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00:00As everyone probably knows, Brazil has long been the center of the global
00:05sustainability conversation, from protecting biodiversity to driving
00:09innovation in climate solutions. But what is especially exciting right now is how
00:14Brazilian businesses are coming together to lead this next chapter of the green
00:18economy, especially with COP coming. So with that I would love to talk about the
00:24new coalition that the three of you have been working on together across
00:28industries to essentially do that, drive climate action from the corporate side.
00:34So to start us off, what brought you all together and how did you start this
00:38coalition and what was the goal?
00:40Maybe I can jump in.
00:42So the idea of the case, the House of Solutions, in fact was born in New York Climate Week of 2024.
00:51It was a couple of Brazilian industries trying to create a movement that shows
00:57the potentiality of the private sector of Brazil. Then we met again in Baku, where this dream,
01:07let's say, was getting with a better shape. And during the beginning of this year we started
01:16working hard working hard, very well aligned with Embaixador André Correa do Lago, that he was talking about the
01:23multirão, that's now well known outside Brazil. So the main idea is to have Brazilian companies,
01:34Brazilian-based companies focusing on solutions to show the world that we have practical solutions in climate transition plans,
01:45in biodiversity, in energy process. All of these solutions are aligned with the global stocktake of UFCCC,
01:55UNFCCC, and we are trying to show that all these solutions are scalable.
02:05Besides that, the agenda will go up to 2026, trying to bring other examples to spread worldwide.
02:13Amazing. Anything you'd like to add?
02:16I think that, thanks. I think that as Nestlé made all of sense to be part of the coalition, because since the COP is going to be held here in Brazil and being Brazil one of the main food producers, for us as Nestlé, as a big company in food production, it made it all sense to be part of the coalition in trying to show,
02:45show and share with everybody how we have been progressing in advancing food systems, regenerative food systems at scale, with the proven solutions, yeah?
02:57So it's a perfect match to be with such great companies that have been involved in sustainability journey in a very consistent way.
03:06And so that's it. Basically, it was a perfect match, not only for the COP and the theme on food sustainable systems, but also for the great company of these companies.
03:21Yes. Amazing. And I do, you know, that's something I think we hear quite a lot working in climate.
03:26It's really the power that can be how we can move that goal together. It helps a lot to try and figure out how to do that together.
03:33Is there anything else you'd like to add?
03:35No, I think it's just, you know, just a little bit more. It's also a pleasure to show and present something that a program that is already in action and it's scalable.
03:46So I think it really shows beyond commitments and goals, but something that's already working.
03:53So back to you, Angela, you obviously, Natura, as we all know, has been along one of the first pioneers in sustainability and you have really been driving the change.
04:02How has your evolving strategy to keep leading in that market become more crowded?
04:08Is it helpful that there are more people that are involved in the market now? What are your thoughts on it?
04:14I think definitely there's much more people involved in this sustainability agenda and this is good and we think it's good.
04:22And considering our vision, we have just reviewed our strategy from doing less harm with sustainability.
04:32And in fact, nowadays, we are saying that we want to be a regenerative business up to 2005.
04:40And for that, we use the integrated profit and loss.
04:44That is a tool that helps us to measure the four capitals, the financial capital, natural capital, human capital and social capital.
04:53So currently, we have for $1 of net revenue in Natura, we promote $2.5 positive impact for people, planet and the society.
05:08So with that, we are still working hard in the Amazon rainforest.
05:13So that's our main focus to invest in innovation, trying to evolve this agenda and continuously improving natural capital.
05:25Amazing.
05:26So Sarah, over to you.
05:28Obviously, you also work for a very iconic Brazilian brand with a massive global reach with Javianas that everybody loves.
05:36Rocking them right now, love it.
05:39How are you embedding sustainability into your product design and materials sourcing while you're also maintaining your brand identity at scale?
05:49Our sustainability strategy comes from and it's embedded in our business strategy.
05:56It comes from our materiality matrix.
06:00So it's really, it comes from our risk identification and also opportunities.
06:07We have three pillars, responsible operations, D&I and local development and one for circular economy.
06:14And this is one that not, not in focusing on this one because we see the whole value chain focusing on the aspects related to waste generation and raw material solution.
