Financing The Circular Economy

Financing the
circular economy
Capturing the opportunity
2 ELLEN MACARTHUR FOUNDATION • FINANCING THE CIRCULAR ECONOMY
In support
of this paper
Sir Robert Fairbairn “This timely report highlights the opportunities presented by the circular economy for
Vice Chairman, investors seeking to create long-term value and the growth we are already seeing in
BlackRock this market. The report is being published as we at BlackRock have witnessed strong
growth in our circular economy fund since its launch under a year ago, demonstrating
investor appetite in the market.”
Carlo Messina “The circular economy redefines the approach to value creation. The financial sector,
Chief Executive Officer, particularly from a de-risking perspective, can be a catalyst in unlocking opportunities
Intesa Sanpaolo while supporting clients in reorienting their business strategies. Companies that shift
towards a circular model can increase their medium- to long-term competitiveness,
becoming more appealing to financial institutions in terms of funding and financial
support, while creating a positive impact within local communities. We are proud to be a
partner of the Ellen MacArthur Foundation, for this paper and more broadly, driving the
conversation to scale finance globally for the advancement of the circular economy.”
Barry O’Byrne “Finance has a critical role to play in building a more sustainable, healthy and resilient
Chief Executive, Global future. Scaling the circular economy helps to achieve this, while unlocking new and
Commercial Banking, better growth opportunities for businesses of all sizes as they transition.”
HSBC
Jes Staley “As a British universal bank our role is to help clients by putting capital and investment
Group Chief Executive Officer, to productive use, and this report provides new insight into how to ensure that the
Barclays capital markets can support sustainable economic growth. We have seen strong
interest in the circular economy from our corporate clients. Advising these companies
on their corporate strategy and capital raising helps us to meet their needs and achieve
our ambition to be a net zero bank by 2050.”
Audrey Choi “The circular economy offers a crucial combination of economic opportunity and
Chief Sustainability Officer enhanced environmental outcomes. At Morgan Stanley, we are already working to
and Chief Marketing Officer, realize this potential through our industry-first Plastic Waste Resolution, which will
Morgan Stanley facilitate the prevention, reduction and removal of 50 million metric tons of plastic
waste from entering rivers, oceans, landscapes and landfills by 2030. This report
continues to inspire our commitment to partner with clients and stakeholders across
the whole value chain to explore the opportunities in the circular economy.”
Marisa Drew “Today’s growth at all costs, consumption-oriented culture has led to a linear system
Chief Sustainability Officer of ‘production, use once and dispose’ which has become the norm in many – if not
and Global Head of Sustainable virtually all – industries, with single use plastic packaging and fast fashion just two
Strategy, Advisory & Finance, highly visible examples. This timely paper brings to light how the principles of the
Credit Suisse circular economy are creating industrial systems change through redesign, reuse, and
business model innovation, and how this disruption brings new attractive investment
opportunities for individual and institutional investors as well as for the banks and asset
managers that serve them. At Credit Suisse we fully support the circular economy
principles and are actively engaged in creating investment opportunities that help our
clients capture the economic and environmental benefits of this new way of thinking.”
Keith Tuffley “As laid out in this paper, a circular economy is key to building an economic system
Managing Director & Vice Chairman, that is viable in the long run, in which value is created and maintained, rather than
and Global Co-Head of Sustainability extracted and wasted. At Citi, we see this not only as an important topic to engage
& Corporate Transitions, clients and other stakeholders, but as a driver of long-term value and a crucial step in
Citi the preservation of resources and regeneration of natural capital”
Emma Navarro “The shift to a circular economy model will require massive investments in support of
Vice-President, innovative promoters who drive the transition. Yet, financing circular initiatives can be
European Investment Bank challenging and requires that financial institutions develop new ways of identifying and
appraising projects. This position paper by the Ellen MacArthur Foundation provides
valuable insight on circular investment opportunities for private and public financiers
and shares the best practices in the financial sector. The European Investment Bank
gladly contributed to this paper and stands ready to work with other financial partners
to mobilise more financing and advisory support for circular economy to realise the
objectives of the EU Green Deal.”
Matt Arnold “Increasingly, tackling climate change includes supporting solutions that are part of
Global Head of the circular economy. This paper, led by the Ellen MacArthur Foundation, illustrates
Sustainable Finance, the rapidly growing opportunities for companies and governments to participate
JPMorgan Chase in those solutions. At JPMorgan Chase, we leverage our core expertise to deliver
sustainable solutions that protect the environment and grow the economy. As
the market for circular solutions continues to grow, the combined economic and
sustainable opportunity has the potential to make circular economy activities more
attractive to investors.”
Katie Koch “The circular economy is critical to ensuring that the world can continue to develop
Co-Head of Fundamental Equity and within its means while preserving its resources. As demonstrated in the Ellen
Co-Chair of Sustainability Council, MacArthur Foundation report, companies that enable the circular economy require
Goldman Sachs Asset Management funding to grow and succeed. At Goldman Sachs we are determined to play our part
by giving these solutions providers access to financing and offering our clients the
opportunity to do good and do well by participating in the value being created.”
Iqbal Khan “The circular economy is a blueprint for a more resilient economic system that could
Co-President, drive significant economic, social and environmental benefits for all stakeholders.
Global Wealth Management, Private investment will play a key role in financing this transition, offering the potential
UBS for competitive returns while reducing waste, preserving natural resources and
addressing climate change. Our private clients at UBS Global Wealth Management
increasingly seek opportunities like these that combine financial performance and
positive impact on the issues they care about.”
Michelle Scrimgeour “We will continue to lead in pushing for decisive action on era-defining issues, such as
Chief Executive Officer, the climate emergency and biodiversity loss. As investors, we believe that continuous
Legal and General engagement with corporate management, regulators and industry partners will
Investment Management accelerate the much-needed transition”
Isabel Fernandez “The circular economy plays a crucial role in helping companies and governments build
Head of Wholesale Banking, back better from the Covid-19 pandemic. Financial institutions can support businesses
ING to capture new growth opportunities and build resilience to future shocks. This is why
at ING we are actively helping clients to transition to new circular economy models,
financing circular deals and investments and strengthening the knowledge base in this
area. While there are costs involved in this transition, the increased resilience gained
should result in long-term material gains for everyone involved.”
Bas Rüter “A circular economy, built on renewable energy and materials, is key to achieving the
Global Head of Sustainability, targets set by the Paris Agreement and the SDGs. This insightful paper highlights the
Rabobank transformative potential of the circular economy across sectors. As a key financing
partner to the food & agriculture sector, we see the circular economy as a source of
innovation for how we produce food, tackle food waste and feed a growing world
population whilst regenerating the environment. Rabobank is actively supporting the
transition to a circular economy, helping clients and stakeholders future proof their
business models by providing financing solutions, leveraging our network and sharing
knowledge and expertise.”
Fiona Cannon “The circular economy is an integral part of a green recovery, improving resilience and
Group Director of Responsible transitioning to a net zero carbon economy. Lloyds Banking Group is keen to support
Business & Inclusion, businesses that want to invest in shifting from the traditional ‘take-make-waste’ model
Lloyd’s Banking Group of production, to a closed-loop system that promotes the continuous use of resources
and eliminates waste, including through our £2bn Clean Growth Finance Initiative.”
Bill Winters “Moving to a circular economy not only requires a fundamental rethink of products, but
Group Chief Executive, also of business models. The Ellen MacArthur Foundation’s report identifies how this
Standard Chartered shift can help cut emissions, safeguard ecosystems and create jobs while generating a
multi-trillion-dollar economic opportunity for businesses.”
Mark Barnaba “The circular economy not only represents a trillion-dollar economic opportunity
Board member of the globally, but is a key part of the global solution to tackle plastic waste, address
Reserve Bank of Australia climate change, and restore the health of ecosystems. The coronavirus pandemic has
and co-chair of Sea the Future highlighted many of the risks of today’s extractive industrial model, reinforcing the
relevance of the circular economy. This timely paper sets a clear direction of travel for
the financial sector to capitalise on the opportunity and build an economy that works
in the long-term.”
Saker Nusseibeh “Circular economy principles are crucial in moving the world we share beyond a
Chief Executive Officer, problematic ‘take-make-waste’ approach to scarce natural resources. Investors need
the international business to recognise the financial opportunity in resilient, circular models of resource use, and
of Federated Hermes shift financing to enterprises focusing capital allocation on circular products, processes
and value chains. This paper points to early indications of a positive financial case,
alongside a proven sustainability case, for doing exactly that.”
Marshall Bailey “The Ellen MacArthur Foundation has been leading the pack on the circular economy
Non-Executive Chairman, transition over the past decade, engaging a wide variety of leading businesses on the
Financial Services topic. With this paper they are once again breaking new ground, laying out tremendous
Compensation Scheme opportunities for deploying a circular economy lens in finance and banking. At a time
when there are many doubts about how to have ESG in a portfolio, this paper sets the
record straight and shows what can be done.”
Gema Sacristan “Building a circular economy requires decisive action from all players in society. That
Chief Investment Officer, is especially true of the financial sector, which can be instrumental in achieving real
IDB Invest change, by offering the right instruments, promoting business transformation, while
generating financial returns and long-term value.”
Jean-Philippe Hermine “The circular economy offers significant opportunities for businesses to generate long-
VP Strategic term value. Collaboration between businesses and the finance sector will be essential
Environmental Planning, to achieve the required business models shifts and innovation in financial instruments.
Groupe Renault Considering the full cost of goods and services, and the value of assets over multiple
life cycles enables a more representative valuation of circular businesses. This will help
