PCH - Natura

CarbonNeutral
2008
2
President’s message >
CarbonNeutral
2008
Reason for our Existence,
Vision and Beliefs >
Profile >
Natura and Carbon Neutrality >
Inventory >
Reduction >
Compensation >
Compensation Projects Harvest 2007 >
| 1 | 2 | 3 | 4 | 5 |
Neutralization >
Credits >
Less is more >
version for printing >
<
President’s message
The crises that are resulting from global
warming are announcing that a change is
demanded in the patterns of consumption
and production. We are convinced that the
companies that understand the challenges of
this time in history and help in the search for
solutions to them will be those that make a
difference in the future.
In 2007, we achieved a new historic milestone
in our commitment to the environment and
to sustainable industry. We put into practice
the Carbon Neutral Program and we began
to offer our clients carbon neutral products,
in terms of emissions of greenhouse gases
(GHGs) generated during their entire life
cycle, starting with the activities necessary
to extract the raw materials up to the final
disposal in the environment. Now, we would
like to share with society the first practical
results of this initiative.
Natura was born with this name 38 years ago
because it believed that nature, of which we
are a part, possesses the best solutions for
society. During an intense learning process,
we made important decisions. 25 years ago,
we were pioneers in the use of refillable
3
packaging in our sector. Eleven years ago, we
converted our distribution fleet in Greater
São Paulo to vehicular natural gas. Seven
years ago, we launched the Ekos Line, based
on a commitment to the sustainable use of
biodiversity. We also moved forward with the
vegetablization of our products, we ceased
animal testing and we created an innovative
table with environmental information about our
products, which we printed on our packaging.
In reporting our first results, we are reinforcing
our commitment to transparency. We have
undertaken external verification of our profile
and of the other results. As well, the GHG
compensatory projects will pass through
verification by independent external auditors
and will be communicated in our annual
reports. As well, we want to publish in the
future the GHG emissions in the environmental
tables on the packaging of our products.
Our perennial commitment to sustainability
is what permits the company to define bold
goals for the neutralization of GHGs. We are
reducing – and not just compensating for – our
gas emissions. Our goal is to reduce our relative
emissions by 33% in five years. In 2007, we
achieved a reduction of 7%.
In this way, we are reinforcing our business
model, based on the creation of value in
economic, social and environmental dimensions,
on the way toward an economy that is less
threatening to the future of the climate, of
the planet, of society and of people. Although
we are secure and proud to report the
initial results, which is yet another important
step toward the realization of our vision, we
have the sensitivity and humility to recognize
everything that we have yet to do. In this sense,
we want to know your opinions and reflections
on our initiative, because they certainly will
serve to help us learn and evolve.
The emissions that cannot be avoided have
already begun to have their effects mitigated,
not by purchase of carbon credits, by through
support for projects reduction or capture of
gases. It was fundamental for us to evaluate
and choose projects with measurable socioenvironmental benefits, aligned with Natura’s
beliefs. We prioritized reforestation initiatives
and alternative energy sources.
Regards,
Alessandro Carlucci | Director-President
4
<
Reason for Being
Our Reason for Being
is to create products
and services that promote
well-being/being well.
well-being
is the harmonious, pleasant
relationship of the person
with oneself and with one’s body.
being well
is the empathetic, successful and gratifying
relationship of a person with others, with
nature of which one is a part, with the whole.
Vision
Because of its corporate behavior, the quality of the
relationships that it establishes and through its products
and services, Natura will be a worldwide brand identified
with the community of people who commit themselves
to the building of a better world based on a better
relationship with themselves, with others and with nature,
of which they are part, with the whole
Beliefs
Life is a chain of relationships.
Nothing in the universe exists alone. Everything is
interdependent. We believe that the perception of
the importance of relationships is the foundation of an
enormous human revolution in the search for peace,
solidarity, and life in all its manifestations.
The continuous search for improvement t promotes the
development of individuals, of organizations and of society.
The commitment to the truth is the route to perfecting
the quality of relationships.
The greater the diversity, the greater the wealth and vitality
of the whole.
The quest for beauty, which is the genuine aspiration of
every human being, must be free of preconceptions and
manipulation.
Beto Von Poser, engineer by training, set designer by choice
and supplier to Natura for 13 years
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.
<
Profile
Natura is a brand of Brazilian origin, born of the passion
for cosmetics and for relationships, and present in seven
Latin American countries and in France. In Brazil, we
are the industry leader in the cosmetics, fragrances and
personal hygiene markets as we are in the direct sales
sector. Since 2004, we are a publicly traded company
with shares listed on the New Market, the highest
level of corporate governance of the São Paulo Stock
Exchange (Bovespa).
In our corporate behavior, we attempt to create value
for society as a whole, generating results integrated into
the economic, social and environmental dimensions
of society. We believe that sustainable results are
those reached by means of quality relationships and,
because of this, we seek to maintain an open dialogue
with all the publics with whom we are in contact, in a
continuous exercise of of corporate transparency.
Our products are the greatest expression of our essence.
To develop them, we mobilize social networks capable
of integrating scientific knowledge with the wisdom of
traditional communities, promoting at the same time, the
sustainable use of the rich botanic biodiversity of Brazil.
In their production, we do not engage in animal testing
and we strictly observe the most rigorous international
standards of safety. The results are cosmetic creations of
high quality that bring pleasure and well-being, com their
design inspired by natural forms.
We consider our consultants to be our first customers. It
is through them that Natura products reach the hands of
their clients, with whom we encourage them to establish
high-quality relationships based on understanding and
on attending to their needs. For this reason, part of the
consulting activity is to develop the knowledge, use and
experience of the benefits of Natura products before
offering them to relatives, friends and acquaintances.
