relationship with themselves and the world. To celebrate the 30th anniversary of Natura in Argentina, we undertook a survey which revealed that only one in three Argentines is fully connected with their wellbeing. Iza, a singer recognized for her authenticity and energy, represents the Natura Tododia lines, promoting the value of self- care and personal connection. Her presence amplifies the brand’s messages about wellbeing and environmental responsibility, thereby strengthening its visibility. 102 102 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The survey found that cosmetics and personal care products provide a feeling of wellbeing for a quarter of all Argentines, especially women and those engaged in seeking it, demonstrating the potential of the routines involving our products to provide this sense of wellbeing. The Natura campaigns combine sensory experiences, innovation and a cultural commitment, strengthening the bonds with its consumers. The partnerships with ambassadors such as Iza, Maisa, Endrick and the e-sports team ‘MIBR’ (Made in Brazil), which communicate values such as self-care and sustainability, reflect Natura’s commitment to authenticity and diversity, reaching numerous publics. In 2024, as part of our anti-racism commitment, Natura implemented an initiative in Brazil to guarantee ethnic- racial representativeness in all our the brand, qualitative and quantitative studies. Furthermore, we now ensure that at least 50% of those participating in the campaigns are Black: a commitment undertaken by both the Natura and Avon brands. GRI 2-29 Maisa, an actress and influencer, is an ambassador for the Tododia and Ekos lines of perfume. With enormous Maisa highlights sustainability and self-esteem in her content, campaigns and events. 103 103 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The Sonora Natura brand Produced in partnership with Soundthinkers, this brand reflects the nature of the Amazon region in sound. To develop this, Natura explored its history of connections with nature and the commitment to socio- biodiversity, and selected the sounds by capturing the electrical pulse of the trees native to the Amazon region. 104 104 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Appreciation of diversity and cultural identity Natura made its mark on Rock in Rio 2024, as a co-sponsor of the Sunset Stage, promoting shows bringing together Brazilian and international artists as a means of appreciating diversity and musical innovation. The brand offered sensory experiences with the Ekos, Humor, Faces and Fotoequilíbrio lines, and launched a special collection of ‘Faces’ lipsticks bearing the brand of the festival, thus increasing the connection with the festival goers. Natura also participated in Brazilian festival such as the Zepelim Festival, Coala Festival, Frequências Preciosas and Coquetel Molotov, bringing its experiences strategy to a wide range of publics. During the Círio de Nazaré religious festival, in Belém (PA), Natura celebrated popular culture by sponsoring the Varanda de Nazaré and Arrastão da Pavulagem, highlighting the powerful role played by the music and the Amazon traditions. For more than a decade, the brand has invested in cultural initiatives n the region, including support for 88 musical projects in Pará, demonstrating its appreciation for the history and future of the Amazon region. 105 105 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index 30 years in Peru In 1994, we opened our first office in the district of Miraflores, in Lima, the capital of Peru, with 160 Beauty Consultants.In 2019, we launched our e-commerce business and, in 2022, we opened our first store in the Mall del Sur, in Lima. The Natura Institute began operations in Peru in 2021. We celebrated 30 years of operations in the country, and we have a network of more than 150,000 Beauty Consultants. 30 years in Argentina In 1994, we began our operations in Argentina, hit our target of 1 million Consultants in 2009, and began local production in 2010. In 2017, we launched the e-commerce business and opened our first store at the Unicenter. In 2020, the country became Natura’s first 100% digital operation and welcomed the Natura Institute. We commemorated our 30th anniversary, with more than 300,000 consultants. To commemorate Natura’s 55th anniversary, we reproduced the brand’s first store at the administrative offices in Brazil. In the photo, Luiz Seabra, one of the founders of Natura, is looking at a magazine from 1970. 106 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Principal launches Tododia for hair We announced our entry into the hair market with the ‘Tododia’ brand, including products from the hydration, nutrition and repair lines. The formulas for the new items were developed from ingredients such as Aloe vera, almond oil and avocado oil, using our exclusive prebiotic technology, which is already used in our body care products. Ekos Ryos, Ryo Vivo and Ryo Chuva Fragrances that imbue the skin with the potent scent of the forest. These products are connected to the Rios Vivos initiative, which promotes a sustainable chain of recycled plastics amongst river-dwelling communities and recycling cooperatives in seven municipalities in the Amazon region. Bothânica Marking Natura’s entry into the home products segment, this new brand offers items such as massage oils, liquid soaps, hand moisturizers, aromatic candles and room sprays. The principles of bio-innovation are highlighted in the sustainable packaging and in the high level of naturalness, biodegradable and plant-based actives, and the use of pure essential oils sourced from the Latin-American biodiversity in all the formulas. 107 107 Premium perfumes We entered this segment with the launch of a line of ten products notable for their innovation and versatility, with new features such as perfume in oil form and the development of a Natura Perfume Library, which catalogs the fragrances according to the combination of global perfume components and our own Latin-America sourced ingredients. Since 2004, the line has included the 505 Íris Priprioca, 679 Ambrette Copaíba, 740 Sândalo Breu Branco and 875 VetiverCapitu fragrances. Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In 2024, Natura Musical invested R$ 8.4 million in cultural projects. Natura Musical The Natura Musical Program celebrated its 19th anniversary in 2024, investing a total of BRL 8.4 million, BRL 7.1 million of which was in the form of its own funds and BRL 1.3 million via tax incentive laws. With more than 49 projects under way, special mention should be made of the release of the Amaríssima album by the Bahian artist Melly, which was nominated for a Latin Grammy in the category of Best Contemporary Pop Album in the Portuguese Language, and the documentary Mestras, which tells the story of four icons of Pará music and was the first feature-length documentary from Pará to be selected for the Gramada Film Festival. Support was also provided to the Arrastão do Pavulagem cultural event, which took place during the Círio de Nazaré religious festival, and the release of Bagaceira, the new album by Dona Onete, the queen of the ‘carimbó chamegado’ musical tradition. The 20th anniversary celebrations of Natura Musical began with the singer Liniker’s long-awaited CAJU tour. The ‘Casa Natura Musical’, a theater we run in São Paulo (Brazil), hosted 145 shows, welcoming 68,000 people. The funds raised through tax incentive programs were directed to projects sponsored by the Natura Musical Call Notice, including cultural initiative initiatives in numerous states of Brazil. The funds were directed to projects sponsored via the Natura Musical Call Notice, sponsorship of the Casa Natura Musical, the festivals platform and the management and dissemination of projects. 108 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Avon: focus and precision to resume growth In 20024, the brand focused on expanding its presence and connecting with different social groups, maintaining its commitment to the democratization of beauty, innovation and inclusion. In terms of launches and the modernization of its portfolio, Avon showed how aware it is of new trends and the needs of different generations. To attract the attention of Generation Z, the brand has invested in its perfume portfolio, with the launch of LOV|U Connected, a fruity, floral fragrance, and the relaunch of the Far Away line, with a new visual identity, for Latin America. Taking innovative steps, Avon adopted the use of Artificial Intelligence (AI) in its publicity campaigns for the relaunch of the Far Away line, creating original visual and sensory experiences to provide an immersive feel for the fragrances. The brand has also remained focused on inclusion, as was demonstrated by the revision of its portfolio in 2020, with the collaboration of the makeup artists Daniele Damata, resulting in a more inclusive palette with up to 20 shades for Black skin. consolidating its position as the leader in the Brazilian makeup sector and expanding its reach in different channels. Demonstrating the development of Avon’s multichannel presence, we announced the brand’s entry into the Brazilian physical retail sector in 2024, in the form of partnerships with specialist beauty products stores (read more in the Omnichannel Journey chapter), as well as inroads into marketplaces. All of this has been added to the e-commerce and Relationship Selling strategies to increase brand awareness, in line with the vocation to democratize beauty. Reinforcing our commitment to diversity and inclusion In the sphere of strategic sponsorships, Avon has sought to strengthen its connection with different regions and publics. For the first time ever, the brand sponsored the Sou Manaus Passo a Paço Festival 2024, with the aim of further strengthening its connection with the people of the North, a region where it leads the makeup sector. During the event, the Power Stay line was given most attention, but the visitors could also experiment with other products and receive makeup tips. Avon also sponsored the launch of the “Essa é a Minha Cor” book, by the makeup artist Tássio Santos, reinforcing its pioneering role in diverse and democratic makeup, and expanding the discussion regarding the fight against cosmetic racism in Brazil. Avon continued innovating its accessible, high performance makeup portfolio with the aim of The brand was also the official sponsor of Afro Fashion Day, demonstrating ts commitment to anti-racism and 109 109 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index highlighting its portfolio of makeups for all types and shades of skin, with special focus on the Power Stay and Tratamake lines. Another development which had enormous impact was the announcement of Ivete Sangalo as the brand’s new ambassador, reinforcing the singer’s long-standing relationship with Avon and its identification with the Brazilian people. Avon is official sponsor of BAF Week Avon sponsored the BAFWeek - Argentina: Avon was, once again, the official makeup of BAFWEEK, Argentina’s most important fashion event. The brand was led by the slogan “EXPRESÁ TU BELLEZA”, noting the way recent beauty trends have been heading, with fresh and daring ideas being presented by the brands and designers on the catwalk. As such, Avon, which promotes a form of beauty that is more democratic and inclusive, sought to inspire people and promote self-confidence. Especially in Argentina, makeup has a close relationship with self-confidence: a study undertaken by Sacateladuda and Avon revealed that, when makeup use increases, the level of self-esteem rises, and vice-versa. It was also found that 42% Argentinian women use makeup every day, recognizing that this moment in the daily routines can improve their image and provide a means of expression and even act as an emotional trigger. 110 110 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Principal Principais launches lançamentos Power Stay liquid lipstick Another high-performance lipstick was added to the Power Stay line, produced using the exclusive Powerflex technology and notable for the comfort found in the user experience, with 20 color options, seven of which are brand new. Moranguinho The relaunch of the lip gloss, an iconic product from the 2000s, forms part of the Color Trend line. As well as providing the chance for those who used the product decades ago to nostalgically relive that moment, the product sought to attract Generation Z with its strawberry-shaped packaging and sweet aroma. Available in two styles, one cream and the other pearl, Moranguinho moisturizes the lips and gives them a rosy tint. Avon Renew Power The Renew line was launched, offering creams for the eyes, facial creams and a replenishment serum, employs our own exclusive technology (Protinol) that balances two types of collagen, capable of renewing millions of skin cells in seven days. 111 111 Renovation of Far Away With a wide range of fragrances recognized by the consumer, Avon’s biggest global perfume brand was relaunched, with activities, trips and immersions with specialists, digital content creators and opinion makers. We also launched a fragrance (Far Away Shine) aligned with the new brand concept. 5 The omnichannel journey 112 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our business began as a consulting space, but it was through the franchise that we expanded our presence and started working with other channels. Over time, we realized that the consumer was changing as well - looking for flexibility, more options and new ways of relating to the brand. And we started learning how to respond to this. “ LIVIA COLÍN Natura franchisee consultant WhatsApp is now active in all the stores and we have been selling a lot through this channel. We also level the prices with those on the site, which helps us to remain competitive and ensure customer loyalty at the physical store. Each channel plays its part. There are people who prefer to settle everything with messages. There are those who prefer to go to the store, try things out, and put together a present. And then there are those who start out buying online, but then gradually become a faithful store customer. This awareness, which comes from the consultancy days, is still our biggest differential. Natura has always encouraged us to pay attention to our own growth. We use Emana Pay, which charges a lower fee, does not charge for rental of the card machine, and has a specific service team exclusively for franchisees. We also have courses, learning targets, management tools and digital and financial literacy content. These courses involve far more than just the product: they address emotional health, financial education and service, and now form an integral part of our team’s routine. All of this has helped to transform our store into a space that is much more structured, professional and connected with what is truly important: people.” 113 113 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Developing omnichannel capabilities Amongst the priorities of the Regenerate and Prosper strategic planning cycle is the strengthening of the path towards omnichannel capabilities. Our aim is to interconnect the sales channels and create an attractive brand experience in each of them; one in which the customer can choose the path which is most convenient for their needs. As such, we are looking for a means of getting our brands closer to the consumer, offering an integrated and personalized experience in each of the channels: in the Relationship Selling, the physical stores, marketplaces and online. A true Well-Being-Well Ecosystem. This is designed to strengthen the business of the Beauty Consultants, who receive innovative tools and training that allow them to digitalize their work and improve the fluidity and connection in their relations with their customers. Relationship Selling Relationship selling is a powerful driver of prosperity for millions of people, in particular, women. The Beauty Consultants lie at the heart of this business model, since they nurture relations with our end consumers and deliver the products to them through direct sales. In 2024, this working model celebrated its 50th anniversary. We currently have 3.1 million Beauty Consultants, including those who work under the integrated model and those working in Argentina and Mexico. This is an activity based upon entrepreneurship, creating opportunities for the creation of income and providing autonomy for thousands of women, whilst allowing them to strengthen their relations with the neighbors. Over recent years, Relationship Selling has been driven by digital relationship channels and the commercialization of products. As such, it has been possible to increase and strengthen contacts with the consumers, customize offers, and personalize the strategies. In 2024, we offered an average of In Latin America, we have 3.1 million Beauty Consultants. 