the financial sector better understand and capture the circular economy opportunity.”
“The circular economy offers an important pathway to combat climate change, waste,
Joan Larrea
pollution and biodiversity loss, with this paper highlighting blended finance as one of
Chief Executive Officer,
the key “actions needed to scale.” Blended finance has already demonstrated itself as a
Convergence Blended Finance
powerful force for addressing climate change, hitting a median transaction size of over
USD 87 million for climate solutions in developing economies. We encourage those
investing in the circular economy to draw on blended structures where they may be
needed to reach comparable scale.”
Naïm Abou-Jaoudé “The financial industry is awakening to the risks of the ‘take-make-waste’ linear
Chief Executive Officer, economy and massive opportunities of the circular economy. Finance is key to unlock
Candriam this opportunity, accelerate the transition to circular business models, and ultimately
create a more sustainable ecosystem. Candriam is strongly committed to the circular
economy, through investment innovation and the embedding of circularity into its
ESG frameworks.”
Victor Verberk “This paper from the Ellen McArthur Foundation creates a much needed connection
Chief Investment Officer between the finance sector and the circular economy, especially against the backdrop
a.i. and member of the of today’s environmental and economic challenges. The transition to a circular
Executive Committee, economy has the potential to decisively impact future wealth creation without doing
Robeco harm to human well-being, and understanding this transition creates clear investment
opportunities. With our RobecoSAM Circular Economy Equities strategy we aim
to seize this economic opportunity while positively contributing to the Sustainable
Development Goals.”
Brian Cahill, “Circular economy themes are increasingly relevant for our credit analysis, as regulation
Global MD ESG, impacts costs and redefines markets, and strategies to capitalise on new opportunities
Moody’s Investor Services seek debt financing.”
Sean Kidney “The IPCC tells us we have a short window to act to avoid catastrophic climate change.
Chief Executive Officer, To do so we must move from our linear, polluting and wasteful economy to a circular
Climate Bonds Initiative economy, and fast. We need a re-tooling of our industrial and economic systems, and
we’re already seeing directional momentum towards this in the green bonds market. This
paper shows how investors are shifting their capital to finance circular economy assets
and projects - and the next steps required to accelerate this transition. Essential reading.”
Ron Gonen “This report captures the enormous economic opportunity tied to the circular economy,
Founder and Chief and how finance is a critical lever for actualizing this potential. The investment
Executive Officer, community is waking up to the business risks presented by climate change, laying bare
Closed Loop Partners the need for a new economic model. Flexible capital structures, systemic incentives
and a more collaborative approach will be critical to scaling the circular economy for a
better, more sustainable future.”
Dr Rhian-Mari Thomas OBE “The Ellen MacArthur Foundation continues its trailblazing work with this timely report,
Chief Executive, clearly setting out the growing commercial benefits of circular economy business
Green Finance Institute models. The finance sector has an opportunity to support the sectoral trends identified
by both scaling up the products and solutions outlined in this paper and developing
new, innovative financial solutions that generate both attractive risk-adjusted returns
and positive social and environmental outcomes,”
Erika Karp “One day in the future, in a circular economy we won’t even have the concept of
Founder and Chief Executive Officer, waste! This is how we can truly steward the resources of our planet, our economy,
Cornerstone Capital Group and humanity.”
Bertrand Camus “This publication offers a wealth of information on the circular economy as a source
Chief Executive Officer, of value creation. As it lays out drivers, potential actions and examples of circular
SUEZ economy opportunities across industries and asset classes, it is a real inspiration and
the basis of tangible evidence for attracting private funding on this essential transition.”
Eva Hinkers “Finance is a major enabler of a circular economy in the built environment. Currently,
Europe Region Chair, the added value of a circular economy approach is not taken into account when
Arup built environment investment decisions are made. Both public and private sector
financial services organisations can enable the adoption of circular practices in the
built environment sector, and in doing so overcome barriers and change incumbent
processes that often favour conventional linear solutions.”
Jyrki Katainen “It is really encouraging that the flow of private money to the circular economy is
President, increasing rapidly, as this report clearly shows. The value proposition for businesses,
the Finnish Innovation investors and whole society is clear. However, we know how hard it can be for a
Fund Sitra company to transform to circularity if upstream or downstream players in the value
chain are linear. Therefore, rapid and wide ranging systemic changes throughout the
value chains need to be supported by long-term policy frameworks, and continued
public investments.”
Jamie Butterworth “The circular economy is a powerful framework for driving new sources of value,
Founder and Chief enhancing resource productivity, and delivering a triple bottom line impact of financial,
Executive Officer, environmental and social returns. Our current £60 million fund, which closed at its
hard-cap with commitments from leading US, European and Australian institutional
Circularity Capital
investors, targets growth equity investments in businesses accelerating the transition
towards a circular economy.”
Mariana Mazzucato “Public finance is not about just fixing market failure—it is about actively co-creating
Professor and Director of and shaping markets. This paper highlights how governments are crucial to scale the
the Institute for Innovation circular economy by setting direction, providing incentives, financing infrastructure and
innovation, and using blended finance mechanisms to de-risk investments and attract
and Public Purpose,
private sector capital.”
University College London
Rodolfo de Benedetti “The circular economy encourages innovation, decouples economic growth from
Partner, Head of Fund Managers resource inputs, and is a powerful contribution to achieving global climate targets,
and Product Strategy, which is imperative. It offers many benefits in terms of environmental impact,
DECALIA Asset Management resource-saving, cost-cutting and economic growth. This major change in our
economic model will foster the emergence of new business models and create
substantial opportunities for the companies able to respond to this trend. Timing
is of the essence and this paper confirms the importance of the circular economy.
Publicly-listed and privately-held companies should act now. At DECALIA Asset
Management, we are already driving action on this topic since 2018, with our public
equity fund dedicated to the circular economy.”
Rob Kaplan “Waste has become an international crisis, with the equivalent of a garbage truck of
Founder and Chief plastics entering the oceans every minute. This paper provides a helpful resource for
Executive Officer, investors to understand how a circular economy can address global challenges at
Circulate Capital source, and where investment opportunities already exist to scale circular innovation,
build circular supply chains and develop systems to collect, sort, process, and recycle
waste. I hope investors will use this information to inform their own investment
strategies because we need many more participating in this sector. Through our
Circulate Capital Ocean Fund, we identify, incubate, and invest in opportunities
designed to prevent the flow of plastic into the ocean, and aim to catalyze capital by
proving that this sector is scalable and can generate competitive returns.”
Robin Millington “An extractive economic model damages ecological systems, which in turn creates
Executive Director, risks for the financial sector. This paper demonstrates how capital markets are waking
Planet Tracker up to the potential of the circular economy to address such environmental risks while
creating long-term economic value within planetary boundaries.”
Adam Wolfensohn “Systemic problems require systemic solutions, such as those offered by the circular
Managing Partner, economy. At Encourage Capital, we believe that investing in these solutions can
Encourage Capital generate both compelling returns and environmental impacts. This paper shows how
incorporating the circular economy in investment practices is already attractive, and
how investors can further capitalise on the transition.”
Hanna Roberts “Highlighting the crucial role the circular economy plays in addressing climate change
Sustainalytics’ Director, and other key ESG issues, this paper helps the investment community to understand
Engagement Services, the opportunities for growth and define strategies to accelerate the transition to a
Sustainalytics circular economy. At Sustainalytics, we have integrated this topic into our research
output and engagement programming, recognising that the finance sector has a key
role to play in building a viable alternative to the current linear economic model.”
Hendrik-Jan Boer “In this new paper, the Ellen MacArthur Foundation raises awareness amongst capital
Head of Sustainable Investments, allocators of the clear relevance of the circular economy, showing how environmental
NN Investment Partners and economic considerations can go hand in hand. At NN Investment Partners, the
circular economy is a key component of our Impact Equity strategies as it helps to
combat environmental issues such as climate change and waste production, while
providing attractive investment opportunities.”
Olivier Raybaud “A circular economy is crucial to solve ocean plastic pollution at scale. Regulations
Co-Founder and and consumption trends are creating fast-growing market opportunities for circular
Managing Partner, economy start-ups. This, in turn, creates a unique opportunity for investments which
Blue Oceans Partners generate both systemic impact and financial returns.”
Jeremy Oppenheim “We are undergoing a period of unprecedented change: climate, health and economic
Chair Blended emergencies are all emphasising that we need to shift from our current linear and
Finance Taskforce and extractive model, to a more circular, inclusive and nature-positive economic system.
Founding Partner, This paper emphasises that blended finance solutions can be a powerful way to enable
SYSTEMIQ this shift by using public money to mitigate investor risk and mobilise private capital for
net-zero tech solutions, circular business models and sustainable infrastructure.”
Leonardo Letelier “Scaling a circular economy will require the implementation of existing financing
Chief Executive Officer, solutions - green and sustainable bonds have already been used as tools to finance
SITAWI Finance for Good circular economy solutions - and the development of new ones. This paper lays
out how different players in the financial services sector can capture the economic
opportunity, whilst generating positive social and environmental impact.”
Foreword by
HRH The Prince of Wales
[Type here]
In January 2020, I launched the Sustainable Markets Initiative which aims to build
markets designed with the intent to ensure the economy operates in favour of people
and planet while contributing to growth and prosperity for all, now and in the future.
The circular economy, along with the circular ‘bioeconomy’ that further emphasizes
that Nature must be at the heart of this approach, is an important part of the solution to
help realise the ambitions of the Sustainable Markets Initiative:
 The circular economy is a systems approach that combines economic