06:32It comes, you know, it has to be in line with what we believe and what we can develop as a company and what our brand that everybody knows means as well.
06:46So the challenge is that we expect to expand the rubber circular chain, not only in one point from gathering the used Havaianas, but also investing in the other side.
07:04So that it creates value to this raw material again, so processing, transforming and making it into another product and making it financial feasible.
07:19So Barbara, over to you, you did mention obviously at Nestle, you are very focused on agriculture and regenerative agriculture specifically.
07:30Can you talk about kind of what your main priorities are, how you were getting there?
07:34Maybe some examples of some of the work that you've been doing in that space and especially around the supply chain as well.
07:40Yes. So being a big food producer means that we depend on the field, on the soil.
07:49That's why we have, we do know that we need to transform the way we are producing our ingredients.
07:55So nowadays 70% of our emissions are coming directly from the way we produce our ingredients.
08:02Yeah. So, but the thing is that we are not ingredients producers, we buy those ingredients.
08:08So we need to work together with farmers for them to evolve the way they do farming.
08:16And that is quite a big, big challenge.
08:20So thinking on the big scale we have, today Brazil, Nestle Brazil as a market,
08:27Nestle Brazil as a market is the third market for Nestle group and sources more than one fourth of the ingredients for the group.
08:37So we really need to take advantage of the strength and the potential that Brazil has in order to evolve the way we produce the ingredients.
08:48So today we do that through our sustainability programs that have been established for more than 30 years.
08:56Specifically, I would say the oldest one is the dairy chain one that impacts more than 1,000 farmers.
09:06And when we think on the full agricultural pool that we have here, just here in Brazil,
09:13we are impacting more than 15,000 farmers with our programs.
09:18So it's structured sustainability programs that aim to educate farmers in a way that they are engaged and they want to migrate into these new nature-based solutions
09:36that at the end of the game, migrate all the practices into regeneration, regenerative agriculture.
09:49That is a tricky one.
09:51So what we have done, for example, in dairy, and this is very encouraging.
09:57So we have been, as I said, more than 30 years investing in this chain, this value chain.
10:04And it is very important for us because out of the 70% of the carbon emissions that we have out of the ingredients,
10:12milk represents 50%.
10:14So we really need to crack it in dairy.
10:17So we already have evidence that out of the implementations of the practices that we have put together with the farmers,
10:27we are seeing a very huge impact on productivity.
10:32And this means that people, or the farmers that have been implementing the solutions that we have recommended to them,
10:41they have seen a jump of 78% of productivity, which means that they are gaining more money as well.
10:51So their profitability is jumping as well in 15%.
10:55And the most important part is that we are being able to reduce the carbon emissions in around 19%.
11:03So that is a win-win for everybody.
11:05It's a win for the farmers, it's a win for us as a population, as a planet.
11:09And for us as well, we have a better productivity out of the dairy farms.
11:15So that is the beauty of the regenerative agriculture practices.
11:20And that's what I think, you know, we always try to say,
11:22if you can show the profitability side and this is actually better for your business,
11:26it always helps make the case a lot stronger.
11:29Yes, and we always hear from the producers, we said,
11:33we go with our teams in the field, aiming to support them with technical solutions and training and so on.
11:41And they said, you know, yeah, blah, blah, blah.
11:43But at the end of the day, there's no green if we are in red.
11:46And I think that is a very powerful phrase.
11:49Yes.
11:50Because we really need to put the farming on the center.
11:52Otherwise, this agenda doesn't go on.
11:55Absolutely.
11:56So back to the coalition and Angela, maybe if you want, but everyone is welcome to jump in.
12:00What are you really hoping to accomplish?
12:02And what are the goals now that this has been established?
12:05And maybe just share a bit more about the...
12:07I would say that the main goals of the companies is to have a set of cases that we can inspire others.
12:14And they are practical cases, as we've already said here.
12:20And they are scalable.
12:22So it's not just to prove that it's possible to do, but also to attract investments in order to scale up these cases.
12:30So, for example, I can give one example from Natura that we have the agroforest system for the endepalm oil.
12:37The endepalm was responsible for the devastation of most part of the forest worldwide.
