Assessment and development of portfolio with less impact on water

In addition to the water consumption and reuse metrics on our sites, we began to assess how our portfolio can also contribute to the water strategy. With the end of the 2020 Sustainability Vision cycle, Natura, together with the other companies of the Natura&CO group, launched the Commitment to Life 2030, which establishes two specific goals to ensure the reduction of the environmental impact of our product formulas on water resources. The first goal is to have 95% from biodegradable rinse-off formulas and the second commitment is to achieve 95% from natural ingredients.

After conducting an extensive study of our portfolio, we ended 2020 with 93% of our naturally sourced formulas and 93% of our biodegradable rinses, mitigating our impact on water resources. Despite the high percentages, the replacement of precisely the lowest concentration ingredients whose functionality can be very specific to the product's performance, is presented as the greatest challenge to be met by the innovation team in the coming years.

In this regard, in 2021 we began the process of integrating information on the naturalness and biodegradability of ingredients into our environmental calculator. This tool, which has been used for over 10 years by the Sustainability and R&D team, helps us to develop products with a reduced environmental impact, as it facilitates decision-making by the project teams through various formula and packaging indicators.

After a very challenging development, in 2021 we launched a line of solid products, Natura Biome, which drastically reduces water consumption in the product, not only because it is a solid product, but also because of its profitability when compared to liquid products. In addition to formula innovations, Biome also features minimalist, plastic-free, 100% recycled and 100% renewable packaging.

In addition to the changes we intend to make in our portfolio considering the goals of Commitment to Life 2030, considering the operations and manufacturing processes, we created a LATAM Integrated Utilities and Environment Committee to address and prioritize projects with a reduction in water and energy consumption. Some examples: rainwater harvesting, reuse of waste water from Reverse Osmosis, reuse of reused water and improvement in industrial processes.

We also use Environmental Profit and Loss as a methodology for valuing environmental impacts. This methodology includes in its assessment the impact on water consumption and pollution of our entire value chain. Through EP&L, we were able to measure and understand the impact of projects such as reverse logistics, emissions neutralization and operations in Amazonian supply chains, contributing to each of the topics proposed by the methodology.

In addition to the commitments related to the formulation of biodegradable % and natural %, measured through our environmental calculator, we also measure 1) water consumption, separated by catchment source, 2) water disposal and 3) effluent treatment. We also monitor the water consumption of the main manufacturers and third parties.

With regard to energy, indirectly related to the commitment, we measure energy consumption by purpose and by space, considering our own and third-party websites throughout Latin America. We also monitor the evolution of our energy matrix and our energy intensity, relativizing our consumption by the quantities produced.

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