Natura: Carbon Neutral Program (2010)

1

CARBONNEUTRAL

2010

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK

GLOSSARY

“WE SHOULD ALL CELEBRATE AN HISTORIC FACT: ACROSS THE WORLD, AWARENESS AS GROWN THAT GLOBAL WARMING POSES A RISK TO LIFE ON OUR PLANET. (...) AND IT RAISES THE POSSIBILITY OF MAKING CHANGES TO THE PATTERNS OF BEHAVIOR, PRODUCTION AND CONSUMPTION THAT WILL ASSURE THE FULFILLMENT OF OUR COMMON RESPONSIBILITY TO FUTURE GENERATIONS.” Excerpt from the Message from the Chairmen, Annual Report 2006.

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CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

We believe that the energy generated by a hands-on and interactive community that shares the same values and is willing to impart the lessons it has learned, represents an opportunity for growth and development that will bring us new discoveries with each new day.

OUR NETWORK

GLOSSARY

WITH THIS CASE STUDY, WE INTEND TO SHARE WITH YOU OUR PROGRESS WITH THE NATURA CARBON NEUTRAL PROGRAM AND SHOW WHERE WE STILL HAVE ROOM TO GROW AND, PERHAPS, MOVE FORWARD TOGETHER.

3

03 INTRODUCTION 05 NATURA PROFILE 08 CLIMATE OF CHANGE 11

CONTINUOUS IMPROVEMENT

14 CARBON NEUTRAL 17 I. INVENTORY 22 2. REDUCTION 28 3. OFFSETTING 41 THE 2011/12 OPEN TENDER

CONTENTS This is a navigable document.

At any time, you may use the top menu to access the different chapters.

The highlighted words will take you to the glossary, where you will also find additional content and reference links to websites with more information on the topics.

42 OUR NETWORK 43 LEADERSHIP AND SOCIAL INFLUENCE 46 COLLABORATIVE PLATFORM 49

GLOSSARY

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

NATURA PROFILE LIFE IS A CHAIN OF RELATIONSHIPS. NOTHING IN THE UNIVERSE EXISTS ALONE. EVERYTHING IS INTERDEPENDENT. Excerpt taken from Natura’s beliefs.

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

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CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

FRANCE

NATURA PROFILE

MEXICO

GUATEMALA EL SALVADOR

HEAD OFFICE

Cajamar (SP)

COMMERCIAL OFFICES

Cajamar (SP) Salvador (BA) Campinas (SP) Alphavile (SP) Rio de Janeiro (RJ) Porto Alegre (RS)

HONDURAS

VENEZUELA

We are a Brazilian cosmetic, toiletry and fragrance company with a strong presence in Latin America. We have adopted direct sales as our business model and we have more than

1.2 MILLION SALES CONSULTANTS who distribute nearly 400 million product units to our customers.

FACTORIES AND RESEARCH AND TECH. CENTERS DISTRIBUTION CENTERS

COLOMBIA

BOLIVIA

Cajamar (SP) Benevides (PA) Cajamar (SP) Jundiaí (SP) Canoas (RS) Matias Barbosa (MG) Uberlândia (MG) Simões Filho (BA) Jaboatão dos Guararapes (PE) Castanhal (PA)

BRAZIL

PERU

ADVANCED TECHNOLOGY CENTER OWN OPERATIONS

CHILE

Paris (FRANCE) BRAZIL FRANCE CHILE COLOMBIA MEXICO PERU

ARGENTINA

LOCAL DISTRIBUTORS

BOLIVIA GUATEMALA HONDURAS EL SALVADOR

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

WHAT WE ACHIEVED IN 2010 RECORD FOR THE BELIEVING IS SEEING PROGRAM

REFILL MADE FROM GREEN PLASTIC

The Natura Crer para Ver (Believing is Seeing) program received funding of R$10 MILLION, benefitting 5,690 PUBLIC SCHOOLS.

We launched the first refill packs made from sugarcane. Besides being 100% RECYCLABLE, it reduces the emission of GREENHOUSE GASES by 58% compared to common plastic.

CONSCIOUS USE OF WATER

CONSULTANTS

We reduced OUR WATER CONSUMPTION per unit billed by 10%. The result was achieved in virtue of improvements made in the efficiency of water use.

The number of our sales consultants reached 1.2 MILLION, a growth of 17% IN BRAZIL and of more than 20% IN OUR INTERNATIONAL OPERATIONS.

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CONTENTS

INTRODUCTION

NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

CLIMATE OF CHANGE WE BELIEVE THAT UNDERSTANDING THE IMPORTANCE OF RELATIONSHIPS IS THE FOUNDATION OF A MAJOR HUMAN REVOLUTION IN THE SEARCH FOR PEACE, SOLIDARITY AND LIFE IN ALL ITS MANIFESTATIONS. Excerpt taken from Natura’s beliefs.

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CONTENTS

INTRODUCTION

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NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

CLIMATE OF CHANGE

GLOBAL ECOLOGICAL FOOTPRINT CARBON GRAZING

We are currently standing before the largest environmental threat ever faced globally by humanity.

Climate change caused by rising average temperatures on Earth pose a risk to human life and the way we structure our society.

The development of economic activity and the growing consumption of fossil fuel energy, among other factors, releases large amounts of carbon and other greenhouse gases into the atmosphere, causing the average temperature of the planet to rise and the climate to change, with severe consequences for human health, the economy and the environment.

The 2010 Living Planet Report, published by the environmental non-governmental organization WWF, shows that human pressure on natural resources has doubled since 1996. We are currently consuming 0.55 times more than our planet can sustain, and carbon emissions are the primary cause of an ecological collapse that threatens the planet.This means that, today, carbon emissions represent more than half the Global Ecological Footprint.

FISHING 2.0 CROPLAND BUILT-UP LAND

1.5

Number of planets

ONLY JOINT ACTIONS ARE REALLY CAPABLE OF CURBING CLIMATE CHANGE.

