The latest report by Brazil’s Natura comes in a strange two-part structure, and the company must start moving towards its ambitious goals if it wishes to remain a sustainability leader
Natura, though little known in the US and unevenly available in Europe, is a significant force in Brazil and in the global personal care and cosmetics industry, as well as a leader in sustainability reporting and actions.
Impressively, Natura follows International Integrated Reporting Council (IIRC) guidelines, which means its financial, social and environmental results are blended into a single report. Integrated reports are supposed to give a holistic picture of a company’s performance, prospects, strategy and governance, and Nature has evolved this style of integrated reporting since it became the first company in Brazil to produce an integrated report in 2002. Natura has used IIRC’s guidelines since their debut in 2013. The company also has used the GRI reporting framework since 2000.
How well does this work? On the one hand, reading Natura’s 22-page summary – what it calls the “annual report” – of its economic, social, and environmental results is an easier and more coherent experience than reading the giant sustainability reports that are becoming normal for large multinationals.
On the other hand, the brevity of the main report means there is a 100-page “Indicators” addendum needed for the G4 Global Reporting Initiative indicators that are essentially the data “meat” of...