Energy Efficiency, Finance - December 9, 2021
Orange Launches Carbon Fund
Telecommunications operator Orange announced the creation of Orange Nature, a €50 million carbon fund, with returns in high-quality carbon credits only.
The Orange Nature fund will directly or indirectly invest in various carbon sequestration projects around the world: afforestation, reforestation, and restoration of natural ecosystems (mangroves or agroforestry projects). The fund will focus on the economic and social development of the regions and populations affected by the projects as well as the positive impacts they have on biodiversity.
Launched with the asset management company Mirova (Natixis Investment Managers), a sustainable finance company, this fund represents a pioneering vision of investment but also of the Net Zero Carbon policy ambition driven by the Orange Group. The returns from the Orange Nature fund will be in the form of high-quality carbon credits only.
This project is part of the commitment French-based company Orange made to reach net zero carbon by 2040 for the three scopes described by the GHG Protocol. To achieve this target, for several years now the group has deployed a structured and ambitious policy to reduce the majority of its CO2 emissions by 2040. This involves implementing a rigorous energy efficiency policy, increased use of renewable energy, and the deployment of circular economy programs.
With an investment capacity of €50 million, Orange Nature will create the carbon credits required to capture a significant part of the Group’s residual CO2 emissions. Orange Nature will have a joint investment agreement with the Nature+ Accelerator Fund launched by the IUCN and the GEF providing further choices of carbon sequestration projects to invest in.
Orange has already deployed several carbon sink projects including pine tree reforestation in Spain, mangrove plantation in Senegal and participation in the Livelihoods Carbon Fund 3. In October 2021, Orange signed a contract with Alliance Forêts Bois to finance the reforestation of around 175 hectares of forests in metropolitan France.
“Orange Nature is a key element of the Group’s environmental policy,” said Elizabeth Tchoungui, executive director of CSR , diversity and philanthropy at Orange in a statement. “By 2040, most of our CO2 emissions will have been reduced thanks to the actions undertaken over the previous years. Orange Nature will enable us to complete the task of becoming net zero carbon in 2040, through the use of nature-based solutions that will capture the residual incompressible emissions. Nature is our shared resource. It is up to each and every one of us to preserve it.”