We stimulate personal, technical and professional
development in our consultants and we encourage them
to become change agents, contributing to the spread of a
concept of well-being/being well and to the building of a
more prosperous, more just and more united society.
6
<
Natura and
Carbon Neutrality
Thinking about the Future – the Entire Future
Natura consultant Ildnéia, 62 years old, with her client Vera, 45. Vera
Lucia Candido is a housewife and client of Ildnéia for the last three years.
Commitment to Sustainability
Even starting from an ethical base, our adherence
to the principal of sustainability is not at all
abstract. To go beyond a generic commitment has
been our challenge, which we have confronted by
mobilizing the innovative capacity both inside and
outside Natura to adopt this principle in our own
processes and products. Our conviction is that
genuinely innovative companies are those who
really incorporate sustainability in its management
processes, making it a factor in every decision and
integrating it into our activities and permitting that
it be monitored and evaluated over time.
A watershed event on this journey of incorporating the
requirements of sustainable development into the core of
the business was the launching of the Ekos line in 2000.
With this, we assumed an explicit commitment to the
sustainable use of the biodiversity of Brazil and to the
distribution of social benefits generated by the innovation
based on traditional knowledge. During the same period,
we took the first step toward direct involvement with the
problem of greenhouse gas emissions by sponsoring the
Natura Scientific and Environmental Development project
in the environs of Bananal Island (Pium, Tocantins) and
run by the Ecological Institute. It was the first phase of a
growing engagement in the question of climatic change
that would culminate in the bold project to neutralize our
emissions starting in 2007.
Our commitment to sustainability is is best exemplified
today in the policy of vegetalizing our line of products,
substituting them for the traditional raw materials based
on minerals (such as petroleum derivatives) or animal
products. To implement this policy, we opened the
Benevides (Pará) factory in 2006 making it responsible
for the development of the supply chain of oils and
for the mass production of soap. The unit also will
include a factory for the extraction of oils, still another
step toward the sustainable use of the biodiversity of
Brazil and a means to strengthen our relationship with
local communities (the project will benefit up to 200
employees in 27 municipalities and around 2,500 families
engaged in agricultural production.
2007
The principal steps that have
contributed to deepening our commitment
to sustainable development:
2006
2005
2001
2000
1969
Natura
is born with
the idea of
utilizing natural
ingredients in
its formulations
8
1983
Natura
introduces
refills in
the Brazilian
cosmetics
sector
1997
distribution
fleet in
São Paulo is
converted
to vehicular
natural gas
(VNG)
launching
of the Natura
Ekos line
effluent
treatment station
com an aerobic
system installed
in the Natura
Cajamar facility
incorporation in
the development
process of results
of the Life Cycle
Assessment
(LCA) for
packaging
substitution
of animal fat
by vegetable
oils in the line
of soaps
beginning of
operation of the
Benevides (PA)
industrial unit
for the supply
of vegetable oils
from the Amazon
solar energy
used in the
Natura facility to
heat water and
provide light for
the parking facility
Natura
Greenhouse
Gas System, an
internal network
of collaborators
charged with
planning the
reduction of
emissions
substitution of
mineral oils by
vegetable oils in the
lines of body oils
pilot project
for the recycling
of post-consumer
packaging by
Natura in Recife
and São Paulo
introduction of the
Environmental Table
on our products
the Ekos line
begins to have
30% of recycled
PET in packaging
of three-phase oil
gradual substitution
of common alcohol
by organic alcohol
(perfumes and
deodorants)
reduction of 7%
in the emissions
of GHG in relation
to 2006
choice of projects
for emissions
neutralization
in 2007
9
The Carbon Neutral Project
In harmony with our longstanding commitment to
sustainable development, have involved ourselves deeply
in the question of greenhouse gases (GHGs) and we have
adopted the commitment to neutralize all our emissions
starting in 2007.
This commitment is the crowning achievement of a process
that was formalized at the beginning of 2006 with the
creation of the Natura Greenhouse Gas System, a network
composed of collaborators from different areas of the
company. Since then, we have created a robust model,
capable of dealing with the problem of GHG emissions with
the profundity and transparency that the problem demands.
The result of this more complete and more difficult to
administer model is a commitment to neutralize emissions
that is wider, that involves the entire business process chain.
We are not going to limit ourselves to the purchase of
carbon credits in the marketplace, nor only to implement
improvements only in our internal processes, to achieve
reductions in the emissions caused by them. We have
decided to go to the root of the problem and assume
responsibility for all the emissions that our operation
causes. In other words, we plan to neutralize the all the
gases generated throughout our logistic chain.
Our focus is on the
reduction of emissions.
That which it is not possible to reduce now is being
compensated by support for external projects endowed
with obvious socio-environmental benefits. In this
process, we have identified the possibility of reducing by
33% the emissions resulting from our chain of business
processes during the next five years. Already, in 2007,
we have reduced our emissions by 7%. We present on
the following pages, in greater detail, the rationale, the
process and the first results of our process of complete
neutralization of GHG emissions.
<
st
1 step: Inventory
10
Our first task was to define, at the beginning of
2006, a consultancy specialized in environmental
questions. It was necessary to know what was
the volume of our emissions. We performed
a very broad group study to inventory the
GHG emissions with based on the standards of
the Greenhouse Gas Protocol Initiative, using
the principles of completeness, consistency,
transparency and precision, as well as the use of
the ISO 14064-1 standard.