opportunity with better environmental and societal outcomes
 It helps tackle the root cause of many issues, including climate change, loss of
biodiversity, and plastic pollution, by fundamentally rethinking business models
and redesigning entire value chains of products and used materials, via important
system changes.
 Over the past ten years the opportunity and inspiration of a circular economy has
gained enormous traction with businesses and governments alike. It is an idea
that is clearly mobilised and can have a very positive economic impact as well.
Now it is time to bring the circular economy to scale, and finance will play a crucial
role in doing so – and, if done right, will result in new forms of value creation and real
ecological,HRH The
societal andPrince
economic ofbenefits
Walesfrom accelerating this transition.
This is why I welcome this timely report, and the opportunities it lays out for the
financial services sector in embracing and accelerating the circular economy transition.
Preface
The circular economy is fast emerging globally, as companies and
governments increasingly recognise its potential to tackle the root causes of
climate change and other global challenges, while generating new and better
growth opportunities. As a solution that can scale fast, its relevance has only
become more apparent in recent discussions about economic renewal.
All aspects of finance will be vital to scale the transition to the circular
economy. Private sector investors, banks, and corporate finance
departments, as well as governments and other public sector bodies that
control trillions of dollars of public investment and set the regulatory
frameworks, all have crucial roles to play.
This paper focuses primarily on private sector finance and explores the
circular economy’s value creation potential for investors, banks, and other
financial services firms.
First, this paper shows how the circular economy can help achieve climate
and other ESG goals while creating opportunities for new forms of better
economic growth, effectively moving beyond the initial progress and focus
that ESG investment has achieved over recent years.
Second, it highlights how investors, banks, and insurers are already

capturing these opportunities, showing that the market for financing the
circular economy is rapidly taking off across asset classes and sectors.
Third, it provides a direction of travel for finance to fully capitalise on the

opportunity by helping to rapidly scale the circular economy.
This paper is intended as an initial exploration rather than a detailed analysis

of any individual aspect of finance. Its purpose is to stimulate discussion
about how the financial services sector can help scale the circular economy
to drive new and better growth that is more distributed, diverse and inclusive,
and help build an economy that is restorative and regenerative by design.
Andrew Morlet
Chief Executive Officer,
Ellen MacArthur Foundation
Contents
2 In support of this paper
7 Foreword
HRH The Prince of Wales
9 Preface
11 Executive summary
16 Section 1
The circular economy delivers on climate and other ESG
goals, while offering new and better growth opportunities
24 Section 2
The circular economy transition is happening
30 Section 3
The circular economy financing market is taking off
40 Section 4
How financial services firms can seize the
circular economy opportunity across sectors
56 Section 5
The way forward
60 Appendix
Circular economy growth potential by sector
90 Disclaimer
91 Acknowledgements
97 Endnotes
Executive
Summary
The circular economy financing market is taking off, with a steep increase
in activity over the last 18 months. Increasingly recognised as a crucial
part of the solution to climate change and other ESG issues, the circular
economy also offers significant opportunities for new and better growth.
Now is the time for finance to capitalise on this industrial transformation,
and help scale the circular economy.
Over the past two years, climate change and The circular economy can help meet
other environmental, social, and governance global climate targets by transforming
(ESG) issues have become key boardroom the way we produce and use goods.
topics for asset managers, banks, and other Relying solely on energy efficiency and
financial services firms. Clients expect switching to renewable energy will only
solutions and regulatory pressure is rising. address 55% of global greenhouse gas
The question is no longer whether climate (GHG) emissions.1 By adopting circular
change and other ESG issues matter to practices, we can reduce a significant
the financial services sector, but how it will proportion of the remaining 45%. For
address them. The circular economy is a example, circulating products and
crucial part of the answer to this question. materials – instead of producing new
ones – can help cut energy demand, by
Moving past today’s extractive ‘take-make- maintaining the energy that went into
waste’ linear model, the circular economy making them. In agriculture, adopting
offers a positive vision of an economy in circular principles is an effective way to
which products are designed to be reused, sequester carbon in the soil.
repaired or repurposed, and natural systems
are regenerated.
Design out WE ARE Keep products

SHIFTING
waste and TO A SYSTEM
and materials
pollution WHERE WE in use
Regenerate
natural
systems
Completing the picture: tackling the overlooked emissions

TOTAL CURRENT GLOBAL HOW THE CIRCULAR ECONOMY
GREENHOUSE GAS EMISSIONS HELPS TACKLE CLIMATE CHANGE
Design out waste and pollution

to reduce GHG emissions
across the value chain
55% 45% Keep products and materials in use

Energy Products to retain the energy embodied
and food
within them
Regenerate natural systems

to sequester carbon
in soil and products
Source: Ellen MacArthur Foundation, Material Economics, Completing the picture: How the circular economy
tackles climate change (2019)
Research suggests that if a circular economy practices at scale in five key

approach were adopted in just five sectors sectors could save businesses and
(steel, aluminium, cement, plastic, and households CNY 70 trillion (USD 10 trillion
food), annual GHG emissions would fall or 16% of China’s projected GDP) in 2040.5
by 9.3 billion tonnes of CO2e in 2050,
equivalent to the reduction that could More and more companies across industries
be achieved by eliminating all transport are adopting circular principles to reduce
emissions globally.2 In this way, the circular costs, increase revenues, and manage risks.
economy can play an important role in Circular solutions accounted for 13% of
managing climate-related risks. Philips’ revenues in 2019,6 while Caterpillar
offers more than 7,600 remanufactured
Implementing a circular economy can also products.7 The circular economy has
help address other ESG issues. For example, started transforming entire industries: in
a circular economy enhances biodiversity by fashion, clothing resale is expected to be
reducing the need for resource extraction bigger than fast fashion by 2029; and in
and by regenerating farmland. Moreover, it plastics and consumer packaged goods,
is estimated that a circular economy could profit pools along the value chain are being
create over half a million jobs by 2030 in transformed by increasing regulation, public
Britain alone, in activities such as resale, pressure, and innovation.8 Governments
remanufacturing, and recycling.3 are accelerating this shift, with the circular
economy a key pillar of the European Green
The circular economy presents Deal and circular economy roadmaps and
a multi-trillion-dollar economic legislation in place in countries including
opportunity China, Chile, and France.
Shifting towards a circular economy model Megatrends such as shifting demographics,