12:42So, by showing this case, we are trying to attract investors to go from 650 hectares to 12,000 hectares of implementation in Brazil.
12:53But also we can inspire other companies from Asia to do this kind of process in which you can restore, regenerate the forest.
13:04So, this is a very practical one that we can attract investors, influence others, and bring new solutions to the table.
13:15And besides that, as we know that we have a mandate in 2026 with the COP leadership.
13:24This group will continue to work in 2026, trying to pull together other cases from different sectors.
13:34So, this is good.
13:35We have transportation with Marco Polo, food services.
13:39We have the beauty and the...
13:43Sorry, forgot the...
13:45Apparel.
13:46Apparel.
13:47That's true, apparel.
13:48And so, we have very different sectors that can complement itself.
13:54We have a value with the mining system that is also important for the energy transition that everybody needs.
14:03So, this is the idea is to really to recognize that if the private sector works together, we are going to have more power.
14:13Anything you'd like to add?
14:15Maybe just to add on the program that we've developed, Havaianas Recyclo, under our circular economy.
14:23I think one of the things that we've learned since 2020, when we started doing the program,
14:30and the challenge is still to ensure that the health of the Havaianas rubber recycling chain, which did not exist before,
14:41and not only investing in the gathering, the infrastructure to collect, used.
14:49So, it goes a lot with consumer education as well on, you know, what to do with that.
14:55But ensuring that in the other side, there's additional...
15:00Because we collect a lot as well, not only on our monobrand stores, but also through the logistics cooperatives.
15:07And the way speakers we've seen since 2020, an additional revenue, because these materials did not have financial value.
15:15And it increased their revenue as well through the cooperatives.
15:20And also, when we worked to make that feasible with our partners, processing and transforming,
15:28you can now have from used Havaianas, you have furniture, you have accessories.
15:36So, this has been proven that it works, and we want now to scale.
15:43Beyond, of course, so many other opportunities in our own operations in terms of decarbonization.
15:50But on the circular economy, I think it's one of the key ones that we manage to include the consumer and our partners on the other part of.
16:02So, obviously, COP is right around the corner, which is why all of us are gathered here.
16:08I would love to hear from each of you, if possible, just a little bit about what would you want to make sure that the government leaders
16:13and everybody that is gathering in Belém at the end of this week know about what the corporate sector really would like to see
16:22and really needs to move forward with these amazing initiatives that you're all working on.
16:27Do you want to go first?
16:29I think that we would all agree that we want to, I think that we are together to collaborate and to show the potential that Brazil has
16:44in being a green powerhouse and have the power to show that we have concrete, proven solutions that can be scalable and can inspire.
16:57Yeah.
16:58Funding options and funding sources in order to accelerate the transition we have.
17:04I think that in our case, that would be perfect to understand, first of all, to put Brazil where it should be.
17:15And secondly, to take advantage of the coalition that we have formed in order to guarantee that we have more visibility
17:22and we reach more people and more entities to guarantee that we get access, not we, but the farmers get access to the funds that we really need to accelerate the transformation we all need.
17:39From our side, I think having co-opted at Belém, it's a huge opportunity for us to integrate the agendas of biodiversity, nature, climate change, and inequalities in this country.
17:54So I think we have this potentiality of showing that it's possible to have all the subjects integrated and one solution can multiply the effects in others.
18:09And also, for example, when you add a lot of efforts in biodiversity on Amazon Rainforest, we've already seen at Matura that you can have and promote a better life for the smallholders that are in the communities.
18:25So, for us, this is super important.
18:28Yeah, I think, and just to reinforce that, I think, you know, the fact that we are having COP30 and for the first time in Brazil,
18:36it's a huge opportunity not only to show how ambitious targets and commitments we have, but what we are already doing on the ground.
18:50So, I hope this inspires to take actionable initiatives on that one.
18:57And from Alpargatas, we hope to inspire the world to walk a lighter path.
19:03And to me, this means a lot when we talk about, as well, our development as a sustainable development.
19:12And this COP, I have huge expectations, so I hope this will inspire our leaders.
19:21Amazing.
19:22Well, Sarah, Angela, Barbara, thank you so much for joining us.
19:25We are so nice to have you here.
19:27Thank you for inviting us.
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