For the ninth edition of the Natura Annual Report, which refers to the period between January 1 and December 31, 2008, we adopted once again the G3 version of the Global Reporting Initiative (GRI) guidelines at the A+ application level, the highest level for reporting economic, social, and environmental performances.



We gathered information on all of our operations, including Argentina, Chile, Colombia, Mexico, Peru, Venezuela, and France, with most attention to the activities carried out in Brazil, where our production is centralized and thus where our social and environmental impacts are stronger. The economic results include all operations. We also offer information on our relationships in Brazil with our main stakeholders: those who we define as brand builders – employees, consultants, consumers, suppliers, and supplier communities – and the other three stakeholder groups that we consider directly interested in this publication – surrounding communities, government, and shareholders.

For the second consecutive year, the socioenvironmental information was verified by means of the independent auditors Det Norske Veritas (DNV), which also verified the greenhouse gas inventory data. The economic and financial information, on the other hand, was audited by Deloitte Touche Tohmatsu Auditores Independentes. We publish the opinions of both external auditors.

The collection of information for the Annual report involves many areas of Natura and the process is constantly evolving. We have tried to ensure that the system for the consolidation of indicators, as well as the qualitative interviews, reaches an increasing number of operations and fields at Natura. This year, some back data were changed as a result of this ongoing evolution. Most indicators reflect the impacts of the operations in Brazil, where our production is concentrated. There is, therefore, room for us to improve the systematization of data on our foreign operations, still in the implementation stage.

In order to allow for a broader access to the Natura Annual Report 2008, we have used different formats and communication channels:

  • Book for opinion makers – the main printed publication, with the most relevant information on our performance in Portuguese, English, and Spanish.
  • Internet – presents the complete content in Portuguese and English, available at www.natura.net/relatorio.
  • Newspaper for employees – with the topics of interest to our internal public in Portuguese and Spanish.
  • Magazine for consultants – it gathers specific information for our sales force, in Portuguese only.
The content of each means of communication is determined by a materiality assesment, which seeks to identify the relevant topics for our report by crossing two axles: Natura’s strategy and the interests of the main stakeholders. Three sources of information have contributed to this analysis: the contacts received by Natura’s Ombudsman´s Office in 2008, the corporate process for the engagement of stakeholders, and the consultation with specialists, which was held in Brazil in December.

See the result of this materiality assesment in the following matrix:



On December 5, at the Natura House in Campinas, state of São Paulo, we gathered some 50 people, including employees, consultants, suppliers, consumers, and investors of Natura. The participants were invited to identify opportunities in their relationship with Natura and the commitments that, in their opinion, should be made by the Natura Community (the company and its stakeholders). These demands were disseminated to managers and taken into consideration in the strategic planning process in 2009.

To make improvements in our sustainability reporting, we also organized a consultation with specialists to obtain a more critical opinion and suggestions on how to improve the content of the Annual Report 2007. These specialists were: Enrique Svirsky, founding partner of the Instituto Socioambiental (Socioenvironmental Institute); Nelmara Arbex, training director of GRI; Regina Queiroz, researcher of the Instituto Observatório Social (Social Observatory Institute); Ricardo Voltolini, journalist and director of the consulting company Idéia Sustentável; Roberta Kuruzu, executive director of the Brazilian Association of Direct Selling Companies; and Roberto Gonzáles, from the Association of Capital Market Investment Analysts and Professionals.

We also took into consideration the recommendations of the study “Road to Credibility”, conducted by the British consulting firm SustainAbility and the Brazilian Foundation for Sustainable Development (FBDS), in which we appeared as a leading company in sustainability reporting in Brazil.

Stakeholder Specialists
Request There is little information on third parties, particularly, on the commitment of suppliers to sustainability issues. Show the value chain.
Natura´s Answer We have included a map of our value chain on chapter Profile.

Stakeholder Specialists
Request Present more specific and quantitative targets and explain how they were determined.
Natura´s Answer The targets will be determined after the completion of the strategic planning and published in the online version in May 2009.

Stakeholder Specialists
Request Discuss the direct sales model.
Natura´s Answer Please read chapter Social Value Creation.

Stakeholder Specialists
Request Report on the process used to identify relevant topics.
Natura´s Answer Priority topics are presented on page 10 and the process is explained in this chapter.

Stakeholder Stakeholder Panel
Request Present plans to improve Natura’s communication with consultants.
Natura´s Answer See chapter Consultants.

Stakeholder Stakeholder Panel
Request Describe more completely the post-consumption recycling process.
Natura´s Answer The post-consumption recycling process is still a pilot program, and it is presented in the online version. Access: www.natura.net/relatorio

For further information on this report, please contact directly the team responsible for its preparation via e-mail: relatorioanual@natura.net

Commitments with External Initiatives

Throughout the Annual Report we have listed many entities of which we are a member and we also support several global and national initiatives that reflect our corporate behavior and are in line with our actions and beliefs.

In addition to the commitments highlighted in the annual report 2007, such as the Sustainable Amazon Forum (FAS), Global Compact, Union for Ethical BioTrade, Ethos Institute, Empresa Amiga da Criança (Child-Friendly Company), this year, we highlight our support for the Our São Paulo Movement, a civil society initiative in São Paulo motivated to manage the problems of urban life; and the Sustainable Connections project, promoted by FAS and the Our São Paulo Movement, whose objective is to debate and publicize the responsibilities of companies in São Paulo on issues related to the Amazon. In addition to adhering to the Business and Biodiversity Initiative, an initiative led by the German Ministry of the Environment and supported by GTZ for the purpose of engaging the private sector behind the objectives of the Convention on Biological Diversity.

We present in the table below the main suggestions from the more than 100 suggestions for improvement we received on our sustainability reporting and the answers we have given in this edition:

Global Compact Principles

Since July 2000, Natura has been a subscriber of the Global Compact, a UN initiative that brings together companies, workers and civil society to promote sustainable growth and civic awareness. We are also part of the Global Compact Brazilian Committee (CBPG), created from the partnership between the Ethos Institute and the UN Development Programme established in 2003. The CBPG is made up of companies, UN agencies in Brazil, legal entities, academia, and civil society organizations that develop work related to topics such as human and labor rights, the environment and combating corruption.

For further information on this initiative, please visit www.pactoglobal.org.br