ENGIE and Natura have agreed a partnership to compensate greenhouse gas emissions (GHG) reported by Natura which operates in the cosmetics sector. The acquisition of carbon credits will be conducted through the Lages Co-generation Unit (UCLA), ENGIE’s biomass-fired plant in the mountainous region of the state of Santa Catarina.

The agreement provides for the sale of sufficient carbon credits to compensate on a totally voluntary basis the emissions of 100 thousand tons of CO₂ with respect to Natura’s GHG inventory for 2019. For comparative purposes, the amount is equivalent to the annual emissions of approximately 45.4 thousand Brazilians based on World Bank[1] data considering  CO₂ emissions  per capita in Brazil of 2.2 tCO₂e/year.

Carbon credits or certified reductions of emissions, the so called “CERs – Certified Emission Reductions” are certificates issued for projects registered under the Clean Development Mechanism (CDM) within the scope of the Kyoto Protocol for the reduction of Greenhouse Gas (GHG) emissions. The Voluntary Cancellation Certificate is international and is issued by the Body of the United Nations responsible for climate change (UNFCCC).

Companies which are leaders in their respective fields of activity, ENGIE and Natura have had converging actions leading towards sustainability and transition to a low carbon economy even prior to these themes becoming higher profile. “These are two companies recognized by the market for their environmental, social and governance agendas (ESG). ENGIE is a benchmark in Brazil for the transition to a low carbon economy and in the generation of energy from renewable resources”, says ENGIE Brasil Energia’s Chief Executive and Investor Relations Officer, Eduardo Sattamini.

Currently, the Company generates about 90% of its energy in Brazil from renewable resources such as hydroelectric power plants as well as wind, solar and biomass operations. “Our commitment is to continue operating to reduce emissions and to help Brazil towards its sustainable development and to meet the challenge of climate change”, Sattamini concludes.

The shares of ENGIE Brasil Energia and Natura have been included in the Corporate Sustainability Stock Index (ISE) portfolio of Brasil, Bolsa, Balcão (B3) for the 16^th consecutive year. The companies have been components of the index since its inception together with a four other companies. The ISE reflects the average return of  a theoretical portfolio of shares pertaining to the listed companies enjoying the best environmental, social and governance practices.

 “Natura’s business model is designed to incentivize, support and develop solutions generating a positive impact along the entire production chain. Since 2007, with the setting up of the Natura Carbon Neutral Program, the company has been operating on the so-called offsetting basis – the purchase of carbon credits for compensating emissions which cannot be avoided, through the support of projects focused on the environmental area”, explains Denise Hills, global sustainability director for Natura.

The executive recalls that since 2014, the brand has been pioneering “forestry insetting” in Brazil – the compensation of carbon in its own productive chains. Remuneration arises as a consequence of the forest area that is conserved. Payments for environmental services rendered are made by the company to partner cooperatives and  agricultural families through monitoring and the annual substantiation of standing forest, verified by a third party.

Commitment to climate

The Lages Methane Reduction Project was selected under the Commitment with the Climate notice, an initiative of Natura and Itaú, with the support of the Ekos Brasil Institute and directed at organizations interested in maximizing their GHG emissions’ compensation strategies and supporting socio-environmental projects for fostering the mitigation of the effects of climate change.

Signatory of the National Movement of the United Nations Sustainable Development Goals,  ENGIE, through the Lages plant, invests in the recuperation of the headwater springs of rivers rising in the municipality as well as jobs’ workshops, community nurseries, donation of indigenous seedlings and botanical projects with students from the region. Through the sport incentive law, the company also supports the Leoas da Serra, a female five-a-side soccer team and intercontinental champions in 2019.

For the chief commercialization officer of ENGIE Brasil Energia, Gabriel Mann dos Santos, these sustainability differentials, and the contributions of the company’s project to the United Nations Sustainable Development Goals are critical for choosing  ENGIE as a supplier of emissions’ reductions certificates for major companies. Natura has signed a partnership agreement with ENGIE for the compensation, on a totally voluntary basis, of 100,000 tons of CO2 related to its greenhouse gas emissions (GHG) reported in 2019.

“ENGIE’s investments in socio-environmental initiatives and improving the quality of life of the population as well as the contributions of the Lages Project to the Sustainable Development Goals, are critical aspects  in partnerships with such high profile companies  as Natura”, Gabriel points out.

[1] World Bank data for Brazil (the most recent value of 2.2 tCO₂ per capita based on data for 2016). Information available in: https://data.worldbank.org/indicator/EN.ATM.CO2E.PC.