will not only deliver climate and other digitalisation, and resource scarcity are
ESG benefits, but also provide significant reinforcing the transition to a circular economy.
new and better growth opportunities. The coronavirus pandemic has highlighted
For instance, adopting circular economy many of the risks inherent to the linear
principles in Europe, in mobility, built economy and, in June 2020, more than 50
environment, and food could offer annual chief executives and global leaders endorsed
benefits of EUR 1.8 trillion (USD 2.1 trillion) the circular economy as a solution to build
in 2030.4 In China, applying circular back better in the wake of the pandemic.9
Number of public equity Number of outstanding

funds with circular corporate bonds with
economy focus circular economy focus
Conservative estimate
BlackRock
BNP Paribas 10 Alphabet
10
Candriam BASF
Cornerstone Capital Group Daiken Corporation
Credit Suisse (2 funds) Henkel
Decalia Intesa Sanpaolo
Goldman Sachs Kaneka Corporation
NN Investment Partners
RobecoSAM
6 MOWI 6
Owens Corning
PepsiCo
Sole focus on Philips
circular economy
Partial focus on Sole focus on
circular economy circular economy
1 Partial focus on
circular economy
0
2018 2019 H1 * Year to date through 2018 2019 2020*
2020 August 2020
Number of private market funds

with circular economy focus
30
Conservative estimate. Includes venture capital,
private equity and private debt funds
25
x10
increase in the
number of private 14
market funds
from 2016
to H1 2020
5
3
2016 2017 2018 2019 H1 2020
Source: Ellen MacArthur Foundation

“Since the beginning of 2020,

assets managed through public
equity funds with the circular
economy as the sole or partial
investment focus have increased
6-fold, from USD 0.3 billion
to over USD 2 billion.”
The financial sector is starting initiative dedicated to the circular

to capture the circular economy economy. Insurance firms including
opportunity AXA are developing new solutions for
circular business models such as peer-to-
The last 18 months have seen a steep peer sharing.
increase in the creation of debt and
equity instruments related to the circular Existing examples provide early
economy. While no such fund existed in indications as to how the circular economy
2017, by mid 2020 ten public equity funds can create value for asset managers,
focusing partially or entirely on the circular banks, and other financial services firms.
economy have been launched by leading They demonstrate its potential to attract
providers including BlackRock, Credit inflows: since the beginning of 2020,
Suisse, and Goldman Sachs. assets managed through public equity
funds with the circular economy as the
In the last 18 months at least ten corporate sole or partial investment focus have
bonds to finance circular economy activity increased 6-fold, from USD 0.3 billion
have been issued with help from Barclays, to over USD 2 billion.10 In the first half of
BNP Paribas, HSBC, ING, Morgan Stanley, 2020, on average these funds performed
and others. 5.0 percentage points better than their
Morningstar category benchmarks,
Since 2016, there has been a tenfold indicating how the circular economy
increase in the number of private market can deliver excess returns. Future
funds, including venture capital, private research will be required to see whether
equity and private debt, investing in outperformance persists over time.
circular economy activities.
The circular economy can help meet
A similar trend is visible in bank lending, demands from regulators and other
project finance, and insurance. Intesa stakeholders, such as to those expressed
Sanpaolo launched a EUR 5 billion (USD by Bank of England Deputy Governor Sam
6 billion) credit facility, Morgan Stanley Woods in his July 2020 letter on climate
launched a firm-wide Plastic Waste change to finance CEOs.11 In addition,
Resolution and the European Investment building circular economy expertise and
Bank partnered with five of Europe’s know-how can help financial institutions to
largest national promotional banks and engage with corporate clients, for who the
institutions to launch a EUR 10 billion circular economy has increasingly become
(USD 11.8 billion) loan and investment a boardroom topic.
The way forward
Now is the time for finance to capitalise on this

momentum and help accelerate the circular
economy transition. While the recent growth
in financing is promising, far more capital and
activity will be needed to scale the circular
economy and fully seize its opportunity.
All aspects of finance will play an important

role in bringing forward the transition to
a circular economy. Investors, banks, and
other financial services firms have the
scale, reach, and expertise to stimulate
and support businesses to make the
shift. This is not just about investing in
perfectly circular companies or divesting
from extractive ones, but about engaging
with and encouraging companies in every
industry to make the transition.
Governments, central banks, and financial

regulators can complement and enable the
shift in the private sector. Governments can
directly invest in circular economy activities
and innovation, set direction and level the
playing field through, for example, pricing
externalities. They can enhance transparency
by mandating disclosure and standardising
definitions and metrics for circular activities,
such as in the EU Taxonomy.12 Central
banks and financial regulators can integrate
circular concepts in risk assessments and
modelling, and could explore its integration
in less conventional methods such as
green quantitative easing. Blended finance
solutions, combining public, private and
philanthropic capital, can fund harder-to-
finance circular economy infrastructure and
long-term innovation. Public equity funds with circular
economy as a sole or partial investment
Better data will be required to underpin
focus on average peformed
5.0
the shift. If capital is to be reoriented at
scale, more transparent and consistent
data on circularity performance (both
historical and forward-looking) will be
crucial. In addition to scaling dedicated
circularity measurement tools such as the
Ellen MacArthur Foundation’s Circulytics13,
integration of circularity metrics in leading
existing frameworks, such as the Task Force
on Climate-related Financial Disclosures
(TCFD)14 and the Sustainable Accounting
percentage points
Standards Board (SASB)15 will be needed. better than their benchmarks
Finally, the adaptation of accounting rules in H1 2020
would enable a more representative valuation
of circular business models and linear risks. Source: Ellen MacArthur Foundation
1
The circular economy

delivers on climate and
other ESG goals, while
offering new and better
growth opportunities
Climate change and environmental, social, and
governance (ESG) topics have become key boardroom
topics for financial services firms, their clients, and
regulators. The circular economy is an essential part
of the solution to deliver on related targets and
manage associated risks. Moreover, as an industrial
transformation agenda, it is a source of new and better
growth and value creation that goes beyond ESG.
1.1 Climate change and ESG have

become key boardroom topics
within the financial sector
Climate change and other societal portfolios to net-zero GHG emissions
challenges pose significant by 2050 as part of the Net-Zero Asset
investment risks that are Owner Alliance.20 In 2020, two notable
increasingly recognised by the examples of the scale of this shift in the
financial sector. financial sector have emerged: BlackRock,
the world’s largest asset manager joined
In particular, it is becoming widely Climate Action 100+, an investor group
acknowledged that climate-related risks aiming to improve climate disclosure
are a source of financial risk and a potential and align business strategy with the
threat to financial stability. goals of the Paris Agreement; and global
investment bank Barclays set a net-zero
As a response, major banks, asset carbon target for 2050.21,22
managers, and insurers
are spending more time Governments, financial regulators,
assessing climate risks and and central banks are also taking
opportunities in their portfolios, action to turn climate-related risks
and developing their ESG into opportunities.
strategies and capabilities.
Policymakers are putting in place enabling
ESG investment skyrocketed to over standards and regulations, such as the EU’s
USD 40 trillion in 2020, up from USD classification system for sustainable activities
23 trillion in 2016, according to research (EU Taxonomy), green bond standard, and
firm Opimas and the Global Sustainable climate benchmarks. Central banks are
Investment Alliance.16,17 Deutsche Bank also exploring the role they can play in the
estimates that 95% of assets under transition to a climate-neutral economy. For
management (AUM), or USD 130 trillion, example, the European Central Bank (ECB)
will be governed by an ESG mandate announced that it has been examining how
by 2030.18 The number of signatories it can make use of its trillion-euro asset
of the UN Principles for Responsible purchase scheme to pursue green objectives.
Investment (PRI) grew from 100 in 2006 Meanwhile, the People’s Bank of China,
to over 3,000 in 2020, with over USD along with six other government agencies,
100 trillion AUM.19 More than 50 financial issued the Guidelines for Establishing the
institutions have publicly committed to Green Financial System.23 Central banks and
set emissions reduction targets through supervisors have also established platforms
the Science Based Targets (SBT) initiative, such as the Network for Greening the
and institutional investors representing Financial System (NGFS) and the Task
nearly USD 5 trillion AUM in 2020 have Force on Climate-related Financial
committed to transition their investment Disclosures (TCFD).24
Our current economic

model is take-make-waste
Highly extractive, wasteful economic models...
TAKE MAKE WASTE

