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  • Amazon, Climate, Energy and Sustainable Finance

Companies and sustainable development in the Amazon

  • Posted in 29/08/2019

Companies are increasingly treating issues related to sustainability as an intrinsic part of their business, seeing the importance of environmental and social issues for sustainable development. According to United Nations (UN) 2030 Agenda, economic and social development depends on the sustainable management of our planet's natural resources, such as the conservation and use of natural resources.

Combining economic, social and environmental development, the triple bottom line of sustainability, so that there is sustainable development is the way forward, as we can see:

Natura and the Living Amazon 

O Amazônia Viva Program launched in 2011, it has already generated R$ 1.5 billion in business in the Amazon region and benefited 4,636 families in the Pan-Amazon (territory that includes Brazil, Colombia, Peru, Venezuela, Ecuador, Bolivia, Guianas and Suriname).

Natura believes that a beauty brand has everything to make the world more beautiful and with a bigger forest, not a smaller one. Since 2000, the company has been committed to developing sustainable and inclusive economic alternatives for the Amazon.

By 2020, the company intends to reach 10 thousand families benefiting from the Amazon Program. And it has a target of generating R$ 1 billion in business volume in the Pan-Amazon – also including for 2020 – which was already exceeded in 2018, when the accumulated value was more than R$ 1.5 billion. Another objective for next year is to reach 30% of the total inputs consumed by the company from the Pan-Amazon region. In 2018, the indicator was 17.8%. 

The program operates on three fronts: Science, technology and innovation, in which it coordinates research and knowledge networks, focusing on biodiversity, sustainable management and agriculture and ecodesign; Sociobiodiversity production chains, which explores the improvement and expansion of sustainable production chains in the Amazon, with investments in training, production efficiency and technology development; Institutional strengthening, which works with local institutions and establishes partnerships that generate benefits for everyone involved, being essential for the development of a standing forest economy.

Coca-Cola combines economic and sustainable development

The Recofarma concentrate factory, which has been in Manaus for almost three decades, is the largest exporter in the region (45% ZFM and 85% from the Concentrate Hub). The business generates 11 thousand direct and indirect jobs. Half of the guaraná used by the company comes from family farming in 12 municipalities in Amazonas, in addition to being the only beverage company with guaraná in Amazonas 100% certified.

The company is also looking for ways to bring drinking water to more people in the region. Since December 2017, the Médio Juruá (AM) region has benefited from the Water + Access Program, which seeks innovative solutions for water access and treatment for consumption, a priority for the region.

Keeping the forest standing is a primary objective of the company's operations. 40 thousand people in the Amazon benefit from Bolsa Floresta Program of the Sustainable Amazonas Foundation (FAS), supported by Coca-Cola Brasil since 2009. According to Coca-Cola, the same program reduced deforestation in mapped areas by 75%. By keeping the Forest standing, river basins preserve the volume of water

The company encourages small producers, with the Eyes of the Forest program, created in partnership with NGO Imaflora, in 2016, which offers technical support to family farming for the adoption of Agroforestry Systems (SAFs) – an alternative production model that combines agricultural crops and forest species in the same space, recovering the biome from degraded areas.

In partnership with public authorities, rural extension and diversification of activities with small producers are also carried out. In recent years, the company has strengthened cooperatives in the açaí chain in the interior of Amazonas, contributing to improving logistics, work safety and encouraging good sustainable management practices. By 2020, 350 Amazonian families who produce guaraná purchased by Coca-Cola Brasil will benefit.

Alcoa and sustainable enterprise

Alcoa, which maintains a project in Juruti, in the west of Pará, shows that a project with economic and sustainable development is possible in the Amazon region. Fábio Abdala, Alcoa's regional Sustainability manager for Mining, emphasizes the need for a connection between economic activity and social development. “Companies play a fundamental role in this equation as they are the main agents for generating prosperity, which must be done with respect for human rights, natural capital, laws and traditions.”

Upon arriving in the region, the company established partnerships with the government and society and developed a development model proposal based on the Sustainable Juruti Tripod, which included the creation of the Sustainable Juruti Council (Conjus), the formation of the Sustainable Juruti Fund (Funjus). Alcoa made investments in public health, sanitation, education, social assistance, security and justice infrastructures, which contribute to the local quality of life. In total, more than R$ 9.5 million was invested in initiatives within the Alcoa Institute It is Alcoa Foundation in Juruti and region. 

The company's mandatory compensations also draw attention. From 2006 to 2018, transfers of R$ 266.7 million related to taxes and CFEM were made to Juruti City Hall; and more than R$ 50 million in Mining Result Sharing paid to the Association of Communities of the Juruti Velho Region. Furthermore, local labor and suppliers are prioritized by the company. Around 80% of Alcoa's direct and indirect staff are from Pará, of which more than 840 are from Juruti. A Alcoa was awarded by the Federation of Industries of Pará (Fiepa), with the 6th Development Networks Award, for valuing local suppliers: the company made more than R$ 152 million in purchases in Juruti in 2017.

“Our experience has demonstrated that it is possible to have a responsible mining activity, a catalyst for sustainable development and generating shared value between companies and communities, through the creation of jobs, income and leveraging of local businesses”, assesses Fábio Abdala.  

Ambev is one of the coordinators of the Business Call for the Partners for the Amazon Platform (PPA)

A PPA Business Call 2019 received 201 registrations, carried out by the Partners for the Amazon Platform (PPA) with technical support from Pipe Social, and with Ambev as one of the coordinators, the call is aimed at entrepreneurs, startups, organizations, community-based businesses, networks of people/collectives, institutions and early-stage companies focused on conserving the forest and natural resources, valuing biodiversity and sustainable development in the Amazon. 

The initiative received applications from all regions of Brazil, with more applications from the north of the country – 30% are from Amazonas and 26% from Pará, and there are also proposals from Mato Grosso, Rondônia, Tocantins, Amapá and Acre. The registered businesses operate in the areas of sustainable agriculture and livestock (24%), sustainable forestry management and production (23%), environmental products and services (20%), education for environmental conservation (9%), climate change mitigation/adaptation (4% ), waste/garbage treatment with benefits for rural populations and communities (14%) and monitoring/combating illegal activities (1%). 

Most of the initiatives are in the organization phase to gain scale, but there are ventures in all phases of a business: ideation, validation, prototyping, pilot, traction, pre-scale and scale. Businesses relate to 17 Sustainable Development Goals (SDGs), with a greater focus on SDGs 12 (Sustainable Production and Consumption), 08 (Decent Work and Economic Growth), 11 (Sustainable Cities and Communities), 13 (Action Against Global Climate Change) and 02 (Zero Hunger and Sustainable Agriculture) .

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