FOREST

1.0

WORLD BIOCAPACITY

0.5

0.0 1961

1971

1981

1991 ear

Graphic from the Living Planet Report 2010, WWF – available to download in the internet

2001

2007

CONTENTS

INTRODUCTION

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NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

WE ARE FULLY COMMITTED TO THE SEARCH FOR SOLUTIONS TO ADDRESS THE CLIMATE CRISIS.

Global warming alters ecosystems, places biodiversity at risk and affects human life.

The phenomenon is already a consensus among scientists and what is being debated now is the scale of its effects and the measures necessary to avoid them. What is certain is that only significant cuts IN GREENHOUSE GASES (GHG) will really be capable of curbing climate change. This urgently requires joint action to make sweeping changes to our way of life, including the search for NEW TECHNOLOGIES, NEW REGULATIONS AND EVEN A SHIFT IN CONSUMPTION HABITS.

At Natura, we believe in life, interdependence, quality of relations and sustainable development, and we are therefore fully committed to the search for solutions to address the climate crisis. We understand that this challenge should be CONFRONTED COLLABORATIVELY by us all, which is why we are playing our part and reducing our environmental impact, particularly our emissions, and also educating and mobilizing our relationship network.This is also an OPPORTUNITY FOR US TO STRENGTHEN OUR FOUNDATION AND THE DURABILITY of our business.

CONTENTS

INTRODUCTION

NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

CONTINUOUS IMPROVEMENT THE CONTINUOUS SEARCH FOR IMPROVEMENT IS WHAT DEVELOPS INDIVIDUALS, ORGANIZATIONS AND SOCIETY. Excerpt taken from Natura’s beliefs.

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CONTENTS

INTRODUCTION

CONTINUOUS IMPROVEMENT Natura is founded with the proposal of using natural ingredients in its formulas.

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NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

HISTORIC COMMITMENT TO GLOBAL WARMING Our main challenge has been to strike a balance between the growth of our business and the conscious use of natural resources.

Reason for Being: commitment to well-being/being well Natura is a pioneer in the use of packs in the cosmetics sector in Brazil.

Beliefs: the importance of relationships, commitment to the truth, ongoing improvement, support for diversity, appreciation of beauty without stereotypes and the company as promoter of social enrichment.

198 31 990

Distribution fleet in S達o Paulo is converted to compressed natural gas (CNG).

Regulation of the environmental control and monitoring of our activities: scale of the environmental impact of our processes.

Launch of the Natura Ekos line: conscious use of Biodiversity. treatment station at the Natura Cajamar Unit.

Life Cycle Assessment (LCA) methodology for packaging: identify our impact, from raw material through to post-consumption.

Achieved the environmental certification ISO14001.

4 0 0 2 1 0 0 2 0 0 0 1997 1998 2

CONTENTS

INTRODUCTION

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NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT CARBON NEUTRAL OUR NETWORK GLOSSARY

CONTINUOUS IMPROVEMENT 200 Replaced animal fat with plant oils in the soap line.

200 Inauguration of the Benevides Industrial Unit, in the state of Pará, to supply plant oils from the Amazon.

Natura Greenhouse Gas System: internal network of employees assigned to planning emissions reduction.

2007 Replacement of mineral oils with plant oils in the body oil lines.

Environmental Table: promotes conscious consumption.

Ekos Line uses 30% recycled PET in its triphasic oil packaging.

Launch of the Carbon Neutral Program to reduce and offset emissions of greenhouse gases.

2008 New Natura magazine: lower environmental impact.

Replacement of common alcohol with organic alcohol (fragrances and deodorants).

2009 New distribution centers opened: streamlining transportation.

First Brazilian company to join the WWF’s carbon reduction program WWF – Climate Savers.

2010 Use of green polyethylene in refill packs.

Carbon calculator: measuring CO2 for products and processes.

Less Carbon More Productivity Campaign.

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

CARBON NEUTRAL THE COMPANY, A LIVING ORGANISM, IS A DYNAMIC SET OF RELATIONSHIPS. ITS VALUE AND LONGEVITY ARE CONNECTED TO ITS ABILITY TO CONTRIBUTE TO THE EVOLUTION OF SOCIETY AND ITS SUSTAINABLE DEVELOPMENT. Excerpt taken from Natura’s beliefs.

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

15

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

CARBON NEUTRAL Given this context of climate change, together with our corporate conduct practices, we created the NATURA CARBON NEUTRAL PROGRAM in 2007 to promote an ongoing and significant reduction of our Greenhouse Gas (GHG) emissions and limit the impact we cause.

THE PROGRAM FACES THE CHALLENGE OF ENCOMPASSING THE ENTIRE BUSINESS CHAIN, FROM THE PRODUCTION OF RAW MATERIALS THROUGH TO POST-CONSUMPTION.THIS IS WHY WE ARE ALWAYS LOOKING FOR ALTERNATIVES TO IMPROVE OUR EFFICIENCY AND TO GUARANTEE OUR SUCCESS,WHILE PREVENTING OUR CARBON GAS EMISSIONS FROM GROWING PROPORTIONALLY WITH THE EXPANSION OF OUR BUSINESS OPERATIONS. The CARBON NEUTRAL PROGRAM is divided into three stages that guide our actions to continually improve and streamline our processes.

For each of these stages, we have identified an opportunity to enhance our actions.

CLIMATE CHANGE OUR BUSINESS CONDUCT PRACTICES

CREATION OF THE NATURA CARBON NEUTRAL PROGRAM IN 2007

CARBONNEUTRAL

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

1

INVENTORY

2

REDUCTION

3

OFFSETTING

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

WHAT WE DO

WHAT’S DIFFERENT ABOUT OF OUR ACTIONS

MEASURING AND RECORDING OUR EMISSIONS

Inventory with an extended scope, from the extraction of natural resources for the production of raw materials through to the final disposal of the contents and the packaging after consumption.

ACTIONS AND PROCESSES AIMED AT REDUCING GREENHOUSE GASES

Reduction of emissions per kilo of product throughout the entire business chain (and not only the emissions under our control).