However, when the data for 2006 was published at the
beginning of 2007, we were already involved in a new
level of commitment, envisioning a complete neutralization
of GHGs. In the second half of 2006, during internal
discussions of the company’s strategic plan, a question
arose about the scope of the management of GHGs we
were implementing. Was the inventory be broad enough in
accordance with our philosophy of always considering the
totality of relationships? Was that the best route to reach
the objective of sustainability in its full sense?
Based on this debate, we decided to redo the inventory of
gases based on a wider scope, including in our computation
of emissions those generated from the storeroom of our
suppliers, from the extraction and production of the raw
materials and from their transport to the convertor.
In 2007, with more precise data about our indirect emissions
that are linked to the raw materials of ingredients and
packaging, we identified emissions of 183.6 thousand tons of
CO2e (carbon dioxide equivalent). The inventory of emissions
for the year 2007 was verified by Det Norske Veritas (DNV).
In those cases in which there was uncertainty about the values
of emissions associated with a process or activity, we always
opted for the more conservative data. In other words, we
consciously preferred to overestimate emissions rather than
underestimate them. Due to the improvements implemented
in the 2007 inventory, we recalculated the value of 2006 and
establish total emissions of 179.6 thousand tons of CO2e.
Consult details on the GHG indicators in the Natura
Annual Report 2007 (www.natura.net/relatorio)
1st step: Inventory
Natura – Carbon Cycle
(% of Emissions)
13%
Direct suppliers:
• process and transport of the convertor to Natura
38%
13%
• raw materials (19%)
• packaging (19%)
• electric energy (1%)
• fleet vehicles (2%)
• fixed sources, export,
effluents, air travel, etc. (5%)
• International Operations (5%)
Internal processes:
Extraction/transport of:
11
In 2007,
183.6 thousand ton CO2e
14%
Product transport:
• from Natura to consultants (11%)
• from consultants to consumers (3%)
22%
Final disposal of:
EMISSIONS BY SCOPE OF GHG PROTOCOL:
Scope 1
Scope 2
Scope 3
3%
1%
96%
• products (2%)
• packaging (20%)
1st step: Inventory
Emission due to the extraction of materials
12
In the search for constant improvement in the processes
that relate to the Carbon Neutral project, in 2007, we
identified the necessity to create a reliable model to
quantify the emissions of GHGs associated with raw
materials (RMs) and with packaging (PMs), throughout the
life cycle of these elements in Natura.
Organic Alcohol
In the face of the great diversity of materials used, we
opted initially for the selection of three RMs and PMs
responsible for approximately 65% of the volume
consumed by Natura in 2007. With our suppliers and a
specialized consultant, initiated a detailed mapping of all the
emissions that resulted from productive chains of these six
materials.
The inventory of organic alcohol included the GHG emissions throughout
the production cycle of ethanol, involving: the agricultural phase
(preparation of the soil, planting, organic fertilizing, harvesting and area
maintenance), the industrial phase (all the energy necessary for the
operations of the mill, which is supplied by means of cogeneration based on
burning of the pulp that results from the grinding of the sugar cane) and
transport to Natura.
Later, we increased the reach of the study and generated
the emission factors of CO2e for all the RMs and PMs
used by Natura. This was done taking into consideration
the information on the detailed maps, estimates of similar
productive processes and, finally, the categorization of RMs
and PMs based on the proximity of the materials.
* MACEDO, I. C. et al., 2004 Balance of greenhouse gas emissions
in the production and use of ethanol in Brazil, Environmental
Secretariat, 2004.
With the detailing of the chains of activity, we had in hand the relevant
information for decision-making. A good example was the mapping
of organic alcohol produced by the Native company. This is one of the
raw materials that had its emissions mapped in detail. It is used in the
production of Natura perfumes.
The emissions of CO2e from neutral organic ethanol produced by Native
reached 0.215 kgCO2e/kg of ethanol. The production of conventional
ethanol, based on studies*, would reach 0.471 kgCO2e/kg of ethanol.
The organic alcohol achieves a reduction in GHGs of 54% in comparison
to conventional ethanol principally by a mechanized harvesting process
for the raw cane (and not by means of burning fields, as in conventional
harvesting). Another significant difference is that there are not emissions
of N20 (nitrous oxide, one of gases that cause the greenhouse effect)
from the soil during the cultivation of the organic cane because industrial
nitrogenated fertilizers, which are responsible for this type of emission, are
not used. For organic alcohol, the fertilizers used are the cane straw and the
green pulp, which make a significant contribution to the reduction of GHGs.
<
nd
2 step: Reduction
Our internal learning process about GHGs led
to the certainty that the focus should fall on
the reduction in emissions more than on their
compensation, because in this manner it is possible
to obtain a much greater socio-environmental
benefit that is really relevant to the future of the
planet. Due to Natura’s history of initiatives in the
field of sustainability, we were already in a position
to implement a significant reduction, because since
2001, we had incorporated into our process of
developing finished products the Evaluation of the
Life Cycle of packaging.
This methodology quantifies the inputs and outputs
of materials and energy in a system, permitting
an objective comparison of the “environmental
performance” of products.
In other words, we were already actively engaged in the
implementation of measures that result in an economy of
greenhouse gas emissions; we do not just measure them
as an indicator of environmental impact. Our portfolio
of measures that have already contributed to reduce
emissions and combat global warming did not begin with
the project to completely neutralize GHGs. Even though
they were not adopted with this precise objective, strictly
speaking, the measures to achieve this result had begun
with the introduction of refills in 1983. They form part of
a continuous cycle of innovation with introduction at any
time of improvements and their spread to other product
lines and processes.