Extraction of & USE of materials not
finite resources recycled in closed loop
359m tonnes 1
50%
Plastics (2018)
of all plastics are
98%
7
single-use4
98m 60%
Fashion & tonnes 2
(2015)
textiles of clothing is landfilled or burnt
99%
8
within 1 year of being made5
82m 33%
tonnes 3
Food & (2017)

agriculture
98%
of edible food 9
is thrown away6
1 359 million tonnes of plastic were put on the market in 2018, predominantly derived from fossil-based virgin 5 Credit Suisse, Disruption in our wardrobes. Fashion and the circular economy. (2019) https://www.credit-suisse.com/
feedstock. Plastics Europe, Plastics - the Facts (2019) about-us-news/en/articles/news-and-expertise/fashion-and-circular-economy-201905.html
2 The textiles industry used 98 million tonnes of non-renewable resources in 2015, including oil to produce synthetic 6 FAO, Global food losses and food waste (2011), http://www.fao.org/3/mb060e/mb060e.pdf; FAO, Food wastage: Key
fibres, fertilisers to grow cotton, and chemicals to produce, dye, and finish fibres and textiles. Ellen MacArthur facts and figures (2019), http://www.fao.org/news/story/en/item/196402/icode/
Foundation, A New Textiles Economy: Redesigning Fashion’s Future (2017)
7 Figure for plastic packaging. Ellen MacArthur Foundation, World Economic Forum and McKinsey&Co., The New
3 The agriculture industry extracts large quantities of phosphorus, potassium and other finite resources per year, with Plastics Economy, Rethinking the future of plastics (2016)
82 million tonnes of P2O5 and K2O synthetic fertilisers used in 2017, including a significant proportion for food
production. Ellen MacArthur Foundation, Cities and circular economy for food (2019); FAOSTAT, Fertilizers by nutrient
8 Ellen MacArthur Foundation, A New Textiles Economy: Redesigning Fashion’s Future (2017)
(2017), http://www.fao.org/faostat/en/#data/RFN/visualize
9 Less than 2% of the valuable biological nutrients in food by-products and organic waste (excluding manure) generated
4 https://www.unenvironment.org/interactive/beat-plastic-pollution/
in cities is composted or otherwise valorised. Ellen MacArthur Foundation, Cities and circular economy for food (2019)
... Result in massive economic value loss

and many negative impacts.
ANNUAL SHARE OF OTHER

ECONOMIC ANNUAL NEGATIVE
VALUE LOSS CARBON BUDGET 13
IMPACTS
by 2050
120bn 10
Plastics
USD
15% More plastics than
fish in the ocean
by 2050 (by weight)14
500bn 11
22m
tonnes of plastic
USD Fashion &
26% microfibres entering
the ocean between
textiles
2015 and 205015
$
$
1,300bn 12 $
For every dollar spent
USD on food, society is paying Food &
77% two dollars in health,
environmental, and
agriculture
economic costs16
10 Value of plastic packaging material lost. Source: Ellen MacArthur Foundation, World Economic Forum and
McKinsey&Co., The New Plastics Economy - Rethinking the future of plastics (2016) 13 Share of global annual carbon budget by 2050 under business as usual, based on the IEA 2°C pathway by 2050 and
taking analyses from: World Economic Forum, Ellen MacArthur Foundation and McKinsey & Company, The New
Plastics Economy — Rethinking the future of plastics (2016); Ellen MacArthur Foundation, New Textiles Economy:
11 Value lost every year due to clothing underutilisation and the lack of recycling. Source: Ellen MacArthur Foundation,
Redesigning fashion’s future (2017); Ellen MacArthur Foundation, Cities & circular economy for food (2019). On their
A new textiles economy: Redesigning fashion’s future, (2017)
current track these 3 sectors alone would overshoot the 2050 annual carbon budget.
12 Direct economic value loss resulting from edible food waste, as well as Nitrogen and Phosphorus loss from inedible
14 Ellen MacArthur Foundation, World Economic Forum and McKinsey&Co., The New Plastics Economy - Rethinking the
food waste, other organic waste, sewage, and from N & P runoff from mismanaged fertiliser and manure. Ellen
future of plastics (2016)
MacArthur Foundation, Cities & circular economy for food (2019).
15 Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion’s future (2017)
16 Ellen MacArthur Foundation, Cities and circular economy for food (2019)
1.2 The circular economy is

crucial to deliver on climate
and many other ESG goals
Today’s take-make-waste extraction between 2015 and 2060.25 Such
economy is hugely wasteful, and an extractive economy amounts to billions
its shortcomings are becoming of dollars of value being wasted in raw
more apparent by the day. materials and energy, underutilised assets,
and disposal costs. Alongside leading to
We take finite resources from the ground significant economic value loss, this system
to make products, which we use for often aggravates many global challenges, such as
a short time, and then throw away. In a climate change and pollution. Figure 1 shows
business-as-usual scenario, this linear model how the current take-make-waste economy
will lead to a doubling of global material plays out in three key sectors.
Box 1: The concept of a circular economy
Moving past the current take- working effectively at all scales, material innovation, and
make-waste extractive linear and creating an economy that is regenerative farming.
model, a circular economy distributed, diverse, and inclusive.
aims to redefine growth, The Appendix provides an
focusing on positive society- The circular economy spurs overview of large corporates and
wide benefits. It entails gradually innovation and creates value innovators that are already using
decoupling economic activity through a range of strategies and the circular economy to create
from the consumption of finite levers, including product redesign value. Table 1 provides an example
resources. Underpinned by a for longevity and repairability, of how the circular economy
transition to renewable energy digital-enabled resale and sharing can create value in the plastic
sources, it is based on three platforms, remanufacturing, packaging value chain.
principles: design out waste and
pollution; keep products and
materials in use; and regenerate
FIGURE 1
natural systems.
Transitioning to a circular
economy not only addresses the
negative impacts of the linear
WE ARE Keep products
economy, but more importantly Design out
it represents a systemic shift SHIFTING
waste and TO A SYSTEM and materials
that builds long-term resilience,
pollution WHERE WE in use
generates business and
economic opportunities, and
provides environmental and
societal benefits.
The concept recognises the Regenerate

importance of the economy natural systems
FIGURE 2
The circular economy plays a vital part in reducing the 45% of global
GHG emissions associated with making products and growing food
TOTAL CURRENT GLOBAL HOW THE CIRCULAR ECONOMY
GREENHOUSE GAS EMISSIONS HELPS TACKLE CLIMATE CHANGE
Design out waste and pollution

to reduce GHG emissions
across the value chain
55% 45% Keep products and materials in use

Energy Products
and food
to retain the energy embodied
within them
Regenerate natural systems

to sequester carbon
in soil and products
Source: Ellen MacArthur Foundation, Material Economics, Completing the picture: How the circular economy tackles climate change (2019)
The circular economy is key to emissions and achieving climate targets.30

achieving climate targets, as it Suggested strategies in ten key sectors can
reduces GHG emissions associated be found in the Appendix.
with making products and
growing food. By redesigning production and
consumption systems, the circular
Energy efficiency and moving to renewable economy also contributes to
energy can address 55% of global GHG tackling pollution, enhancing
emissions.26 To address the remaining 45% biodiversity, and achieving other
of emissions (22.1 billion tonnes of CO2e UN Sustainable Development
per year),27,28 we also need to transform Goals (SDGs).
how we design, make, and use products
and food (Figure 1). Adopting circular It has been shown that applying circular
economy principles in just five key areas economy principles can improve air quality,
(steel, cement, aluminium, plastics, food) reduce water contamination, and enhance
could achieve a reduction totalling 9.3 biodiversity.31 For example, in a circular
billion tonnes of CO2e in 2050, which economy, materials, products, and systems
is the equivalent to eliminating current in the plastics and packaged goods sector
emissions from all forms of transport are designed to eliminate ocean pollution
globally.29 Concrete circular activities at source. In the fashion sector, circular
include designing for durability and business approaches, such as resale and
remanufacturing, reusing products and subscription models, increase clothing
components, recycling materials, and utilisation rates and thereby reduce the
implementing regenerative cropland amount of water needed for production
approaches. As signalled at COP25 and and decrease industrial water pollution
already demonstrated by revised Nationally from the dyeing and treatment of new
Determined Contributions (NDCs), the textiles.32 In agriculture, regenerative
integration of circular economy strategies practices33 can reverse soil depletion,
can play an important role in finding more enhance food security, and improve the
comprehensive solutions to reducing nutrient content of food.34
1.3 The circular economy presents a