Commitment to reduce our total internal emissions, even with the strong growth of our business operations.

SUPPORT FOR OFFSETTING PROJECTS TO NEUTRALIZE UNAVOIDABLE EMISSIONS

Offsetting projects that must present environmental and social benefits.

We have neutralized emissions across our business chain, allowing us to claim that all our products are carbon neutral.

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

1 INVENTORY WE MOBILIZE OUR PARTNERSHIPS TO IDENTIFY THE EMISSIONS OF NATURA, FROM THE EXTRACTION OF RAW MATERIALS THROUGH TO THE DISPOSAL OF PACKAGING AFTER CONSUMPTION. Understanding the extent of the impact, by measuring and monitoring it, is the first step towards identifying the opportunities and managing the reduction of emissions throughout the business chain.

Even before the creation of the Carbon Neutral Program, we had already

started to measure our emissions, following the guidelines of the Greenhouse Gas Protocol Initiative (known as the GHG Protocol) and the Brazilian ABNT NBR ISO 14064-1 standard, which establishes rules for the conception, development, management and preparation of greenhouse gas inventories. At this point, it was only possible for us to assess the emissions from our own internal processes, which were directly under the control of the company.

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

17 17

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

18

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

IMPROVEMENTS TO THE INVENTORY 2005 Once the Carbon Neutral Program was created, our inventory took on a broader scope.We began to MONITOR ALL THE EMISSIONS that our operations produce, including those from other parties such as suppliers, encompassing the entire process from the extraction of raw materials through to the final disposal of the product.

This decision represents a major challenge, which is still relatively unusual, since it requires broad articulation with all the links in the business chain to configure the measurements and consolidate the data. Each year, we make improvements to streamline the process of

measuring emissions and speeding up access to the information. Since the start of the program, the inventory has been updated every four months, although last year we reduced the time span to once every three months.This shorter cycle allows us to IDENTIFY IMPROVEMENT OPPORTUNITIES during the inventory process, making it possible to correct distortions throughout the year to achieve the anticipated results.

Since last year, we have been using a new methodology that permits an evaluation of the impacts of each Natura product.

SCOPE

INTERNAL VERIFICATION

MEASUREMENT METHODOLOGY

MANAGEMENT

2006

Inventory calculates emissions from our internal processes.

None.

2007

2008

2009

2010

Inventory calculates emissions from all our business chain (1,376 measurement variables).*

Independent audit performed by DNV.

Independent audit performed by Price.

GHG Protocol, with focus on scope 1 and 2.

GHG Protocol with extended scope.

GHG Protocol with Measurement by products by product, extended scope. Measurement improving the management by consumption of materials. of the business areas.

Analysis of results annually.

Analysis of results every three months. Internal targets by processes.

Carbon calculator to facilitate the management of the business areas.

Analysis of results every four months.

*The 2006 inventory was recalculated with a broader scope (scope 1, 2 and 3) aiming at setting the reduction target (per kilo of billed products).

CARBON NEUTRAL 1. INVENTORY

10 774 ton CO2e 4 2 B t supplier s 2 CO t of g n o or in

sp kag an pac d

10

1

C-2

11 t Natura ’s on C and ot own ind Oe her in ust 2 tern rial al p pro roc ce ess ss es

ton CO2e

o is p d d n al Fin cts a du 09 pro

2

253,312

e

TOTAL 2010

8 E-

to

23

CARBON CYCLE AT NATURA

D

-38 to Tran 27 co spo ns r t ult a a

nC O

A10 Ex

3. OFFSETTING

e CO 2

14 raw trac ma tion 3 ter an ials d t an r

t

2. REDUCTION

s pa al o ck f ag in g

e

Direc

OUR NETWORK GLOSSARY

ton roducts rs f p nsume n o co tio and s nt

42

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

19 19

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

20 20

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

CARBON CYCLE AT NATURA NATURA’S EMISSIONS CHAIN 2010

42

%

Extraction and transport of raw materials and packaging

SOME EXAMPLES OF WHERE THE EMISSIONS OCCUR

10 10 15 %

Direct suppliers E3 42%

E3 10%

INFLUENCE

INFLUENCE

SCOPE 3 (E3) - Emissions generated in the supply chain of our suppliers for the production of our raw materials and packaging materials, such as the consumption of electrical energy or fossil fuels.

- Emissions from transporting these materials to Natura.

106,143 ton CO2e

%

SCOPE 3 (E3) - Emissions generated in the processes of our suppliers for the production of our raw materials and packaging materials, such as the consumption of electrical energy or fossil fuels.

- Emissions from transporting these materials to Natura.

24,774 ton CO2e

%

Natura’s own industrial Transportation of process and other products to consultants internal processes and consumers E1 3%

E2 1%

CONTROL

23

%

Final disposal of products and packaging

E3 6%

E3 15%

E3 23%

INFLUENCE

INFLUENCE

INFLUENCE

SCOPE 1 (E1) SCOPE 3 (E3) - Consumption of fuel - Emissions generated by by the vehicles of transporting our products to executives and the sales the 1.2 million sales consultants force. in the countries where we operate.

- Emissions from out effluent treatment - Estimated emissions from station. the transport of our products from sales consultants SCOPE 2 (E2) to end consumers.

- Electrical energy used at our facilities.

SCOPE 3 (E3) - Emissions generated in the final disposal of our products (raw materials and packaging materials) after their use.

SCOPE 3 (E3) - Air travel, transporting people, exports.

25,611 ton CO2e

38,275 ton CO2e

58,509 ton CO2e

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

21 21

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

CARBON CYCLE AT NATURA NATURA’S EMISSIONS CHAIN 2010

42

%

Extraction and transport of raw materials and packaging

EXAMPLES OF WHAT WE HAVE ALREADY DONE TO CUT EMISSIONS

- Substitution of conventional alcohol for organic alcohol as an ingredient in our formulas.

