# STATE OF SOCIAL PROCUREMENTCountry Profile: Brazil

Progress through corporate interest, public procurement, and the rise of Benefit Corporations


**12%** of Brazil's GDP is driven by public procurement contracts, tendency growing.

**18M BRL** in investments into "impact businesses" during the year 2023.

**8 out of 10** Brazilian companies state that social procurement is key to their strategy.


## Overview

Brazil’s social procurement landscape is expanding as corporations embrace inclusive sourcing and public procurement evolves to include impact-driven businesses. Upcoming legislation, like the Benefit Corporations bill, aims to formalize impact investment and enhance corporate sustainability practices. In Brazil, the term "Impact Procurement" is more common than "Social Procurement".


## Environment and context

Brazil’s socio-economic landscape is shaped by vast biodiversity, cultural diversity, and significant income inequality. Public procurement accounts for 12% of the GDP, offering a significant lever for impact. The government has introduced the National Strategy for Public Procurement and Sustainable Development, aligning federal procurement practices with Brazil’s Enimpacto strategy for impact businesses. An ordinance issued by the Special Secretariat for Debureaucratization, Management, and Digital Government of the Ministry of Economy establishes governance guidelines for public procurement within federal public administration. Pending approval, the Benefit Corporations bill will establish a National System for Impact Investments and Businesses (Simpacto) to attract investment and create a legal framework for socially responsible businesses. At the same time, companies are increasingly interested in inclusive sourcing and have begun considering specific programs. Eight out of ten companies understand that impact procurement is relevant to business strategies. This naturally leads to a growing interest in raising literacy and commitment to this agenda.


## Current State of Social Procurement

Social procurement in Brazil is primarily driven by multinationals and sustainability champions within companies. In 2023, impact businesses secured R$18 billion in investments, focusing on regenerative practices and community inclusion. Corporations are beginning to align procurement practices with broader ESG goals, as demonstrated by the Brazilian Securities and Exchange Commission’s new sustainability disclosure requirements, mandating alignment with IFRS S1 and S2 standards.


### Outlook

In the coming years, Brazilian companies should expect the topic of Impact Procurement to become increasingly relevant, considering new regulatory frameworks. Top-down initiatives from multinational companies will contribute to competitive differentiation through sustainable value chains. Given the country's natural vocation for biodiversity and multicultural profile, companies also see an opportunity to leverage their potential.


## Key programs and initiatives

Regional programs and initiatives offer opportunities for companies to get engaged in social procurement in this country.


## Frequently Asked Questions

*Common questions and answers*


## Regional Case Study: L'Oréal

Inclusive Sourcing Program is the L'Oréal's social and inclusive purchasing program that supports suppliers from vulnerable communities, fostering inclusion globally. Active across all regions, it spans purchases from raw materials to promotional items, with local adaptations. In Brazil, the program empowers communities, especially in the North and Northeast, sourcing ingredients like Camu-Camu, coconut, Murumuru and Cupuaçu Butter, Babaçu Oil, Pracaxi, Soybeans, and White Clay.L'Oréal Brasil also defends the employability of people from minority communities, highlighting its partnership with Teleperformance and Transempregos to integrate trans women into its call center and offer career support.L'Oréal Brasil's Purchasing Department holds an annual Supplier Awards ceremony, this year's 13th edition, in which the best suppliers of the year are recognized in various categories, among them the highlight in Sustainability and Inclusive Sourcing actions. At this event, the company unveils a portfolio of NGOs and programs that welcome entrepreneurs to help them with issues of diversity, equity and inclusion. “We know the impact we are having on society and we want to positively influence our chain. That's the legacy we want to leave as a company.” Flavia Bitencourt, sourcing manager L'Oréal Brasil.


## National Partners

This country profile has been prepared by the Aspen Network of Development Entrepreneurs, Yunus Social Business.


*Partner organizations and sponsors*

Last update was made on 15 January 2025.