The Carbon Neutral project has given a dimension to our
involvement. We have identified the potential to reduce
by 33% the GHG emissions relative to 2006 in a period of
give years. We are working with all phases of the carbon
cycle: the extraction of raw materials, the extraction of
packaging materials, the work of direct suppliers, our internal
processes, transport and the disposal of products and
packaging. This is our horizon and already in 2007 we have
achieved a reduction of 7% and drop from 4.40 to 4.09 kg
de CO2e/kg per kilo of product.
We want these measures to be transparent and we
depend on continuous monitoring by external evaluators.
We also assume the commitment to publish these results
periodically. Our vision is not limited by one goal; we
think in the long-term and we have created six internal
groups, with membership spread among collaborators
from diverse areas, who have the mission to identify new
opportunities for reductions.
2nd step: Reduction
Planned Reduction Projects
Natura
business
chain
Principal
projects
Estimated
contribution
in potential
reductions*
14
Extraction
of raw
materials (RMs)
Extraction
of packaging
materials (PMs)
- increase the vegetalization - use biopolymers
of formulas
- increase the use of refills
- increase the use of
- reduce the mass of
organic raw materials
Natura magazines
- reduce and/or substitute
packaging’s of products
- increase the use of
recycled materials
5%
5%
Direct
suppliers
- create incentives
for clean energy
and energy efficiency
measures
2%
Internal
processes
- measures to achieve
energy efficiency in the
factories, restaurant,
air conditioning
and the utilities center
- change the policy of
reimbursement to
encourage the use
of alcohol
- increase the fleet of flex
fuel vehicles for executives
and sales consultants
3%
Product
transport
Product
disposal
- incentivize the substitution - increase recycling
of fossil fuels and
renovation of the fleet
- optimize the mode of
transport in Brazil and
in international operations
- reduce the use of air
transport for export
- increase the use
of maritime transport
2%
networks and extraction
projects which contribute
as well to the reduction
in the disposal of products
and packaging
9%
* potential of reduction to 2011, in line with the corporate goal for the reduction of GHG
These six groups are headed by managers in different
areas who have taken the responsibility for reducing
the emissions throughout the chain of the business.
We have defined as well an internal goal for the
reduction of emissions, the result of which will become
part of the corporate Participation in Profits and Results,
with quarterly evaluation. The responsibility for this
reduction is also applied to the supplier chain in such a
manner as to optimize the production processes and to
offer products and services with a lower emissions.
Life Cycle Assessment
LCA is an important tool to find the best alternatives to make
packaging with lesser environmental impact viable. Since 2001, we
have obtained good results in the development of new products and in
the choice of articles that compose commercial promotions. In 2007,
there was a reduction of 12% in the impact of packaging (per kilo of
product) compared to the previous year.
<
rd
3 step: Compensation
15
The emissions that cannot be reduced are already being
compensated for with projects that are capable of
reducing or capturing the equivalent of the CO2 being
emitted by Natura. During 2007, we undertook a major
prospecting project to find partners who were really
responsible for GHG reduction project that had a track
record and were aligned with Natura’s beliefs
Those selected were: Instituto de Pesquisas Ecológicas
(IPE Institute), Ecológica Assessoria (Ecological Advisory)
and Instituto Ecológico (Ecological Institute), who are
already partners of Natura, AMC Têxtil (AMC Textiles)
and the Cooperativas de Pequenas Centrais Hidrelétricas,
PCH, (Cooperative of Small Hydroelectric Generators)
that were chosen through a public bidding process
launched in 2007.
We undertook this search far and wide and we
emphasized initiatives that went beyond the
frontier of carbon compensation. We opted for
institutions with socio-environmental commitments
that were effective and monitorable, those
that permitted the generation of income, the
conservation of biodiversity, the sustainable use of
water resources and had a profile as an innovator.
All those who succeeded were chosen after a technical
analysis by Natura. We established partnership with
projects that dealt with agroforestation systems and
reforestation (which will compensate for 54% of our
emissions) as well as renewable energy (which will
compensate 46% of our emissions). We want to
work with distinct levels of complexity, of monitoring
and of reach to deepen our knowledge of the diverse
possibilities and phases of the process of neutralization.
Seedlings from the nursery of the IPE Institute
3rd step: Compensation
Project evaluation
Having defined the scope of the compensation we
wanted to achieve, we designed a tool to guide the
selection and qualification of projects. The most
important points of the selection process were the
socio-environmental profile, the items of improvement
and the potential for innovation. We based the
construction of this analysis on studies and on advanced
tools used throughout the world, which we adapted
to our necessities and strategies. The evaluation
is composed of four central themes (GHG, Social,
Environmental and Innovation), using 15 criteria
and divided in three categories: critical, minimal and
additional as is shown in the table to the right:
International
recognition
The United Nations, by means of its environmental
program, UNEP, also recognized the effort of Natura
to combat global warming. We are the first company
in Latin America that was invited to become part of
the Climate Neutral Network, a virtual global forum to
present and discuss cases of corporations, cities and
governments involved in climatic change. We intend
to use the forum to publish our actions and exchange
information about best practices. The forum can be
accessed through the site www.unep.org/climateneutral.
THEMES
CRITICAL CRITERIA
MINIMUM CRITERIA
ADDITIONALCRITERIA
GHG
. Monitoring
. Additionality
. Permanence
. Escapes
. Double counting
. Verification by third parties
. Conformity with
recognized standards
Social
. Legal aspects
. Generation of
income locally
. Strengthening of
local institutions
Environmental
. Legal aspects
. Environmental impacts
. Biodiversity
Innovation
. Technological innovation
. Innovative practices
Consult details about the GHG indicators in the Natura Annual Report 2007 (www.natura.net/relatorio)
3rd step: Compensation
<
Portfolio of compensation projects - Growing Season 2007
Five projects were selected and qualified to
compensate for our emissions of GHGs in 2007.