- Substitution of packaging materials for lower-impact alternatives, such as the Natura Erva Doce refill pack, made from green plastic.

- Increased vegetalization of our formulas, such as the new murumuru palm, cupuaçu, passion fruit and cacao soaps, with the use of 20% to 50% of oil from Brazilian biodiversity.

10 10 15 %

%

%

Direct suppliers

Natura’s own industrial Transportation of process and other products to consultants internal processes and consumers

- Greater stability of the QLICAR program with suppliers of finished products and production inputs, with a view to greater integration of the supply chain and incorporation of initiatives to create mutual value, greater energetic efficiency in direct suppliers.

- Energy efficiency projects that have reduced our consumption of 120.0 W/unit produced in 2006 to 90.4 W/unit produced in 2010, a drop of 25 .

- Reduction in air transport to our international units, particularly in Mexico and Peru.

- Incentives to use less polluting modes of transport, such as at the Jaboatão dos Guararapes Distribution Center in the state of Pernambuco, where coastal shipping has partially replaced road transport.

- Opening of new distribution centers in Brazil, rationalizing the transport of merchandise.

- Definition of new calendars with delivery dates and frequencies, putting a stop to trips made with small shipments.

23

%

Final disposal of products and packaging

- Implementation of various projects to optimize our packaging, such as the new Tododia refill pack, which contains 83% less plastic than regular packaging.

- Project of reverse logistic focused on used packaging and magazines in some regions of Brazil.

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

2 REDUCTION

CARBON NEUTRAL 1. INVENTORY

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

Turning targets into PUBLIC COMMITMENTS helps impress other organizations to follow the same path and promote changes in internal processes.

OUR PUBLIC COMMITMENTS REDUCE OUR EMISSIONS PER KILO OF BILLED PRODUCTS BY 33% BY 2013, IN RELATION TO 2006 (SCOPES 1, 2 & 3 OF THE GHG PROTOCOL, I.E.,THROUGHOUT THE ENTIRE BUSINESS CHAIN).

REDUCE OUR ABSOLUTE EMISSIONS BY 10% BY 2012, IN RELATION TO 2008 (SCOPES 1 & 2 OF THE GHG PROTOCOL, I.E., EMISSIONS IN OUR INTERNAL PROCESSES).

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

23

OUR NETWORK GLOSSARY 3. OFFSETTING

The target also represents a SEARCH FOR

TECHNOLOGICAL INNOVATION, AN ESSENTIAL CONDITION FOR THE CONSTRUCTION OF A NEW DEVELOPMENT MODEL.

RELATI E EMISSIONS

Since our reduction target considers emissions throughout the business chain, over the past 4 years we have incorporated numerous improvements to our products to reduce emissions.

(kg CO2e/kg of product)

We have started using organic alcohol and further vegetalized our product formulas; We have incorporated recycled material into our packaging and also cut the mass of material used in packaging; In 2010, we launched the made with 83% less plastic; for our Erva Doce line cut greenhouse gas emissions by 58%; For new product development, we have, created a tool for estimating the emissions of products and packaging from their conception; We have adopted rules for the innovation process that prevent the launch of products with higher impacts than either the previous versions or the average of products in the same category.

2010 2009

3

BY THE END OF 2010, WE HAD REDUCED

OUR EMISSIONS BY 21.2% IN

3 30

2008

-21

2007

RELATION TO 2006.

200

4 18

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

24

AVOIDED EMISSION REAL

MASS OF

EMISSIONS

(ton)

(ton CO2e)

73.000

bill ed

350.000

68,000 metric tons of carbon avoided over the past 4 years.

Ma ss of

310.000

em iss ion s

270.000 230.000

n

o rb Ca

53.000

2

l Rea

43.000

190.000 150.000

200

2007

63.000

2008

2009

2010

Projected carbon emissions had there been no reduction (ton CO2e ) Real carbon emissions (ton CO2e ) Mass of products (ton)

33.000

IN SPITE OF THE IMPRESSIVE RESULT ACHIEVED BY THE END OF 2010 – A 21% REDUCTION IN OUR RELATIVE EMISSIONS – WE HAVE DECIDED TO EXTEND THE DEADLINE FOR MEETING OUR REDUCTION TARGET FROM 2011 TO 2013.

THIS DECISION IS DUE PRIMARILY TO THE COMPLEXITY OF THE ACTIONS NECESSARY TO ACHIEVE THE PLANNED REDUCTION, WHICH INVOLVE A PROFOUND TRANSFORMATION IN THE WAY WE DO BUSINESS.

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

LESS IS MORE

2. REDUCTION

improvements to processes and connecting with the business.

3. OFFSETTING

LESS CARBON MORE PRODUCTIVITY CAMPAIGN

THE EFFORT TO ACHIEVE THE 33% REDUCTION TARGET HAS PROVIDED AN, IN-DEPTH LESSON FOR NATURA IN THE MANAGEMENT OF ENVIRONMENTAL IMPACTS THROUGHOUT THE VALUE CHAIN. Considering this backdrop, we decided to step up our reduction efforts in 2010, creating an internal campaign to reduce carbon and costs.The initiative was a structured effort to mobilize everyone at Natura in the quest to reduce emissions, with the additional development of being allied to a cost reduction program. As a result, the economic and environmental pillars of the company’s triple bottom line were integrated into a single initiative, bringing the carbon issue even closer to the principles of business management. To structure the campaign, we defined five action fronts: staff engagement,

OUR NETWORK GLOSSARY

ENGAGEMENT Mobilize around the issue and create dialogue platforms with employees.

PROCESSES Streamline the measuring processes.

IDENTIFICATION OF PROJECTS With carbon reduction opportunities.

CONNECTING WITH THE BUSINESS Develop the criteria to be incorporated into the business strategy.

EDUCATION Disseminate knowledge on climate change and measurement methodology, in addition to training managers for decision making.

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

We made new headway to reduce carbon and costs, enabling us to develop a systemic vision of our various initiatives.This topic is now considered a critical factor in decision making.