114 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The productivity of the Beauty Consultants improved 50%, on average, in the countries where the Natura/Avon combined model has been implemented, bringing together the brands’ sales forces. We have begun offering online versions of the magazines that present the brand portfolios, as well as ready-made advertising materials that can be shared through social media. These materials are developed using analyses of consumer interests and artificial intelligence tools to personalize promotions. The digitization of our business inserts the Beauty Consultants into all of the company’s other sales channels. They can, for example, create their own digital stores. In 2024, there were more than 1.3 digital million digital spaces, 75.2% of which are in Brazil. Wellbeing for the consultants We base our relationship with the Beauty Consultants on the commitments to creating a decent salary and human development, by means of a value proposal guided by the pillars of prosperity, purpose and belonging. The Beauty Consultants’ Development Index (HDI-BC) was developed in 2014, and based upon the methodology of the HDI of the United Nations’ Development Program (Pnud), which is designed to gauge the quality of life in different countries regarding aspects that go beyond economic performance. This gauging is structured around three areas: 115 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index 1. Knowledge, including analysis of financial education, The HDI-BC also showed an improvement in the digital inclusion and the exercising of citizenship; index in relation to Black and mixed race people, with 2. Health, including access to healthcare services and an increase of 4.4%. lifestyle; and 3. Work, which, as well as demographic data, includes The Beauty Consultants’ HDI in Hispanic America positive and negative experiences and their impacts. rose by 8.9% in relation to 2022, signifying the best score ever recorded. Deserving of special mention The survey is conducted every two years, allowing us to are the advances made in the areas of Health and evaluate challenges and recommend specific policies or Labor, which rose in all the countries, driven by the ways of improving the business model that can positively results concerning access to healthcare services impact the quality of life of those forming our network. and positive labor experiences. With respect to Our target, in line with the Commitment to Life, is to Knowledge, there was a notable increase in financial improve the indicator by 10% by 2030. education in all the countries, digital inclusion in Chile, Peru, Mexico and in the Argentina, and the In 2024, we recorded the highest ever HDI-BC. Brazil exercising of citizenship in Chile and Argentina. reached 0.653 (on a scale of 0 - 1), showing an increase of 3.3% in relation to 2022. The pillars which performed Amongst the actions implemented in the areas particularly well were: Health, especially in relation with the best results are the consolidation of the to lifestyle, which began improving again following health and wellbeing strategy, offering free access a drop during the pandemic; Knowledge, which saw to telemedicine and psychological support services; a significant rise in digital inclusion,a result of the expansion of the lines used for monitoring breast migration to online sales; and Citizenship. The areas health in Chile, Peru and Colombia; and the progress identified which require development and improvement of awareness-raising performed in all the countries. were in relation to the work experience, with reflections In the area of Knowledge, it is worth mentioning the on the perception of the work market as a whole, personal finance and business training programs, rather than solely on the quality of the work as a Beauty the training sessions in the use of digital tools, and Consultant. scholarships for the conclusion of secondary school and technical, technology and vocational courses. 10 years Beauty Consultants HDI reached its best historical result, growing by 3.3% in Brazil and 8.9% in Hispanic America compared to 2022. 116 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Education GRI 203-1 The Beauty Consultants have access to training, qualifications and full-time education initiatives, with the aim of ensuring them autonomy and a means of earning an income, combining personal and professional growth. The main themes of the courses offered are related to the technical aspects of their work, digitization, knowledge of the products, financial education and positioning, socio-emotional skills, and an understanding of the causes promoted by our brands. The actions designed to develop the Beauty Consultants are structured around four strategic pillars: training on sales techniques and management of the business; digitization and omnichannel capabilities, to ensure effective use of digital tools; an in-depth understanding of the Natura and Avon portfolio of products; and the development of leadership and communication skills. In the area of education and digital inclusion, we also have the “Planning My Future” program, in which we have invested in technological training for the Beauty Consultants’ children. The training sessions are provided on the NaturAprende, and Natura and Avon School platforms, YouTube channels and initiatives distributed via WhatsApp. Each channel has specific gauging tools and metrics. 117 117 At NaturAprende the participation in events and workers provide health services for the Consultants. courses, downloads of materials and certifications The professionals assess the context and refer obtained are all analyzed. WhatsApp allows us to them to the free specialized services we offer: monitor the rate of conclusion of the courses sent telemedicine, psychological counseling, as well out, whilst YouTube provides information on the views as confidential support in the event of domestic and engagement levels. In 2024, more than 380,000 violence, offering monitoring, legal advice and consultants were trained in Latin America.* The rate even financial assistance for food, and medical of engagement is gauged by the users’ evaluations of expenses. In relation specifically to the fight against the content offered on the platform, using a scale of 1 breast cancer, the work focused on guidance and to 5, with average ratings of 4.3 to 4.9. monitoring of breast health was extended to Chile, In 2024, we recognized and appreciated those aimed at early detection were also undertaken in all Beauty Consultants who worked as social mobilizers, the countries. Peru and Colombia. Awareness-raising initiatives strengthening the support networks and leading their communities in our Welcome - Together We Transform Program. Health The Health dimension grew in all the countries in Income In 2024, we recorded a 38% increase in the consultants’ income in Hispanic America, the result mainly, of the gains in productivity obtained in Mexico and Peru. There was a 22.9% rise in Brazil, which we operate in 2024. Amongst the actions compared to 2023 - significantly higher than the implemented on this front, special mention should country’s official rate of inflation (IPCA), which was go to the consolidation of the Beauty Consultants’ 4.83%. These actions confirm the real gains and health and wellbeing strategy. These include measurable impacts achieved in the lives of the programs that encourage the self-care, socio- consultants. emotional development and self-esteem of those who form part of a business and impact network. We provide a Social Support Center where social FIND OUT MORE about the indicators relating to our impact on the Beauty Consultants in the ESG Scorecard *The data do not include those countries which have not undergone the business integration process. 118 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Retail The growth of the retail operations continued to accelerate in line with what had been seen in previous years. In 2024, we saw an increase of 15.4% in the Natura store base, reaching a total of 1,076. Of these, 1,008 are in Brazil, 145 being own stores and 863 franchises. In the other Latin American countries, we have 68 Natura own stores, with 40 of them in Chile and the others in Argentina, Colombia, Mexico and Peru. The expansion of the retail area is a branch of the omnichannel strategy. In addition to being spaces where the customers can be served and have an experience, the stores can operate as a location where the customers can pick up their online purchases by means of the “click and collect” option. It is also possible to undertake “ship from store” operations, in which the customer makes a purchase on the e-commerce channel and the closest store sends the product out, thereby reducing the time spent waiting for the delivery. In 2024, we saw good results in customer satisfaction in those stores evaluated by the retail Net Promoter Score (NPS), obtaining 93 points, meaning an increase of 2.2% in relation to 2023. Launch of retail channel in Colombia In 2024, we inaugurated our first three physical stores in Colombia. The stores are located in shopping centers with a lot of movement in Bogotá. The aim is to continue advancing to establish a network of units in the biggest cities in the country, introducing more Colombians to the Well-Being- Well experience. The third store, located in the Fontanar Shopping Center, was developed for the customers to enjoy unique rituals; in a special space, customers are presented with the concepts of care, connection and respect for the Amazon region. Avon enters beauty store retail In a groundbreaking act for the brand in Brazil, Avon entered into partnerships with Soneda Casa de Beleza and Bel Cosméticos for the sale of its products in physical stores. These partnerships make facial, body and hair care products available, as well as makeup, from the Power Stay, Color Trend, Avon Care, Renew and Advanced Techniques lines. 119 119 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index E-commerce We strengthened our e-commerce in 2024, with Presence in marketplaces With a strategy designed to complement our own growth of 19.7% Y/Y in 4Q24, also benefiting from e-commerce, the presence of the Natura and the launch of the new digital platform on the brand’s Avon brands in marketplaces in 2024 increased the website in Brazil in 2Q24 and the strong performance customer’s omnichannel experience. In January, of Natura Friday. Natura opened a pilot store for the Chilean market on Mercado Livre, the biggest electronic trading The acceleration of the digital transformation in platform in Latin America. The experience was Latin America was in part due to the presentation replicated in Brazil in October, and this was followed of a new experience on the online sales channel, by the opening of an Avon brand store in December. with more information on the product and easier navigation. The new platform also provided sales integration solutions both in the area of e-commerce WhatsApp sales in Argentina Natura launched its first online sales channel on and on social media, as well as improved connection WhatsApp for mass consumption in Argentina, a with the Beauty Consultants. We use a modular and country where the app has around 35 million users. scalable digital architecture, which is capable of easily This tool operates as an personalized assistant, personalizing page components which enrich the developed using AI, allowing consultants to advise digital experience, based upon artificial intelligence. and accompany the end consumer over the course of the purchase. The operation is performed entirely within the app. 120 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Bluma In 2024, we launched a beauty and wellbeing services platform for consumers and companies: Bluma. This is a pioneering initiative amongst cosmetics brands in Brazil and is already available in Greater São Paulo, Rio de Janeiro (RJ), Belo Horizonte (MG) and Brasília (DF). Customers can access this new feature by means of an app, which can be downloaded through the App Store or Play Store. Bluma connects our consumers to specialists in beauty and wellbeing services. The app allows customers to book nail, hair, massage, makeup, waxing and beauty services sessions. The professional visits the location chosen by the customer. The cities of São Paulo and Rio de Janeiro also have spaces called ‘Casa das Artistas’ which offer training and spaces where the consultants can relax, recharge their mobile devices and sterilize their equipment. By means of Bluma, we are prioritizing our customers as well as the generation of value for the specialists, as the professionals registered on the platform are referred to, promoting professional development, generation of income, standardization of the services, and bio-security. 121 121 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Emana Pay GRI 3-3 The financial services platform, Emana Pay, was fully established in 2024 as a tool which the Beauty Consultants can use to increase their productivity and profitability. The digital account offers services such as bill payment, cellular phone top-ups, tracking and In 2024, we offered an average of Emana Pay was implemented in 100% of Natura’s own stores and in 60% of the franchises management of orders placed, purchase vouchers for customers, as well as financial education tools. Emana Pay enables the management of payments for sales, by means of Pix or TED services, and creates a link for payment in up to 12 installments, with rates that are below the market average. We ended 2024 with more than one million active accounts and a TPV (Total Payment Volume) of more than BRL 60 million. More than 31 million Pix instant payment transactions have already been made by means of the platform. Currently only available in Brazil, Emana Pay has been implemented in 100% of Natura’s own stores in the country, and 60% of the franchises managed by Beauty Consultants. The impact for the Beauty Consultants is very positive. Those who make use of the platform have an average of 20% more sales than those who prefer other methods of payment. Furthermore, more than 80% of the accounts show a constant increase in revenue. 122 122 5 Transversal innovation 123 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index My journey at Natura was built layer by layer. I started in Quality, learning the technical rigor and the responsibility of ensuring what touches someone’s skin is safe. Then, I dove into Product Development. With every ingredient and decision, there was always the care to deliver on our promises. Transforming science into experience “ has always been part of the challenge — combining precision and sensorial delight in every formula, without compromising on safety, pleasure, or the impact we generate. Later, new questions arose: how can we use less water? How can we reduce carbon? How do we care for the planet and its people? How can we create less waste, choose more natural ingredients, and design holistically — from formula to packaging? Today, I work directly with the consumer. And I’ve realized that innovation only comes full circle when I listen to those who use our products. Because true listening opens up paths that no lab test can reveal alone. These are stories of affection — memories triggered by a scent, a touch, a simple gesture. They help me understand that real innovation is born from this dialogue. It’s in real use, in everyday care, that innovation shows its true strength. And today, with the help of technology, this takes on a new dimension. I can cross-reference hundreds of responses, identify patterns, and uncover what truly moves people. Artificial intelligence helps me read between the lines. And the more I listen, the clearer it becomes: the kind of innovation I believe in is this — grounded in science, but also in emotion; guided by data, but inspired by human connection.” 