The entire production chain is included in the
neutralization, from the emissions coming from
the activities involved in the extraction of raw
materials up to those generated by the final
disposal of the products in the environment.
We decided to adopt a bolder stance and we are going to
compensate a total of 224 thousand tons of CO2e, a
quantity superior to the emissions generated in 2007 — in
numbers, a neutralization of 122%. The idea is that the
compensation process function similar to a “financial balance
sheet” and that we should control the balance during the
following years.
Ecológica Assessoria (60 thousand tons)
Instituto Ecológica (60 thousand tons)
Geographic
distribution
of projects
Forestation projects
Instituto IPE (60 thousand tons)
AMC Têxtil (30 thousand tons)
Energy projects
CERILUZ, COOPERLUZ and CRERAL (14 thousand tons)
<
1
18
Recomposition of the landscape and
Agroforestry Systems
Partner:
Instituto de Pesquisas Ecológicas (IPE)
Organizational profile:
Third largest environmental NGO in Brazil,
it is known for the Mico-Leão-Preto Project
and has approximately 30 projects spread
across Brazil.
Type:
Project summary:
Land development conflicts and excessive occupations of the
land have caused a great fragmentation of the forest in the region
of Pontal do Paranapanema, in the extreme west of the State
of São Paulo. The region is endowed with an environmental
liability of around 40 thousand hectares of the Atlantic Forest
(one of the most debased forest biomes in the world) that
can be recomposed in the form of legal reserves and Areas of
Permanent Preservation.
Pontal do Paranapanema (SP)
The IPE project intends to restore 184 hectares of degraded
area with the planting of more than 80 native species.
The idea is to provide for a connection between forest fragments
and Conservation Units of the Atlantic Forest in the Pontal,
by means of ecological corridors and Agroforestry Systems.
The project is divided in three major areas:
Quantity of compensation available to Natura:
Establishment of ecological corridors
with native forests:
Forest
Locality:
60 thousand tons of CO2e in 30 years
(time estimated for the growth of the forest)
This activity will restore 55 hectares of native forest in a degraded
grazing area and areas of Legal Reserve on a farm, a property
strategically positioned by its corridors of biodiversity. These
paths will make possible the flow between populations of species
of fauna and flora and will form a link between the Morro do
Diabo State Park and the Mico-Leão-Preto Ecological Station.
Implementation of Agroforestry Systems:
Taking into account the number of projects that IPE has
already undertaken, the project envisages the generation of
income geared to recovery of the forest by means of placing
129 hectares of Agroforestry Systems in three settlements
(Ribeirão Bonito, Nova Esperança and Santa Zélia) that will
benefit 65 families of settled small farmers. These families
will receive supplies, technical assistance and services to
prepare the soil for the practice of agroforestation. In
the communities, one of the practices adopted for the
restoration of the landscape was baptized “Coffee with
the Forest” and allies the cultivation of organic coffee
along with native trees.
An interesting aspect of “Coffee with the Forest” is that
the producers are the real heroes. They are using simple
solutions to be adopted for the treatment of agricultural
cultivation, such as the production of humus with
earthworms, the creation of compost heaps and the use of
cattle urine to drive away possible pests. Corn, beans and
rubber trees will be considered for the adopted systems.
Two Community Nurseries, social entrepreneurship
programs that involve the settlers and rural properties,
will provide the seedlings necessary for the reforestation.
Currently, there are 25 nurseries distributed among eight
settlements in the region, with the capability of producing
around 850 thousand seedlings per year, which already
represents 35% of the income of the participating families.
The community will be involved in the collection of seeds
and in the planting.
All the species chosen must fall within two ecological groups:
pioneers (pioneers and initial successional growth) and nonpioneer (later successional growth and climax) with which
groupings we can name some species: Araçá (Myrciaria
sp), Jaracatiá (Jaracatia spinosa) and Aroeira pimenteira
(Schinus terebinthifolius). Also planned is the proper licensing,
maintenance and control of the area of planting.
Monitoring:
The evolution of the forest and its warehousing of biomass for
the neutralization of GHG emissions will rely on monitoring
based on periodic samples, with measures of the diameters
and heights of trees, from which extrapolations will be made
for the entire area. The areas will be given georeferences
through a Geographical Information System and all the
external observers will be able to verify if the goals for growth
of the forest and the warehousing of biomass are being met.
Principal benefits:
- the planned restorations, which beyond absorbing CO2 from
the atmosphere, will provide for the preservation of water
resources and conservation of the biodiversity.
- the implementation of Agroforestry Systems will strengthen
the generation of income in the settlement communities.
Natura evaluation*:
* Project evaluated based on the Natura analytic tool and based on the stated criteria
Result by theme
Historical relationship with Natura:
Carbon Social Environmental Innovation Total
Points obtained
14
9
9
6
38
Maximum points
21
9
9
6
45
Natura and IPE have worked together in the construction
and development of the Superior School of Environmental
Conservation and Sustainability (ESCAS) in Nazaré Paulista/SP.
MINIMUM CRITERIA
CRITICAL CRITERIA
ADDITIONAL CRITERIA
3
Environmentallegal aspects
Environmental
impacts
MINIMUM POINTS
NATURA EVALUATION
2
1
Verification
by third parties
Permanence
Monitoring
3
Additionality
2
Biodiversity
3
Escapes
1
Socio-legal
aspects
Generation of
local income
Double
counting
Innovative
practices
Thecnological
Innovation
2
1
Conformity
with recognized
standards
Strengthening of
local institutions
<
2
21
Recovery and conservation of natural
resources in rural settlements
Partner:
Instituto Ecológica
Organizational profile:
It is an Organization of Civil Society in the
Public Interest (OSCIP) that takes part in the
projects on climate change through research,
conservation, preservation of the environment
and support for sustainable development
practices in communities.
