L'Oréal announces the launch of a new Circular Innovation Fund to
scale breakthrough circular innovative solutions from around the
world
NEWS RELEASE
L’ORÉAL ANNOUNCES THE LAUNCH OF A
NEW CIRCULAR INNOVATION FUND TO SCALE BREAKTHROUGH
CIRCULAR INNOVATIVE SOLUTIONS FROM AROUND THE WORLD
Managed by Demeter and Cycle Capital, the impact
investing Circular Innovation Fund aims at scaling growth stage
circular innovations
Clichy,
21st April
2022 – Acknowledging the
increasing pressure on natural resources and the urgent need to
scale-up circular economy solutions, L’Oréal announces on Earth Day
the creation of the Circular Innovation Fund. As an anchor
investor, L’Oréal is contributing 50M€ as part of its L’Oréal for
the Future sustainability program to this new 150M€ fund. Operated
by Demeter and Cycle Capital, pioneers and leading
cleantech-focused capital managers firms, the Fund will also
benefit from a broad range of investors including, strategic
investor Axens, family offices including Haltra and Claridge, as
well as private investors and the managers.
The Circular Innovation Fund will support
start-ups and companies across North America, Europe and Asia,
which are developing circular use of resources across various
sectors, including new materials from the bioeconomy, circular
solutions for packaging, recycling & waste, logistics,
eco-efficient processes.
As an impact investing fund the Circular
Innovation Fund utilizes a robust, reliable, and innovative impact
measurement methodology which integrates due diligence and
continued monitoring on critical non-financial KPIs including
greenhouse gas emissions reductions, resource use and diversity
over the investment horizons of portfolio companies.
Projects supported by the Circular Innovation
Fund target as examples companies like the circular fashion start
up For Days, a service starting a
circular revolution by recycling consumers' old clothes with the
Take Back Bag and offering a robust catalogue of 100% circular,
recyclable and eco-designed clothing. A second
project, Aphea.Bio whose mission
is "Applied Nature for better Agriculture" develops new and
superior agricultural biologicals to reduce or substitute chemicals
application.
“L'Oréal is the initiator of the Circular
Economy Fund and its first investor with 50 million euros. 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”, said Christophe Babule, Executive
Vice-President, Chief Financial Officer of L’Oréal.
“As organizations and individuals are feeling
the pressure of climate change, sustainable investing strategies
will continue to soar. This strategic collaboration between
impact investors and established institutions comes at a pivotal
point as we need to re-think how we consume goods globally. The
Circular Innovation Fund has the potential to drastically re-design
how we extract, manufacture, consume and dispose of goods and
materials. Together, we can deliver value to the market with
returns and, most importantly, deliver purpose and new
innovation-driven technologies developed by talented entrepreneurs
that have the potential to mitigate the environmental crisis
humanity faces”, explains Andrée-Lise Méthot, Founder &
Managing Partner of Cycle Capital and Stéphane Villecroze,
Co-Founder and Managing Partner of Demeter.
“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.
Update
about L’Oréal Fund for Nature
Regeneration
The first 50M€ L’Oréal impact investing fund,
the L’Oréal Fund for Nature Regeneration, has been launched in June
2020. L’Oréal has teamed up with Mirova, an asset management
pioneering in natural capital investment. It gets involved in the
seed phase to catalyze innovative, scalable financial models based
on carbon credits and other ways of creating value from ecosystem
services. The Fund will include projects that support the
restoration of forests, mangroves, marine areas and degraded
lands.
Last year L’Oréal started with a 1st project in
the UK, the investment in Real Wild Estates
Company (RWEC). It aims to restore up to 50,000 hectares
of degraded landscapes across the UK and more widely in Europe.
This year, the
Group is investing in
Rize,
a French technological start-up created in 2020
and part of the Station F “Future 40” ranking. Its mission is to
accelerate the low-carbon agricultural transition by facilitating
access to carbon financing for farmers. Rize has developed a
complete and unique digital solution to support farmers from the
diagnostic phase of their farm to the marketing of carbon credits,
including technical assistance for improving practices and impact
monitoring.
The L’Oréal Fund for Nature Regeneration is
investing in this start-up, aiming to:
- regenerate more than 2.5 million
hectares of agricultural land,
- sequestrate 4 million tons of
CO2,
- support 75,000
farmers in France and Europe.
ABOUT
The Circular Innovation FundThe
Circular Innovation Fund (“CIF”) is a global growth stage venture
capital fund focused solely on circular innovation. It is a joint
venture between leading cleantech capital managers - Montreal-based
Cycle Capital and Paris-based Demeter. The fund invests in
growth-stage companies from North America, Europe and Asia
developing breakthrough new materials, circular packaging,
recycling and waste innovations, logistics, as well as
eco-efficient processes & design, and circular business models.
For more information: circularinnovationfund.com.
