L'Oréal and Chenavari Investment Managers, the European corporate credit specialist, have announced the launch of a debt fund designed to support significant decarbonization investments by industrial suppliers.
L'Oréal Groupe has committed to investing 50 million euros in this fund, named Solstice, to meet an identified need and as part of its Scope 3 emissions commitments. The stated aim is to offer industrial players, and in particular the SMEs in its value chain, easier access to financing.
Using Solstice, L'Oréal Groupe partners and suppliers to major groups will be able to access financing solutions to implement decarbonization initiatives. Eligible projects may include industrial processes and supply chain, clean energy and clean transport. The fund is open to other institutional and industrial investors who, like the L'Oréal Group, wish to support the decarbonization of their ecosystems.
" L'Oréal Groupe relies on a vast ecosystem of over 35,000 partner companies actively working towards a common goal: the fight against climate change, said Antoine Vanlaeys, General Manager - Operations, L'Oréal Groupe. We implement innovative solutions and encourage our suppliers to progress together. I am convinced that the creation of this fund will enable us to collectively accelerate the transition towards a more sustainable and responsible model."
" L'Oréal Groupe is committed to meeting environmental, climate and decarbonization challenges, in line with our Net-Zero ambition. Helping to meet the financing needs of our suppliers, particularly SMEs whose access to financing may be limited, is a major lever for accelerating the decarbonization of our value chain.said Christophe Babule, Managing Director, Administration and Finance, L'Oréal Groupe. We are delighted to contribute financially and through the time invested by our teams to this pioneering initiative, and we invite other companies to join us in this endeavor.. "
For Loïc Fery, CEO and founder of Chenavari, " the decarbonization of industrial processes is a complex challenge requiring substantial investment to finance the transition to low-carbon processes and achieve large-scale greenhouse gas emission reductions. By partnering with L'Oréal to create the Solstice Fund, we are helping to bridge the climate financing gap and create future sources of value through new sustainable, low-carbon practices. "