Type:
Forest
Locality:
Cantão region in Tocantins State
Quantity of compensation available to Natura:
60 thousand tons of CO2e in 20 years
(time estimated for the growth of the forest)
Project summary:
Located between the high plains, the Amazon forest and
swampland, the Cantão region, in Tocantins, has seen an intense
deforestation and a wasteful use of the soil due to grazing,
monoculture and subsistence farming. It houses various
settlements that lack financial resources, social assistance
programs and information about environmental problems.
Accustomed to the traditional agricultural practices, the
residents constantly use the practice of burning fields. The
project identified the urgent necessity of strengthening these
groups as a basic prerequisite for the real development of
sustainable use of natural resources.
150 hectares of devastated areas will be recovered with the
planning of 167 thousand seedlings of native species in Areas
of Permanent Preservation and Legal Reserves (in accordance
with the legislation, 35% of the area must be Legal Reserve)
in two rural settlements located in the Cantão region:
Barranco do Mundo and Manchete.
The project will proceed in three major areas:
Reforestation:
The first step is the survey of the forest to show which
native species are best suited for planting. The correct choice
is of fundamental importance. The species in this region
are adapted to conditions of low soil fertility and are therefore
highly recommended for reforestation of degraded areas.
Some of the species recommended for planting are Jenipapo
(Genipa americana), Pequi (Caryocar brasiliensis), Anjico
preto (Anadenathera falcata), Jatobá (Hymenaea sp.)
and Ipê (Tabebuia sp.).
The seedlings will be produced in the nurseries of the Instituto
Ecológica, the planting achieved with the active involvement of
the local community and the manpower recruited from the
settlers. It is also part of the scope of the planned actions to
guarantee the proper licenses, maintenance and control of the
planting area. The reforestation with native species that come
from the locality, beyond responding to the objectives
of protection, attraction and support of animal life, also
permits the enrichment of local plant life by use of species
that are threatened with extinction as well as forming a seed
bank for their propagation.
Application of the methodology of Social Carbon
and income generation:
However, reforestation is not sufficient. It is necessary to
show settlement communities the benefits of maintaining the
forest alive and in harmony with nature, making a living from
it. Three sustainable practices have been identified to support
the settlements: honey production, regional sweets and the
extraction of vegetable oils.
Another goal is the training in sustainable practices for the
settlement families as well as the concept of the Social Carbon
seal (a methodology developed by the Institute to measure
the quality of projects oriented toward the mitigation of the
effects of climatic changes that strengthen social and sustainable
development issues.
Monitoring:
When we deal with sustainable project, a majority of the
difficulties relates to assuring monitoring in the long term.
This is one of the significant differentials of this initiative.
As the growth of the forest is estimated to take between
20 and 30 years, it is necessary to monitor the species
throughout their growth to determine the levels of carbon
in the forest biomass and estimate the carbon stored in
the vegetation. To achieve trustworthy indices, the
Geographical Information System will be used to map
the area, along with samples and field measurements
in pre-determined time periods.
First stage:
Principal benefits:
- elaboration of PDD (Project Design Document)
- absorb the atmospheric CO2, promote the recomposition and
increase in value of the threatened Amazon and high plains biomes
- generate income for the rural settlement communities involved in
the conservations of the forest
- meetings with groups of settlers and with public agencies.
- collection of data with GPS for the preparation of maps
of the planting area.
Natura evaluation*:
- planting of 7,000 seedlings with the participation
of the community.
* Project evaluated based on the Natura analytic tool and based on the stated criteria
Result by theme
Points obtained
19
7
9
2
37
Maximum points
21
9
9
6
45
MINIMUM CRITERIA
CRITICAL CRITERIA
ADDITIONAL CRITERIA
3
Environmental
impacts
MINIMUM POINTS
NATURA EVALUATION
2
1
Verification
by third parties
Permanence
Monitoring
Environmentallegal aspects
Carbon Social Environmental Innovation Total
3
Additionality
2
Biodiversity
3
Escapes
1
Socio-legal
aspects
Generation of
local income
Double
counting
Innovative
practices
Thecnological
innovation
2
1
Conformity
with recognized
standards
Strengthening of
local institutions
<
3
24
Use of renewable biomass in Ceramic plants
Partner:
Ecológica Assessoria
Organizational profile:
It is a company connected to the Instituto
Ecológica which focuses on consultancy
on projects in the are of climatic change
and carbon credits.
Type:
Energy
Locality:
2 Ceramic plants in São Miguel do Guamá (PA)
2 Ceramic plants in Cristalândia and Paraíso
do Tocantins (TO)
Quantity of compensation available to Natura:
60 thousand tons of CO2e
Project summary:
Among the diverse sectors that use energy with a negative impact
on the environment is the ceramics industry. Many Ceramic
plants use as fuel for heat the burning of native firewood to fire
bricks and tiles. The firewood of native forests is not considered
a renewable biomass, because without reforestation, all the CO2
captured during its growth returns to the atmosphere at the time
it is burned. As well, we know that deforestation is the principal
cause of GHGs in Brazil, accounting for approximately 50% of the
Brazilian GHG emissions.
Ecológica Assessoria designed a project that deals with both
environmental and social programs and sought sustainable
alternatives to substitute for the use of native wood in the
Ceramic plants, guaranteeing the people’s jobs but without
the necessity of cutting the forest. All the voluntary credits
generated by the Ceramic plants passed through a verification
audit performed by specialized firms. For Natura’s compensation,
projects in two Brazilian regions are planned.