multi-trillion dollar economic opportunity
The circular economy offers The circular economy can help
significant new and better growth create value and manage risks for
opportunities, over and above entire value chains and industries.
providing a viable and positive
way to address ESG concerns. Plastics and packaged goods provide
a good example, as shown in Table 1. In
In China, circular economy opportunities in fashion, the resale market grew 25 times
the built environment, mobility, nutrition, faster than the broader retail sector
textiles, and electronics sectors could save in 2019.41 Meanwhile electronics and
businesses and households around CNY technology companies, such as Philips,42
70 trillion (USD 10 trillion, or 16% of China’s have already seen strong results through
projected GDP) by 2040.35 In Europe, their circular economy initiatives. Moreover,
moving towards a circular economy could predictions indicate that circular economy
yield annual benefits of up to EUR 1.8 trillion approaches could stimulate employment,
(USD 2.1 trillion) by 2030 by reducing annual for example it is estimated that the circular
primary resource costs, other household economy in Britain could create over half a
and government expenditures, and negative million jobs by 2030 through activities such
externalities in the mobility, food, and built as resale, remanufacturing, and recycling.43,44
environment sectors.36
As an industrial transformation,
The circular economy offers the circular economy is a source
tangible new revenue and cost of new and better growth and
saving opportunities for business. value creation.
For example, by refurbishing used parts and The circular economy presents a vision for
remanufacturing engines, Renault offers reshaping entire industries towards long-
remanufactured components and spare term value creation. For example, Balbo
parts with as-good-as-new warranties to Group, the leading organic sugarcane
customers for prices that are 30–50% lower producer in Brazil, has demonstrated how
than for new replacement parts.37 Veolia shifting to regenerative agricultural practices,
generated EUR 4.8 billion (USD 5.6 billion) – including restoring nutrients to the soil,
in 2018, the equivalent of 50% of its waste eliminating chemical inputs, increasing
revenues, from circular economy activities biodiversity, and up-skilling workers – leads
including recycling, biogas, and wastewater to ESG best practice while improving yields
recycling.38 Danone has enhanced its supply by 20% compared to conventional sugarcane
resilience by investing in regenerative production.45 Driving such an industrial
agriculture39 which has also helped it to transformation, the circular economy spurs
meet demand from younger generations innovation, creates business opportunities,
who are increasingly interested in where and and enhances resilience, providing a strong
how their food is grown.40 economic rationale that goes beyond ESG.
TABLE 1
Overview risks linked to the current linear system, and circular economy
value creation opportunities in the plastic packaging value chain
Risks linked to the Circular economy value
current linear system creation opportunities
Stricter regulation Innovation and growth opportunity

including taxes (e.g. as of 2021 the EU will for suppliers who can provide the solutions
introduce a tax on non-recycled plastic needed by FMCGs and retailers, e.g. demanded
packaging waste)46, mandatory design measures, by companies representing 20% of all plastic
Raw material and recycled content requirements (e.g. 25% for packaging produced globally (including Ahold-
producers, packaging PET bottles by 2025 in EU)47 Delhaize, Coca-Cola, Colgate, Mars, Mondelez,
producers and PepsiCo, Walmart) that have signed up to the
suppliers to the Investor pressure vision of a circular economy for plastic, and 2025
plastics industry targets, through the New Plastics Economy Global
e.g. the shareholder advocacy group As You Sow
Commitment.48
filed plastics-related resolutions at the 2019 annual
shareholder meetings for DowDuPont, Chevron,
ExxonMobil and others.49 Future-proofing the supply chain
by investing in long-term growth, e.g. global plastics
Downside earning risk producer Borealis acquired several plastics recyclers.
due to the lack of adaptation to the changing
demand and needs of Fast-Moving Consumer Anticipation of stricter regulation
Goods companies (FMCGs) and retailers, e.g. e.g. on mandatory recycled content targets.
Unilever pledged to halve its virgin plastics use
by 2025.
Delivering on climate change
objectives, e.g. GHG emissions reduction through
Stranded assets risk
recycling (in a business-as-usual scenario the
as supply chain dynamics are changing
plastics sector will account for 15% of the global
(see Box 3).
annual carbon budget by 2050)50
Risk to brand and social Innovation and growth opportunity

license to operate by responding to customer demand, e.g
due to increased customer awareness about new delivery models, reusable packaging,
plastic pollution, with clean-ups and brand alternative materials.
Packaged goods audits exposing the world’s largest brands.

Brand differentiation
companies, retailers,
Stricter regulation by being perceived as leader in eliminating
and hospitality plastic pollution.
including plastic bans, extended producer
and food service
responsibility (EPR) (e.g. 63 countries had EPR
companies measures in place in 2018,51 such as product-
Anticipation of stricter regulation
take back schemes, deposit-refund, and waste e.g. on mandatory recycled content targets.
collection; the new EU EPR schemes for
certain single-use plastic products cover costs Delivering on climate change
of collection, awareness raising, clean-up, objectives and net-zero strategies, e.g. Unilever,
reporting), mandatory design measures, and Danone and other major corporations teamed
recycled content requirements.52 up to share ways of cutting emissions, to which
reusable packaging and recycled plastics can
Investor pressure contribute greatly by retaining embodied energy.53
Nearly a third of both Starbucks’ and McDonald’s
shareholders supported resolutions by As You
Sow to phase out the use of plastic straws and
polystyrene cups, and to develop plans to meet
packaging reuse and recycling goals.54
Stricter regulation Innovation and growth opportunity

landfill bans/taxes, incineration taxes, waste by responding to the demand and needs of
import restrictions (e.g. China’s 2017 National FMCGs and retailers, in particular on supplying
Collection, sorting, high-quality recycled material, e.g. Nestlé is
Sword Policy effectively banning a wide variety
and recycling industry of waste imports, including plastics such as PET, committing up to CHF 2 billion (USD 2.1 billion)
PE, PVC and PS).55 by 2025 to source food-grade recycled plastic.
Enhancing resilience of supply chains

e.g. by anticipating stricter regulation such as
increased compliance costs or import bans.
2
The circular
economy transition
is happening
More and more companies across industries are adopting
circular principles to reduce costs, increase revenues,
and manage risks. Governments are accelerating this
shift, while megatrends such as shifting demographics,
digitalisation, and resource scarcity are reinforcing the
transition to a circular economy.
2.1 More and more companies are already

innovating towards the circular economy
to reduce costs, increase revenues,
and manage risks.
Large corporates are making shrink by 15%.61 In plastics, the New Plastics
bold commitments and taking Economy Global Commitment unites
action in line with circular companies representing 20% of all plastic
economy principles. packaging produced globally – as well
as governments, industry associations,
Unilever has pledged to halve its virgin investors and other organisations – behind
plastics use by 2025 and Solvay has set a common vision and a set of agreed
a goal to more than double the sales actions and targets for 2025 to address
of products based on renewable or plastic pollution at its source and targets
recycled resources to 15% of turnover.56 for 2025 (See ‘The circular economy has
According to a Gartner study, 70% of started transforming entire industries’
supply chain leaders are planning to invest infographic on following page).62
in the circular economy in 2020-2021.57
A number of companies are also taking Governments are increasingly
concrete action and implementing circular recognising the potential of the
business models. For example, Cisco circular economy framework to
operates a Takeback and Reuse Program increase competitiveness,
which, through encouraging cycles of use, develop more resilient supply
has created subscription revenue for the chains, and deliver on societal
company in different markets.58 Caterpillar, and environmental objectives.
through its Cat Reman programme,
reduces owning and operating costs The number of regulations and policy
by providing same-as-new quality initiatives geared towards the circular
components at a fraction of the cost of a economy is rising quickly. Examples include
new part.59 Other innovative examples of national roadmaps and circular economy
circular economy principles being put into legislation in Chile, China, Finland, France,
practice across a range of sectors can be and the Netherlands. In 2019, the European
found in the Appendix. Commission presented the European Green
Deal, of which the circular economy is a
As these efforts are scaling up, key pillar, and in early 2020 it published
the circular economy has started the Circular Economy Action Plan, which
transforming entire industries. includes a detailed set of measures to be
implemented over the next five years.63 In
In fashion, for example, clothing resale is 2018, China and the European Commission
expected to be bigger than fast fashion signed a memorandum of understanding
by 2029.60 Early insights also suggest on circular economy collaboration. In 2019,
that resale models have been more the UN 4th Environmental Assembly saw
resilient during the Covid-19 crisis, with the adoption of a resolution on sustainable
the online second-hand market set to consumption and production which
grow 69% between 2019 and 2021, while explicitly references the circular economy
the broader retail sector is projected to as a key delivery mechanism.64
The circular economy

