L’Oréal announces the creation of a new circular innovation fund

L’Oréal announced the creation of the Circular Innovation Fund in response to what it calls “the growing pressure on natural resources and the urgent need to scale up circular economy solutions”.

As an anchor investor, L’Oréal is contributing €50 million as part of its L’Oréal for the Future sustainable development program to this new €150 million fund.

Managed by Demeter and Cycle Capital, pioneers and leaders of capital management companies focused on clean technologies, the fund aims to support start-ups and companies from North America, Europe and Asia, that develop a circular use of resources in various sectors, including new materials. from the bioeconomy, circular solutions for packaging, recycling & waste, logistics, eco-efficient processes.

Projects supported by the Circular Innovation Fund include 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 strong catalog 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 biologics to reduce or replace the application of chemicals.

The Circular Innovation Fund has the potential to radically rethink the way we extract, manufacture, consume and dispose of goods and materials.

Christophe Babule, Deputy Managing Director, Chief Financial Officer of L’Oréal, declared: “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 vector of progress.

“We believe impact investing is one of the ways we can help drive innovation in the circular economy as part of the L’Oréal For the Future program. Impact investing is a perfect illustration of sustainable finance, i.e. the ability to combine the creation of financial value with the creation of environmental and social value.

“As organizations and individuals feel 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 time, as we need to rethink how we consume goods globally.

Andrée-Lise Méthot, Founder and Managing Partner of Cycle Capital and Stéphane Villecroze, Co-Founder and Managing Partner of Demeter, said: “The Circular Innovation Fund has the potential to radically rethink the way we extract, manufacture, consume and dispose of goods and materials.

“Together, we can bring value to market with returns and, most importantly, deliver new, innovation-driven technologies developed by talented entrepreneurs that have the potential to alleviate the environmental crisis facing humanity. .”

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