Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Kering and L’Occitane launch €300m fund for nature projects

© Shutterstock / Casimiro PTPost Thumbnail

Kering (EPA:KER) and L’Occitane (HKG:0973) have launched a €300 million Climate Fund for Nature for high-quality projects dedicated to nature protection and restoration.

  • Kering and L’Occitane have launched a €300 million Climate Fund for Nature at COP15, intended to mobilise capital from the luxury fashion and beauty sectors.
  • Projects eligible for funding will mostly be in countries where the investors source their core raw materials, with a particular focus on women’s empowerment.
  • Investment in nature-based solutions needs to grow exponentially if we are to meet global climate change, biodiversity, and land degradation targets.

Who is behind the new fund?

Luxury group Kering, owner of major brands such as Gucci and Saint Laurent, and cosmetics producer L’Occitane have teamed up to establish a €300 million Climate Fund for Nature, unveiled at COP15. It will mobilise resources from the luxury fashion and beauty sectors to protect and restore nature, with a particular focus on women’s empowerment.

The pair has already committed €140 million and the fund will be open to new partner companies to support the scaling up of positive impacts. It will be managed by Mirova, the affiliate of Natixis Investment Managers dedicated to sustainable investing, relying on its expertise in natural capital fund management. Operations will start in the first quarter of 2023.

Marie-Claire Daveu, chief sustainability and institutional affairs officer at Kering, commented: “The Climate Fund for Nature provides an opportunity for the Luxury Fashion and Beauty sectors to collectively support biodiversity restoration and conservation at scale. Kering is proud to collaborate with Mirova and we welcome the fund’s first partner L’OCCITANE Group.”

She added: “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. We entreat further companies to join this ambitious initiative to contribute to a nature-positive future.”

What projects will it target?

The fund will be dedicated to high-quality projects dedicated to nature protection and restoration, supporting farmers in their transition to regenerative practices, delivering carbon credits, and generating co-benefits for the communities with a specific emphasis on women’s empowerment. 

Eligible projects will mostly take place in countries where the investors source their core raw materials. Their progress will be monitored to ensure they deliver measurable outcomes for nature, climate and livelihoods.

The projects supported will also be required to significantly contribute to women’s empowerment, by addressing existing gaps related to access to finance, land and training. To that end, the fund and Mirova will collaborate with 2X Collaborative, an industry body for gender lens investing.

Need for investment in nature-based solutions

The ongoing COP15 summit, focused on biodiversity, has drawn attention to the importance of protecting nature to ensure a sustainable future for the planet. While most of the effort has so far been on limiting global warming, it is paramount that this action is carried out alongside biodiversity initiatives.

Nature, however, remains severely under-financed, the United Nations Environment Programme (UNEP) said in a December 2022 report. If we are to meet climate, biodiversity, and land degradation goals, investment in nature-based solutions must be doubled to $384 billion a year by 2025.

The figure will have to increase four-fold by 2050 to reach a total investment of $10 trillion. Indeed, this same figure was estimated by McKinsey to be the yearly value of nature markets, which is equivalent to 11% of global GDP.

Alongside the obvious environmental benefits, nature-based solutions generate economic value and improve the livelihoods of underserved communities, especially in rural areas. According to another report released at COP15, the level of investment forecast by UNEP has the potential to create an extra 20 million jobs.

As such, it is crucial to raise as much funding as possible. The initiative by Kering and L’Occitane is an example of how companies can lead by example in their sector, all while involving their own competitors. This will be beneficial for companies involved as they will receive a return on investment while improving their sustainability profiles and potentially have the opportunity to offset some of their emissions.

More from SG Voice

Latest Posts