RESULTS Carbon calculator for the innovation area, permitting the company to plan new products; Creation of a policy within the innovation process that prevents the development of higher-impact products; Measurement tools, such as Carbon Estimators, allowing managers to better understand the impact of their activity and make more informed decisions; A form that exposes the carbon impact of new projects; Identification of more than 300 reduction opportunities, which, once prioritized and measured, resulted in the approval of 10 8

OUR NETWORK GLOSSARY 3. OFFSETTING

26

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

NATURA MAGAZINE THE NATURA MAGAZINE IS A GOOD EXAMPLE OF THE COMPLEXITY OF THE ACTIONS WE HAVE IMPLEMENTED. Every 21 days, more than a million sales consultants receive at least one copy of the magazine at their home, making it the publication with the largest emissions impact at Natura. In 2008, one of the Carbon Neutral Program’s reduction projects involved an overhaul of the magazine, cutting a total of 60 pages and replacing the recycled paper with couche paper, which is more lightweight and certified by the Forest Stewardship Council (FSC), thereby reducing the impact caused by the high print run.

Nevertheless, the constantly increasing number of consultants and the growth of the product portfolio have gradually pushed up both the print run and the number of pages.

Accordingly, to avoid an increase in our emissions, we have changed our paper supplier. ALTHOUGH THE COST IS HIGHER,THE NEW SUPPLIER’S PRODUCTION PROCESS EMITS LESS CARBON. This means that although the number of pages and the print run has increased, we have managed to keep emissions unchanged at previous levels.

27

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

3

OFFSETTING THE PROJECTS WE SUPPORT PRODUCE SOCIAL BENEFITS, PROMOTE BIODIVERSITY CONSERVATION AND CREATE INNOVATIVE CLUSTERS OF SUSTAINABLE DEVELOPMENT. To complete our cycle of activities, the emissions that cannot be avoided are offset through our support for projects selected in a biannual national open tender process.

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

28

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

The choice of projects focuses on whether they have mechanisms to prove the reduction/ removal of greenhouse gas emissions and whether they produce locally relevant social and environmental benefits: INCOME GENERATION, BIODIVERSITY CONSERVATION, SUSTAINABLE USE AND INNOVATION. In the selection process, we have, since 2007, applied a screening process for the offsetting projects to qualify. To make this analysis, we draw on research and advanced tools used around the world, adapting them to our own needs and strategies.

The open tender process for the projects to neutralize emissions in 2009 and 2010 selected six projects from a total of 82 proposals that were submitted, and the process enlisted the help of an internal team of specialists from Natura and of consultants specializing in climate change, as well as the support of a panel of experts. A project located in Latin America is under negotiation in order to offset the 2009/2010 emissions in the region.

IN 2009 AND 2010

SIX PROJECTS WERE SELECTED FROM 82 SUBMITTED PROPOSALS

2. REDUCTION

29 29

OUR NETWORK GLOSSARY 3. OFFSETTING

ENERGY PROJECTS

FORESTRY PROJECTS

The energy projects allow us to obtain credits with ACTIONS TO REDUCE OR SUBSTITUTE FUEL ENERGY, carried out predominantly in the procurement period, i.e. the main part of neutralization occurs at the same time as the emissions themselves.

The forestry projects consist of RESTORING DEGRADED AREAS, which is why they provide us with future credits, since reforested areas take years to reach maturity and make a contribution to neutralizing greenhouse gases. Among the forestry projects, we also select those that qualify under

Use of Renewable Biomass by Ceramic Companies - Santorini

Emas-Taquari Biodiversity Corridor Carbon Project

Use of Renewable Biomass by Ceramic Companies - JL Silva

Xingu Socio-Environmental Carbon

Energy Efficient Stoves in the Rec么ncavo Baiano II Replacing Fuel Oil with Sebum at Cia de Fia莽茫o e Tecidos Santo Ant么nio

Reducing Emissions from Deforestation and Forest Degradation (REDD), which, through their efforts to COMBAT THE DEFORESTATION AND DEGRADATION OF NATIVE AREAS, avoid the gases that would have been emitted by these actions from being released into the atmosphere.

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

See below the projects chosen in the latest selection process

USE OF RENEWABLE BIOMASS BY CERAMIC COMPANIES CERÂMICA SANTORINI Sustainable Carbon Consulting Ituiutaba (MG) The project consists of using renewable fuel sources, such as sawdust, woodchips and sugarcane bagasse to replace non-renewable native firewood taken from Brazil’s cerrado savannah region, to generate thermal energy for the furnaces that produce bricks and tiles.

In addition to preventing the deforestation of one of the most important Brazilian biomes, the activity guarantees carbon credits for Natura, since the renewable fuels emit less carbon.

The social benefit is related to the significant improvement in working conditions, since it uses new technologies that avoid the need for heavy manual labor.

137,834

TONS OF CO2e IN 10 YEARS

Pictures: Sugarcane bagasse (left) and woodchips (right)

30 30

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

USE OF RENEWABLE BIOMASS BY CERAMIC COMPANIES CERÂMICA JL SILVA Sustainable Carbon Consulting Lajedo (PE) Very similar to the project underway at Cerâmica Santorini, the Cerâmica JL Silva project intends to replace native wood taken from Brazil’s caatinga thorn forest and used as fuel in the company’s brick and tile furnaces with alternatives such as coconut shells, pruned branches of cashew trees, sugarcane bagasse and sawdust, thereby reducing greenhouse gas emissions and guaranteeing carbon credits for Natura.The project prevents the deforestation of this ecosystem from being intensified and it also helps improve working conditions, through the implementation of new technologies and the reduced need for manual labor.

74,880

TONS OF CO2e IN 4 YEARS

Pictures: Sawdust stock (left) and coconut shells (right)

31 31

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

ENERGY EFFICIENT STOVES IN THE RECôNCAVO BAIANO II Perene Institute Recôncavo Baiano, consisting of more than 30 municipalities near Salvador (BA) Expanding the 2008 initiative to replace 1,000 rudimentary wood-burning stoves for more efficient and less polluting stoves in rural households in Bahia, this year the project intends to replace another 5,000 stoves in the region.

