Case Study – Natura Cosmetics

‘Committed to life’:

How Natura Cosmetics embraces regeneration as part of its world-leading climate strategy

Natura, the number one beauty and personal care brand in ​Latin America​, has developed an industry-leading sustainability strategy, combining local impact with global climate change goals.

The company has been recognized by the UN for its sustainability program as a Champion of the Earth and recipient of the Climate Global Action award. Its Commitment to Life strategy sets bold targets to address the climate crisis, protect the Amazon, promote social equality, and embrace circular, regenerative practices. This includes achieving net-zero by 2030, ensuring gender parity at the executive level, and investing $100 million in regenerative solutions. 

Natura’s 2050 vision centers on regeneration: restoring natural systems to deliver net positive impact. By channelling funds to projects on the ground, carbon credits provide a key role in making this vision a reality. 

Why Carbon Integrity?

Since 2007, Natura has purchased carbon credits to complement its decarbonization efforts, taking responsibility for emissions across scopes 1, 2, and 3. In 2023, it became the first Latin America-based company, and first company with a heavy manufacturing footprint, to make a VCMI Carbon Integrity Platinum Claim. This achievement showcased that the company had purchased and retired high-quality carbon credits equal to 100% or more of its remaining emissions, advancing global net zero by investing in impactful climate projects. It also signalled that VCMI Claims are within reach for companies across emerging economies and from diverse sectors.  

João Teixeira, Sustainability Manager at Natura, prioritizes staying up-to-date with the latest climate science and frameworks. By following VCMI’s Claims Code of Practice, he was confident that Natura’s strategy aligned with corporate best practice and that the team could communicate their achievement and gain recognition from shareholders, employees, and other key stakeholders. 

By making a Carbon Integrity Claim, Natura was able to demonstrate to the world what a robust and credible sustainability strategy—rooted in science and integrity—can look like. And that it’s possible for other companies to join us on this journey. 

Impact by the numbers

  • Natura works with 10,000+ small holder farmers in the Amazon region, supporting sustainable development and conservation efforts
  • The company is committed to investing $100 million in regenerative solutions by 2030
  • Since 2007 Natura has retired more than 4.5 million highintegrity carbon credits 
  • By 2030, 50% of Natura’s carbon credit portfolio will originate from the Amazon, preferably from partner communities

Bolstering transparency and integrity

To comply with VCMI requirements, the sustainability team made the following shifts:

  • Transparency: Ensuring that all data across Natura’s environmental and social initiatives is well organized and publicly accessible, with a focus on climate disclosure — such as CDP responses and an Integrated Annual Report (GRI) 
  • Integrity: Assessing and evolving Natura’s carbon credit portfolio to prioritize high-quality projects aligned with Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles standards by selecting high-quality projects that consider the local legal aspects in the due diligence process. 

Delivering local impact

Natura prioritizes investments in projects that are locally anchored, particularly in Brazil and Latin America. Through the voluntary carbon market, the company has channelled funds to local reforestation projects for the better part of two decades. These projects have delivered more credits than original estimations, and have delivered measurable benefits for nature, communities, and health and livelihoods.

Community engagement has been integral to their success: “Carbon credits play a huge role in addressing social challenges here in Brazil. To ensure success, all stakeholders involved in a project should be fully committed to delivering results.”

 Natura looks for projects to support regeneration: the SAF Dendê agroforesty system, for example, enables sustainable sourcing of palm oil by cultivating degraded lands in the north of Brazil and planting palm alongside cocoa, açaí, and other local species to increase biodiversity, soil health, and farmer income. The project facilitates ecosystem regeneration alongside carbon capture; it’s estimated that the carbon footprint of SAF Dendê palm oil is less than one-third of its conventional counterpart. 

Fostering collaboration

The company runs bi-annual open calls, available to businesses across Brazil and Latin America, with the goal of sharing its experiences of working with the voluntary carbon market.   

Natura has founded Compromisso com o Clima (Climate Commitment) program, launched in 2017, that connects companies engaged in VCMs with high-integrity socio-environmental projects based in Brazil to build long-term carbon strategies. Recognized for its rigorous due diligence, transparency, and credibility—aligned with frameworks like the Oxford Principles and Core Carbon Principles (CCPs)—the program has approved 25 projects, making accessible over 4,7 million high-quality carbon credits for the participating corporations. 

João says, “We understand that climate change has a global impact, and that its effects are felt around the world. But we also understand the importance of scaling up Brazil’s carbon market capacity and climate resilience, by investing in local projects. We’re proud that Natura’s climate strategy has helped develop and mature the Brazilian market and align it with integrity standards.” 

Measuring co-benefits

Through its iP&L (Integrated Profit and Loss) methodology, Natura quantifies and assesses the co-benefits of projects, accounting for impact across environmental, social, and human dimensions in addition to financial results. Based on 2022 results, every dollar of Natura revenue has generated a 2.7x return in benefits for society.

Carbon credits strategy plays a role in generating a positive impact for society. By investing in clean cookstove projects, like the Fogões Eficientes project in Bahia, Natura has seen many co-benefits delivered to rural communities: reduced smoke leads to cleaner air and improved health, which also strengthen life expectancy and social well-being. These projects also save time for rural families, increasing opportunities for leisure and skills development, demonstrating the link between social good, community health, and environmental conservation. 

Nature-based projects, such as forest conservation, similarly generate income for local communities by paying for ecosystem services. A 2022 study showed that for each dollar Natura invested in carbon credits, $32 was returned to society. 

How carbon credits help tackle scope 3 emissions 

Scope 3 emissions account for 98% of Natura’s carbon footprint. Alongside ongoing decarbonization efforts, Joao notes: “Carbon credits allow our team to access innovative ways of implementing climate solutions.”

Market participation allows the company to invest directly in greening its supply chain: 

  • Nature-based credits pay for the ecosystem services that traditional communities provide, such as forest conservation. Natura engages with 40+ communities in the Amazon region, including smallholder farmers and cooperatives, to protect the region’s biodiversity – which in turn enhances their ability to source ingredients.
  • Ecosystem restoration as exemplified by the SAF Dendê project, an innovative way to produce palm oil in agroforestry that regenerates nature while also capturing carbon.

 

Strategic investment in carbon credits help fund projects that address Natura’s scope 3 emissions while delivering tangible benefits for business, nature, and communities.

“Regenerative development argues that economic systems can produce more resources than they consume, and act as catalysts for environmental health.”

By reframing the climate crisis as an opportunity to implement creative solutions that spur innovation and resilience, Natura continues to inspire a new way of doing business in a way that’s compatible with, and committed to, life. 

Climate Transition Action Plan

 

Key takeaways

  • Governance first: Natura recommends strong governance as the starting point of any corporate sustainability journey. This entails strategically embedding climate targets and education at the executive level. 
  • Embed resilience: Beyond implementing decarbonization measures, companies should adopt climate adaptation strategies to future-proof their business. This can include diversifying supply chains, implementing water conservation practices, and investing in resilient infrastructure. 
  • Invest strategically: High-quality carbon credits play an essential role in a well-rounded climate strategy. For maximum impact, companies should invest in credits that deliver significant co-benefits for people and nature. 
Driving integrity in voluntary carbon markets for climate resilience & a sustainable future

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