Natura Sustainability

Sustainability for Natura is:

* to ensure successful businesses over the long term, which by meeting stakeholders interests have their support and engagement (search for loyalty).

* to contribute on a consistent basis in the transformation of society towards sustainable development, creating a business model which combines economic growth with social and environmental needs. "

Natura's webite (Suustainability - Natura Approach)

Sustainability Phase Model - Where will you position the organisation according to the Phase Model? Justify your response. Refer to the Sustainability checklist as a guide to understanding the various activities that occur in each of the phases, found in: Dunphy, D., A. Griffiths and S. Benn, Organisational Change for Corporate

Sustainability. London: Routledge (2003): Chapter 4

Dear All,

A snapshot of the activities they have carried out in the recent past are listed below.

Area Remarks

Employee Invested 4.4% of their total payroll in training and development of employees in Brazil

Conduct Organisational Climate Survey and have achieved 72% favourable response rate in Brazil

Maintain a kind garden for employee children inside the plant. Mothers have the free access to the babies and could maintain breast-feeding during work hours.

Environment Included eight new ingredients of bio-diversity

79.2% of their products come from renewable sources of energy which has induced an increase in sale of product

Achieved 18.4% refil rate on items billed

Greenhouse gas emission reduced by 5.2% in 2009, 7.3% in 2010 & 5.8% in 2011. Since 2007 they have reduced emission by 21.2%. Emission offseted by innovative voluntary projects with social and environmental benefits

In 2011 they have targeted to reduce their water consumption by 10% and waste by 6%.

Promoting use of natural gas & solar power

Development of an effluent treatment system for aerobic microorganisms

Reverse logistics and recycling of packing material

Comply With standards established by the UNEP (United Nations Environment Programme) for the packing material which analysis assesses the environmental impact of packaging, from development to its destruction

Society Initiated the Trihas Project for child education resulting in opportunities

Natura maintains the incentives for the creation of community development funds and fair price value chains, and remuneration for the use of genetic heritage and traditional knowledge

Other Stakeholders They also engage with other stakeholders to determine and monitor they strategic priorities

Suppliers and processors need to ensure traceability of all ingredients used in our products which can be verified by external audits.

Supply Chain Partner Obtained a 82% satisfaction level during supplier survey

Customer Achieved 24% market share & 46% brand preference rate in the brand essence survey

Obtain a loyalty rate of 18% with consultants and Obtain a loyalty rate of 40% with Natura Consultant Advisers

Replaced soap base from animal fat to vegetal fat through 1.5 years of intense research

They have replaced parabens in 90% of their products by replacing it with other preservatives.

They have also replaced phthalates in 95% of their PVC packing coming in contact with product

Technology & Innovation 2.8% of net revenue gets invested in innovation

Natura is reducing its emission levels through the development of new technologies or the application of new technologies to existing production or service systems

Economic Strong cash generation

Growth and profitability

Consistent dividend payout

Summary of the analysis based on the information in the table.

Natura works towards reducing wastages, hence cost decreases and business becomes more viable and start to gain real benefits. Cost reduction is by reducing waste in operations, reducing cost of inputs, recycle material and optimum utilization of resources. Value addition is performance improvement of product or service through innovations. Increasing the flexibility to respond to or anticipate changes through innovation.

Increasing technical capabilities, consume less ecological resources, reducing energy consumption, use of renewable sources of energy, reducing emission of toxic waste, promoting use of natural gas and solar power.

They focus on both the development of innovative R&D approaches and the ability to use metrics to further sustainability goals. Integrate sustainability with their strategic planning cycle, aligning their targets with their socio-environmental budget. They are committed to the balanced use of natural resources and increased social justice and inclusion. They believe in contributing on a consistent basis in the transformation of society towards sustainable development, creating a business model which combines economic growth with social and environmental needs. They have invested R$ 70 million in CSR initiatives. Natura integrates CSR into their competitive positioning by designing CSR programs that either remind or reinforce consumers' perceptions of high service quality. They also engage with fringe stakeholders and include the inputs to design and implement strategies. Focus on employee development & training resulting long term competitive advantage & tracking activities of other members of supply chain to ensure their compliance.

They continually invest in identifying and understanding the social and environmental challenges so that they become business opportunities that create and distribute benefits for everyone. They find innovative manner of bringing together science and traditional knowledge so as to transform the wealth of biodiversity into new products and concepts. They invest in research