These new stoves permit a lower consumption of firewood, avoiding more tracts of Brazil’s Atlantic Forest from being felled and providing carbon credits for Natura, since the initiative contributes to the reduction of greenhouse gas emissions.The smoke released by rudimentary stoves is extremely harmful to the local families, so their replacement also reduces health risks, guaranteeing the social value of the project.

94.000

TONS OF CO2e IN 11 YEARS

Pictures: Efficient stoves

32 32

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

REPLACING FUEL OIL WITH SEBUM AT COMPANHIA DE FIAÇÃO E TECIDOS SANTO ANTôNIO EQAO Consulting Pirapora (MG) The credits for Natura come from the partial replacement of fossil fuels (oil) with renewable fuel (sebum) used in the textile company’s boilers, reducing greenhouse gas emissions.The project also contributes to the sustainability of the local environment, the improvement of working conditions and the generation of employment, distribution of income, training and technological development.

13.523

TONS OF CO2e IN 1 YEARS Pictures: Boilers

33 33

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

EMAS-TAqUARI BIODIVERSITY CORRIDOR CARBON PROJECT OrĂŠades Geoprocessing Center Emas National Park (GO) and River Taquari Springs State Park (MS) Restoration of nearly 200 hectares of degraded forest with native species, from a total project area of 600 hectares.The saplings are grown in nurseries set up in local communities in the region.

70.000

TONS OF CO2e IN 30 YEARS

Pictures: Seedling Pouteria ramiflora (left) and Tabebuia impetiginosa (right)

34 34

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

XINGU SOCIO-ENVIRONMENTAL CARBON

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

75.000

TONS OF CO2e IN 30 YEARS

Socioambiental Institute (ISA) and Sustainable Xingu Association Xingu region (MT) The objective of this project is to restore 220 hectares of degraded land earmarked for preservation around the source of the Xingu River in the state of Mato Grosso.

The project resulted in the creation of the Sustainable Xingu Association, created by producers from the region who will be in charge of the reforestation and the generation of carbon credits with the support of the ISA.

Pictures: Seedling Attalea phalerata (left) and Ceiba speciosa (right)

35

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

36

OUR NETWORK GLOSSARY 3. OFFSETTING

CARBON OFFSET PROJECTS 2009/10

EMISSIONS

2010 253,312 2009 232,827 Total

486,139

TONS CO2e

offset tons CO2e offset tons CO2e

2

e)

Use of Renewable Biomass at Cerâmica Santorini

137,834

Use of Renewable Biomass at Cerâmica JL Silva

74,880

Energy Efficient Stoves in the Recôncavo Baiano II

94,000

Replacing Fuel Oil with Sebum at Companhia de Fiação e Tecidos Santo Antônio

13,523

Emas-Taquari Biodiversity Corridor Carbon Project

70,000

Xingu Socio-Environmental Carbon

75,000

Project to be supported in Latin America

under negotiation

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

See below the progress of projects selected in previous editions 2008 SERIES

2008 SERIES

XINGU SOCIO-ENVIRONMENTAL CARBON

CARBON, BIODIVERSITY AND COMMUNITY PROJECT IN THE PAU-BRASIL ECOLOGICAL CORRIDOR

Socioambiental Institute (ISA) Centro de Vida Institute (ICV) Forestry and Agriculture Certification and Stewardship Institute (IMAFLORA) Source of the Xingu River (MT)

BioAtl창ntica Institute (Ibio) Pau-Brasil National Park and Monte Pascoal National Park, Porto Seguro (BA)

The implementation of the project was completed in 2011 and the first carbon credits issuance forecast is 2014.

The project should be fully implemented in 2011 and the first carbon credits issuance forecast is 2015.

40,000

79,050

TONS OF CO2e IN 30 YEARS

TONS OF CO2e IN 30 YEARS Pictures: Land preparation to the reforestation

37

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

2008 SERIES

2008 SERIES

ENERGY EFFICIENT STOVES IN THE RECôNCAVO BAIANO I

USE OF RENEWABLE BIOMASS BY CERAMIC COMPANIES

Perene Institute Recôncavo Baiano (BA)

Sustainable Carbon Capela (AL)

The implementation of the project was completed in 2011 and the first carbon credits issuance forecast is 2014.The project received the “Special Achievement Award” in 2011 from the Environmental Protection Agency (EPA - USA) for its excellent monitoring and engagement with local community.

ED PLET COM JECT PRO

60,000 TONS OF CO2e

18,880

TONS OF CO2e IN 8 YEARS Pictures: Efficient stove (left) and bricks furnace (right)

38 38

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

OUR NETWORK GLOSSARY 3. OFFSETTING

2007 SERIES

2007 SERIES

FOREST CARBON – RECOVERY AND PRESERVATION OF NATURAL RESOURCES IN RURAL SETTLEMENTS

LANDSCAPE RESTORATION AND AGROFORESTRY SYSTEMS Ecological Research Institute (IPÊ) Pontal do Paranapanema (SP) The implementation of the project has been completed and the first carbon credits issuance forecast is 2011.

Ecológica Institute Region of Cantão (TO) The implementation of the project has been completed and the first carbon credits issuance forecast is 2013.