Center West region (Tocantins):
Northern region (Pará):
The sustainable alternative for two Ceramic plants in Tocantins,
a state with serious levels of deforestation of the high plains,
was discovered in a material that was previously discarded in an
uncontrolled way by the grain growers of the region: rice hulls.
When left to decompose in the environment, this agricultural
residue generates an environmental problem: emissions in the
form of methane.
The same problem of the use of firewood for the firing of
ceramics occurs in the region of São Miguel do Guamá, an
important production center of this product. It has a direct
impact on the Amazon forest. The sustainable option came in
a typical food of the region: açaí. With the production of pulp
based on the extraction of the fruits, its harvest guarantees the
conservation of native vegetation.
In research and tests, the rice hulls provide to be as efficient as
firewood in the process of firing ceramic, because it achieves
the neat necessary to make bricks and tiles at the correct
temperature. The biomass that was previously thrown away on
the land in the open air became fuel for the ceramics industry.
The alternative to supply the ovens came from the stone of
the açaí, which has generates significant heat and is abundant in
the region. For its effective use, investments in automation and
adaptation equipment were necessary. As açaí is only available
during the harvest period, between July and December, a
second fuel was used–sawdust acquired from lumber mills
that are properly legalized. Beyond engaging in an innovative
practice, the ceramicists found other advantages: the burning of
alternative fuels generates less residue and, what is more, there
is an improvement in the working conditions of employees and
an increase in the number of jobs in the ceramics industry.
Principal benefits:
- to make use of the residues of other processes, we avoided its
improper disposal and the generation of methane in its decomposition.
- to substitute the high plains and Amazon native firewood,
we contributed to the reduction of deforestation in Brazil.
- contribution to sustainable development, measured by the
Social Carbon methodology.
Natura evaluation*:
Historical relationship with Natura:
* Project evaluated based on the Natura analytic tool and based on the stated criteria
Participated in 2003 with Natura in the Social Carbon Project on
an island named Ilha do Bananal (TO). This involved environmental
education and a scientific study of the capturing of carbon. These first
experiences were fundamental to the Carbon Neutral strategy of
Natura.
Result by theme
Points obtained
20
5
8
4
37
Maximum points
21
9
9
6
45
MINIMUM CRITERIA
CRITICAL CRITERIA
ADDITIONAL CRITERIA
3
Environmental
impacts
MINIMUM POINTS
NATURA EVALUATION
2
1
Verification
by third parties
Permanence
Monitoring
Environmentallegal aspects
Carbon Social Environmental Innovation Total
3
Additionality
2
Biodiversity
3
Escapes
1
Socio-legal
aspects
Generation of
local income
Double
counting
Innovative
practices
Thecnological
innovation
2
1
Conformity
with recognized
standards
Strengthening of
local institutions
<
4
Cooperatives of Small
Hydroelectric Generators
Partners:
CERILUZ, CRERAL and COOPERLUZ
Organizational profile:
The Cooperatives of Small Hydroelectric
Generators of Rio Grande do Sul generate
and distribute renewable energy to the rural
environment. They were presented to Natura by
the Ecoinvest consultancy firm.
Type:
Energy
Locality:
CERILUZ – PCH Linha Três Leste – Ijuí (RS)
CRERAL – PCH Cascatas de Andorinhas –
Erechim (RS)
COOPERLUZ – PCH Caraguatá - Santa
Rosa (RS)
Quantity of compensation available to Natura:
14 thousand tons of CO2e
Project summary:
The PCHs appeared in Brazil in the 1960’s, a time when the reach
of energy systems was limited and their benefits did not reach
the rural community. The residents of distant small towns and
owners of rural properties joined together in cooperatives to
seek independent forms of energy supply in the countryside and
create the PCH systems. The local involvement was intense, the
community took part in maintenance, operation and expansion
of electrical energy. The community decision-making in the past
contributed significantly to an improved quality of life in the
countryside and the increase in rural production.
The Natura compensation project involves three small
hydroelectric stations: PCH Cascatas das Andorinhas, PCH
Caraguatá and PCH Linha Três Leste. These are located in the
southern region of Brazil. The environmental gain of these PCHs
is in the type of energy generated, clean and with a lesser impact
on nature. Different from large hydroelectric stations where is
it necessary to flood a large area (and in the flooded areas, the
decomposition of the bottom causes GHG emissions in the form
of methane), the PCHs work with minimal reservoirs, without
the necessity of altering the environment by flooding and they
generate electricity using the wires-in-water system. The fact that
the stations are closer to the customers avoids wasting energy
over an extended transmission line network.
28
Principal benefits:
The PCHs help to meet the growing demand for energy in
Brazil and contribute to the increase of renewable energy as a
fraction of the total consumption of electricity in the country.
Total demand is dominated by large hydroelectric systems and,
at moments of peak demand, by thermoelectric plants, those
enormous emitters of GHGs.
- increase in the participation of renewable energy as a fraction
of total consumption in Brazil, avoiding the electricity generated
by the use of fossil fuels.
The project was validated by the Designated Operational
Body accredited by the UN and approved by the Designated
National Authority represented by the Interministerial
Commission on Global Climate Change. As a result, the project
can enter into carbon credit the market.
