Ecobusiness: socially inclusive innovation, environmentally sustainable, and economically durable

The New Geography of Sustainable Innovation

In today’s landscape of sustainable innovation, biodiversity has ceased to be merely a symbol of environmental conservation—it has become the new epicenter of market strategy. No longer viewed solely as an “environmental asset,” biodiversity is emerging as the driving force behind a global movement known as ecobusiness.

In 2024, the natural and organic cosmetics market was valued at approximately USD 10.37 billion and is projected to reach USD 12.89 billion by 2033, with a compound annual growth rate (CAGR) of 7.5%.

Brazil ranks among the 18 most megadiverse countries in the world, hosting approximately 15% to 20% of global biological diversity. However, biodiversity extends far beyond numerical metrics—it embodies centuries of traditional knowledge embedded in ingredients such as murumuru, cupuaçu, andiroba, and priprioca, long used by traditional communities for their medicinal and nutritional properties. This dual dimension—as both an ecological treasure and a cultural legacy—places the country in a unique position within global debates on conservation, commercialization, and fair benefit-sharing.

In this context, traditional knowledge becomes a strategic asset. Valuing these ancestral practices can reduce Research and Development (R&D) costs, while simultaneously guiding innovation pathways that are more culturally sensitive and ecologically intelligent.

Yet, something even more profound is at stake. In a global scenario marked by climate crises and corporate mistrust, companies that successfully incorporate nature-based solutions and resonate with the collective imagination of sustainability achieve something rare: differentiation, innovation, and reputation—especially when these initiatives are aligned with sustainable branding strategies, such as certifications and green labels.

Ecobusiness is driven by the growing consumer demand for natural, ethical, and sustainable products, known as the “green market,” which reflects a consumption profile guided by environmental and social values. Products derived from Brazilian biodiversity and associated traditional knowledge—such as natural cosmetics, functional foods, and herbal medicines—have gained a privileged position in demanding market niches precisely because they combine technological innovation, environmental responsibility, and respect for sociocultural diversity.

However, harnessing this potential without engaging in greenwashing practices requires a new business model—one grounded in genuine collaboration with local communities.

Demands for appropriate access to culture, image, and traditional knowledge, as well as for fair benefit-sharing with traditional communities for the value they generate, are increasingly stringent.

This transformation calls for new forms of relationships between companies and local communities. Rather than standardized contracts and extractivist approaches, it requires active listening, co-creation of solutions with traditional communities, and investment in lawful and legitimate pathways for accessing biodiversity resources.

Legal compliance with the Brazilian Biodiversity Law (Federal Law No. 13,123/2015) and with international instruments such as the Convention on Biological Diversity (CBD) and the Nagoya Protocol on Access and Benefit-Sharing is no longer merely a regulatory obligation. It has become a fundamental competitive advantage for companies operating—or seeking to operate—in this sector.

As each signatory country may define its own guidelines, understanding these regulations is essential to mitigate legal risks and ensure compliance.

For companies operating in Brazil, the strategic use of traditional knowledge and biological resources represents a concrete opportunity to align with new regulatory requirements and global sustainability goals.

Within this context, FAS Advogados, in cooperation with CMS, supports entities in structuring strategies that go beyond mere regulatory compliance, actively aligning with ESG commitments and international sustainability standards.

Legal advisory services include the development of ethical and resilient supply chains, integrating community protocols into internal research, development, marketing, and compliance workflows.

The successful implementation of these strategies requires early-stage planning, multidisciplinary coordination, and a long-term perspective. In this scenario, we take pride in transforming legal instruments and governance practices into tangible and scalable solutions for environmental conservation and sustainable development.

One of our most valuable lessons has been understanding that turning biodiversity into a competitive advantage requires translating ESG commitments into concrete routines. This includes adapting contracts to reflect the logic and principles of community protocols, as well as designing internal processes that ensure fair and equitable benefit-sharing.