124 124 ROSA FRIEDLANDER Consumer Research Scientist Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Transversal Innovation GRI 2-29 have reaffirmed our commitment to scientific innovation by operating as a Master Science Sponsor at the IFSCC 2024, the world’s biggest scientific cosmetology congress Natura has adopted a comprehensive and multifaceted which was held in Brazil for the first time. At the event, innovation strategy. As such, 9.7% of the employees we launched a scientific call notice to support Brazilian focus on innovative projects in different areas, from researchers working on lines of study connected to integration of the operation of the brands to the Natura, granting 20 registrations and financial support developments of products, passing through evolution of for three applicants selected from the North and the omnichannel journey, cultural innovation and data Northeastern regions of Brazil. We sponsored another management, the incorporation of technologies, open edition of the Deep Tech Summit, during which startups innovation and new business. took part in an immersion experience at our Innovation Open and collaborative innovation GRI 2-29 Center at Cajamar. We believe that the support for scientific events strengthens the scientific and technology ecosystem in Brazil and connects us to innovative lines of research that are both aligned with our values and Natura believes in the power of open innovation as a drive science-based innovation for sustainable and driver for transformation for connection with innovative technological solutions. talents and ideas. To achieve this, we have developed various ways of interacting with the innovation ecosystem as a means of embracing its diversity. Natura Campus Through the Natura Campus program, we have Natura Startups The Natura Startups program, created in 2016, and based upon the venture client model, provides us with the means of finding innovative solutions, via Startups, to meet our business challenges, whilst promoting mutual growth. been continually investing in collaboration with Natura Startups also works as a driver for the culture the innovation ecosystem since 2016. In 2024, we of innovation by means of engagement actions and sponsored the ANPEI Conference, where the company training aimed at the employees. Find out more about this presented its digital innovation initiatives focused on network that is committed to generating a positive social sustainable development in the Amazon region. We environmental impact through innovation here. 125 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Natura Ventures In 2024, we launched Natura Ventures, a fund for investment Natura Innovation Challenge The launch of the third edition of the Natura in startups, with initial funding of BRL 50 million contributed Innovation Challenge, in 2024, took place as during the first three years of the operation. We will support part of the official programming of the South the development of regenerative solutions that can be by Southwest Festival (SXSW). The challenge implemented into our value chain and corporate network. focused on carbon offsetting and attracted the The fund’s portfolio will include up to 15 startups over the participation of 130 startups from 23 Brazilian course of its ten years in operation, with the contributions states. Twelve hours of individual mentoring were planned at between BRL 2 million and BRL 10 million, provided and four startups were chosen, each of depending upon the maturity of the solution or the startup, which offered business solutions that supported the implementation of carbon offsetting projects: VerdeNovo, Canopy, Bioverse and LandPrint. and the region in which it operates. The initiative focuses on four investment fronts: Regeneration and circularity; Prosperous cycles for the beauty consultants and professionals; The end customer’s connection and experience; and Transformation-enabling technologies. In 2024, Natura mapped and evaluated 291 startups to select those most suitable for investment. The first contribution was made to Abbiamo, which has been a partner since 2002. The technological verticalization solution is focused on increasing logistics efficiency,reducing product delivery times and improving the customer’s experience. 126 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Innovation in Technology and Data Transforming the Culture and Driving the Future We have adopted ethical guidelines for the use of AI and, in Brazil, we have an AI Committee, with plans to expand it globally. We monitor the evolution of the related legislation and promote dialog At Natura, innovation goes beyond simply adopting with our stakeholders through training sessions technologies; it resides in the transformation of and communication actions on the benefits and the culture and training of people to extract the challenges of AI. maximum potential from the data. We believe that true innovation occurs when we democratize access to technology, accelerate decision-making, empower our network, and have a positive impact on society. The Data and Analytics (D&A) strategy We have established an operational model - ‘Hub-Spoke’ - aimed at accelerating the use of data AI has become an enabler of productivity and boosts creativity. We are consistently investing in models that in the business areas. The Hub incorporates data decentralize operations, accelerate innovation and engineering, the solutions team, a scientists’ Center multiply analytical capacity, with guidance from of Excellence, and data management. The ‘Spoke’, a strong governance structure. Evidence of this meanwhile, refers to increased capacity in the transformation was the adoption of the Gemini business areas involving the data owners and data for Google Workspace technology, democratizing citizens who work in squads together with the Artificial Intelligence (AI) for all the employees. From Hub specialists. everyday tasks, such as making notes and creating presentations, to more advanced applications, such Our strategy is based upon four fundamental pillars: as generating images, constructing assistants or Data Expansion: Structuring of a comprehensive creating podcasts with the NotebookLM technology, and accessible database focused on democratic AI has become the go-to tool for increasing technology. Our data lake covers multiple data productivity and boosting creativity. domains, allowing holistic and in-depth analyses. 127 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Data Care: Robust data management, with the clear definition of roles, operating rules and a structured environment that guarantees security, reliability and integrity in the use of data. Data4All: Democratization of access to the knowledge and use of data, by means of formal training, podcasts with specialists and a testing environment involving self-service analytical tools, promoting data literacy and analytical agility. Natura AI: Dedicated to Artificial Intelligence, with a special focus on the optimization of efficiency and value creation. We see AI as a strategic asset that is transforming the Natura network and driving our business indicators. We recognize that the ability to transform data into actionable insights can provide a crucial competitive advantage. As such, we are constantly investing in developing the organization’s D&A maturity, simplifying the analytical environments, increasing access to data and boosting the use of AI for the creation of products and services with a difference. In 2024, we made significant investments designed to accelerate this initiative, involving both the adoption of platforms with embedded AI and also development of our own solutions. MAIA - Natura’s generative Artificial Intelligence The aim of Natura’s AI strategy is to apply generative AI (GenAI) to resolve problems and take advantage of opportunities. ‘MAIA’ (‘Artificial Intelligence Analytical Model’), our generative AI, operates as a hub for numerous AI agents. It is used to provide assistance to the Beauty Consultants, offering sales support, increased credit limits, payment processing, and consultation on orders in a natural form of language. The results include increased satisfaction (NPS), cost reductions, and greater resolution of cases upon first contact. Internally, the MAIA is used in the legal and personnel management departments, for example, supporting AI literacy. Natura’s AI strategy is supported by cloud technologies and Large Language Models (LLM). 128 128 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Research & Development We have a multi-disciplinary R&D team, made the vocations and cosmetic benefits of the up of specialist researchers with an extensive proprietary bio-ingredients. understanding of matters including biodiversity, and skin, hair, and microbiota science, and data scientists This work is performed as a means of reaching and professionals focused on the development of different profiles of the public and studying new methodologies, formulas and packaging, using the different types of hair and skin tones, with advanced, world-class scientific techniques. encouragement for diversity and inclusion in the development of products. We consider In 2024, we presented and were recognized for generational, ethnic, cultural and socioeconomic the project classified as one of the “Top 10 applied aspects. This practice has also influenced our research papers” by the IFSCC International Congress, partners network, by including more diverse which brings together the biggest global players in publics in the testing panels. By doing so, we cosmetics science. These employees work to create are ensuring that the performance of the new technologies and high-performance products products is proven and the sensory, wellbeing based upon the concept of regeneration, with proven and effectiveness benefits are suitable for a wide humane and environmental security. range of social groups. We use machine learning, big data and artificial Our research work also employs methods which intelligence to optimize the processing of information dispense with the use of testing on animals. For in R&D. Aligned with our strategy, we have expanded Natura, this is both a directive and a strategic choice. the use of AI and data to accelerate our technical We employ a technological platform based on data decisions and make them more assertive. In 2024, science to move forward with regard to integrated we leveraged analysis flow in omic technologies, approaches that are capable of supplying the involving structured data bases and artificial highest possible volume of information for safety intelligence computational models to assess assessments of proprietary raw materials. In 2024, Natura registered 15 patents and 10 industrial designs with the International Patent System (PCT). 129 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Continuing with this logic, in 2024, we implemented Artificial Intelligence models to forecast security guidelines on natural ingredients. We hold the “Leaping Bunny” seal for both our brands as part of our commitment to not perform product or ingredients testing on animals - Avon, specifically, was awarded this honor globally in 2024. We also prioritize the use of vegan ingredients in our products. Currently, the only non-vegan ingredient still present in the Natura portfolio is beeswax, used mainly in make-up, but even this is gradually being substituted. In 2024, we managed to ensure that 97.2% of the Natura portfolio was vegan. Safety of our products GRI 416-1 The commitment to safety can be found in all the stages of product development, in rigorous compliance with the applicable domestic and international legislation. Furthermore, to ensure transparency and technical accuracy, Natura has adopted global benchmarks to monitor the ingredients used. Natura evaluates all of the 11 products and services categories regarding the impacts on the health and safety of the consumers, ensuring that all the items sold are rigorously analyzed and improvements constantly implemented. These evaluations ensure that the formulas only include ingredients considered to be safe, in line with the most up-to-date scientific criteria. 130 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Kaiak Sonar: multi-sensory innovation A new idea, a new technology, and a new form of Far Away: AI working with perfumes In 224, Avon relaunched the Far Away line of communication. Innovation forms an integral part perfumes, the brand’s best-selling product. of the entire Kaiak Sonar Research and Development The campaign involved images that uniquely process. The men’s and women’s versions of the interpret the fragrances, incorporating AI- fragrance have been developed using the VibraScent generated movement and textures. technology, created by Natura, which interprets the sounds and colors of the sea, recorded during the The aim was to present the feelings Schurmann family’s Voz dos Oceanos expedition, in the experienced when smelling each Far Away form of a fragrance. The idea was to find ingredients fragrance. An artificial intelligence tool that vibrate at the same frequency as the waves, sea was provided with the observations of the animals, and the wind in the sails. influencer Rica de Marré, who described her feelings when trying the five different versions The 2024 launch involved the creation of Espelho of the product. The tool created a visual and d’Água, a song composed by Russo Passapusso, sung sensory immersion as an innovative way of by Josyara, and produced by BaianaSystem. The song experiencing perfumes. also reflects these vibrations, transforming the entire R&D and dissemination process into an innovative kinesthetic project. 131 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Tododia Jambo Rosa and Flor de Caju: innovation with diversity One of our launches in 2024 is an example of the view we take regarding diversity as well as the new approach taken to innovation at Natura. The new body care line ‘Tododia Jambo Rosa e Flor de Caju’, is the result of a R&D project that involved the survey of more than two thousand women and tests on more than 120 skin tone variations, all of which was performed over a period of approximately six months. We took a psycho-social approach which ensured the wellbeing of the Black woman. A survey was developed to map habits and behavior, which highlighted the specific needs of this group. The project provided indicators and ideas for the creation of a range of products that includes nourishing exfoliants, ultra nourishing body crème-oil, tone-evening butter, body cream and body brightening gel. For the following stages, in preparation for presentation of the line to the market, Natura hired the ‘Indique uma Preta’ consulting firm to develop a campaign centered on race. We also established a partnership with the Black Influence agency, to provide support for the launch planning. Studies for development of the line were performed on more than 120 skin shades. 132 132 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Bioinnovation and the Amazon region GRI 3-3 Our R&D teams work together with Amazon socio- biodiversity extractivist communities in four countries in the region - Brazil, Colombia, Peru and Ecuador. In its 25 years of operations in the Amazon region, Natura has developed 46 bio-ingredients and aims to develop 55 by 2030, thus optimizing our relationship with the communities and our ability to generate income and have a positive impact in the region (read more in the Regenerate and Prosper chapter). To achieve this, we have installed the ‘Natura Amazonia Innovation Nucleus (Nina) at the Ecopark, our industrial complex located in Benevides, in the Brazilian state of Pará. It includes researchers, field teams and a bio-refinery for developing processes to obtain extracts, fixed oils, butters and essential oils from Amazonian biodiversity. The Federal University of Pará (UFPA), Embrapa and the Colombian Sinchi Institute, are all partners in Nina. Packaging and circularity GRI 3-3, SASB CG-HP-410a.1, SASB-CG-HP-410a.2 We have announced public targets that involve the development of technological solutions designed to reduce the environmental impact of our product packaging. Developing innovative ideas that increase the use of reusable and recyclable materials, and the availability of refills, whilst allowing for the least generation of waste possible (and consequently fewer emission of greenhouse gases), is one of the exes of the Commitment to Life, mobilizing management and monitoring by means of indicators. The launch of the Natura Ekos Brazil Nut Concentrate is one example of the efforts made in this area by our R&D team, which worked on concentrating the formula to be able to offer a product with a lower environmental impact and an enjoyable moisturizer preparation experience for the consumers. Natura is also a pioneer in refills for cosmetics, having adopted this model more than 40 years ago. The level of use of reusable, recyclable or compostable materials in the packaging in 2024 was 84.6%, taking into account the consolidation of the Natura and Avon brands in Latin America, a little below the 2023 level 133 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our consolidated post- consumption recycled plastic index for Latin America is 18.2%. The reusable, recyclable or compostable materials indicator was 84.6%. which stood at 87.8%. For the Natura brand, this indicator was registered at 84.1% and 85.7% for Avon, Circular economy and innovation in 2024. We have an environmental calculator involved in our packaging strategy, allowing us to prevent and measure the impact of different materials and design options. We perform periodic detailed diagnoses of the packaging portfolio to identify those products with a higher environmental impact and define mitigation strategies. This analysis includes the composition of the materials and the possibility of substituting them with alternatives with less impact, size improvements to reduce the consumption of resources, and compatibility with current recycling systems. In those cases where technical or safety restrictions prevent the use of recycled materials, we evaluate the use of alternatives from renewable sources, such as Green Polyethylene. In the MRPC index, the Avon brand achieved a percentage of 2.4%, For the Natura brand products, we achieved 12.5%. The consolidated figure for Latin America came in at 9.5%. SASB CG-HP-410a.1, GRI 301-2 In 2024, we took important steps forward in the management of the circular economy with the increased incorporation of recycled materials in our portfolio. This has allowed us to not only reduce our dependence on virgin resources, but also strengthen the local recycling chains and generate a positive social environmental impact. We monitor the volumes of waste recovered in all the countries in which we operate, so that the materials will be included in new product and packaging manufacturing processes. In 2024, Argentina saw the beginning of the local production of the Tododia line of body creams, using recycled PET which is collected entirely in the country, thus ensuring standards of manufacturing quality that the brand already offers in Brazil. In the first stage, it was possible to recover 90 tons of plastic. In Peru, Natura forms part of the Recicla+ program, that involves 11 cities. Natura plays an active role in the Resimple initiative, in Chile, and the Visão 3030 134 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index initiative, in Colombia. In the latter, the collection targets As part of the program, we perform audits on our were surpassed in 2023 and 2024. In Mexico, where suppliers to check compliance with the requirements there are no formal cooperatives, the operations are relating to organizational management, social and performed by individual collectors. GRI 413-1 environmental responsibility, transparency in the Natura Elos GRI 301-3, 308-1 management of resources, respect for human rights, safety conditions in the operation of machinery, environmental legislation, and health, safety and Since 2017, the Natura Elos Program has promoted comfort in the workplace. a network of shared responsibility that unites the company, cooperatives, recyclers and manufacturers The program is concentrated mainly in Brazil and in a commitment to reverse logistics and the recycling Mexico, but cooperatives in all the countries in Latin chain. More than simply a link between these fronts, America are subjected to audits to ensure proper the initiative ensures the traceability of the recyclable work, administrative and environmental practices. materials, monitoring their journey, from collection to It is important to stress that, in Mexico, there are no transformation into new packaging. cooperatives, with individual urban waste collectors performing the work. GRI 413-1 Our focus is on ensuring a sustainable ecosystem for the supply of post-consumer recycled material. In 2024, we invested BRL 1,014,173 in Elos, with The activities involved in Natura Elos include: R$ 633,094 going towards direct support and • support for the training of suppliers, for R$ 381,079 to indirect support. professionalism and leadership throughout the chain with a view to fulfilling high standards of The direct investments focused on the reconstruction of compliance and good practices; cooperatives affected by fires, the respectable inclusion • development of waste collection cooperatives; and of individual waste collectors in the production chain, appreciation and recognition of the service that these and the structural improvement of the units to increase workers provide for society. productivity. In addition to this, financial incentive In 2024, we invested R$ 633,000 in directly supporting Elos, and R$ 381,000 in indirect support. 