Brazilian company Natura, known for its ownership of popular brands like The Body Shop, Aesop, and Avon, has recently joined the growing movement of companies linking their financing to ethical and eco-friendly goals. This trend reflects the increasing recognition among businesses of the importance of prioritizing environmental, social, and governance (ESG) initiatives. Such initiatives are not only demanded by customers and employees, but also supported by regulatory authorities in the countries businesses operate in.

In a recent international fundraising round, Natura successfully raised $1 billion (£718 million) through bonds linked to sustainability goals. The funds obtained will be utilized to refinance the company’s debt and enhance its capital structure. The environmental objectives outlined in this deal include a 13% reduction in greenhouse gas emissions, in addition to the ongoing reductions already made. Furthermore, the company aims to utilize 25% of post-consumer recycled plastic in its plastic product packaging. Natura has already showcased its commitment to sustainability through its packaging circularity program, a key component of its Sustainability Vision 2030.

Natura’s decision to align its financing with sustainability targets is in alignment with its longstanding dedication to ethics and the environment. The company, along with the brands it has acquired, has consistently maintained a strong ethical and environmental profile. The successful issuance of $1 billion in sustainability-linked bonds is a notable achievement for Natura & Co, establishing it as the largest-ever single issuance by a Brazilian issuer. Roberto Marques, Executive Chairman and CEO, emphasized that the strong demand for these securities in the market reflects the recognition of the group’s ability to deliver both financial and social and environmental results.

By connecting their financial goals with environmental targets, Natura is not only reinforcing its existing sustainability efforts but also setting a benchmark for other companies to follow suit. This approach showcases the company’s commitment to aligning sustainability with its financial strategy. As the focus on ESG gains momentum, it is expected that more businesses will adopt similar measures to ensure they are contributing to a more sustainable future.

Useful links:
1. Natura’s Official Website
2. The Body Shop Official Website