On May 4, 2021, we successfully completed US$1 billion in Sustainability–Linked Bond.
SLBs are debt instruments whose objective is to make the issuer reach ESG targets, which are calibrated based on key performance indicators (KPIs).
A milestone for Natura &Co that kept 40% of debt linked to sustainability, and is the largest-ever single SLB issuance by a Brazilian issuer.
Characteristics
| Issuer | Issuance Date | Maturity Date | Principal Amount | Yield / Cupom | Subsequent Rate |
|---|---|---|---|---|---|
| Natura Cosméticos S.A. | May 03, 2021 | May 03, 2028 | US$ 1.0 billion aggregate principal amount | 4.125% per year, payable semi-annually | If the SPTs have not been satisfied by December 2026, the interest rate will be increased by 65 basis points to 4.775% per annum |
For more information on Sustainability Linked Bond issuance, please access the following documents:
- Notice to the Market – Successful Closing of Sustainability-Linked Bond Issue
- Sustainability-Linked Bond – Framework
- Sustainability-Linked Bond – Second Party Opinion
- Sustainability-Linked Bond – Report 1 year
- Sustainability-Linked Bond – Report 2 year
- Sustainability-Linked Bond – Audit Report non financial information (in portuguese)
- Sustainability-Linked Bond – Audit Report GHG emission (in portuguese)
Reporting & Verification
Report:
The information will be published annually in the Sustainability Linked Bond Report, to provide information to investors and other stakeholders on the implementation of Natura Cosméticos’ sustainability strategy, the advances made in the KPIs and the fulfillment or not of the foreseen SPTs.
This report will be posted on this page after the end of each calendar year.
Verification:
In order to provide investors transparency and in alignment with SLB, Natura Cosméticos’ performance in relation to each SPT for each KPI on the relevant observation date will be verified by a qualified external and independent reviewer. Verification will be carried out with limited warranty and made publicly available on this website.
SPT # 1: Reduce scopes 1, 2 and 3 GHG emissions intensity (in tonnes CO2 per tonnes product billed) by 13% by 2026
This reduction target is a science based target and an interim target on Natura Cosméticos path towards net-zero GHG emissions by 2030, aligned with a global temperature rise of 1.5 °C.
Key Performance Indicator & Scope
| Scope 1 | Scope 2 | Scope 3 |
|---|---|---|
| Direct emissions | Indirect emissions(from acquisition of energy) | Upstream & Downstream(96% of Natura Cosméticos carbon footprint) |
This KPI is aligned with the following United Nations Sustainable Development Goals (“UN SDGs”):
| SDG 7: Affordable and Clean Energy. | SDG 9: Industry, Innovation and Infrastructure |
|---|---|
| Target 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix. Target 7.3 By 2030, double the global rate of improvement in energy efficiency | Target 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries acting in accordance with their respective capabilities |
SPT # 2: Reach 25% of post-consumer recycled (“PCR”) plastic usage in plastic product packaging by 2026 (in %)
This target is aligned with Natura &Co’s Sustainability Vision 2030 and with Natura Cosméticos’ actions under the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment.
Key Performance Indicator & Scope
| KPI | Scope |
|---|---|
| The proportion of absolute PCR plastic used in finished product plastic packaging in relation to total absolute amount of plastic packaging materials (%) | Plastic is the most widely used packaging product in the portfolio, representing 27% of Natura Cosméticos’ waste in 2020 |
This KPI is aligned with the following United Nations Sustainable Development Goal (“UN SDG”):
| SDG 12: Responsible Consumption and Production |
|---|
| Target 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse |
Natura Cosméticos is an innovation leader in packaging and is committed to achieving full packaging circularity. Through this commitment, Natura Cosméticos will also seek to:
| Eliminate problematic or unnecessary plastic packaging | Move from single use towards reuse models | 100% reusable, recyclable or compostable plastic packaging |