The fund’s support will include Israeli start-ups, in order to support groundbreaking environmental solutions in circular innovation
The L’Oreal Group establishes a circular innovation fund, recognizing the increasing pressure on natural resources around the world and the urgent need to expand circular economy solutions for the planet. A circular economy is an economic approach that strives to prevent waste, by maximizing the utilization of raw materials or energy and is an alternative to the model in which each raw material or product is used only once and discarded.
As part of the ‘L’Oreal for the Future’ sustainability program, the company is donating 50 million euros to the new fund, which stands at a total of 150 million euros. The fund, which is operated by leading companies in the management of cleantech-focused funds Demeter and Cycle Capital, will benefit from a wide range of investors, including strategic investor Axens, family office companies including Haltra and Claridge, as well as investors and private executives.
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L’Oreal product
(L’Oreal)
The Circular Innovation Fund will support companies and start-ups in North America, Europe and Asia, including Israel, that develop circular use of resources in various industries, including new materials from the bioeconomy, circular solutions for packaging, recycling and waste processes, and logistical processes that combine ecological efficiency. The fund uses a reliable and innovative methodology to measure the impact of portfolio companies, combining due diligence and ongoing monitoring of key non-financial performance metrics, including reducing greenhouse gas emissions, resource use and human diversity.
The Circular Innovation Foundation focuses on supporting projects such as the circular fashion start-up company For Days, a service that started a circular revolution by recycling old consumer clothing with the Take Back Bag and offers a rich catalog of 100% circular, recyclable and eco-friendly clothing. Another project, Aphea.Bio whose mission is to “use nature for better agriculture”, develops natural agricultural components produced in order to reduce the use of chemicals.
According to Christoph Babul, senior vice president, vice president of finance at L’Oreal, “L’Oreal is the initiator of the circular economy fund and the first investor in it with a sum of 50 million euros. I am convinced that funding can play a crucial role in mitigating the effects of climate change and can be a tool for progress. We believe that investing in impact is one of the ways in which we can contribute to the encouragement and promotion of innovation in the circular economy space as part of the L’Oreal for the Future program. “Impact investment is an expression of sustainable financing, that is, the ability to combine the creation of financial value with the creation of environmental and social value.”