On the 31st, Natura presented its Integrated Profit and Loss for the first time. IP&L is a tool to measure and report socio-environmental impacts in economic values, allowing a comparison with financial results.
Among the most relevant data in the report that integrates gains and losses, it was revealed that the company caused an impact of R$ 18.2 billion from its business. In another metric, for every BRL 1 in revenue, it managed to generate BRL 1.50 in positive socio-environmental impact.
All businesses generate impacts that can be negative or positive. The big problem is that the current accounting model is focused only on the financial aspects of the business, not effectively reporting either one or the other. Companies that usually report their socio-environmental impacts do so through different units, which prevents comparisons between them. This type of impact measurement does not reflect the full reality of the extent of impacts on companies' financial activities.
According to João Paulo Ferreira, President of Natura and CEO of the Natura&Co Group for LA, “The challenge of building a regenerative economy impelled us to develop a pioneering model, which allows a new interpretation of the meaning of success in business, recognizing that only the financial standards are not sufficient to demonstrate the value generated by the company for society”. Natura's vision reinforces the company's culture of innovation and, to a certain extent, puts it once again at the forefront.
In addition to providing transparency to the data and being a powerful strategic management tool, through IP&L it will be possible to 'translate' all the “outcomes” – negative and positive, into a single indicator, which allows an economic value to be attributed to these results. , making the socio-environmental impact tangible for investors and stakeholders.
To access the document that details the methodology of the Integrated P&L of Natura Latam, access: https://lnkd.in/d-V6HXjc
