Natura Integrated Profit&Loss Accounting
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Natura Cosmetics is seen as one of the sustainability leaders worldwide in the private sector. Its business model innovations allowed to deliver positive societal value at scale from its almost 2 millions women it supports from its direct sales model to the 8,000+ families in the Amazon region through its sourcing of unique ingredients for its cosmetic brands.
Using the latest innovations in impact valuation, inspired by the Capitals Coalition protocols, we deployed this Integrated Protif&Loss Accounting to cover all the value chain of Natura, from raw materials sourcing to products end of life, across human, social and natural capitals. It provided us with a unique view of the societal value that Natura provide, covering both negative and positive value.
Overall, for every R$ of sales of Natura, 1.5 R$ of societal value is generated. This SROI, or Societal Return On Investment, is one of the tools that was deployed to support decision internally at Natura. We observed that some parts of the business deliver a much higher societal return. This is the case of the carbon offset strategy or the sourcing of ingredients in the Amazon. This sourcing not only provide additional income to poor communities across the Amazon region, but also deliver benefit sharing of the profit made on the cosmetic products sold, and investments in capacity building, training, infrastructure and institutional strengthening. We identified that this type of innovative business model could be scaled to deliver higher impact in the future at Natura.
This technical report describes the scope and objective, the methods and the high level results for Natura. It covers also three case studies: the direct operations impact, the consultants impact (the persons selling Natura's products) and the Amazon ingredients sourcing. Overall, this IP&L is one of the most comprehensive and relevant case study of impact valuation that exist worldwide.