L’Oréal Groupe and Chenavari Investment Managers have announced the launch of ‘Solstice’, a debt fund aimed at accelerating the decarbonisation of industrial projects within their supply chains. L’Oréal has committed an initial €50 million ($52.8 million) investment to the fund, emphasising its dedication to achieving Scope 3 emissions reduction by supporting small and medium-sized enterprises (SMEs) in accessing sustainable financing solutions.
The Solstice fund, developed in collaboration with Chenavari, a prominent European credit specialist, seeks to fill a critical gap in decarbonisation financing. Industrial suppliers, including L’Oréal’s partners, can utilise the fund to finance projects related to clean energy, sustainable transportation, and green industrial processes.
In addition to L’Oréal’s investment, the fund is open to contributions from institutional investors and other corporations looking to support decarbonisation initiatives within their ecosystems. By driving the adoption of sustainable practices, the fund represents a significant step toward reducing emissions across extended value chains.
“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 Antoine Vanlaeys, Chief Operations Officer, L’Oréal Groupe, adding, “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 Babule, Chief Financial Officer, L’Oréal Groupe said, “L’Oréal Groupe is committed to addressing environmental, climate, and decarbonisation challenges, in line with our net-zero ambition. Supporting the financing needs of our suppliers, especially SME’s 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.”
“Decarbonising industrial processes is a complex challenge requiring significant capital deployment to finance the transition to low-carbon processes and achieve reductions in greenhouse gas emissions at scale,” said Loïc Fery, CEO and founder, Chenavari.
Fery added, “By partnering with L’Oréal Groupe to create the Solstice fund, together we are helping bridge the climate finance gap and helping create future value streams enabled by new and sustainable low carbon practices.”