60.000

60.000

TONS OF CO2e IN 30 YEARS

TONS OF CO2e IN 20 YEARS Pictures: Land preparation to the reforestation (left) and seedling (right)

39 39

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

CARBON NEUTRAL 1. INVENTORY

2. REDUCTION

40 40

OUR NETWORK GLOSSARY 3. OFFSETTING

2007 SERIES

2007 SERIES

USE OF RENEWABLE BIOMASS BY CERAMIC INDUSTRY

SMALL HYDROELECTRIC POWER PLANT COOPERATIVES

São Miguel do Guamá (PA) Cristilândia and Paraíso do Tocantins (TO)

14,000

Creral, Cooperluz and Ceriluz cooperatives Nonoai, Campina das Missões and Ijuí (RS)

TONS OF CO2e ED PLET COM JECT PRO

ED PLET M O C JECT PRO

REPLACING FUEL OIL WITH CERTIFIED BIOMASS WITH SUSTAINABLE STEWARDSHIP

60,000

TONS OF CO2

AMC Têxtil Jaraguá do Sul (SC)

30,000 TONS OF CO2e Picture: Biomass storage area

ED PLET COM JECT PRO

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE CONTINUOUS IMPROVEMENT

THE

CARBON NEUTRAL 1. INVENTORY

OUR NETWORK GLOSSARY

2. REDUCTION

3. OFFSETTING

2011/12

OPEN TENDER WE BELIEVE THAT THE CHALLENGE POSED BY CLIMATE CHANGE SHOULD BE FACED COLLABORATIVELY BY EVERYONE. THIS IS WHY WE ARE INVITING YOU TO PLAY AN ACTIVE ROLE IN THIS PROCESS OF CHANGE, BY SUBMITTING YOUR CARBON REDUCTION OR REMOVAL PROJECT IN THE NATURA CARBON NEUTRAL TENDER 2011/2012.

For the next few years, we intend to neutralize our emissions through support for projects in the following areas:

ENERGY FORESTRY REDD + (Reducing emissions from deforestation and forest degradation) OTHERS that present alternative practices and solutions for combating global warming.

Consult the submission rules and register from May 16 to August 5, 2011, on the website www.natura.net/carbononeutro

41

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

OUR NETWORK

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

GLOSSARY COLLABORATIVE PLATFORM

THE GREATER THE DIVERSITY OF THE PARTS, THE GREATER THE WEALTH AND VITALITY OF THE WHOLE. Excerpt taken from Natura’s beliefs.

42

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

LEADERSHIP AND SOCIAL INFLUENCE We consider it legitimate for private initiative to exert , preferably through industry associations.

In order to secure a leading role for ourselves, , and we are also involved in public and private initiatives that aim to promote a low-carbon economy.

GLOSSARY COLLABORATIVE PLATFORM

43

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

INITIATIVE

CLIMATE SAVERS - WWF

CLIMATE FORUM – BUSINESS ACTION ON CLIMATE CHANGE

GLOSSARY COLLABORATIVE PLATFORM

OUR PARTICIPATION

We joined the program in 2009, when we signed an agreement with WWF-Brasil to reduce our internal process emissions by 10% by 2010 – from a 2008 base date. We were the first company from Brazil or any developing country to join the initiative.

We are signatories of the Open Letter to Brazil and we joined this initiative upon its creation.

We joined the initiative upon its launch, in August 2009.

CARING FOR CLIMATE, OF THE UNITED NATIONS GLOBAL COMPACT

In addition to joining the initiative, we were asked to serve on the Steering Committee, which advises on the strategic, operational and financial developments of the initiative.The Committee is composed of fourteen corporate representatives from a variety of business sectors and regions.

44

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

GLOSSARY COLLABORATIVE PLATFORM

INITIATIVE

OUR PARTICIPATION

BRAZILIAN GHG PROTOCOL PROGRAM

We are founding members and we continue to participate in periodic meetings to improve knowledge and share experiences.

VALUE CHAIN PROTOCOL OF THE INTERNATIONAL GHG PROTOCOL

We are part of the Technical Working Group.

CLIMATE NEUTRAL NETWORK

We are members.

CARBON DISCLOSURE PROJECT

We have publicly disclosed our emissions and impact management strategies via the CDP every year, since 2006.

CARBON EFFICIENT INDEX OF THE BM&FBOVESPA

Natura was included in the first and second portfolios of the index that were valid, respectively, for the first and second four-month periods of 2011.

45

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

GLOSSARY COLLABORATIVE PLATFORM

COLLABORATIVE PLATFORM We believe that, through dialogue and collaboration with our many stakeholders outside the company, we shall develop valuable solutions for Natura and for our community.

As a first step towards the actions that are planned for the year ahead, we have set up a collaborative network to engage in co-creation dialogue.This vision is directly linked to the evolution of our sustainable management model, which has grown increasingly more receptive to the contributions of our different stakeholder groups, so they can help improve how we plan and manage our business.

We invited a group of our different stakeholders to participate in a dialogue panel on carbon, which was an opportunity for us to share the challenges we face and the lessons we have learned during these four years of the program, and also to identify new ways of working together to find solutions both for the Natura Carbon Neutral Program and for society’s transition to a low-carbon economy.

THE MEETING MARKED THE BEGINNING OF THE CO-CREATION OF A LOWCARBON FUTURE.

THE GROUP Suppliers, supplier communities, employees, partners, sales consultants, academia, NGOs, consumers, government and also other companies from across Brazil.

46

CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK

GLOSSARY

LEADERSHIP AND SOCIAL INFLUENCE

COLLABORATIVE PLATFORM

MAIN CHALLENGES AND OPPORTUNITIES The group was invited to talk about the main challenges and opportunities for improvement that the topic of carbon poses for Natura, anticipating the difficulties that would be encountered and what could be done to overcome them.The panel identified several issues to be considered:

Adopt a broader view that encompasses more than just carbon (biodiversity, water, waste); Work in partnership with organizations from different sectors and segments to develop and promote new technologies; Educate to raise the awareness of the end consumer, in order to promote low-carbon initiatives; Transfer knowledge; Improve the communication of the program; Train the sales force and sales consultants about the topic of carbon so they can have a multiplier effect on the end consumer; Act together with government in the development of public policy and tax incentives for carbon reduction initiatives; Guarantee the Dilemma: growth vs. sustainability.