The L’Oréal Fund for Nature
Regeneration The L’Oréal Fund for Nature Regeneration is a
50-million-euro impact investment fund, operated by Mirova, the
asset management company affiliated to Natixis Investment Managers
and dedicated to sustainable investment. It aims to support
projects conserving or restoring natural habitats. More
specifically, the portfolio will include projects that support the
regeneration of degraded land, mangroves as well the restoration of
marine areas and forests. Beyond ecological restoration, these
projects will also help address the social needs of surrounding
communities through the development of sustainable livelihood
opportunities (sustainable agriculture and fisheries, ecotourism,
commercialization of carbon credits). They will live in a healthier
environment, benefit from new economic opportunities and enhanced
resilience to climate change:
- By 2030, the L’Oréal Fund for
Nature Regeneration will have helped restore one million hectares
of degraded ecosystems.
- By 2030, the Fund will have helped
capture 15 to 20 million tons of CO2.
- It will have created hundreds of
job opportunities.
L'OréalFor over 110 years,
L’Oréal, the world’s leading beauty player, has devoted itself to
one thing only: fulfilling the beauty aspirations of consumers
around the world. Our purpose, to create the beauty that moves the
world, defines our approach to beauty as inclusive, ethical,
generous and committed to social and environmental sustainability.
With our broad portfolio of 35 international brands and ambitious
sustainability commitments in our L’Oréal for the Future programme,
we offer each and every person around the world the best in terms
of quality, efficacy, safety, sincerity and responsibility, while
celebrating beauty in its infinite plurality. With 85,400 committed
employees, a balanced geographical footprint and sales across all
distribution networks (e-commerce, mass market, department stores,
pharmacies, hair salons, branded and travel retail), in 2021 the
Group generated sales amounting to 32.28 billion euros. With 20
research centers across 11 countries around the world and a
dedicated Research and Innovation team of 4,000 scientists and over
3,000 tech professionals, L’Oréal is focused on inventing the
future of beauty and becoming a Beauty Tech powerhouse. More
information on https://www.loreal.com/en/mediaroom
"This press release does not constitute an offer
of sale or solicitation of an offer to purchase L'Oréal shares. If
you wish to obtain more comprehensive information about L'Oréal,
please refer to the public documents registered in France with the
Autorité des Marchés Financiers, also available in English on our
website www.loreal-finance.com.This press release may contain
forecast information. While the Company believes that these
statements are based on reasonable assumptions as of the date of
publication of this press release, they are by nature subject to
risks and uncertainties which may lead to a discrepancy between the
actual figures and those indicated or suggested in these
statements.”
The L’Oréal Circular Innovation Fund is an
“Alternative Investment Fund” (fonds d’investissement alternatif)
within the meaning of article L. 214-24 II of the French Monetary
and Financial Code (Code monétaire et financier) and is established
as a Fonds Professionnel Spécialisé in the form of a Société de
Libre Partenariat within the meaning of Article L. 214-162-1
et seq of the French Monetary and Financial Code. The L’Oréal
Circular Innovation Fund is opened for subscription and/or
acquisition to investors who qualify as professional investors
within the meaning of article L. 533-16 of the French Monetary and
Financial Code.
The L’Oréal Fund for Nature Regeneration is an
“Other Alternative Investment Fund” (autre fonds d’investissement
alternatif) within the meaning of article L. 214-24 III of the
French Monetary and Financial Code (Code monétaire et financier)
and is established in the form of a simplified joint-stock company
with variable capital (société par actions simplifiée à capital
variable). The L’Oréal Fund for Nature Regeneration is exclusively
dedicated to L’Oréal and its affiliates and will not be marketed to
third parties nor subscribed by third parties. L’Oréal fund for
Nature Regeneration is a French société par actions simplifiée à
capital variable (other AIF), closed to new subscription. Mirova is
the management company. The supervisory authority approval is not
required for this fund. Mirova is a Portfolio management company
regulated by AMF under n°GP 02-014.
CONTACTSL’ORÉALSwitchboard+33 (0)1 47 56 70
00 |
Individual shareholders and market
regulatorsChristian MUNICH+33 (0)1 47 56 72
06Christian.munich2@loreal.com |
Financial
analysts and institutional investorsFrançoise LAUVIN +33
(0)1 47 56 86 82Francoise.lauvin@loreal.com |
Media Noëlle CAMILLERI+33 (0)6 79 92 99
39Noelle.camilleri@loreal.com Christine BURKE+33 (0)6 75 54
38 15Christine.burke@loreal.com |
For further information, please contact your
bank, stockbroker of financial institution (I.S.I.N. code:
FR000012031), and consult your usual newspapers or magazines or the
Internet site for shareholders and investors,
www.loreal-finance.com, the L’Oréal Finance app or call the
toll-free number from France: 0 800 66 66 66. 0 800 66 66 66
Follow us on Twitter
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