135 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index mechanisms were implemented to improve the screening and professionalization of the PET chain. The indirect funds were directed to strategic consulting firms, partnerships with startups, and initiatives aimed at increasing the circularity of the plastic. We encouraged cooperatives to register in fund raising call notices, contracted a healthcare benefits platform for the waste collectors, and enabled investments in Sitawi’s Rios Vivos (Live Rivers) Fund, which is focused on the development of post-consumption sustainable chains in the Amazon region. Rios Vivos We have continued with a special initiative in the Amazon region, as part of the Natura Elos Program, called the ‘Rios Vivos’ project. Through this initiative, In 2024, 56 supplier cooperative participated, involving we work to mobilize river-dwelling communities in 2,567 waste collectors in the projects, and we recovered the states of Amazonas and Pará to collect plastic waste in the forest, 15,385 tons of post-consumer packaging material at communities and urban districts on the banks of the rivers in the region. Natura and Avon. GRI 203-1, 301-3 The majority of plastic that is in the oceans is currently transported there by rivers. In South America, the Amazon river basin is the main path taken by these materials on their journey to the sea. The Rios Vivos project is aimed at reducing this pollution and generating a positive impact for those participating in the initiative, combining environmental and socioeconomic aspects: ten river dwelling communities and four cooperatives in the region have been mobilized in three municipalities in the Amazon region, impacting more than 550 families. In 2024, we launched the Ekos Ryos line, with Ryo Vivo and Ryo Chuva products. This innovation is connected to the Rios Vivos initiative through the bottle caps, which are made from 100% recycled materials, collected from the rivers of the Amazon region and their neighboring lands. 136 136 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Benevides Recycles A new partnership between Natura, the Municipal The intention is to strengthen the role of the local Government of Benevides in the Brazilian state of cooperative as a supplier of recycled materials within Pará and the Espaço Urbano NGO, led to the creation the Natura value chain. of ‘Benevides Recycles’, a reverse logistics program focused on recyclable materials. The initiative, To boost environmental education and engage launched in 2024, aims to increase the quantity the public in the separation of recyclable waste, and quality of the waste sent for recycling in the the Benevides Recycles program transforms these municipality, whilst at the same time boosting the materials into Humanitarian Tokens. These can be creation of revenue based upon these materials. exchanged for food, hygiene products or clothes, or cultural, tourist or sports products. The waste from Natura’s Ecoparque is being donated to cooperatives. Furthermore, awareness-raising actions are undertaken aimed at mobilizing the public to dispose of waste properly. As part of this process, we offered support for the structuring of selective waste collection, and provided training for the waste collectors and cooperative in the municipality, meaning they are now able to receive the items collected in the correct manner. Representatives from Natura, the Benevides City Hall, and the NGO Espaço Urbano during the launch event of the Benevides Recicla program. Credits: Mariana Almeida / Cabron Studios 137 137 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Recycle with Natura In 2024, we continued with the Recicle com a Natura Coffee capsules transformed into sustainable cosmetics packaging (Recycle with Natura) reverse logistics program. Natura, by means of the Natura Ekos line of products, has This initiative establishes collection points at which partnered with Nespresso to develop a circularity initiative. our consumers can dispose of the packaging used 10% of the aluminum in the packaging of the Ekos Brazil in our products. All of our stores in Argentina, Peru, Nut hand moisturizing cream is extracted from recycled Mexico, Chile and Colombia have collection points coffee capsules. and encourage our customers to deposit their waste there. We also have awareness-raising projects for Based upon this partnership between two B Corp companies, consumers and consultants. The recycling initiatives which aims to have a positive impact, the Ekos Brazil Nut tubes in Mexico involve 2,675 people, including consultants, are to be 100% manufactured from recycled aluminum, customers and employees, collecting more than 180 with 10% of the metal coming from the Nespresso capsules. tons of materials and more than 40,000 packages. This initiative means the recycling of more than two tons of The materials collected are sent for recycling or some capsules each year. other form of proper disposal, meaning therefore that the packaging is not sent to landfills. The partnership has also led to the opening of 34 Nespresso boutiques around Brazil for the collection and proper disposal of the Natura Ekos products that use aluminum packaging. 138 138 7 Infrastructure and the value chain 139 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index What we are creating here at the Ecopark is a lean, close and connected chain. The inputs we use are sourced directly from our partner communities. Seeds, fruits and oils that contain the history and ties with the forest. Each asset that we use contains the knowledge of those who live in the region and care for it as part of their lives. And all “ ALCIMARA ARAUJO DA SILVA (MARA) Manufacturing Manager at the Ecopark this is done with the support of our team, which works together with the community on everything from collection to delivery at the factory. But none of this would be possible without the firm enforcement of ethical supply methods, which respect the local way of life and those who live in the region. But the best thing is that the majority of the production takes place here at the Ecopark itself. We have partners who extract the oils and produce the shells, and we are preparing to incorporate more stages. This reduces travel and emissions whilst increasing traceability. The logistics becomes a part of the caring strategy. The product that leaves the Ecopark travels less and interacts more with those who produce it. And most of those who work in this chain are the people who live near the unit, and who understand the region and the value of what they are doing. When the chain is short, transparent and made up of real relationships, the forest not only remains standing - its grows stronger. This, for me, guides us towards a regenerative model: a way of producing that reconnects, respects and returns value to those who care for the origins of the forest. It is a model with the potential to inspire other regions, because it is local, circular and possible” 140 140 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Infrastructure and the value chain In 2024, Avon’s Global Innovation Center moved to Ten years of the Ecoparque In 2024, we celebrated the 10th anniversary of the Ecoparque, our technological, industrial and Brazil, a new factory in Cajamar (SP) was announced, innovation complex located in Benevides, in the and the Ecoparque, located in Benevides (PA), Brazilian state of Pará. The 175 hectare space is in Brazil, celebrated its tenth anniversary. We made designed to manufacture our soaps, whilst also significant progress in 2024 in our relations with our operating as a point of contact and stimulation for suppliers, with the launch of the Regenerative Alliance, the sociobioeconomy of the Amazon region. Located and we advanced in terms of our commitments at the Ecoparque is the Natura Amazon Innovation to the supply chain. These actions reflect how our Hub (read more in the Bioinnovation and the Amazon path towards regeneration is an intrinsic part of the chapter), as well as a large open area for other business strategy. companies interested in working at the production Our factories We have manufacturing units in Cajamar and Benevides, in the Brazilian states of São Paulo and Pará, respectively, as well as in Celaya, Mexico, and Moreno, Argentina, all producing products from the Natura and Avon brands. and research hub created by Natura. In 2024, Box Print, a packaging manufacturer, set up business at the Ecoparque. Previously, Symrise, a company focused on the creation of fragrances, had opened a butters and fixed oils factory at the industrial complex. Currently, 94% of our soap demand in Latin America is met by the Ecopark, which produced 458 million units in 2024 and more than R$ 3.2 billions over the complex’ first decade in existence. 141 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Over these last ten years, the Ecopark has generated some R$ 1.6 billion in the region. The Ecopark employs around 700 people directly or indirectly, and 93% of the operational workforce is local, including the factory’s senior management. To attract and retain the employees, we hold a series of training and technical specialization programs, in partnership with the Serviço Nacional de Aprendizagem Industrial (‘National Industrial Learning Service’ / Senai), and we also offer study scholarships for anyone wishing to take higher education courses. GRI 413-1 In 2024, we celebrated the 10th anniversary of the Ecopark, the Natura technological, industrial and innovation complex located in Benevides (PA) 142 142 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Decarbonization of the value chain GRI 3-3 more than 100 signatories who work with us to In 2024, we started to include the Avon brand’s explore innovations, projects and new practices operations in Latin America in our inventory of related to issues such as circularity, the traceability GHG emissions. In total, Natura &Co Latin America’s of raw materials, human rights, diversity and emissions saw a slight reduction, reaching 1.26 million decarbonization in logistics and production. tons of CO2, compared to 1.28 million in 2023. Biomethane The greatest volume of emissions continues to be A biomethane station is in the process of being those in Scope 3, involving the use and end-of-life implemented at our Cajamar factory in Brazil. treatment of the sold products. Our aim is to reduce The biomethane will be produced from the waste the emissions in the value chain by 42% by 2030, by disposed of in the city’s sanitary landfill in Caieiras. increasing our engagement with our suppliers and The aim is to allow our partners to fill their vehicles consumers. And by 2050, we intend to have reduced with this type of renewably and sustainably-produced our direct emissions to zero, (read more in the fuel. Internally, we have adapted the boilers at our Regenerate and Prosper chapter). factory so that they can use the biomethane as a The approach taken to the value chain is, therefore, essential for our business to be truly regenerative. In Ethanol source of energy. this sense, we have continued with initiatives that aim Another initiative developed in 2024 involved a to coordinate solutions together with our suppliers partnership between Natura and Shell, meaning the and partners. Regenerative Alliance logistics partners which make final delivery of the products to the Beauty Consultants can opt to use ethanol as fuel for their vehicles. The project offers In 2024, we created a groundbreaking coalition discounts for those who choose to replace gasoline composed of suppliers from different segments or diesel with ethanol, thereby contributing to the to advance good sustainability practices. This decarbonization of our transportation chain. group, called the ‘Regenerative Alliance’, involves We launched the Regenerative Alliance, a coalition involving more than 100 suppliers to encourage sustainable practices and innovations in circularity, traceability, human rights, diversity and decarbonization. READ ABOUT our performance in relation to GHG emissions in more detail in the Latin America Databook 143 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Integrated Health, Safety and Environmental Management Our actions relating to management of the environment, and health and safety are focused on guaranteeing safe and efficient operations that are in line with the objectives and targets of our Commitment to Life. In 2024, 50% of all the products manufactured by Natura in Latin America were produced in plants certified with the ISO 14001 international norm that establishes standards for environmental management.* We made advances with a set of targets designed to reduce the consumption of energy and water resources in all our operations in Latin America, including manufacturing and distribution centers,. Our perspective on matters such as water, waste and energy go far beyond controlling the impact on our own operations; they also take into consideration the life cycle, focusing on conservation and the aspects involving the value chain and post-consumption, in addition to manufacturing and operational efficiency. *The calculation base includes the amount produced at the certified sites (Cajamar, Celaya and Moreno) compared to the total volume produced at all the sites (Cajamar, Ecoparque, Interlagos, Celaya and Moreno). 144 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Natural resources The process of integrating the factories, which should move forward in 2025, is one of the analytical sources this measure forms part of the mitigation strategy designed to tackle climate change. for our results over the course of the forthcoming reporting period. Amongst the key-actions Waste The impact management actions cover the entire involved in energy efficiency are the replacement value chain and are related to initiatives focused of the ethanol-powered boiler in Cajamar with on circularity and the efficient use of materials in biomethane, the entry of a a long-term agreement the manufacture of products and management of for the use of renewable energy for the company’s discharge materials at the factories and logistics direct operations in Mexico, and studies to enable centers, as well as in administrative and outsourced the implementation of an electric boiler in Celaya areas. (Mexico), replacing the current one which is powered by natural gas. Occupational health & safety GRI 403-1, 403-2, 403-5, 403-6, 403-9, 403-10 In relation to the consumption of water internally, Natura has its own in-house occupational health we have a Water Quality Policy, as well as regulations and safety management system compliant with the for the discharge of effluents and water quality ISO 45001 and with Brazilian regulations. It covers monitoring standards, whilst also considering the 100% of the employees, as well as service providers, profile of the bodies of water to guarantee that we do temporary workers and visitors in all operational not cause adverse impacts.In 2024, 9.16% of the water activities. By means of this system, we meet a we used was reuse water. GRI 303-5 series of Brazilian and International legal demands, including labor laws, guidelines established by the In 2024, we finalized a water reuse project in Guarne, Ministry of Labor’s Prosecutions Department (MPT), Colombia. The aim has been to reuse 100% of the and inspection requirements. waste waters treated at the distribution center, and use 100% of the rainwater collected to supply the The system covers our direct employees, activities Firefighting System, thus eliminating the need to use and places of work directly related to the company’s drinking water for this purpose. Implementation of operations. It does not include distribution center In Colombia, an efficiency project implemented a Firefighting System using only collected rainwater. 