The L’Oréal Fund for Nature Regeneration is an impact investing fund created by L’Oréal in 2020. This 50 million euro fund’s objective is to help restore over 1 million hectares of damaged marine and terrestrial ecosystems and sequester up to 20 million tons of CO2 by 2030. The funded projects will also address the needs of surrounding communities and people, thanks to the creation of hundreds of direct jobs in the field of ecological engineering and indirect jobs through the economic activities generated by the projects.
The Fund provides long term investments; i.e. with tenor of up to 15 years, aligned with the Fund’s duration. Depending on the project, the Fund can provide different types of financing instruments: equity, quasi-equity and other debt instruments.
Projects must generate positive environmental and social impacts as part of their business model. Projects will target conservation and restoration of forest and marine ecosystems, alongside provision of long-term, sustainable, decent livelihoods offering opportunities to local communities. These impacts will be monitored and independently verified at the end of the fund. At the same time, each investment is expected to deliver a reasonable Investment Rate of Return (“IRR”) over the Fund’s investment duration (15 years), to be appreciated depending on the nature of the project, the total amount invested, the type of financial instrument and the cashflow profile of the project.
