L’Oréal Groupe has partnered with asset manager Chenavari Investment Managers to launch Solstice, a debt fund that supports suppliers in accelerating decarbonisation.
The French beauty giant is committing an initial investment of €50m to the fund.
The move will help L’Oréal deliver Scope 3 commitments by enabling its extended value chain – in particular small and medium-sized enterprises – to more easily access financing.
Scope 3 is a methodology for accounting for and reporting indirect greenhouse gas emissions that occur in a company’s value chain.
According to L’Oréal, Solstice addresses a significant gap in the market.
Through the fund, industrial suppliers, including L’Oréal partners, may access financial solutions to help them implement decarbonisation initiatives.
Qualifying projects include industrial processes and supply chain, clean energy and clean transportation.
The fund is open to further investment by institutional investors, including other corporates.
“L’Oréal Groupe relies on a vast ecosystem of over 35,000 partner companies actively working towards a common objective, the fight against climate change,” said L’Oréal Groupe’s COO Antoine Vanlaeys.
“We are implementing innovative solutions and engaging our suppliers to move forward together.
“I am convinced that the creation of this fund will allow us to collectively accelerate the transition towards a more sustainable and responsible model.”
Christophe Bauble, CFO of L’Oréal Groupe, added: “Supporting the financing needs of our suppliers, especially SMEs whose access to financing can be limited, is a major lever to accelerate the decarbonisation of our value chain.
“We are delighted to contribute financially and through the time invested by our teams in this leading and pioneering initiative, and we invite other companies to join us in this endeavour.”