L’Oréal launches circular innovation fund to support sustainable start-ups

Beauty giant L’Oréal has announced the launch of a Circular Innovation Fund in a bid to scale-up circular economy solutions through the support of sustainably-minded start-ups across North America, Europe and Asia.

L’Oréal will contribute 50 million euros as part of its L’Oréal for the Future sustainability programme, adding to this new 150 million euro fund.

The fund will be operated by Demeter and Cycle Capital and will also benefit from a range of impact investors.

“I am convinced that finance can play a decisive role in mitigating the impacts of climate change and can be a vehicle for progress,” said executive vice president and CFO of L’Oréal, Christophe Babule, in a press release.

Babule continued: “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 programme. 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.”

The fund will utilise robust impact measurement methodology, designed with due diligence and the monitoring of critical performance indicators, such as greenhouse gas emissions and resource consumption.

Initiatives supported by the fund include companies like For Days, a clothing recycling service, and Aphea.Bio, which is centred around the development of agricultural biologicals.