Natura evaluation*:
* Project evaluated based on the Natura analytic tool and based on the stated criteria
Result by theme
Points obtained
17
6
6
0
29
Maximum points
21
9
9
6
45
MINIMUM CRITERIA
CRITICAL CRITERIA
ADDITIONAL CRITERIA
3
Environmental
impacts
MINIMUM POINTS
NATURA EVALUATION
2
1
Verification
by third parties
Permanence
Monitoring
Environmentallegal aspects
Carbon Social Environmental Innovation Total
3
Additionality
2
Biodiversity
3
Escapes
1
Socio-legal
aspects
Generation of
local income
Double
counting
Innovative
practices
Thecnological
innovation
2
1
Conformity
with recognized
standards
Strengthening of
local institutions
<
5
Exchange of fuel oil for biomass*
certified for sustainable handling
*wood chips from pine and eucalyptus
Partner:
AMC Têxtil
Organizational profile:
AMC Têxtil is a private company in the textile
sector, a producer of knits and fabrics for
various brands in the market. It was presented
to Natura by the consulting firm Ciclo Ambiental.
Type:
Energy
Locality:
Jaraguá do Sul (SC)
Quantity of compensation available to Natura:
30 thousand tons of CO2e
Project summary:
Named Prosubio, the project involves the exchange of nonrenewable, fossil fuel oil, BPF1A, for wood chips from pine and
eucalyptus, which have a certificate for sustainable handling.
This is a renewable biomass that emits less GHG. The textile
industry needs a great deal of continuous thermal energy for
the generation of steam and heat, essential components in the
production of knits and fabrics. Wood chips based on pine and
eucalyptus is a source of energy that comes from wood certified
by the Forest Stewardship Council (FSC), which guarantees that
its extraction is done by means of sustainable forest handling.
All the wood used to supply the boilers and heaters is acquired
in the form of chips, a residue of the process of fabricating
and handling wood products. The first studies of AMC for the
substitution of the thermoelectric system by renewable biomass
began in 2006 and with the project’s evolution, the company saw
the necessity of signing a long-term commitment. It established an
agreement with its principal suppliers of wood chips to guarantee
its supply for at least ten years.
Beyond this, there has been an investment in the continuous
improvement of the forest handling procedures of its suppliers,
with an increase in funds available for new equipment and
resources for technological improvement. In parallel, AMC
acquired a planting area for forestation and reforestation which
will have native species planted such as Pinus taeda, Pinus
caribaea, Eucalyptus grandis clonal and Eucalyptus urophylla.
Principal benefits:
The project is in the validation phase by the Designated
Operational Body accredited by the UN and approved
by the Designated National Authority represented by the
Interministerial Commission on Global Climate Change.
Natura evaluation*:
- reduction in the use of non-renewable fossil fuels
- use of the energy in the residues of wood
- technical innovation in energy efficiency through acquisition of
new equipment that requires less energy per productive unit
* Project evaluated based on the Natura analytic tool and based on the stated criteria
Result by theme
Points obtained
19
5
6
4
34
Maximum points
21
9
9
6
45
MINIMUM CRITERIA
CRITICAL CRITERIA
ADDITIONAL CRITERIA
3
Environmental
impacts
MINIMUM POINTS
NATURA EVALUATION
2
1
Verification
by third parties
Permanence
Monitoring
Environmentallegal aspects
Carbon Social Environmental Innovation Total
3
Additionality
2
Biodiversity
3
Escapes
1
Socio-legal
aspects
Generation of
local income
Double
counting
Innovative
practices
Thecnological
innovation
2
1
Conformity
with recognized
standards
Strengthening of
local institutions
31
Issuance of the Request for Proposals for the 2008 Carbon Neutral on June 5
In assuming the responsibility to account for and also
neutralize the emissions throughout our productive
chain, we multiplied the total cost of neutralization.
But we treated this cost as an investment in the
improvement of our processes that will create gains
in productivity and as well as an increment in the
value proposition of Natura. This combination of
onus and opportunity is being distributed throughout
all our sectors in a manner designed to engage all
our collaborators in the process. It is a continuous
process, and following the example of what happened
in 2007, we will issue annually requests for proposals
for the selection of neutralization projects.
The sharing of this innovative effort, for the meantime, will occur
only within our limits. In assuming our environmental liability as
well as the emissions of partners in the supply chain, we have
come to depend as much on their involvement in the process of
reducing the impact of products throughout their life cycle –
like the rest of what has occurred, but now from the universal
perspective of GHGs.
Thus, we have deepened Natura’s commitment to corporate
responsibility, seek to influence our logistic chain to influence
them to make the transformations that interest the entire
society and guarantee its future as well as that of coming
generations. We will be confirming our determination to
participate in the building of a better world, through concrete
steps toward reducing and compensating for our own emissions,
but also as vectors of improvement and reflection about a
new economic development model, which originates in the
statement that what is is not sufficient to respond to the
challenge of the planet.
The objective of neutralization is that we have proposed,
without waiting for it to be imposed in the form of legislation or
national objectives for the second period of the Kyoto Protocol
(post-2012), constitutes a simple extension of our deep
commitment to sustainability, in its largest sense. In other words,
a commitment to the construction of a new business model,
capable of creating greater value in the economic, social and
environmental dimensions.
<
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Credits:
Text Report Comunicação Art Direction AC Piantino Graphic Design LuaC Comunicação e Arte Photography Acervo Rolex, Arnaldo Pappalardo, Arquivo Instituto Ecológica,
Fernanda Tricoli, Marcos Suguio e Rafael Quintino Illustrations João Lestrange Infographics AC Piantino Support for the Identification of Content . Sustainability Directorate
. Department of Environmental Impacts . Native . Instituto Ecológica and Ecológica Assessoria . Instituto IPE . Ciclo Ambiental . Ecoinvest General Coordination Department of
Content and Corporate Communication.
<
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