145 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index branches, since these are independent establishments which follow specific contractual health and safety obligations. However, we do regularly audit these spaces. The healthcare initiatives are offered to our employees and these include medical and occupational services and the SerenaMente scheme, which involves the mapping of psychosocial factors, as well as risk control programs. Some of the benefits, such as telemedicine, psychological support and programs designed to help control serious illness, extend to include family members and up to four individuals who may include members of the employee’s extended family or friends. In 2024, we recorded 12 work-related accidents requiring communication involving direct employees and two with outsourced workers. No fatalities were recorded. Four work- related illnesses were communicated during the period. FIND OUT MORE Read about all of Natura’s health, safety and environmental indicators in Latin America in more detail in the Databook 146 146 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Development of suppliers GRI 2-6, 2-23, 2-24, 2-29, 3-3, 413-1, 414-1 Our production ecosystem is notable for its interdependence. We have an extensive network of suppliers working in the logistics processes, production of raw materials, sales, services, technology and infrastructure. The engagement of the business partners is essential to the execution of the strategy and fulfillment of our sustainability objectives. The main policies regarding this issue are summarized in the Suppliers’ Code of Conduct, the Global Procurement Policy and the Natura &Co Declaration of Human Rights. In these policies, we have defined the risks and opportunities involved in our entire supply structure, including rural and factory workers, community members, temporary employees, indigenous peoples and minority groups. Over recent years, we have also focused our work on the total traceability of our critical chains and on involving the suppliers in tackling climate change and the loss of biodiversity. In 2024, we negotiated with 7,730 suppliers, 0.84% more than the 7,665 suppliers we dealt with during the previous year. We disbursed a total of BRL 12.9 We have a robust model of engagement and development together with the sociobiodiversity supplier communities, as well as with the other partners within the value chain. 147 147 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index billion in purchases (against BRL 13.8 billion in 2023), as the evaluation of risks related to a corruption, with 41.6% going to direct suppliers and 58.4% to ethics, integrity and human rights, we aim to indirect suppliers. Around 80% of the sum was spent create opportunities, specifically by contributing on a group of 335 suppliers carrying greater financial to our suppliers’ ability to progress, bring about weight. Specifically in relation to our raw materials, socioeconomic benefits in their regions, and adopt there are 94 socio-biodiversity chains in the Amazon socioeconomic practices aligned with the concepts region that supply us with more than 40 essential of sustainability and regeneration. active ingredients for the creation of our products. We recently extended our bioactives supply chains to the Peruvian and Colombian Amazon regions (read more in the Climate, Biodiversity and Nature chapter). GRI 2-6 Embrace Program GRI 3-3 Also focused on the development of the chain, we have been operating the ‘Embrace’ program for Natura has a robust model of four years now, which recognizes and encourages engagement and development in place with the the adoption of sustainability practices by the raw material supplier communities, with suppliers. Embrace uses a tool to continually 100% of the operations having implemented specific monitor the suppliers, and includes six pillars: evaluations and program designed to strengthen the Quality, Service, Innovation, Competitiveness, socio-biodiversity. The evaluations, both social and Capability and Skill, and Commitment to Life. environmental, are participative and published. In 2024, we began increasing the diversity of the In order to define those partners which we consider suppliers in our value chain to include companies to be strategic, we take into account criteria relating in different locations, of different sizes and with to innovation, sustainability and risk. We also different profiles. To do so, we simplified the undertake an annual satisfaction survey to obtain onboarding process, thereby allowing micro and a better idea of the quality of our relations. As well small companies to join us as partners. EMBRACE PROGRAM 4 years of history centered on 6 pillars: • Quality • Information • Innovation • Competitiveness • Capability and skills • Commitment to Life 148 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Local prioritization GRI 204-1 brand’s portfolio of perfumes. Before the factory was inaugurated, the extraction of essential oils, the stage In 2024, 44.5% of our (Natura and Avon) sourcing for the involving the highest aggregate value, was performed most important units [Cajamar and Benevides (Brazil), by third parties. Moreno (Argentina) and Celaya (Mexico)] was made through local suppliers, or in other words, those located After the opening of the agribusiness unit, however, within 80 km of the operation*. We aim to strengthen our the community assumed responsibility for this ties with local suppliers, especially those involved in the manufacturing process, meaning a significant rise in acquisition of bio-ingredients from the Amazon region for the aggregate value of the commercialized products. Natura products. This has enabled the creation of new work opportunities This forms part of our commitment to sustainable in the socio-biodiversity chains. It is estimated that the development and the regional economy. gross income should rise by 60% and the number of Agribusiness in partnership with Aprocamp should rise from 75 to 100. It is expected that around 150 In 2024, we inaugurated an essential oils agribusiness tons of raw plant-based material will be processed. workers in the area of production of Natura supplies in partnership with the Campo Limpo community, in Santo Antônio do Tauá, in the Brazilian state of Pará. The Pennyroyal Agribusiness initiative was created and guided by Natura in partnership GRI 203-1 with the Campo Limpo Community Farmers Association The Pennyroyal Agribusiness Expansion Project, (Aprocamp). Natura’s investments allow for the acquisition realized in partnership with the GF Poejo supplier of equipment used to extract and process the oils. group, located in Campestre da Serra, in Brazil, is aimed at increasing the production of pennyroyal Aprocamp has been supplying Natura with plant-based essential oil to meet our growing demand for this raw-materials since 2003. The Association sells input. This agribusiness, founded in 2022, has plants such as Pataqueira, Estoraque, Priprioca, and undergone structural and operational expansion, Capitiu, and is responsible for supplying 70% of the raw including the installation of new equipment and materials sourced from the Amazon region used in the training of the local team. * * As per criteria for the B Corp Certification. Inauguration of the first essential oils agribusiness in partnership with Aprocamp 149 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Ethical and responsible sourcing GRI 2-24, 2-25, 203-1, 308-1, 308-2, 408-1, 409-2, 414-1, 414-2 Those suppliers considered to be strategic undergo an Environmental, Social and Governance (ESG) Evaluation, which covers the issues of biodiversity, carbon, diversity, traceability of the chain, and social We have a Global Supplier Approval Policy, which, environmental responsibility. together with the other reference documents for our value chain, established Natura’s responsible sourcing We aim to identify, prevent and mitigate risks guidelines. We have criteria for performing audits on to human rights throughout our supply chain, human rights, including matters such as diversity and covering aspects such as child labor, forced labor inclusion, social responsibility and decent working or labor analogous to slavery, as well as exposure of conditions. Any cases of non-compliance, risk or the workers to hazardous working conditions. We fragility result in an adaptation plan being applied to recognize the existence of potential risks and work the supplier, with the possibility of termination of the constantly to mitigate them, and we have mapped relationship; in such cases, we monitor the situation those suppliers from chains considered to be critical to ensure protection of the partner’s workers. to our business - palm, soy, paper, ethanol, mica and cotton (read all of our policies relating to this group The selection of all new suppliers is based upon social here. GRI 408-1, 409-1. criteria and environmental criteria. Our contracting procedure involves an evaluation of the suppliers, One of the targets of the Commitment to Life is to establishment of environmental criteria, requests for ensure that 100% of the critical chains are free from information, analysis of responses, audits, selection, deforestation and conversion of native vegetation, continual monitoring, and ongoing improvement. with independent inspection (read more in the Latin Those partners classified as being high-risk are America Databook). managed by the Sustainable Chains Department, and may be submitted to social environmental audits.A risk In 2024, we performed 309 audits and 1,307 general In 2024, we performed 309 audits and 1,307 general evaluation is also conducted once every two years. suppliers were evaluated using social environmental suppliers were evaluated using social environmental 150 150 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index criteria. Of these, 256 were identified as causers or criteria. Of these, 256 were identified as causers or possible causers of negative social impacts, and 112 as possible causers of negative social impacts, and 112 as causers of negative environmental impacts. The social causers of negative environmental impacts. The social and environmental issues at risk of occurring have been and environmental issues at risk of occurring have been fully mapped out. fully mapped out. To avoid the appearance of these impacts, we have implemented improvement agreements, encouraging the adoption of more responsible practices that are more aligned with our social environmental guidelines. In 2024, 248 suppliers agreed to implement improvements, meaning 96.88% of the total number of suppliers identified as having negative impacts. The action plans developed with them are monitored by means of internal audits and continuous monitoring processes, ensuring that the corrective measures are implemented. Amongst the suppliers identified as causers of these environmental impacts, 104 (93% of the total) have since signed agreements to implement improvements. As well as checking compliance with the social environmental requirements that we have established in our due diligence actions, we have also established other important initiatives together with the suppliers: 151 151 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index • Due Diligence Target: we have established policies • Identification of new critical chains: in 2024, in addition and action plans to address risks associated to the six current critical supply chains, seven new with palm, mica, alcohol, soy, cotton, and paper. supply chains were identified as critical: carnaúba, We work to ensure specific traceability and candelila, canola, corn, essential fragrances, green certification, with annual milestones: polyethylene and recycled materials. • Certifications: in 2024, we achieved a 98.80% certification for paper, and 94.10% certification for palm oil. • Strategic opportunities: we have identified strategic opportunities to support our Certified timber, paper fiber, paper and cardboard In 2024, our Latin American operations used 65,827 tons of timber, certification efforts. We fund initiatives that paper fiber, paper and cardboard for the manufacture of finished promote environmental and human rights products and in packaging materials. Of this total, 64,135 tons were improvements in the producing regions. sourced from materials certified by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification • Sector partnerships: Natura &Co Latin America (PEFC), meaning 97.43% of the total volume used. This sum takes and Avon International are active members into consideration only PEFC and FSC certified materials, meaning of specific sector organizations such as the it therefore differs from that reported in the Commitment to Life Roundtable on Sustainable Palm Oil (RSPO) and indicator. For the reporting, paper/timber products used for Home the Responsible Carnaúba Initiative (IRC). & Style, Cartridges, Corrugated Cardboard, Magazines and Printed • Gender-Based Violence Initiatives: we monitor and encourage the discussions regarding gender violence in our supply chain. We provide education, training, and interventions to empower women and safeguard their rights and dignity. Materials, and Bags were considered. READ ABOUT the innovation and sustainability actions undertaken with supplier communities in the Climate, Biodiversity and Nature chapter. 152 152 8 Human Rights 153 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Talking about violence against women is still very difficult. We grow up hearing that we shouldn’t meddle in a couple’s fight. But I’ve learned that the silence of those who see and say nothing also fuels the cycle of abuse. There are women who don’t know where to start, who feel afraid, who think they won’t make it. That’s why “ I speak firmly: Natura offers real support. There are psychologists, legal assistance, and shelter when it’s necessary to leave a dangerous situation. There’s listening, there’s patience. And there’s someone saying: “You’re not alone” — even when the woman hasn’t yet found the strength to say that to herself. I know this up close. I’ve seen so much over the years supporting our Beauty Consultants. And I know that when a woman finds this kind of support, she begins to see herself differently. Even those who don’t use the service yet feel that they have somewhere to turn — a free, confidential phone line, available to the entire network. Sometimes, courage doesn’t come on its own. Sometimes, it’s information that drives change. I’ve seen women raise their heads after years of silence. Not because everything was magically fixed overnight, but because they learned there was someone they could count on. That’s why I always insist to the Consultants: know your rights, use the resources available, and never forget that the Crer Para Ver line supports this entire network — one that can embrace and uplift other women. That’s the beauty of working with something that truly transforms.” FRANCISCA FEITOSA DOS SANTOS BARBOSA Beauty Consultant and Business Leader at Natura & Avon 154 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Our management approach Defending Human Rights and Being more Humane is have guidelines on the theme in the Global Code of Conduct, aimed at both our employees and our suppliers. We also have an Ethics Hotline which one of the pillars of our Commitment to Life. receives and investigates accusations of any form To ensure fulfillment of what we propose, we work everyone (read more in the Ethics and Compliance of violation, by means of a channel which is open to on two strategic fronts. In the first front, involving chapter). defense of human rights, we operate by means of due diligence value throughout our value chain, tracking In 2024, we implemented a Combating Violence of the critical chains, and tackling gender violence and Against Women Policy, which is applicable to all environmental racism. the countries in which we operate. This norm also contains service protocols and an accusations In the second, we seek to be more humane through line: Ângela, the Natura Institute’s online assistant the development of the priority publics, such as our offering support for women suffering situations employees and Beauty Consultants. To gauge our of domestic violence. Previously operating only in progress in this area, we use the indicators relating to Brazil and Mexico, it was extended to the whole of a decent salary, education, healthcare, citizenship and Latin America. diversity. Specifically designed to provide guidance for the human development of the Consultants, we We have also adopted a structured approach have used the Consultants’ HDI for the past ten years to mitigating unequal impacts on women and (read more on this in Consultants’ Wellbeing section). communities exposed to environmental racism, The priority agendas also involve the analysis of promoting concrete actions designed to guarantee social environmental vulnerability, with the Calamity more inclusive and socially responsible operations. Committee having been created to work in this area. We base our work on the Natura &Co Declaration of inequalities, we have also developed the Social Human Rights, in line with the United Nations’ Guiding Environmental Vulnerability Index, which allows Principles on Business and Human Rights. We also us to analyze the impacts of the operations and To monitor and reduce social environmental Ângela, our support line for women in situations of domestic violence, has been extended to Latin America. 