In 2014, Natura undertook a study to calculate the monetary value of the business’s impacts on the environment – it is the Environmental Profit and Loss, or EP&L. The study was based on GHG emissions, water pollution, water use, waste, air pollution and land use. With support from the consultancy PwC, Natura is the first company in Latin America to conduct an in-depth EP&L assessment of its businesses.
The results show GHG emissions represent one of the greatest impacts among all the factors measured and are significant along the length of the value chain. Natura is a Carbon Neutral company, and we have implemented measures to reduce GHG emissions. Calculating the cumulative results of these practices between 2006 and 2013, the greenhouse gas impact avoided was equivalent to over R$ 97 million. In addition to reinforcing our Carbon Neutral strategy, the EP&L corroborates our decision to use Pan Amazon biodiversity assets sourced sustainably from forestry stewardship and agroforestry systems.
The results of Natura’s EP&L assessment also show that water consumption generates a significant impact on society, particularly in the use stage, due to the fact that a major part of our portfolio comprises hygiene and bathing products. The principal culprits here are the energy used to heat water for showering (60%) – it comes mainly from hydroelectric plants, which increase water evaporation – and the water consumed in rinsing the products (40%).
Since the EP&L is an emerging methodology, a number of metrics still need to be improved or adapted for different realities.
Download the report (pdf): The Capital That Really Matters
