Mainstreaming natural capital in business in Brazil. Good practices from Natura

Transcription

1 Mainstreaming natural capital in business in Brazil Good practices from Natura Helena Boniatti Pavese Development Director Americas Division Conservation International São Paulo, 11 de Junho de 2012

2 Brazil, a global power in natural capital Natural power Country with the highest terrestrial biodiversity (20% of the species on Earth and 12% of the global forests ) 5 different biomes and significant conservation efforts...and economic power 6th largest economy in the world, growing above the global average through 2020.

3 Socioeconomic investments Growth Acceleration Programme of Investment Environmental impacts Economic growth v.s conservation?? Habitat loss and degradation, forest fragmentation, species loss Economic and social losses Global value of the world s BES: US$ 33 trillion per year! Cost of inaction: up to 4.5 trillion per year! Deforestation costs in Amazon: US$ 108,1 ha/year Is Brazil really developing? 6 th largest economy but 85 th in HDI rank

4 Business risks Main crops affected: Corn, rice, coffe, beans, cotton, sunflower, manioc Losses from US$ 3.6 billion in 2020 to US$ 7 billion in 2070 Soy crops will be most affected losses of 40% by 2070 Coffee losses of 33% in SP and MG states Corn, rice, beans, cotton and sunflower: sharp reduction in the Northeast Manioc: severe losses in the Northeast

5 Business opportunities Better reputation Consumers are getting more aware and more demanding 84% would avoid buying a product 73% of Brazilians plan to increase their spending (UEBT, 2011) 28% are willing to spend even 30% more 30% adopt sustainability parameters when selecting products

6 Reasons to do so: Including natural capital in business strategies Business dependence on natural capital The threat of climate change Consumers demands To stay competitive ensuring the longevity of their operations Cost reduction in the medium and long run Challenges: Lack of understanding about the value of natural capital to their business Lack of knowledge about the tools or strategies to be used Absence of regulatory requirements and financial incentives

7 A case of success Started in 1969 as small laboratory Business model: direct selling 1,5 million consultants Consolidated net revenue USD 2,638 million (2012) 8,9% growth in th biggest in the global market in direct selling International operations: Argentina, Chile, Colombia, Mexico, Peru and France 28% growth per year in IO Threefold strategy: investment in science and research, build capacity in its supply chain and enhance education and entrepreneurship. source:

8 Supporting local development AMAZONIA PROGRAM Launched in 2011 to expand and deepen presence in the region and to promote local development 121,8 million invested in a 1,7million m 2 closed-cycle industrial complex Ecopark Fronts: Science, technology and innovation Sustainable productive chains Institutional strengthening source:

9 Ekos line sustainable and respectful relationships Use of raw materials from the Brazilian flora source:

10 Ekos line sustainable and respectful relationships Aims to be economically viable, to promote social development and inclusion of all participating communities as well as environmental sustainability. Certification scheme for forest products Partnership with 23 rural communities a total of families. Benefits sharing: Over $ 8 million shared with local communities source:

11 Ekos line green technology Since 2005 has been greening its products using vegetable inputs 100% recyclable PET packaging Green plastic made from sugar cane ethanol Refills 20% cheaper, less packaging and can be used up to 5 times source:

12 Positive results : The communities are better able to deal with any new partnerships that might be established in the future. Created new outlets for communities products in the domestic market and developed business-oriented models of management that match local situations. Generated jobs, increased incomes and provided professional qualifications for the local communities. Improved the productive network and the local development. The sustainability concept is now part of Natura s corporate culture and is being spread via partnerships to its suppliers. Source: WBCSD, 2005

13 Thank you! Helena Boniatti Pavese Development Director Conservation International - Americas hpavese@conservation.org