L'Oréal Groupe and Chenavari Investment Managers recently announced the launch of Solstice, a debt fund designed to enable suppliers to accelerate the decarbonization of their significant industrial projects. L'Oréal is committing an initial investment of €50 million to the Solstice fund to deliver on Scope 3 commitments by enabling its extended value chain, and in particular small and medium-sized enterprises, to more easily access financing.

By spearheading the creation of the Solstice decarbonization fund, L'Oréal Groupe and Chenavari, a long-standing European credit specialist, are addressing a significant gap in the market. Through Solstice, industrial suppliers, including L’Oréal partners, may access financial solutions to help them implement decarbonization initiatives. Qualifying projects can include industrial processes and supply chain, clean energy and clean transportation. The fund is open to further investment by institutional investors, including other corporates who, like L’Oreal Groupe, aim 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 objective: the fight against climate change,” said Antoine VANLAEYS, Chief Operations Officer, L’Oréal Groupe. “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.”

"L'Oréal Groupe is committed to addressing environmental, climate, and decarbonization 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 decarbonization of our value chain,” said Christophe BABULE, Chief Financial Officer, L'Oréal Groupe. “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 endeavor.”

“Decarbonizing 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. “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.”