155 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index R$17.4 million invested in Latin America in campaigns and actions for the promotion of women’s health and tackling gender violence implement effective measures to mitigate them. We are also committed to gender parity in relation to salaries, working hard to reduce the salary gap and increase opportunities in the workplace. Natura Institute GRI 2-29, 203-1, 203-2, 413-1 In 2024, we integrated the operations of the Natura and Avon institutes with the Avon Foundation throughout Latin America. The combination of the management and governance of the entities contributes to the efforts and potential offered by each within a single structure, which is able to promote the causes that much more and increase the reach of the initiatives and actions. As such, we have been able to create one of the biggest private social investment organizations in Latin America. This initiative, aimed at expanding the reach of our positive impacts, follows the same strategy used by the company to manage the Wave Two project, which combines the two businesses, reinforcing and consolidating the brands even more throughout Latin America. Within this context, since June 2024, the Natura Institute has been advancing the causes of 156 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index education and rights, areas which the Institute has Consultants and leaders receiving assistance. As historically focused on, and combining them with part of our efforts to fight gender violence, 1,168 the health and quality of life of women, including women received shelter and 183 consultants received tackling breast cancer and gender violence, these support. being the main activities of the Institute and Avon The awareness-raising campaigns focused on breast Foundation in Brazil, Chile, Colombia, Mexico and cancer involved 352,476 consultants, and the one Peru. In Argentina, the two organizations will remain addressing violence against women involved 381,803, separate, but they will be jointly managed. The other with a total of 9.79 million women being engaged eight countries, which previously were served solely in awareness-raising initiatives concerning breast by the Avon Institute, will continue to receive social cancer and 5.2 million regarding gender violence. investment from the Natura and Avon brands, but will also receive technical support from the Natura In addition to this, 190 healthcare professionals were Institute. These are: El Salvador, Ecuador, Guatemala, trained in methods aimed at detecting and treating Honduras, Nicaragua, Panama, Dominican Republic breast cancer, and 1,182 legal and social services and Uruguay. professionals received training on how to handle In 2024, the funds invested in promoting women’s healthcare and tackling gender violence, including donations made to NGOs, and on campaigns and direct actions, amounted to a total of BRL 17.4 million in Latin America as a whole, of which BRL12.8 million cases of violence against women. Crer para Ver: the biggest social products brand in Latin America GRI 203-1 was invested in Brazil and the rest distributed across We offer the market a line of Natura products the other countries in the region. called ‘Crer para Ver’, with all the profits going to educational projects managed by the Natura The impacts of these initiatives include the provision Institute. The aim is to support the implementation of of breast cancer detection services to 73,340 women public policies focused on literacy and on Secondary and treatment for 9,569 women, with 672 Beauty Education. Professional training actions are also 8 million+ participants in consultant training sessions 61% of the Beauty Consultants trained in 2024 said they were satisfied* 382,051 consultants trained in Latin America* * The data do not include those countries which have not undergone the business integration process. 157 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index developed for the Beauty Consultants. As such, Crer para Ver has established itself as the most extensive network in Latin America investing consistently in education. The Crer para Ver program has been implemented in Argentina, Brazil, Chile, Colombia, Mexico and Peru. As well as broader access to education, the actions developed have results such as increased income for the consultants, due to their higher level of training, promotion of social wellbeing, and a reduction in gender violence, since it provides women with more autonomy, safety and access to healthcare and public policies regarding protection. Around 6 million people have been impacted by the Institute’s work in Brazil, including public school students and teachers, business leaders, Beauty Consultants and their families. This boost for education is also cyclical, driven by the Consultants themselves, who manage to get closer to the schools and teaching systems in their neighborhoods. READ MORE about the impact actions of the new Natura Institute in its activities reports (here) 158 158 Avon International 159 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A message from the CEO of Avon International Strategy and investments Revitalization of the brand Principal launches Sustainability Support for women’s causes Performance and perspectives 161 163 166 169 170 172 174 160 160 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index A message from the CEO Kristof Neirynck Looking back at 2024, despite having been a year of significant challenges, it was also a year of achievements for Avon. We have continued to modernize our Relationships Selling channel through critical initiatives and investments focused on growth markets, including the successful implementation of the two-tier business model in Turkey. The Representatives remain at the center of our business model and we believe that offering customers personalized beauty consultation is one of our key differentiation factors. However, getting close to the customers and providing them with new ways of accessing the brand through retail and electronic commerce is essential to our growth. We have intensified this approach and we are now truly transforming Avon into an omnichannel business. By the end of 2024, the core range of Avon products could be found at more than 2,300 points of sale, enabled by partnerships with beauty specialists, and online in marketplaces and the e-commerce channel. 161 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index The process of revitalizing our brand has continued, in significant savings. Having completed the full with excellent progress in 2024, including a decommissioning of the installation in Suffern restructuring of the visual identity and the ongoing (New York, USA), we concluded the transfer of our evolution of the portfolio to provide the market with R&D activities to Cajamar, in Brazil, without any accessible and aspirational products, focusing on interruption to our innovation funnel. We also took key innovations and hero products, which are much- steps forward with the transformation agenda, loved by our consumers. Through our partnership addressing issues related to Avon Products, Inc. (API) with Cruelty Free International, all Avon beauty and in the United States, and its associated debts and toiletries products are now certified cruelty-free by liabilities. API’s voluntary Chapter 11 proceedings, the Leaping Bunny Program. Furthermore, 80% of the which have now been concluded, opened up a path packaging is now reusable, refillable or compostable, along which we are now able to confidently pursue and 10% of the plastic we use is recyclable (PCR). our ambitions. For 139 years, Avon has supported women to be Our ambitious plans would not be possible without able to earn a living and learn on their own terms, the right mindset and the renewal of the expected and has encouraged them to celebrate their own form of behavior to be able to take Avon forward power and potential. Using our voice and resources, and provide the foundations for our success. We we support causes that strengthen women’s health invest time and resources to construct a culture that and wellbeing. So far, through Avon and the Avon promotes simplification, encourages responsibility Foundation, we have donated more than US$ 1.1 and self-belief, and welcomes measured risks and billion, mainly on tackling gender violence and breast constructive challenges. We are ready to conclude cancer. our journey of transformation and begin to deliver the expected results. This is being undertaken We also focus strongly on the cost reduction targets, through the revival of effective performance, simplifying our operations even more, evaluating and without losing sight of the costs, and offering world- redefining the senior management, and modernizing class aspirational beauty that is accessible and our IT infrastructure, which has already resulted sustainable. 162 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Strategy and investments In 2024, Avon International continued with its journey of transformation. The voluntary Chapter 11 restructuring proceedings for Avon Products, Inc. (API) in the United States were essential for resolving the company’s old debts and liabilities. At the end of the year, the bankruptcy court approved the terms of the agreement between API and its creditors, as well as the sale of Avon’s operations outside the United States to Natura &Co. More information on these proceedings can be found in Natura &Co strategy in p.25 Furthermore, Avon International reduced its personnel, simplified its operations, reduced its technology costs, and implemented strategic initiatives. This included the finalization of the transformation of R&D, outsourcing of the relationship center services, and standardizing of the size of the line throughout the business. 163 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In a period of significant changes, the engagement of our employees remained stable in comparison Omnichannel capabilities In 2024, Avon developed its commercial strategy with previous years, which proves the commitment and priorities, modernizing the Relationship and confidence of the teams. As part of the Selling, accelerating the omnichannel capabilities, process, we focused on updating our talents, with and revitalizing the brand, to be able to focus more a comprehensive evaluation of all members of the intensively on its principal markets. senior management, resulting in leadership changes in the principal markets and new hirings for retail. With regard to Relationship Selling, the team made extensive visits to identify opportunities and A new set of expected behaviors was implemented analyze the commercial model, point by point. to allow a culture of high performance, focused on At the same time, the support for representatives keeping things simple to promote responsibility was improved in different key areas for each and ownership, whilst embracing intelligent risks market. Romania and Turkey were identified as the and constructive challenges to the status quo. Over first countries that needed attention, with these the course of the year, quarterly, global, online markets presenting above-average challenges meetings, as well as local, in-person workshops, and for the company in terms of revenue, whilst training sessions, were held to help incorporate the presenting encouraging channel KPIs. components and reenergize our culture. Avon evolved in terms of its commercial priorities and invested in the modernization of Relationship Selling. The key takeaways from the experience in Turkey and Romania led to the drafting of a set of priority initiatives that will be implemented in all the 12 principal markets in waves, as of 2025, in South Africa, Philippines and Hungary. These initiatives include simplifying the commercial model and improving the value proposal and 164 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index experience for the representatives, as a means of driving productivity and retention, including a new program paying extra attention to the new representatives. Other improvements are related to balancing the investments in prices with promotional actions, to boost gains and provide a satisfactory 360° experience, ranging from credit and taxes to education and training. In general, Avon International’s Relationship Selling performance in 2024 dropped, despite having improved in the second half of the year, due to better results in the productivity of the sales leaders. At the end of the year, Avon International had 1.7 million representatives, a drop of 16% in relation to the previous year, with gains in retention partially mitigating the impact of the reduced number of new participants. 165 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Revitalizing the brand The growth strategy is supported by the revitalization of the Avon brand. The increased investment in media is the - pilot markets (Romania and Turkey) resulted in greater awareness and interest in the brand. The marketing through influencers and social media was also increased, whilst the booklets were updated with better quality paper and binding and the inclusion of clear messages. Furthermore, efforts are under way to restructure the visual identity, especially in relation to the packaging, with this initiative expected to be fully completed in 2025. In general, the restyling efforts have already provided insights for our reevaluation, since packaging, design and sustainability were recognized as the best assets of the Avon products during the brand’s social activities during the year. Following the significant reduction and standardization of the portfolio in recent years, the size of Avon’s line is now more relevant and productive, although certain shortcomings have been identified in relation to color value and mass skincare, which are being addressed in 2025. The area of Fragrances was the best performing category in 2024, improving in relation to the previous year, and Avon continues to be the world’s most sold brand by volume (GlobalData Retail, based on 2023 166 166 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index data). The Beauty+ category recovery strategy began in In addition to this, Avon believes that its customers should the second half of 2024 with a focus on productivity. not pay premium prices for sustainability. Instead, the Innovation for All At Avon, continuing to offer aspirational beauty at an aspects of our work (from obtaining the ingredients to the manufacture, packaging, transportation and distribution) irresistible price remains the primary objective. Avon so that we can produce effective and accessible products. brands should guarantee that sustainability is included in all uses world-class innovation capacities to develop prize- winning products that raise one’s confidence, ensuring In 2024, the company successfully concluded the transition the best in beauty is accessible to all. In relation to of its research and development capabilities located fragrances, some Avon products have been tested more at Suffern (USA) to a world-class laboratory located in than some luxury products in blind tests of quality or Cajamar (Brazil) and a first-rate production line in Garwolin general preference. In the area of skin care, the ANEW (Poland). Other small laboratories working on adaptations line involves the patented and innovative Protinol™ of formulas on a small scale are also operating in Poland, technology that helps restore both collagen 1 and South Africa and Philippines. The adaptation of the collagen 3, making it as close as possible to the ideal ratio installations and the transfer of knowledge to the recently found in babies’ skin. hired teams took place without any problems, and without any impacts on the innovation pipeline. Avon also considers the safety of its products to be absolutely non-negotiable. All undergo a rigorous and Once again, in 2024, Avon published its Future of Beauty complete evaluation, with the same standards applied Report. Two editions, one dedicated to fragrances and throughout the world and in full compliance with the another to skin care, provided an in-depth analysis of each regulations. Furthermore, Avon was one of the first category and shared emerging trends, combining surveys cosmetics companies to completely eliminate testing of 7,000 women from all over the world with specialist on animals. It is now proud to have been awarded the analyses. These insights into the demands and perceptions Leaping Bunny seal by Cruelty Free International for 100% of our customers are indicative of Avon’s forthcoming steps of its beauty and toiletries products. in innovation. 