Creating a regenerative economy in the amazon forest

Trevor Cole

Natura Brasil Creating a regenerative economy in the amazon forest

What do they do

Natura is South America’s largest cosmetic company. The brand became global when it purchased Aesop in 2012, the Body Shop in 2017, and most recently Avon products, making it the fourth largest beauty company in the world.

Natura produces a huge range of products including soaps, creams, and shampoos, all of which rely on the rich biodiversity of the Amazon for ingredients and materials, as well as the ‘bio-intelligence’ of the local communities. The company’s supply chain includes almost 40 types of ‘biodiversity assets’ (plant-derived ingredients) and they work with about 7000 local families.

Natura has helped conserve 2 million hectares of rainforest

A key element of Natura’s business model is the concept of the ‘standing forest’ economy. In simple terms, this means that a tree has much more economic value standing up than being cut down. This philosophy has preserved over 2 million hectares of the Amazon rainforest, and there is an ambition to increasing this area to 3 million hectares by 2030.

How does the standing forest economy work

One ucuuba tree (virola sebifera), can be cut down to supply timber for broomsticks earning a farmer USD 5.

However, the same tree can be harvested for its red seeds which are rich in fatty acids and provide natural hydrating ingredients.

By harvesting seeds rather than timber, farmers can earn about USD 15 per tree, and the following year, it will still be standing providing another USD 15 harvest.

Ucuuba berry tree
Ucuuba berry tree

Putting the concept into practice

Natura uses the Ucuuba seeds for Ekos, one of their skin moisturising product lines.

This arrangement sees tree species saved, ensures food and shelter for local animals, and the local community is incentivised to preserve their trees as a stable source of revenue.

Incorporating natural, innovative ingredients into the development of a new product line can take up to a decade of research. The process combines the intelligence of indigenous Amazonian communities (‘bio-intelligence’) with cutting-edge gene and protein science.

Despite the time and money, Natura continues to invest, recognising that the potential for the Amazon's bioeconomic wealth is invaluable.

An inclusive business model

In 2011, Natura developed an inclusive business model with multiple interconnected aims:

  • Leverage traditional community knowledge
  • Give a value on renewable rainforest ingredients
  • Help conserve the world’s biggest tropical rainforest.

Since 2011, Natura has invested over R$2.1 billion (USD 400 million) in these types of businesses in the region, and in 2014, it became the largest company to receive B-Corp certification.

But as Natura’s Chief Executive João Paulo Ferreira sees it:

“It’s not just about not just about principles or ideals. We’re talking about economic value”.

“Helping to protect the Amazon is not just about principles or ideals. We’re talking about economic value.”

- João Paulo Ferreira, Natura’s chief executive

Focusing on biodiversity is good for the bottom line

In an ever more crowded marketplace, brands that can offer products that match the values of their customers can gain a competitive advantage. In this context, Natura views the biodiversity of Brazil as a source of technological innovation to meet the demand for new nature positive products.

Natura provides customer satisfaction by offering a product that empowers them to support wildlife and habitat conservation.

Ucuuba

Enhancing social and natural capital

Making use of Amazonian bio-assets implies building relationships with communities that live in the forest and make their living from it. In order to formalise business partnerships, Natura often invests in communities' development.

This involves:

  • Providing support for bureaucratic issues
  • Supporting cooperatives and education
  • Capacity building
  • The development of best practices for growing, extracting, and processing raw materials.

Community development allows populations to become better suppliers to Natura and other business partners. It also means the possibility of making better profits and staying in their birthplace region, avoiding rural exodus and keeping their connection with the forest.

Company info

  • Founded in 1969
  • HQ in Sao Paulo State, Brazil
  • 6,800 employees + over 1.8 million consultants worldwide
  • 2020 turnover: USD 345 million
  • 2.4% of net revenue spent on innovation
  • Purchased the Body Shop for more than USD 1 billion in June 2017

Website: https://www.natura.com/choose-your-country/

A circular economy in Brazil: an initial exploration

Updated by NJ/ML Mar 2021

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