Kering and L’Occitane launch climate fund for sustainable beauty during COP15 biodiversity conference
15 Dec 2022 --- Kering and L’Occitane are collaborating to create the €300 million (US$318 million) Climate Fund for Nature, leveraging resources from the luxury fashion and beauty sectors to help protect and restore nature. The companies will also focus on women’s empowerment and ethics within the agricultural supply chain.
The partnership was announced at the ongoing 15th Conference of Parties (COP15) of the Convention on Biological Diversity in Montréal, Canada.
“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,” says Marie-Claire Daveu, chief sustainability and institutional affairs officer at Kering.
The two companies have already secured €140 million (US$149 million) toward the initiative and opened it up to new partners. Mirova, the affiliate of Natixis Investment Managers, claiming to be 100% dedicated to sustainable investing, will manage these funds.
Bigger initiatives, more financials
Consumers are displaying an increasing demand for environmental sustainability within the personal care industry. Innova Market Insights analyst Xihan Ma tells PersonalCareInsights that “one-third of consumers globally say they care a lot about the environment when buying personal care products.”
Consumers are increasingly demanding more environmentally sustainable solutions from the personal care industry.Acknowledging environmental impact, companies are jogging to keep up with consumers’ pressing requests for climate crisis amelioration. As companies’ environmental sustainability commitments increase, so too does the finances and investments necessary to achieve their initiatives.
“A net zero and nature-positive economy requires huge amounts of capital and the ambitious contribution of corporations is essential to achieve this transition,” says Anne-Laurence Roucher, deputy CEO and head of natural capital and private equity at Mirova.
According to Kering’s predictions, investment in nature-based solutions needs to triple by 2030 and expand fourfold by 2050 if the world is to reach its climate change, biodiversity and land degradation targets.
This acceleration would reportedly result in a future yearly investment rate of US$674 billion and a cumulative total investment of up to US$10 trillion.
Preserving raw materials
The fund will begin operating in the first quarter of 2023, with the goal of providing capital for high-caliber initiatives that promote the preservation and restoration of nature. It will also assist farmers in adopting regenerative farming techniques, provide carbon credits and create co-benefits for the local communities, with a focus on empowering women.
Most eligible projects will be located in countries where the investors obtain their primary raw materials. The projects’ development will be kept under close observation to ensure they produce quantifiable results for the environment, the climate and human livelihoods.
“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,” says Adrien Geiger, chief sustainability officer at L’Occitane and managing director at L’occitane en Provence.
The fund will assist farmers in adopting regenerative farming techniques.
Propelling biodiversity
In line with the goals of COP15, Fédération des Entreprises de la Beauté and The German Cosmetic, Toiletry, Perfumery and Detergent Association launched a common good practice guide to share the experiences of cosmetics companies for preserving biodiversity.
In the guide, titled Biodiversity in the Cosmetics Industry – Inspiring Examples from France and Germany, the organizations spotlight the dependence of the personal care industry on the use of natural raw materials.
Furthermore, attempting to cater to some of the social and environmental needs the personal care industry creates, Unilever joined Cosmetics Europe’s “Commit for our Planet” initiative, acting as a watchdog for environmental sustainability progress.
Reducing greenhouse gas emissions, improving packaging and acting for nature are the three key areas the initiative has targeted.
The European Council and the European Parliament also recently struck a provisional deal aimed at minimizing the risk of deforestation and forest degradation caused by the expansion of agricultural land to produce imported or exported commodities.
According to the deal, companies sourcing from countries with a high risk of deforestation will face increased checks and possible fines.
By Mieke Meintjes
