Natura Cosméticos, S.A. PDF

# Natura Cosméticos, S.A. ## Introduction Natura is a Brazilian cosmetics company known for its commitment to sustainability. The company's director of corporate affairs, Rodolfo Guttilla, is preparing for a meeting to discuss the future of Natura's integrated reports. ## Context * **Brazil:**...

# Natura Cosméticos, S.A. ## Introduction Natura is a Brazilian cosmetics company known for its commitment to sustainability. The company's director of corporate affairs, Rodolfo Guttilla, is preparing for a meeting to discuss the future of Natura's integrated reports. ## Context * **Brazil:** * Fifth largest country in the world by land and sixth largest by population. * Incredible diversity in geography, ethnicities and culture: * 200+ indigenous peoples * 170 languages * 15-20% of world's biodiversity * Federal republic with 26 states * Recent transition from military rule to democratic government in 1985. * Became a non-permanent member of the UN Security Council in 2010. * **Brazil's Economy:** * Eighth largest in the world, comparable to France. * Well-developed agricultural, mining, manufacturing, and service sectors. * Sustained strong economic growth in recent years, leading to a stable macroeconomic environment. * Impacted by the global financial crisis in 2008, but recovered quickly. * GDP in 2011: $2.17 trillion * Estimated 2010 GDP growth: 7.5% * Projected average growth rate for 2011-2020: 4.3% ## Challenges to Sustainability in Brazil **Environmental**: * Deforestation of the Amazon rainforest * Illegal wildlife trade and logging * Air and water pollution * Degradation of ecosystems caused by mining **Social**: * Unequal distribution of income * High Gini Index (56.7 in 2005, placing Brazil among the 10 worst in the world) * 26% of the population lives below the poverty line. * Other challenges include: * Inadequate access to healthcare * Poor education * Corruption ## Natura's History and Commitment to Sustainability * Founded in 1969 by Antonio Luiz da Cunha Seabra * Grew to become Brazil's leading cosmetics company by 2010 * Achieved a 23.6% market share, 55% household penetration, and close to 100% brand recognition. * Employs 7,000 people. * Operates in: Brazil, Argentina, Chile, Peru, Colombia, Mexico, and France. * Went public on the Bovespa stock exchange (NATU3) in 2004. * Achieved strong financial performance over the years. ## Natura's Values and Strategic Position * **Core Values:** * Believes in the company's role in contributing to social and environmental progress. * Committed to sustainable development. * **Strategic Position:** * Embraces **Triple Bottom Line (TBL)**: a focus on economic, social, and environmental performance. * Emphasizes stakeholder relationships and responsible practices. * Utilizes a direct sales model, empowering individuals and building community connections. ## Models and Initiatives **Direct Sales Model:** * Employs a large network of mostly female consultants, known as "consultoras." * Consultants sell products directly to consumers. * Provides high levels of income and personal satisfaction compared to other similar industries. **Integrated Management:** * Emphasizes a comprehensive approach to sustainability, encompassing environmental, social, and economic aspects. * Adopted the Global Reporting Initiative (GRI) framework for reporting sustainable performance. * Develops key performance indicators (KPIs) to track progress across all areas of operations. **Integrated Reporting:** * Focuses on creating a culture of integrated management that integrates sustainable practices across all aspects of the company. * Uses an iterative process of continuous improvement and stakeholder engagement. * Aspires to move beyond simple reporting and use information to drive impactful change. **Stakeholder Engagement:** * Recognizes that a culture of dialogue and transparency is crucial for addressing complex challenges in a sustainable manner. * Employs various methods to engage stakeholders, including: * Stakeholder meetings and panels * Online forums and communities (Natura Conecta) * WikiReport, a collaborative, living document that collects feedback and integrates it into the annual report. **Continued Challenges & Opportunities:** * **Shifting from "informative" to "transformative" reporting**: * Emphasizing how the company's activities generate value for both the organization and society. * Using the report to build momentum for positive change. * **Addressing stakeholder concerns**: * Clearer connection between financial and non-financial performance. * More proactive measures to address challenges related to social and environmental sustainability. ## Conclusion * Natura's efforts to integrate sustainability into its business model are an example of a company that embraces its responsibility to create positive change. * The company embraces a culture of dialogue and transparency in its efforts to achieve its sustainability goals. This document offers a comprehensive overview of Natura Cosmeticos, S.A.'s commitment to integrated reporting. It highlights the company's history, values, challenges, and strategic approach to sustainability. The document underscores the important role of stakeholder engagement in driving social and environmental change.