L’Oréal has announced the launch of the Circular Innovation Fund, which they’re contributing €50m to as an anchor investor. The fund will also benefit from a broad range of other investors, and will be managed by Demeter and Cycle Capital.
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, and eco-efficient processes.
As an impact investing fund, it utilises 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.
“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”,
– Alexandra Palt, Chief Corporate Responsibility Officer and CEO of the Fondation L’Oréal.