The beauty retailer and luxury goods firm’s new fund has pledged an €140 million investment into projects that protect and restore nature
€140m has already been committed to conservation, biodiversity and regenerative projects
The cosmetics giant and luxury goods company will utilise resources from fashion and beauty to fund nature-based solutions and expand natural carbon sinks – anything that accumulates and stores carbon.
Starting operations in 2023, €140m has been committed to conservation, biodiversity and regenerative projects in countries where they source raw materials.
Farmers will be transitioned to these regenerative practices and given carbon credits.
There will be a “specific emphasis” on projects that benefit communities but lead to the empowerment of women too.
The investment fund was launched at the COP15 Biodiversity Summit in Montreal, Canada, and will be handled by asset management company Mirova.
Climate Fund for Nature hopes to raise €300m in total.
It is open to new partner companies joining who can help scale up its impact.
Those that invest will receive help on how to deliver on their low carbon and sustainable supply chain goals.
Adrien Geiger, Chief Sustainability Officer of L’Occitane Group and Managing Director of L’Occitane en Provence, said supporting biodiversity restoration on a larger scale is crucial.
“With our planet facing a global climate and biodiversity crisis never witnessed before, [we are] proud to join forces with Kering and Mirova.
“To scale up our action against the degradation of nature, which provides the very resources and services we rely on.
“While reducing our emissions and impacts is our priority, the Climate Fund for Nature will help us go further by supporting projects that encourage regenerative practices, benefiting both nature and communities.”
Marie-Claire Daveu, Chief Sustainability and Institutional Affairs Officer at Kering, said it is an opportunity for fashion and beauty to “collectively support biodiversity restoration and conservation”.
She added: “Innovative financing mechanisms are crucial to channel much-needed investment into nature-based solutions if we are to reverse biodiversity decline by 2030.
“And, simultaneously, address climate change, which is intrinsically interlinked with nature.
“We entreat other companies to join this ambitious initiative contributing to a nature-positive future.”
Beauty’s impact on the planet has been under scrutiny for some time, with many coalitions and corporations forming to help tackle the issue.
EcoBeautyScore Consortium launched an environmental impact assessment system for cosmetics in February to support sustainable buying choices.
It aims to provide consumers with clear, transparent and comparable information about the environmental impact of the beauty products they use.
36 cosmetics giants joined the industry-wide scoring system, including L’Oréal Groupe, Unilever and Procter & Gamble (P&G).
The British Beauty Council also formed the Sustainable Beauty Coalition last year to accelerate sustainability across the beauty industry.
It works to strengthen links across beauty brands, communities and professional bodies “in the name of saving the environment”.
An initiative led by Science Group Sustainability is also aiming to develop key principles to enable material progress on carbon reduction.
P&G is among seven global companies who have forces to realise these net zero ambitions.