Commitment to Life

The Commitment to Life includes two dimensions:

1. To face the climate crisis and protect the Amazon
2. Embrace circularity and regeneration.

Address the climate crisis and protect the Amazon

Address the climate crisis

We pledged to achieve net zero greenhouse gas (GHG) emissions by 2030 for our four businesses. We aim to do that in line with science-based targets, tracking emissions throughout our entire value chain and that of our suppliers, from the extraction of raw materials to packaging disposal.

Currently, our GHG emissions are estimated at around two million tons of CO2 equivalent. We already tackle this issue using renewable energy and projects that drive energy efficiency, in addition to lower carbon logistics and distribution solutions.

We have already started to offset unavoidable emissions through carbon credit projects at Natura and Aesop. For example, Natura alone has already avoided the emission of over 162,000 tons of CO2 equivalent, a 32% reduction compared to a business-as-usual operation. Aesop is carbon neutral in New Zealand and Australia while Avon has zero scope 2 emissions through the use of renewable energy. We plan to expand the use of reduction technologies available in the market for energy, logistics efficiency and packaging. To do this, we will enter into partnerships to develop new technologies.

Since 2019, we have been a member of the Business Ambition for 1.5°C pledge to reach net-zero emissions. In line with these goals, we will be dedicated over the next two years to consolidating the organizational footprints for scopes 1 and 2, and to calculating and consolidating the footprint for scope 3 with the Carbon Trust consultancy.

We are co-founders of Transform to Net Zero, a cross-sector initiative that aims to drive research, advocacy and best practices to make it easier for the private sector to deliver meaningful emissions reductions and economic success. The coalition’s goal is for all Fortune Global 1000 companies to have targets backed by transformation plans to achieve net zero no later than 2050.

Protect the Amazon

For 20 years, Natura has been developing sustainable economic alternatives for the Amazon region. Currently, Natura preserves two million hectares of land, an area equivalent to half of the Netherlands, and the goal is to contribute to the preservation of three million hectares by 2030.

The company intends to expand its reach from 33 to 40 supplier communities and to increase revenue streams with the use of 55 bio-ingredients (up from 38). With this, it expects to share at least R$60 million with local communities (from R$33 million).

This is made possible by Natura Ekos products, which were developed based on three pillars: fair trade, the preservation of biodiversity and local community relations founded on trust.

With these products, Natura helped bring the Amazon forest closer to the lives of its customers. In 2020, Ekos was re-certified by UEBT (Union for Ethical Biotrade), a non-profit organization which attests to production best practices and fair trade in the supply chain.

To support this business model, Natura developed the Amazon Program, which has generated more than R$2.1 billion in business volume in the region since its launch in 2011, double the initial forecast. The idea of the program is to create a model through which the Amazon would no longer be exclusively a supplier of raw materials, but instead would reveal the value of its vocation for technology and its culture. The model contributes to improving local quality of life and promoting the conservation of the standing forest.

We support the creation of Amazon Concertation, a network of more than 300 leaders from the public and private sectors engaged in the sustainable development of the region. The goal is to establish a broad base of systematic knowledge about the region and common projects aimed at a different path of development, reconciling conservation in a non-predatory model.

Biodiversity

We will be expanding for all the group the practice of ABS (Access and Benefit Sharing) payments, to contribute to preventing biodiversity loss in the world, in line with the UN Convention on Biological Diversity and the Nagoya protocol.

We will partner with the Science-Based Alliance to establish a new framework for the protection of nature, creating targets through partnerships with the Union for Ethical Biotrade (UEBT), Science Based Targets Network (SBTN) and Business for Nature.

We also began working with leading players through the One Planet Business for Biodiversity (OP2B), an international cross-sector, action-oriented business coalition on biodiversity created in Europe with a specific focus on agriculture and regeneration. The coalition is determined to drive transformational systemic change and catalyze action to protect and restore cultivated and natural biodiversity within value chains, engage institutional and financial decision-makers, and develop and promote policy recommendations for a post-2020 biodiversity framework at the 2021 Convention on Biological Diversity (CBD COP15).

The Body Shop has developed with 18 community fair trade systems across 14 countries.

Aesop developed a partnership with Dutjahn Sandalwood Oils (DSO), in Kalgoorlie, Western Australia, that supplies sandalwood. Aesop first partnered with the business in 2018, after an extensive search for ethically-sourced sandalwood oil that would meet its aroma profile and quality requirements. DSO is a 50% indigenous-owned enterprise that produces a blended sandalwood oil from new plantation trees and old wild grown desert trees, which are sustainably harvested by the custodians of the land, the Martu and Wongi peoples. Sandalwood has been revered for generations by the Martu and Wongi for its medicinal properties, as well as being used in smoking and cultural ceremonies and spiritual practices.