has started transforming
entire industries
Number of companies globally with transformative 2025 plastics

circularity commitments grew from 1 to over 200 in just 3 years*
2020 Represents
200+
signatories
20%
of all plastic
packaging
produced
globally
2019
100+
signatories
2018
11
signatories
2017
1 *Refers to January of each year

signatory
Source: Ellen MacArthur Foundation, New Plastics Economy initiative, Global Commitment: 2019 Progress Report (2019)
Resale expected to be bigger The sharing economy market

than fast fashion by 2029 is expected to grow twentyfold
(USD Billion) by 2025 (USD Billion)
80
Fast fashion
Second-hand
43
$335bn
36
2025
28
22
10
$15bn
2009 2019 2029 2015
Source: thredUP (GlobalData Market Sizing), Source: PwC, The Sharing Economy (2015)
ThredUP 2020 Resale report (2020)
The refurbished
medical equipment
9%
Compound
market is expected annual
to nearly double growth rate
by 2025 2019
(USD Billion)
$14bn
2025
$23bn
Source: Research&Markets, Refurbished Medical Devices Market Research Report by Product - Global Forecast to 2025 - Cumulative Impact of COVID-19 (2020)
TABLE 2
Overview of initiatives aiming to define, measure,

or disclose circular economy activities
The circular economy is one of the The Global Reporting Initiative

1 5
six key environmental objectives updated their Waste Reporting
of the upcoming EU Taxonomy Standard 306 in May 2020 to include
on sustainable finance, which aims circular economy principles.71
to create the first widely accepted
‘green list’ for investors of sustainable The Materials Circularity
6
economic activities. A circular Indicator, developed by The Ellen
economy Categorisation System has MacArthur Foundation and Granta
been proposed by an expert group to Design, is an assessment tool which
contribute to this work.65 The importance allows companies to improve product
of the taxonomy was reinforced by the design and material procurement by
adoption of Taxonomy Regulation by the identifying additional circular value.72
European Parliament in June 2020.66,67
The Circular Transition
7 Indicators by the World Business
2 The Ellen MacArthur Foundation’s
Circulytics is the most Council on Sustainable Development
comprehensive company-level is a self-assessment framework for
circularity measurement tool to companies to help them understand the
date, revealing the extent to which a circularity performance of their material
company has achieved circularity across flows and energy consumption.73
its entire operations.68
Definitions and metrics like the ones
3 The New Plastics Economy Global above can inform and reinforce other
Commitment Annual Progress key initiatives (e.g. SASB,74 TCFD,75 and
Report provides an unprecedented level CDP76), help harmonise non-financial
of transparency on how 200+ industry metrics and reporting, and help
signatories are progressing towards a investors assess the opportunities and
circular economy for plastics.69 risks of transitioning from today’s linear
system to a circular economy.
Circular economy is one of the
4 seven system transformations
which the World Benchmarking
Alliance will use to benchmark 2,000
keystone companies on the SDGs.70
“Millennials increasingly
prefer access over
ownership for items
including cars, music,
and luxury goods, and
their growing awareness
of environmental and
social issues is changing
purchasing patterns and
brand loyalty dynamics”
Several megatrends are The Covid-19 crisis has shown

accelerating this inevitable shift how vital the transition to the
away from today’s linear model to circular economy is.
the circular economy.
The early stages of the crisis highlighted
The impacts of climate change, biodiversity the fragility of many global supply chains,
loss, resource scarcity, waste, and pollution this was not limited to but illustrated by
point to the urgent need for a system medical equipment availability issues.
change. Moreover, shifting demographics In this specific case, circular principles
and customer demands are creating strong provide credible solutions: design
pull factors for the circular economy and product policy factors such as
transition. For example, urbanisation leads repairability, reusability, and potential for
to higher population density, enabling local remanufacturing offer considerable
more effective circulation of goods opportunities in resilience (stock
and materials. Studies also show that availability) and competitiveness.
millennials increasingly prefer access over
ownership for items including cars, music, The circular economy offers the potential to
and luxury goods, and that their growing rebuild at lower cost, reduce the likelihood
awareness of environmental and social of future shocks, and create greater
issues is changing purchasing patterns and resilience within industry and society, which
brand loyalty dynamics.77 Digitalisation, is valuable beyond the current situation.78
automation, artificial intelligence, and In June 2020, more than 50 CEOs and
other innovations open up new circular other influential individuals signed a joint
economy opportunities, such as digital- statement published in the Financial Times
enabled sharing and resale platforms, and endorsing the circular economy as a
decentralised production using 3D printing. solution to better growth.79
3
The circular
economy financing
market is taking off
The last 18 months have seen a steep increase in the
creation of debt and equity instruments related to the
circular economy across private and public markets.
These initial products and services indicate how the
circular economy can become a key driver of value
creation for investors, banks, and other financial
services firms.
3.1 Financial services activity in the circular

economy has risen steeply recently
The past three years have seen The RealReal, which raised USD 300 million
significant growth in capital in an initial public offering (IPO) in 2019.
market circular economy activity,
particularly in the last 18 months. Similar growth patterns can be
seen on the fixed-income side.
The number of public equity funds
investing in the circular economy grew In the last 18 months, at least ten corporate
from one in 2018 to ten by the middle of bonds were issued with part of the
2020, including funds managed by some proceeds available to be used for circular
of the world’s largest asset managers, activities, totalling over USD 10 billion,
including BlackRock, Credit Suisse, and and involving leading investment banks
Goldman Sachs (Figure 4). The investable including Barclays, BNP Paribas, Deutsche
universe is expanding as existing publicly Bank, Goldman Sachs, HSBC, Intesa
listed companies adopt circular economy Sanpaolo’s Banca IMI, Mizuho Financial
principles and new entrants emerge, such Group, Morgan Stanley, Rabobank, and
as the online luxury fashion resale platform Société Générale, among others (Figure 5).
“The investable universe

is expanding as existing
publicly listed companies
adopt circular economy
principles and new
entrants emerge”
Early-stage and growth-stage both large institutions, such as AXA, and

investing, including venture innovative start-ups.
capital, private equity and
private debt, also have seen a Governments, multilateral
rapid acceleration of circular development banks (MDBs),
economy activity. and development finance
institutions (DFIs) around the
The number of private market funds world are financing circular
with a circular economy focus has economy opportunities.
grown tenfold since 2016, and start-ups
developing plastic alternatives have The China Development Bank has helped
raised more than USD 850 million in finance the Qaidam Circular Economy
funding in the last three years (Figure Pilot Zone, which includes CNY 400 billion
6).80 Significant financing has also been (USD 56 billion) for the construction of six
raised in the last three years for circular industrial bases.83 The circular economy
economy projects on the US private is a key pillar of the EU Commission’s
activity bond market, including over EUR 1 trillion (USD 1.2 trillion) EU Green
USD 500 million for projects turning Deal Investment Plan.84 The European
agricultural by-products into Investment Bank (EIB) has provided
commercial products.81,82 almost EUR 2.5 billion (USD 2.9 billion) in
lending for circular projects over the last
Bank lending, project finance, five years, as well as a EUR 100 million
and insurance also show (USD 118 million) commitment in the
evidence of increasing circular European Circular Bioeconomy Fund,
economy activity. and it has launched, together with five
European national promotional banks
Although the level of activity is harder to and institutions, a EUR 10 billion (USD
assess based on publicly available data, 11.8 billion) loan and investment initiative
there seems to be a shift occurring. A range dedicated to the circular economy.85 The
of banks have become active in financing Australian government, through public
circular companies, including a EUR 5 body CEFC, has implemented a AUD
billion (USD 5.9 billion) credit facility by 100 million (USD 71 million) Australian
Intesa Sanpaolo; a 2020 financing target Recycling Investment Fund to invest in
of EUR 1 billion (USD 1.2 billion) by ABN projects aligned with the principles of a
Amro; and dedicated lending programmes circular economy.86
by ING and Rabobank. In addition, there
has been a rise in private and blended See Chapter 4, for a more comprehensive
instruments to fund infrastructure for the overview of existing circular economy
circular economy, as well as new insurance instruments and services across investing,
solutions for sharing models offered by banking, and insurance.
“In the last 18 months, at

least ten corporate bonds
were issued with part of the
proceeds available to be used
for circular activities,
totalling over USD 10 billion”
FIGURE 4 FIGURE 5
Number of public equity Number of outstanding

funds with circular corporate bonds with
economy focus circular economy focus
Conservative estimate
BlackRock
BNP Paribas 10 Alphabet
10
Candriam BASF
Cornerstone Capital Group Daiken Corporation
Credit Suisse (2 funds) Henkel
Decalia Intesa Sanpaolo
Goldman Sachs Kaneka Corporation
NN Investment Partners 6 MOWI 6
RobecoSAM Owens Corning
PepsiCo
Philips
Sole focus on
circular economy
Partial focus on Sole focus on
circular economy circular economy
1 Partial focus on
circular economy
0
2018 2019 H1 * Year to date through 2018 2019 2020*
2020 August 2020
FIGURE 6
Number of private market funds

