THE WHAT? To mark Earth Day, L’Oréal announced the creation of a €150 million Circular Innovation Fund. As an anchor investor, the French beauty giant is contributing €50 million to this fund as part of its sustainability program.
THE DETAILS Operated by Demeter and Cycle capital, the fund will also benefit from a broad range of investors, including Axens, Haltra and Claridge, among others.
The fund is destined to support start ups and companies across North America, Asia and Europe that are developing circular use of resources.
“The latest IPCC report confirmed that ‘it is now or never’ that we can act to stave off the worst impacts of global warming. As a leader, we want to act in two complementary and strategic ways: on one hand, reduce the impact of our business – by sourcing our ingredients in a sustainable way, using more materials from recycled origin, etc. On the other hand, contribute to addressing some of the most pressing environmental challenges, such as waste management, plastic pollution and also biodiversity loss. That is why, in addition to be the anchor investor leading the new Circular Innovation Fund, this year, we continue to invest to regenerate biodiversity through a new ambitious and innovative French tech project”, comments Alexandra Palt, Chief Corporate Responsibility Officer and CEO of the Fondation L’Oréal.
THE WHY? Christophe Babule, Executive Vice-President, Chief Financial Officer of L’Oréal, explains, “L’Oréal is the initiator of the Circular Innovation Fund and its first investor with €50 million. I am convinced that finance can play a decisive role in mitigating the impacts of climate change and can be a vehicle for progress. We believe impact investment is one of the ways we can contribute to spur innovation in the circular economy space as part of the L’Oréal For the Future program. Impact investing is a perfect illustration of sustainable finance, that is to say, the ability to combine financial value creation with environmental and social value creation.”