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JOÃO PAULO FERREIRA

NATURA
CEO of Leading Company in Sustainability – Brazil

1. How the sustainability issues are formally addressed in your role as CEO?

As CEO, I am one of the members of the Executive Committee, who is responsible for the approval of strategic decisions and guidelines on sustainability issues. With the ambition of generating positive impacts in every dimension of Natura’s activities, we approved in 2014 our Sustainability Vision 2050. Fully aligned with our business strategy, this document brings together a set of strategic directives to ensure all our businesses create a positive impact by 2050, in addition to the ambitions and commitments it should achieve by 2020. The vision clearly indicates the path we want to follow. More than ever, this strategy will guide not only product innovation, but also innovation in all our work processes.

In a regular process of sustainability management, we in the Executive Committee monitor and guide the progress of the sustainability strategies, initiatives and indicators. Therefore, we can influence the business’ agenda and integrate the sustainability monitors to the company’s performance management.
 

2.Indicate which of the following three areas of the sustainable development of your company is, in your opinion, the most important.

The core objective of the Sustainaibility Vision is to promote positive economic, social, environmental and cultural impacts through our business. Through sound corporate governance, the management of the strategies and guidelines set in the Vision integrates the sustainability priority issues, cross-cutting them in all process and departments of our company. Therefore, the three areas are equally and interdependently important in our sustainable development approach.
 

3.In your role as CEO, could you describe in particular a project that has led and highlighted by its positive impact, whether in the Environmental, Social or Corporate Governance (ASG) in the last 12 months?

This October, we have launched a new haircare product line, Ekos Patauá. Patauá is a biodiversity ingredient that has been used by many generation of women in Chico Mendes Extractive Reserve, in the state of Acre, Brazil, and represents our latest project that generates positive and relevant social, environmental and economic impacts.
The palm tree from where the fruit is extracted is available in all Amazon states. Natura accessed its associated traditional knowledge in Chico Mendes Extractive Reserve, a conservation unit with exuberant nature, where more than 3,000 families live off the sustainable extraction of local natural resources. The relationship of the women in this community with the palm tree is a good example of the harmonious coexistence of population and nature: they have been treating their hair with this fruit oil for generations.

Accessing this knowledge as a starting point, we developed research and found out the ingredient properties in strengthening the hair and prolonging its growing phase.

As many other species in the Amazon region, patauá is impacted by the growing deforestation. The use of this active in the cosmetics industry promotes the valorization of the species and of the standing forest. Managing this palm tree and its fruit becomes an alternative to deforestation, serving as extra income to the population that work in its extraction.

In accessing Genetic Resources and Associated Traditional Knowledge, Natura promotes and respects fair trade and share the benefits that arise from their utilization.
 

4.Please indicate how you will lead in the next 12 months, from the identification of the risks and opportunities of Environmental, Social and Corporate Governance (ASG) factors, the measurement of the corporate sustainability performance and reporting to institutional investors, and the capital market in general.

Natura’s Environmental Profit and Loss (EP&L) study, developed in 2016, is one of the main projects that has been guiding the Executive Committee in the integration and analysis of our businesses risks and opportunities from the perspective of our sustainability vision.
Over the next 12 months, we will integrate the EP&L methodology to the product development tool, supporting our risk analysis and decision-making process. In fact, the results of this EP&L account will support our most strategical decisions over the next years, by allowing the consideration of environmental impact in our financial decisions and the integrated report of our results. Over the next 12 months we are also going to start the development of our first Social Profit and Loss (SP&L) account.

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