167 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Principal launches Hydramatic Shine Lipstick Avon introduced a new line for its revolutionary Hydramatic Matte lipstick. The new Hydramatic Shine is enriched with glycerine and hyaluronic acid; the inner core of the lipstick helps soften the lips and reduce the appearance of fine lines, while its outer core offers intense color, making it as hydrating and nutritional as it is vibrant and bold. ANEW Skin Renewal Power Cream A new day and night cream for Avon’s strongest skin care line. Co-created by dermatologists and scientists, this innovative Available in 15 tones suitable for all cream contains the highest ever concentration (10x) of the skin shades, Hydramatic Shine is patented niacinamide Protinol™ technology. When used designed for everyday use, without together with the ANEW Power Serum and the ANEW Power Eye blurring, offering a luxurious shine Cream, it helps restore years of lost collagen in just seven days, with an intense color. creating stronger, firmer, smoother and more hydrated skin. Far Away Shine The most recent fragrance to join the ‘Far Away’ line of eight premium fragrances, ‘Far Away Shine’ was created using the Isphan Rose, a premium Damask rose that has been used in beauty products for more than 2,000 years as a symbol of inner light. The notes are complemented by the warmth of the pink pepper and the charm of the golden musk, resulting in a shining and long-lasting effect on the skin. To coincide with this launch, Avon unveiled a new visual and sensation for the entire Far Away fragrances franchise. The new elegant, modern and eye-catching bottles are refillable, making them perfectly collectible for the beauty shelf. 168 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Sustainability The actions that Avon is undertaking to improve the sustainability of its products are contributing to the reduction of its carbon footprint. The strategy is aligned with the TCFD, and, in 2024, the CDP classified Avon’s performance as Level B, four levels higher than its previous scoring. Avon is a pioneer in the new approach it is taking to all the product formulas. We are focusing on permitting the development of more sustainable products through use of the Quantis Life Cycle Assessment. This tool analyzes the impact of a product at each stage, from its ingredients through to how it is made, used and disposed of. The gauging of the total environmental impact of the product (including water, carbon, waste and renewability), allows Avon to guarantee that every product is planned to have less impact than it had previously, not only from the point of view of its own operations, but also of the whole supply chain from start to finish. The company is making significant progress and has made ambitious commitments regarding sustainable packaging. Currently, 80% of the packaging in all categories is reusable, recyclable 169 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index or compostable, and the target is to reach 100% by 2030. by the Forest Stewardship Council (FSC), thereby also The entire Far Away fragrances line, for example, has reducing the carbon footprint. Following the successful been offered in refillable bottles since 2024. eyeshadow pilot, Avon is expanding this to other blushes. Furthermore, Avon has reinvented its Ultra Color Rich lipstick with fully recyclable packaging. The plastic in all The eyeshadow itself uses mica that is verified by the the fragrance packaging is being substituted by tamper- Responsible Mica Initiative to combat risks to human proof stickers. The benefits of this change include: rights. Avon is also committed to full traceability and/ • Less plastic: By replacing the cellophane wrap with or certification for its critical supply chains by 2025, and two security stickers, Avon is reducing the use of is working to increase the use of renewable ingredients plastic by approximately 91% in each unit, based and biodegradable formulas in its beauty products. This upon a weight comparison. approach is already at the forefront of the development • Fewer emissions: This updating of the packaging also of all new fragrances. For example, Far Away Beyond contributes to the reduction of carbon emissions, the Moon uses Sandalwood Album Essence Australia with estimated annual savings of around 13%. Orpur and eco-friendly technology to capture the • Improved security: two new tickets, replacing the fragrance whilst leaving the Belle de Nuit flower cellophane wrap, will guarantee that the products untouched. remain tamper-free and secure. Avon is also improving the sustainability of its Beauty+ The reduction in the use of virgin plastic, including high fashion and lifestyle products. In 2024, we ran a pilot levels of recycled plastic in our bottles, is also under project to include cotton for pajamas sourced from way, and the level of post-consumption recycled (PCR) Cotton Made in Africa (CmiA), an internationally plastic across our entire portfolio in 2024 stood at 10%. recognized standard for improving the conditions of one By adopting fully recycled packaging for the Senses million small farmers. The CmiA cotton is fully traceable, bath gel bottles, for example, Avon has reduced the does not use irrigation or genetically modified seeds, use of virgin plastic by more than 4,000 tons. Similarly, and produces 13% fewer carbon emissions than standard Avon has redesigned its powder blushes to remove the cotton. Following the successful pilot, Avon is expanding plastic, creating a cardboard palette using paper certified its use of CmiA cotton. 170 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Support for women’s causes For more than 20 years, Avon has been committed to tackling gender violence, contributing more than BRL 91 million to supporting more than 15 million women and girls throughout the world, by means of its programs and partnerships. We have been collaborating with partners and NGOs around the world to develop a new platform that is open to all, inviting everyone to recognize the symptoms of abuse by an intimate-partner. As part of the 16 Days of Activism against Gender Violence 2024, Avon launched its new Lovestrong platform to raise awareness of the common early warning signs of abuse, provide information to help spot dangerous patterns before they escalate and direct women to resources like the NO MORE global directory. Supported by multimedia activity, the Lovestrong campaign reached more than 16 million people in social networks, with reports in publications such as Marie Claire. 171 171 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index In 2024, Avon continued to build upon its legacy of 30 In 2024, Avon launched The Avon Academy, a years of empowering women (and men) to recognize digital learning platform designed to provide the signs and risks, and how to act in relation to breast support for our community of autonomous cancer. workers in 31 countries. This platform introduced 300 new learning courses and registered more Supported by the continuity of the ‘Feel the Boob than 86,000 new enrollments, meaning a login rate Love’ campaign, Avon encouraged everyone to of 83% and an engagement rate of 61% (30% higher include self-checkups in their regular self-care than the industry standard). Those Representatives routines. In collaboration with NGOs, Avon’s who engaged with the training content have seen markets have expanded awareness-raising and the their sales increase by up to 55%, whilst the trained action itself, organizing ‘Pink Parades’ with special sales leaders (representatives who put together influencers and representatives, whilst also providing and support their own team) have seen growth of educational sessions in schools and universities. as much as 129%. Avon is also dedicated to training its employees and its global network of autonomous representatives in the abilities necessary to succeed. By means of improvement initiatives, the company has supported the growth of the businesses, the development of leaders and digital trading, ensuring ongoing learning opportunities for all. 172 172 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Performance and perspectives Avon International achieved positive results with agreements, administration of The Body Shop, and the implementation of Wave One in Romania and the separation of the Natura &Co Latin America Turkey, as well as improvements focused on the operational model. Avon International also came experience of the representatives in all the growth up against an unexpected obstacle in having to markets. New initiatives are to be launched in 2025 prepare the IT transitions in record time for the aimed at increasing the number of representatives, operations in Russia, due to the need to comply encouraging activity, and improving productivity. with the country’s new sanctions. In underlying On the other hand, the omnichannel performance terms, the adjusted Ebitda fell 140 base points, was more impressive, with a 20% rise in sales in with the savings agenda and the greater gross relation to the previous year. margin partially offsetting the drop in sales and the impacts of the exchange rate. The underlying gross margins improved 40 base points in relation to the previous year thanks to the efforts in Savings for Transformation, excluding the costs related to administration of The Body Shop. In 2024, the adjusted Ebitda was 4.5%, a drop of 310 base points against the previous year, due to the impacts of the costs relating to the Chapter 11 173 Fable Investments Results 174 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Capital for purpose-driven start-ups Fable Investments, a corporate venture capital seeks to contribute to the continued evolution wholly owned and funded by Natura &Co, showed and positive transformation of the beauty and strong double-digit growth in 2024, with significant wellness sector. developments across its portfolio. 2024 was a dynamic year for Fable, marked by the The overarching purpose of Fable, operating addition of two emerging brands to its portfolio: autonomously, is to deploy growth capital EADEM is a community-driven beauty brand strategically into emerging, innovative, and high- empowering women of color to embrace their growth enterprises within the beauty and wellness natural beauty. Rooted in inclusivity, it redefines domain. Fable takes on the role of a nurturer, aiming industry standards beyond tokenism. As a premium not only to fuel the growth of these ventures but skin care are brand for melanin-rich, sensitive skin, also to foster a positive impact across the broader EADEM has achieved strong retail success with industry. The objective is to inspire and support start- Sephora US, embodying Fable’s values of inclusivity ups, enabling them to reach their full potential. and education; and BIBBI Parfum, a luxury niche fragrance brand inspired by its founder’s meditative Fable boasts a vibrant pipeline of opportunities and journey, has already demonstrated exceptional remains eager to expand its portfolio each year. The potential, attracting strong interest from top-tier focus is on partnering with purpose-driven founders retailers since its launch. These strategic additions who are deeply passionate about their ventures, reinforce Fable’s commitment to innovation and brands that exhibit strength and resonance in the purpose-driven brand building. We are excited to market, and products that demonstrate exceptional partner with them, supporting their growth by effectiveness. Through these investments, Fable leveraging our platform, resources, and expertise. 175 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index EADEM Proudly female-founded, Black- and Asian-owned, the brand is built on the belief that beauty should honor and reflect the richness of diverse backgrounds. 2024 was a milestone year, driven by the viral success of Le Chouchou lip balm, which became a bestseller after its March launch. Strategic hires in Operations, Sales, Social Media, and Finance supported this momentum, alongside industry recognition with Allure’s Best of Beauty Award and continued social media virality, driving engagement and brand awareness around the world. BIBBI Parfum As a distinctive, trend-setting niche fragrance brand, it continues to expand with Perfumer H Renowned for redefining maude The modern intimacy brand Stratia As a science-driven skin care craftsmanship in perfumery, the continues to expand its presence. brand known for its unique brand creates refined yet effortlessly Key highlights of the year include formulations and effective strategic retail placements and elegant fragrances that resonate with sponsoring the Louvre exhibition ingredients, it continues to expand successful product launche. customer world wide has further “Private Lives: From the Bedroom its impact through the launch of Strengthening its leadership expanded its global retail presence to Social Media,” featuring Maude Sespia Lab in 2024, introducing a team and transitioning to direct with a growing network of directly products, elevating brand visibility new revenue stream by offering operations in key markets, operated stores and premium in a prestigious cultural setting. R&D and manufacturing services the brand is well-positioned department store counters, including As the first sexual wellness brand for small and medium-sized for growth, with further retail new openings at Isetan Shinjuku and in Sephora’s history, Maude has personal care brands. Increased expansion planned for 2025. Liberty London in 2024. Additionally, continued its retail expansion social media engagement has also the company has secured strong with partners such as Erewhon, amplified brand visibility, while local partnerships in China, Korea, Samaritaine, and Skins. To the introduction of the Esthetician and other key luxury markets, with support future growth, the brand Pro Program reinforces its four new store openings confirmed strengthened its leadership team, commitment to professional for 2025 in Shanghai, Seoul, Tokyo, restructured its organization, and skincare education. and London. Perfumer H continues continues to develop new product to elevate its offering and expand innovations. its customer base through product innovation, introducing refined packaging, enhanced formula longevity, and expanding into high- growth categories such as hand and body care. 176 176 Technical references and GRI Content Index 177 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI and SASB Content Index Declaration of use Natura &Co used GRI Standards as its base for reporting the period between Monday, January 1, 2024 and December 31, 2024*. GRI 1 used GRI 1: 2021 Foundations GRI STANDARD / OTHER SOURCE CONTENTS GENERAL DISCLOSURES LOCATION SDGs 2-1 Details of the organization 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. The subsidiaries included in the scope of this report are Natura Cosméticos S.A., which operates in 14 countries, and Avon Products, Inc., with operations in 54 countries. 2-3 Reported period, frequency and point of contact 4. Report published on April 14, 2025. Any doubts or suggestions may be addressed to http://institucional@natura.net/ 2-4 Restatements of information GRI 2: General Disclosures 2021 In line with the material fact published to the market in 2025, Natura &Co Holding Company. S.A., by means of its subsidiary Natura Cosméticos S.A., did not renew the contract of The Body Shop Latin America master franchisee. As of this cycle, we have ceased to include this entity in our indicators. Other indicators were restructured in the Databook, as follows: GRI 302-1, 302-3, 305-7, 306-4, 306-5 e 405-1. 2-5 External assurance Latin America Databook 2-6 Activities, value chain and other commercial relationships 4, 11, 19, 20, 63, 64, 65, 94, 147, 148. 2-7 Employees 65, 72. Latin America Databook with information available 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 4. Latin America Databook 2-9 Governance structure and composition 29, 33, 8, 29, 88 8, 10 8 5, 16 * Data related to the Natura &Co Latin America business unit, disclosed in accordance with the Global Reporting Initiative (GRI), is available in the Latin America Databook. 