Our Sustainability Vision aims to ensure equity and inclusion for our network.
As part of a commitment to diversity, equality and inclusion, Natura &Co will set out a plan to ensure its workforce reflects the demographic composition of the societies in which it operates. This will be a first for a listed multinational business with a presence n more than 100 countries and it poses many challenges around personal data and data protection laws in different countries.
We aim to go beyond the UN SDG goal of 30% women in leadership positions by increasing our goal to 50% by 2023. We are nearly there, at 49%. At Natura &Co Latin America, for example, our strategy to guarantee gender equality for finalist candidates in recruiting processes has been effective. By the end of 2020, we had reached 51% of women in leadership positions.
We vowed to guarantee gender parity and equal pay among our entire workforce, reducing the gender gap by 2023. In 2020, Natura &Co conducted a comprehensive equitable pay study, in partnership with HR consultants Mercer.
The study analyzed 35,000 employees, across all businesses and group functions, in more than 70 countries, exploring pay, role, grade, country and gender. We identified an unexplained gender gap of 0.9%. We are committed to closing this residual gap ahead of the 2023 deadline, and we will monitor it closely to ensure it is completely closed.
Aesop also began a partnership with the Thomas Leland consultancy to help build its global Diversity, Equity and Inclusion (DE&I) strategy, one of Aesop’s strategic priorities for 2021.
We will ensure that by end of 2021 all of our associates will receive a living wage or above. 96% of our people currently are already paid living wage. This means going beyond legal minimum salary, moving us forward to guarantee that all employees will have a minimum income necessary to meet their basic needs, which include food, housing, health care and clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living through employment.
85% of our consultants and representatives are women and we currently estimate our own network at 8 million women worldwide. We share the purpose of supporting women’s empowerment and economic participation alongside the fight against breast cancer and domestic violence.
We are committed to measuring and increasing the profit, health and education of everyone in our network, while promoting direct sales as a trusted and reliable business model.
One of the metrics we are using as a framework is the Human Development Index, developed by Natura for its consultants in 2014. The Consultant-HDI is the first indicator that measures a company’s social impact using the same methodology used by the United Nations Development Program to assess countries’ human development.
In 2019, the results showed a 3.1% increase in overall HDI compared to the assessment done in 2017, mainly due to the strategy of digital inclusion and financial education that the company has been implementing in the last few years.
The assessment also showed that one year as a Natura consultant can result in a 1.8% increase in a person’s HDI. It also noted an increased desire on the part of consultants to improve their living conditions and to take care of themselves.
We will also quantify gains among the members of the 58 ethical trade sourcing communities in 15 countries from whom we source ingredients and materials directly in a fair-trade model. At Natura with SPI (Social Progress Index), we monitor the effect of territory management on development.
The Integrated Profit and Loss (IP&L) is a tool developed based on the goals of the 2050 Vision, as a means of guaranteeing that our management is directed towards promoting positive impact on society. IP&L innovates by demonstrating in detail that Natura’s value creation goes far beyond its financial indicators, such as revenue and profit. Integrated analysis enables the assessment, for example, of the impact generated on the lives of people who are part of the production chain, in addition to the environmental footprint generated on the planet.
We redefined the value of our investments for our different audiences: for example the amount invested in training employees, the impact of which is normally accounted for as an expense, and captured the benefit that this knowledge adds over the long term in social integration and improved income.
It is also our responsibility to respect human rights while exercising sustainable development on a global level to generate positive impact.
Over the past year we have charted each Group company’s current policy and practice related to human rights and mapped these against the best practice captured by the UNGP to draft a policy to be launched in Q4 2021.
In 2020, we became part of the board of the World Federation of Direct Sales Associations (WFDSA), with João Paulo Ferreira, Natura &Co Latin America’s CEO, as Chairman of the Ethics committee. The CEO Council is the Federation’s main governing body, responsible for oversight, control and strategic direction of the organization’s activities and affairs. It consists of the CEOs of the leading multinational direct selling companies.
We committed to adopt a robust human rights policy by 2023, upholding zero tolerance for any kind of infringement in our entire network, particularly the supply chain, in line with UN Guiding Principles.
The group will also enforce full traceability and/or certification by 2025. Alongside these targets, we will implement specific programs for supply chains of critical ingredients in the coming years, specifically for palm oil, mica, alcohol, cotton, paper and soy.
In 2020, Natura took an important step towards this objective by launching a Declaration of Commitment, which formalized the business’s responsibility and commitment to zero tolerance for the violation of human rights.
In 2020, our businesses jointly donated and invested R$489 million through a range of initiatives, including our engaged communities in the Amazon, Crer para Ver program, Avon’s campaigning and fundraising for women’s health and wellbeing, as well as initiatives to combat COVID-19.