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Embrace circularity and regeneration

Circularity

We are moving towards an economic model to ensure packaging circularity by 2030 and guarantee that 100% of our packaging materials are either reusable, recyclable or compostable. The group also vows to use at least 20% less packaging material (in weight), and to guarantee that 50% of all plastic used is recycled material (in weight).

One of the steps in this direction is the pioneering product refill scheme which is already in operation in two of the new The Body Shop concept stores: the Bond Street store in London, and the Pacific Centre store, in Vancouver. Sales forecasts predict that this switch could save up to 25 tons of plastic in its first year.

In parallel, The Body Shop has partnered with Plastics for Change, a marketplace platform that enables businesses to easily transition to recycled plastics. The organization sources plastic from marginalized waste pickers in India, offering a fair price, steady income and better working conditions in an informal sector that is often volatile and discriminatory.

By 2030, the group as a whole will increase the use of recycled plastic content to 50%. Also, in order to reach 100% responsible disposal of plastics, we will offset, through “collection and reuse” programs, the equivalent amount of packaging where recycling infrastructure does not exist.
To achieve these goals, we are already taking a major step: giving a new life to our waste, using compostable, refillable or returnable materials for repurposing products.

The Body Shop has increased the use of Community Fair Trade recycled plastic by 325 tons, which corresponds to 30% of the plastic use in its packaging. In Brazil, all of our businesses participate in the De Mão para o Futuro (DAMF) program, a sector initiative coordinated by the CFT industry association ABIHPEC. In 2020, the program as a whole collected more than 121,300 tons of waste with the contribution of more than 4,700 waste pickers from 150 cooperatives in Brazil.

In August 2020, we launched a reverse logistics program in the stores of Natura &Co group brands in Brazil. The program is in place in over 90 Natura and The Body Shop stores in Brazil. For every five empty receptacles of Natura, The Body Shop, Avon or Aesop brand products, the consumer gets a new product. TerraCycle is the partner responsible for collecting the empty receptacles and ensuring they are recycled.

Also in Brazil, Natura created the Elos program to foster sustainable supply chains for post-consumer recycled material (PCR) in packaging and support materials. Elos is a shared responsibility initiative involving Natura and its packaging suppliers (manufacturers, cooperatives, recycling operations). Since 2018, Elos has recovered more than 24,200 tons of post-consumer recycled material, with 10,200 tons recovered in 2020 alone, a volume 12% higher than in 2019.

In Hispanic Latin America, where Natura partners with 1,500 waste pickers and seven cooperatives, the amount of recovered post- consumer recycled material reached 3,700 tons.

Natura has also put together an Ecodesign Committee in order to drive packaging evolution, prioritizing recycled renewable materials and refill options. In 2020, 18% of the packaging units from Natura in Brazil and Hispanic Latin America were eco-efficient.

Aesop also launched a circular packaging trial in its stores in Adelaide, Australia. The goal was to assess customer engagement in a packaging reuse solution for the four facial cleanser formulations in 200ml glass bottles.

The group also seeks to implement formula circularity, with the use of 95% biodegradable formulas and 95% renewable natural ingredients across all four businesses by 2030. All of our new formulas will have a lower environmental footprint, measured by life cycle analysis (LCA).

Regenerative Solutions

Over the years, Natura has been investing in regenerative solutions, which are those that capture more carbon than they emit.

Through a significant investment program totaling around US$100 million, Natura will further develop regenerative solutions including biotechnology and waste-to-plastic solutions by 2030.

One of the projects with very good results is the use of organic alcohol in fragrances. Since 2005, Natura had been increasing the proportion of organic alcohol used to produce fragrances, reaching 100% in 2015. The first company to develop sustainable sugarcane farming in Brazil, Native (Natura’s organic alcohol supplier) also has EcoSocial certification, which attests to the employment of robust socio-environmental criteria, from the production chain through fair trade initiatives. In one year, Native reduces CO2 emissions by 45,000 tons. The use of organic alcohol has contributed to the regeneration of 23,000 hectares in which more than 340 animal species live. Moreover, it promotes water savings of 30% by avoiding the need to wash the sugarcane thoroughly after burning it, as is the case with the traditional harvesting method.

The plan is also to invest in regenerative agriculture in deforested areas to reduce use of chemicals and create alternatives to monocultures.

A good example is a partnership between Natura, Empresa Brasileira de Pesquisa Agropecuária (Embrapa) and the Camta cooperative (Cooperativa Agrícola Mista de Tomé-Açu), in the northern region of Brazil, which that is revolutionary for something very material for the cosmetics industry: palm oil. The study concluded that the palm tree, when produced in agroforestry systems (AFS) in combination with native species, is more productive and sustainable in comparison with monoculture. The research shows that these systems present high productivity and generate additional environmental services, such as the provision of food and wood, as well as helping to control water and climate.

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