Luxury group Kering and cosmetics company L’Occitane Group have committed €140 million for a €300 million Climate Fund for Nature.
- The Climate Fund for Nature will mobilise resources from the luxury fashion and beauty sectors to protect and restore nature.
- The fund will be open to new partner companies to support the scaling up of its positive impacts on the ground.
- It will be managed by Mirova, the affiliate of Natixis Investment Managers 100% dedicated to sustainable investing.
The Context: The need to scale up finance and investment in nature-based solutions is now acknowledged as critical.
- If the world is to meet its climate change, biodiversity, and land degradation targets, investment in nature-based solutions should at least triple by 2030 and increase four-fold by 2050.
- This acceleration would equate to cumulative total investment of up to $10 trillion, and a future annual investment rate of $674 billion, according to UNEP's State of Finance for Nature (2022).
The Fund: The creation of the Climate Fund for Nature seeks to bring significant capital to nature protection and restoration. It combines ambitious commitments, totalling €140 million out of a €300 million target, and will rely on Mirova’s proven expertise on natural capital fund management.
- The fund vehicle will start operations in Q1 2023.
- With the objective of supporting high-quality projects dedicated to nature protection and restoration, the fund will also support farmers in their transition to regenerative practices, deliver carbon credits, and generate co-benefits for the communities with a specific emphasis on women empowerment.
- Eligible projects will mostly take place in countries where the investors source their core raw materials.
- The projects’ 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 empowerment, by addressing existing gaps related to access to finance, land and training.
What They Said:
The Climate Fund for Nature provides an opportunity for the Luxury Fashion and Beauty sectors to collectively support biodiversity restoration and conservation at scale. 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.
— Marie-Claire Daveu
Chief Sustainability and Institutional Affairs Officer
With our planet facing a global climate and biodiversity crisis never witnessed before, L’Occitane Group is proud to join forces with Kering and Mirova to scale-up its action against the degradation of nature, which provides the very resources and services we rely on. 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.”
— Adrien Geiger
We are proud to work with Kering, L’Occitane Group and more corporates, to accelerate the mobilisation of resources for nature-based solutions to climate change and women empowerment. A Net Zero and nature-positive economy requires huge amounts of capital and the ambitious contribution of corporates is essential to achieve this transition.
— Anne-Laurence Roucher
Deputy CEO and Head of Natural Capital