Creating a fund to regenerate nature
By creating the L’Oréal Fund for Nature Regeneration, L’Oréal aims to go beyond reducing impacts within its value chain to contribute to the restoration of degraded natural ecosystems, on land and below water.
Main project's drivers for reducing the greenhouse gas (GHG) emissions
Energy and resource efficiency
Energy Decarbonisation
Energy efficiency improvements
Improving efficiency in non-energy resources
Emission removal
Financing low-carbon issuers or disinvestment from carbon assets
Reduction of other greenhouse gases emission
Project objectives
Funding carbon capture projects.
L’Oréal is convinced that reducing its impacts is necessary, but that is not enough.
The company therefore wishes to go beyond its efforts to reduce its impact on biodiversity across its whole value chain, by contributing to restoring degraded natural ecosystems.
That’s why L’Oréal has created the L’Oréal Fund for Nature Regeneration. This €50 million impact investing fund simultaneously generates financial returns and positive social and environmental impacts, and all this with the aim of supporting projects that restore degraded natural habitats on land and below water.
Managed by the Mirova management consultancy, a subsidiary of Natixis, the L’Oréal Fund for Nature Regeneration’s investment portfolio includes, for example, projects supporting the restoration of degraded soils and the regeneration of mangroves, as well as the restoration of marine and forest zones.
Beyond ecological restoration, these projects contribute to addressing the needs of local communities through the development of sustainable revenue streams (sustainable agriculture and fishing, ecotourism and the commercialisation of carbon credits). It will also support the consolidation of a healthier environment that is more resilient to climate change, and the development of new economic opportunities.
By 2030, the L’Oréal Fund for Nature Regeneration will make it possible to:
- Restore a million hectares of degraded ecosystems
- Capture 15 to 20 million tonnes of CO2
Create hundreds of employment opportunities.
Emission scope(s)
on which the project has a significant impact
Scope 1
Direct emissions generated by the company's activity.
Scope 2
Indirect emissions associated with the company's electricity and heat consumption.
Scope 3
Emissions induced (upstream or downstream) by the company's activities, products and/or services in its value chain.
Emission Removal
Carbon sinks creation, (BECCS, CCU/S, …)
Avoided Emissions
Emissions avoided by the activities, products and/or services in charge of the project, or by the financing of emission reduction projects.
Emission removal – Funding carbon capture projects.
- Quantification: 15 to 20 million tonnes of CO2 between 2020 and 2030.
Les méthodes de calculs seront celles liées à la génération de crédits carbone certifiés par les projets financés.
Key points
Invested amount
50M€
Starting date of the project
2020
Project localisation
International
Project maturity level
Test prototype en laboratoire (TRL 7)
Real life testing (TRL 7-8)
Pre-commercial prototype (TRL 9)
Small-scale implementation
Medium to large scale implementation
Economic profitability of the project (ROI)
Short term (0-3 year)
Middle term (4-10 years)
Long term (> 10 years)
Illustrations of the project
By restoring a million hectares of degraded ecosystems, the fund is contributing to the following SDGs :
- SDG 14 Life below water
- SDG 15 Life on land.
It will also enable the creation of around a hundred job opportunities, thereby contributing to SDG 8, Decent work and economic growth.
This impact investing fund was launched in partnership with Mirova Natural Capital.
The investments will take place in partnership with all types of organisations (NGOs, public authorities, start-ups etc) through lending or capital investment.
Contact the company carrying the project :
FundforNatureRegeneration@loreal.com