178 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS GENERAL DISCLOSURES LOCATION SDGs 2-10 Nomination and selection of the highest governance body 33 and 34. Latin America Databook 5, 16 2-11 Chair of the highest governance body 2-12 Role of the highest governance body in overseeing the management of impacts GRI 2: General Disclosures 2021 2-13 Delegation of responsibility for managing impacts 29. In the Material Fact published on March 25, 2025, Natura &Co announced the incorporation of the Holding Company by the Natura Cosméticos S.A. subsidiary. Following the incorporation, the Board of Directors of Natura Cosméticos S.A. will continue to lead the Group, with the presence of the founders, Bruno Rocha, Duda Kertesz and Gilberto Mifano, and with the Board being chaired by Fábio Barbosa, who will no longer perform the executive role of CEO. João Paulo Ferreira, the CEO of Natura, and Alessandro Carlucci, the ex-CEO of the company, will also join as independent board members. Carla Schmitzberger will leave the Board following the incorporation. These changes should be approved by the O/EGM and by the CVM. 31 and 32. The Board of Directors establishes the company’s values, mission and culture, supervising their implementation by means of corporate policies. With support from the Strategy and Sustainability Committees, it approves and monitors strategic plans, expansion and investments, including those focused on sustainability. The management of the impacts is the responsibility of the executives of the areas involved, as per the guidelines of the Board. The Sustainability Board heads social environmental matters, with support from the Internal Risks and Controls, Compliance, Financial and other departments. In line with its Bylaws, the Company considers the short and long-term interests of the company and its shareholders, as well as the economic, social, environmental and legal impacts on the stakeholders. The Sustainability Committee, made up of members of the Board of Directors and executives from the department, supports the social environmental governance. Since October 2024, it has also received support from an external consultant. 2-14 Role of the highest governance body in sustainability reporting 5 and 32. 2-15 Conflicts of interests 39. Latin America Databook 2-16 Communication of critical concerns 38. Latin America Databook 2-17 Collective knowledge of highest governance body 31 and 32. 2-18 Evaluation of the performance of highest governance body Latin America Databook 2-19 Remuneration policies 34 and 73. 2-20 Process to determine remuneration 34 and 73. 16 16 16 179 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS GENERAL DISCLOSURES 2-21 Annual total compensation ratio Latin America Databook 2-22 Statement on sustainable development strategy 9, 12, 68. LOCATION SDGs 2-23 Policy commitments 39, 45, 83, 147. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 16 GRI 2: General Disclosures 2021 2-24 Embedding policy commitments 2-25 Processes to remediate negative impacts 32, 38, 45, 83, 89, 147, 150. 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. 38, 45, 69, 89, 150. Our Board participates in overseeing processes for 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. 2-26 Mechanisms for advice and presentation of concerns 38 and 39. Latin America Databook 16 180 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS GENERAL DISCLOSURES LOCATION SDGs 2-27 Compliance with laws and regulations Latin America Databook with available information on the region Natura &Co information will be available later in the Sustainability Compendium, on the Investor Relations website. GRI 2: General Disclosures 2021 2-28 Membership of associations 2030 Latin America 2-29 Approach to stakeholder engagement 4, 6, 72, 92, 94, 123, 125, 147, 156. 2-30 Collective bargaining agreements Excluding interns, apprentices, employees of Avon International and the Natura Institute, 65.21% 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. 8 MATERIAL TOPICS GRI 3: Material Topics 2021 CIRCULARITY GRI 3: Material Topics 2021 3-1 Process to determine material topics 7. Latin America Databook 3-2 List of material topics 7 and 8. Latin America Databook 3-3 Governance of material topics 50, 133, 134, 135, 136, 137, 138. Latin America Databook 301-1 Materials used by weight or volume Latin America Databook with information available 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 Latin America Databook with information available 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 150 and 151. Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. SASB: Packaging life cycle management 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. 133 and 134. 8, 12 8, 122 8, 122 181 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CIRCULARITY SASB: Packaging life cycle management CONTENTS LOCATION SDGs SASB-CG-HP-410a.2 Discussion of strategies to reduce the environmental impact of packaging throughout its life 133. 302-1 Energy consumption within the organization Latin America Databook with available 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 Latin America Databook with information available 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 Latin America Databook with information available 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 Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 302-5 Reduction in the energy requirements of products and services Latin America Databook with information available 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 Latin America Databook GRI 303: Water and Effluents 2018 303-2 Management of water discharge related impacts Latin America Databook 303-3 Water withdrawal Latin America Databook 303-4 Water discharge Latin America Databook 303-5 Water consumption Latin America Databook SASB-CG-HP-140a.1 (1) Total water withdrawn, (2) total water SASB: Water management consumed, percentage of each in regions with Latin America Databook High or Extremely High Baseline Water Stress 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 6 182 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CIRCULARITY SASB: Water management CONTENTS LOCATION SDGs SASB-CG-HP-140a.2 Description of water management risks and discussion of strategies and practices to mitigate those risks Latin America Databook 306-1 Waste generation and significant waste-related impacts Latin America Databook 306-2 Management of significant waste-related impacts Latin America Databook 3, 6, 11, 12 3, 6, 8, 11, 12 GRI 306: Waste 2020 306-3 Waste generated Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 6, 11, 12, 15 306-4 Waste diverted from final disposal Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 11, 12 306-5 Waste destined for final disposal Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 6, 11, 12, 15 GRI 416: Occupational health & safety Health and Safety 2016 GRI 417: Marketing and Labeling 2016 416-1 Assessment of the health and safety impacts of product and service categories 416-2 Cases of non-compliance concerning the health and safety impacts of products and services 417-1 Requirements for product and service information and labeling 417-2 Incidents of noncompliance concerning product and service information and labeling 130. Latin America Databook Latin America Databook 16 Latin America Databook Latin America Databook 183 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CIRCULARITY SASB: Environmental, health and safety performance of products SASB: Revenue from products developed based on green chemistry principles SASB: Environmental and social impacts of the palm oil supply chain CONTENTS LOCATION SDGs SASB-CG-HP-250a.3 Discussion of process to identify and manage emerging materials and chemicals of concern Latin America Databook 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 Latin America Databook Latin America Databook VALUE DISTRIBUTION GRI 3: Material Topics 2021 3-3 Governance of material topics 69, 76, 122, 145, 147, 148. Latin America Databook 201-1 Direct economic value generated and distributed Latin America Databook 8, 9 GRI 201: Economic Performance 2016 201-3 Defined benefit plan obligations and other retirement plans Latin America Databook 201-4 - Financial assistance received from the government Latin America Databook GRI 202: Market presence 2016 202-1 Ratio between standard entry level salary, compared to local minimum wage, by gender Latin America Databook 1, 5, 8 184 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS DISTRIBUTION OF VALUE LOCATION SDGs GRI 203: Indirect Economic Impacts 2016 GRI 204: Procurement Practices 2016 203-1 Infrastructure investments and services supported 203-2 Significant indirect economic impacts 87, 92, 96, 117, 136, 149, 150, 156, 157. Latin America Databook 69 and 156. Latin America Databook 204-1 Proportion of spending on local suppliers 149. Latin America Databook 401-1 New employee hires and employee turnover Latin America Databook with available 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 Latin America Databook GRI 403: Occupational Health and Safety 2018 401-3 Parental leave Latin America Databook 403-1 Occupational health and safety management system 145 and 146. 403-2 Hazard identification, risk assessment and incident investigation 145 and 146. 403-3 Occupational health services Latin America Databook 403-4 Worker participation, consultation, and communication on occupational health and safety Latin America Databook 403-5 Training for workers in occupational health and safety 145 and 146. 5, 9, 11 1, 3, 8 8 5, 8, 10 3, 5, 8 5, 8 8 8 8 8, 16 8 185 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS DISTRIBUTION OF VALUE LOCATION SDGs GRI 403: Occupational Health and Safety 2018 GRI 404: Training and Education 2016 GRI 405: Diversity and Equal Opportunities 2016 403-6 Promotion of worker health 145 and 146. 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 Latin America Databook Latin America Databook 403-9 Work-related injuries 403-10 Work-related ill health 146 146 404-1 Average hours of training per year per employee 75. Latin America Databook with information available 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 Latin America Databook 405-1 Diversity of governance bodies and employees 72 and 76. Latin America Databook with information available 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 received by women and that received by men Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. GRI 415: Public Policies 2016 415-1 Political contributions 36. 3 8 8 3, 8, 16 3, 8, 16 4, 5, 8, 10 5, 8, 10 5, 8 5, 8, 10 16 186 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS DISTRIBUTION OF VALUE 207-1 Approach to tax Latin America Databook 207-2 Tax governance, control and risk management Latin America Databook GRI 207: Tax 2019 207-3 Defined benefit plan obligations and other retirement plans GRI 417: Marketing and Labeling 2016 207-4 Country-by-country reporting GRI 4173 Incidents of non- compliance concerning marketing communications GRI 404: Training and Education 2016 404-2 Programs for upgrading employee skills and transition assistance programs SOCIAL REGENERATION Latin America Databook Latin America Databook Latin America Databook LOCATION SDGs 17, 1, 10 17, 1, 10 17, 1, 10 17, 10, 1 Latin America Databook 8, 10 GRI 3: Material Topics 2021 3-3 Governance of material topics 36, 37, 76, 77, 78. Latin America Databook GRI 202: Market Presence 2016 202-2 Ratio of senior management hired from the local community Latin America Databook 205-1 Operations assessed in terms of the risks relating to corruption 37 and 38. Latin America Databook GRI 205: Anti-corruption 2016 205-2 Communication and training on anti-corruption policies and procedures 38. Latin America Databook 205-3 Confirmed incidents of corruption and actions taken Latin America Databook 16 16 16 187 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS SOCIAL REGENERATION LOCATION SDGs GRI 206: Anti-competitive behaviour 2016 206-1 Legal actions for anti- competitive behavior, anti-trust, and monopoly practices During the reported period, Natura recorded no claims or litigations, either pending or closed, due to unfair competition, practices of trust, or monopoly, either in Brazil or in Hispanic America. 16 GRI 402: Labor Relations 2016 GRI 406: Non- discrimination 2016 4021 Minimum notice period regarding operational changes 406-1 Incidents of discrimination and corrective actions taken GRI 407: Freedom of Association and Collective Bargaining 2016 407-1 Operations and suppliers in which the right to freedom of association or collective bargaining may be at risk We have established a minimum notice period of four weeks to inform workers about significant operational changes. Latin America Databook 38 and 39. Latin America Databook 5, 8 The company does not have operations at risk of violations of the workers’ right to exercise freedom of association or collective bargaining. 8 GRI 408: Child labor 2016 408-1 Operations and suppliers considered to have significant risk for incidents of child labor 150. Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 5, 8, 16 GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 150. Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. GRI 411: Rights of Indigenous Peoples 2016 411-1 Incidents of violations involving the rights of indigenous peoples In 2024, we did not identify any cases of violations involving the rights of indigenous peoples, either regarding indigenous people working in the organization or in indigenous communities with which we maintain relations. GRI 413: Local Communities 2016 413-1 Operations with local community engagement, impact assessments and development programs 413-2 Operations with significant (actual and potential) negative impacts on local communities 79, 92, 95, 96, 99, 135, 142, 147, 156. 109. Latin America Databook 5, 8 2 1, 2 188 GRI 413: Local Communities 2016 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CONTENTS SOCIAL REGENERATION GRI 414: Supplier Social Assessment 2016 GRI 418: Customer Privacy 2016 414-1 New suppliers that were screened using social criteria 414-2 Negative social impacts in the supply chain and actions taken 418-1 Substantiated complaints relating to breaches of customer privacy and losses of customer data REGENERATION OF NATURE LOCATION SDGs 97, 147, 150. Latin America Databook 150 and 151. Latin America Databook Latin America Databook 5, 8, 16 5, 8, 16 GRI 3: Material Topics 2021 GRI 101 Biodiversity 2024 3-3 Governance of material topics 45, 63, 64, 68, 83, 92, 133. Latin America Databook GRI 101-1 Policies to halt and reverse biodiversity loss GRI 101-2 Management of biodiversity impacts GRI 101-3 Access and benefit- sharing 83. Latin America Databook Latin America Databook 83. Latin America Databook GRI 101 Biodiversity 2024 GRI 101-4 Identification of biodiversity impacts 83. Latin America Databook GRI 101-5 Locations with biodiversity impacts GRI 101-6 Direct drivers of biodiversity loss Latin America Databook Latin America Databook GRI 101 Biodiversity 2024 GRI 101-7 Changes to the state of biodiversity Latin America Databook GRI 101-8 Ecosystem services Latin America Databook GRI 308: Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using social criteria 308-2 Negative environmental impacts in the supply chain and actions taken 79, 135, 150. Latin America Databook 79 and 150. Latin America Databook 189 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index GRI STANDARD / OTHER SOURCE CLIMATE ACTION GRI 3: Material Topics 2021 CONTENTS LOCATION SDGs 3-3 Governance of material topics 42, 44, 84, 86, 87, 89, 143. Latin America Databook GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change Latin America Databook 13 GRI 305: Emissions 2016 305-1 Direct (Scope 1) emissions of greenhouse gases (GHG) Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 2, 12, 13, 14, 15 305-2 Indirect emissions (Scope 2) of greenhouse gases (GHG) arising from the acquisition of energy Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 2, 12, 13, 14, 15 305-3 Other indirect (Scope 3) GHG emissions Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 2, 12, 13, 14, 15 305-4 Intensity of emissions of greenhouse gases (GHG) Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 305-5 Intensity of emissions of greenhouse gases (GHG) Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 13, 14, 15 13, 14, 15 305-6 Emissions of ozone depleting substances (ODS) Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 12 305-7 Emissions of NOx, SOx, and other significant air emissions Latin America Databook with information available on the region. Natura &Co information will be available later, in the Sustainability Compendium, on the Investor Relations website. 3, 12, 14, 15 GRI 305: Emissions 2016 190 Independent auditors’ limited assurance report 191 192 Natura &Co Holding Natura &Co Latin America Avon International Fable Investments Technical references and Index Credits NATURA &CO NATURA &CO LATIN AMERICA CONTRIBUTIONS Group Chief Legal and Compliance Officer Itamar Gaino Filho Vice President of Reputation, Sustainability, Legal and Corporate Affairs Ana Costa External Communications Emilia Lebron Investors Relations Helena Villares and Ana Sartori Corporate Governance Moacir Saltzstein and Aline Klein Legal Daniela Anversa Risk Management Mercedes Stinco and Estela Favaron Ethics and Compliance Juliana Darini and Marco Barreto Reputation and Governance Paulo Dallari and Ana María Lee Sustainability Angela Pinhati, Ines Francke, Thais Espildora, Nathalia Ribeiro, Natália Noleto and Letizia Bezerra Art Direction Marcelo Rivera and Cássio da Costa Silva AVON INTERNATIONAL Global Communications Jo Newark Sustainability Natalie Deacon, Dawid Moneta and Marlena Babicka GRI Consulting, Copy and Editing Grupo Report: Alan Bergman, Alisson Coutinho, Ana Souza, Camila Freire, Camila Severgnini, Fabio Peixoto, Fernanda Mori, Guto Lobato, Matthew Shirts, Nicholas Ribeiro, Ryan Brandão and Thays Garcia Design Manuela Novais, Ana Tereza Carneiro e Giulia Molino Board Photography Paulo Vitale Text revision Catalisando Conteúdo Translation Steve Wingrove Additional thanks to Jonathan Lloyd White, Evie Stenhouse, Samantha Jacobs and Roberta Roesler Special thanks to Luiz Seabra, Guilherme Leal, Pedro Passos, Fábio Barbosa, Guilherme Castellan, João Paulo Ferreira and Kristof Neirynck 193 193

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