;

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CONTENTS

INTRODUCTION

NATURA PROFILE

CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

CARBON NEUTRAL

OUR NETWORK LEADERSHIP AND SOCIAL INFLUENCE

These challenges served as insight for reflection on the co-responsibility and on our own leading role in the transition to a low-carbon economy, taking into consideration aspects to speed up the necessary changes that can be addressed jointly.

The topics identified were Education, Public Policy and Promotion of New Technologies, and these will be the choices that will help us channel our efforts and find the means and partnerships to achieve our objectives.

GLOSSARY COLLABORATIVE PLATFORM

THIS IS WHY WE INVITE YOU TO PARTICIPATE IN THIS DISCUSSION WITH US,

BY ACCESSING OUR VIRTUAL PLATFORM NATURA CONECTA WWW.NATURACONECTA.COM.BR

EDUCATION PUBLIC POLICY PROMOTION OF NEW TECHNOLOGIES

Just like any other issue of importance to Natura, dialogue with stakeholders is not limited to these panels. It occurs continually through relationships with these groups and also in virtual forums, where we promote interaction and draw on the collective intelligence.

This is where we post and discuss in advance the topics of interest to our stakeholders and where we lend continuity to the co-creation dialogue.

In addition to participating in our network, in the Carbon Neutral community you will also find the report How to Be Carbon Neutral with technical details, so other organizations can speed up their implementation of a similar process. You will also find news and reflections on good carbon management practices and on climate change.

REGISTER AND PARTICIPATE!

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CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

49

CARBON NEUTRAL OUR NETWORK GLOSSARY

GLOSSARY LIVING PLANET REPORT 2010

GLOBAL ECOLOGICAL FOOTPRINT

The Living Planet Report uses a series of indicators to monitor biodiversity, human demand on renewable resources and ecosystem services. It is updated every 2 years by the WWF, one of the world’s leading and most experienced non-profit environmental organizations.

The Ecological Footprint tracks human demand on ecosystem services and the retention of CO2 against the regenerative capacity of the planet to meet this demand. This is done by adding the areas necessary to supply the renewable resources used by people, the areas occupied by infrastructure and the areas necessary for the absorption of residues. CO2 is the only residual product that is currently considered.

+

LEARN

< BACK

http://wwf.panda.org/ about_our_earth/all_ publications/living_planet_ report/

< BACK

GHG PROTOCOL

ABNT NBR ISO 14064-1

The most commonly used tool by companies and governments around the world to develop emissions inventories and to understand, measure and manage their emissions.

A standard that specifies principles and requirements at the organization level for quantification and reporting of greenhouse gas (GHG) emissions and removals. It includes requirements for the design, development, management, reporting and verification of the organization’s GHG inventory.

< BACK BRAZILIAN GHG PROTOCOL PROGRAM The Brazilian program aims at establishing a corporate inventories culture in the country, by the free transference of methodology and knowhow to the emissions calculation.

+

LEARN

< BACK

www.ghgprotocolbrasil.com.br

< BACK

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

50

CARBON NEUTRAL OUR NETWORK GLOSSARY

GLOSSARY FOREST STEWARDSHIP COUNCIL

CLIMATE SAVERS - WWF

A non-profit organization devoted to promoting the responsible management of the world’s forests. It sets high standards that ensure that forestry is practiced in an environmentally responsible, socially beneficial and economically viable way.

The WWF created the Climate Savers program to work with leading companies to develop innovative measures for the absolute reduction of their impacts on climate change.

+

LEARN

<

BACK

http://fsc.org.br/

+

LEARN

< BACK

http://www.wwf.org.br/ empresas_meio_ambiente/ como_participar/defensores_ do_clima/

CLIMATE FORUM – BUSINESS COMPANIES FOR CLIMATE ACTION ON CLIMATE (EPC) CHANGE Group of companies that meets Working group created to monitor the commitments of the Open Letter to Brazil on Climate Change. It is comprised of companies and organizations that believe that the business community can make a decisive contribution to help the world transition towards a low-carbon economy, seizing new business opportunities and significantly reducing the negative impacts of climate change on the planet.

+

LEARN

< BACK

http://forumempresarial peloclima.org.br

to debate emissions reduction strategies and hold specific sector-wide discussions aimed at creating a regulatory framework on the subject of climate change.

+

LEARN

www.empresaspeloclima.com.br

< BACK CARING FOR CLIMATE, OF THE UNITED NATIONS GLOBAL COMPACT Voluntary global initiative for participants of the UN Global Compact that provides a framework for business leaders to advance practical solutions and help shape public policy as well as public attitudes on climate change.

+

LEARN

< BACK

www.caringforclimate.org

CONTENTS INTRODUCTION NATURA PROFILE CLIMATE OF CHANGE

CONTINUOUS IMPROVEMENT

51

CARBON NEUTRAL OUR NETWORK GLOSSARY

GLOSSARY VALUE CHAIN PROTOCOL OF THE INTERNATIONAL GHG PROTOCOL

CLIMATE NEUTRAL NETWORK

An initiative to facilitate Working group that is developing information exchange and networking to achieve a international protocols for transition to a low-carbon emissions inventories for economy, contributing companies’ supply chains. to the formal response to < BACK climate change under the UN Framework Convention or UNFCCC.

+

LEARN

<

BACK

CARBON DISCLOSURE PROJECT

CARBON EFFICIENT INDEX OF THE BM&FBOVESPA

The CDP is an annual survey formulated by institutional investors and sent to companies listed on the world’s main stock exchanges. It is intended to promote the disclosure of information on climate change policies.

A stock market index created to encourage companies with the most liquid shares on the São Paulo stock exchange to calculate, disclose and monitor their GHG emissions, in preparation to operate in a low-carbon economy.

It consists of the actions taken by companies listed on the IBrX50 index, which have adopted transparent and efficient practices in relation to their greenhouse gas emissions.

+

LEARN

www.unep.org/climateneutral

< BACK

www.cdproject.net

+

LEARN

< BACK

http://www.bmfbovespa.com.br/ indices/ResumoIndiceaspx?Indic e=ICO2&idioma=pt-br

52