LONDON — L’Oréal is renewing its Climate Emergency Fund with an additional 20 million euros through 2030, with the money earmarked to support vulnerable communities impacted by climate-fueled crises.
Ezgi Barcenas, chief corporate responsibility officer at L’Oréal, announced the enriched funding during a panel discussion at the two-day FT Climate and Impact Summit. The panel, “Bridging the Divide — Investing for Inclusive and Sustainable Growth,” brought together investors who are putting money into projects that generate financial and humanitarian returns.
Barcenas said around 70 percent of the new funds will go toward putting preventive measures in place in communities worldwide that are vulnerable to climate-related floods, heat waves and fires, while the remaining 30 percent will go toward emergency relief funds.
She said L’Oréal is keen to “test and learn” from the projects it supports “and we continue to be more intentional around how we can support those communities.”
In some places, L’Oréal’s partners on the ground are using a mix of AI and “local, ancestral knowledge,” to anticipate climate disasters and take appropriate measures. She said one of the long-term goals is to look at successful projects in these communities, and see how L’Oréal can apply the innovations to its supply chain, and develop them at scale.
Barcenas said L’Oréal is on a mission to fill gaps in emergency funding worldwide.
She said her team is always asking, “What is the role of business in a moment like this, where traditional funds may not be working, and when public funds are not there? How can we play a role, even though it may seem like a small role, it can be a catalytic role.
She added: “We can come in and invest that seed funding, provide that early investment, whether it’s an impact investment or philanthropic funding, it allows for additional [money], further sponsorship, and we learn a lot from that.”
L’Oréal describes the Climate Emergency Fund as sitting at the heart of its broader ecosystem of impact-driven financial solutions.
To date, the beauty giant said it has committed 415 million euros to create a “more equitable and sustainable world.”