30
with circular economy focus
Conservative estimate. Includes venture capital,
private equity and private debt funds
25
x10
increase in the 14
number of private
market funds
from 2016
to H1 2020
5
3
2016 2017 2018 2019 H1 2020

3.2 Early examples indicate how the circular

economy transition is already creating
value for financial services
Evidence on performance is only beginning to emerge and the
track record is still limited, yet initial products and services give a
good indication of how the circular economy can become a value
driver for the financial sector.
3.2.1 Attract inflows

Early evidence suggests that circular economy funds can meet
client demand for investment strategies that seek competitive
returns while benefiting society and the environment.
Albeit starting from a low base, the total amount of assets managed through
public equity funds with the circular economy as sole or partial investment focus
increased 6-fold since the beginning of 2020, from USD 0.3 billion to over USD 2
billion (see Figure 7).87
FIGURE 7
Assets managed through public equity funds

with circular economy focus increased sixfold
in the first eight months of 2020
>$2bn31st August 2020
x6
increase
$0.3bn
1st January 2020

3.2.2 Generate financing and advisory business

Circular economy expertise and products are becoming key
draws for CEOs and boards, and will help engage corporate
and institutional clients.
Hundreds of companies – including large global corporates such as Alibaba,

Coca-Cola and Philips – are adopting circular economy principles, often with
direct implications for their operations, supply chains, and financing needs.
Transforming production lines, business models, and material use can require
significant investment. For example, Nestlé have committed up to CHF 2 billion
(USD 2.2 billion) by 2025 to shift from using virgin plastic to sourcing food-
grade recycled plastic.88 Circular business models, such as product-as-a-service
or sharing models, affect cash flow profiles and balance sheets in a different
way from ownership-based models. Renault have taken advantage of this by
offering battery leasing arrangements for electric vehicles and launching ZITY,
an all-electric car-sharing service.89 Keeping assets in use through reselling, from
building materials to fashion items, requires assessments of residual value and
the existence of functioning marketplaces. For example, in Brazil HP partners
with Sintronics to recover and create value out of HP end-of-use electronic
equipment, which enables their clients to reduce costs by up to 30%, and
results in 97% of the collected materials and components being returned into
the supply chain.90 Innovative cross-value chain partnerships can also present
questions on liabilities and value distribution, requiring particular expertise.
Many leading global banks have already published thought leadership pieces
on the circular economy, and have started supporting clients in their transition
through expert advisory services, capital raising, and direct financing and
investment dedicated to this topic. Examples include tailored products and
technical and financial advisory support by ABN Amro, BNP Paribas, EIB
Advisory, ING, Intesa Sanpaolo (e.g. through its Circular Economy Lab), and
Rabobank, among others. Goldman Sachs has made the circular economy one
of the key pillars in its USD 750 billion sustainable finance target, while Morgan
Stanley has made a Plastic Waste Resolution to prevent, reduce, and remove 50
million tonnes of plastic waste from entering the environment by 2030, through
providing structured products, financing, and advisory for plastics innovation,
among other initiatives.
“Hundreds of companies are

adopting circular economy
principles, often with
direct implications for their
operations, supply chains,
and financing needs.”
3.2.3 Offer competitive risk-adjusted returns

By adopting circular principles companies can generate
new sources of revenue, reduce costs, spur innovation,
and mitigate certain risks.
Circular business models create value in a number of key ways, including:
•R
esource productivity and cost savings: e.g. Rolls Royce’s ‘Power-by-the-
Hour’ engine maintenance management approach enables up to 95% of
used engine parts to be recovered or recycled91
• Valorisation of by-products: e.g. AB Inbev turns brewing by-products into

protein-rich food products92
• Innovation and new markets: e.g. by offering an IoT-enabled ‘printing-as-

a-service’ subscription model, HP taps into a new market, while facilitating
closed-loop recycling of cartridges93
Adapting business models in line with circular principles can also help reduce
linear risks, such as supply chain disruptions or volatility of resource prices.94
Early adopters of circular principles can gain competitive

advantage in the circular economy transition.
For example, as plastic pollution is driving stricter regulation and changing

customer demand, FMCGs and retailers are responding. Their public
commitments and targets on, for example, the elimination of problematic
packaging, reduction of virgin plastics demand or increased use of recycled
content, directly affect both upstream material and packaging suppliers, and the
downstream collection, sorting, and recycling industry. Companies capable of
offering circular solutions, such as reusable packaging or food-grade recycled
plastics, are better adapted to these changing supply chain dynamics, whereas
those operating in a linear way can be exposed to greater risks, such as bans on
single-use plastics or stranded assets (see Table 1 and Box 2).
Early indications suggest that circular economy research and

analysis could help generate excess returns.
While it is early days and care should be taken not to draw definite conclusions
from returns in a short time period, the first half of 2020 gives an indication
of the potential for circular economy investments to outperform their
benchmarks. From the start of January to the end of June 2020, public equity
funds with the circular economy as sole or partial investment focus on average
performed 5.0 percentage points better than their Morningstar category
benchmarks.95 Future research should look into whether this outperformance
persists over time, and seek to better understanding the underlying drivers.
5.0
Public equity funds with the
circular economy as sole or
partial investment focus on average
performed 5.0 percentage points better
than their benchmarks in H1 2020
percentage points Source: Ellen MacArthur Foundation
Box 2: The risk of stranded assets in a changing plastics industry
Petrochemicals are rapidly tonnes of new capacity between virgin plastics demand by 5.5 million
becoming the largest driver 2020 and 2024.97 tonnes within this timeframe.
of global oil consumption,
as demand for fossil fuels is At the same time, plastic pollution Meanwhile, according to McKinsey,
flatlining due to the shift towards has captured the attention of the demand growth for polymers based
renewable energy, energy public and governments around on virgin feedstock could evolve
efficiency, and electrification. the world, resulting in the rapid closer to 1% a year than the 4% a
Current industry forecasts predict scaling of corporate action, year that has been used in other
that petrochemicals will account stricter regulation, and shifts in demand forecasts.98
for nearly half of the growth in oil customer behaviour.
demand in the run-up to 2050.96 These two opposing trends, i.e.
Responding to these forecasts, The corporate signatories of the the continued expansion of virgin
the US chemical and plastics New Plastics Economy Global plastic production capacity and the
industry has invested extensively Commitment, representing over ongoing transformation of the plastic
in new production capacity, 20% of the global plastic packaging packaging sector towards a circular
with cumulative investment in market, have set ambitious targets economy creating the potential for
this area surpassing USD 200 to redesign their packaging by much lower demand growth, suggest
billion since 2010. The industry is 2025. Just one of these targets an increase in the risk of over capacity
estimated to spend a further – increasing the use of recycled and virgin plastic production assets
USD 400 billion on 80 million content – is expected to reduce becoming stranded.99
3.2.4 Deliver on climate change and ESG objectives

The circular economy can help financial institutions meet
their ESG commitments and regulatory requirements.
As well as tackling both the causes and effects of climate change, the circular economy
contributes to addressing many other environmental issues, such as biodiversity loss,
social depletion, natural resource scarcity, pollution, water contamination and waste.
Taking a circular economy lens can also help achieve goals related to social and
governance topics, including, the creation of local jobs, upskilling opportunities, tackling
inequality and value distribution in the economy, and supply chain transparency.
3.2.5 Present an inspiring vision for the future

of the economy and the role of finance
The circular economy offers employees, investors, and other
stakeholders a positive new narrative and direction for the economy.
The circular economy provides a vision for long-term value creation and enhanced resilience,
as well as tangible positive outcomes such as job creation and upskilling opportunities,
liveable cities, and biodiversity. For example, a 2015 study by WRAP and Green Alliance
showed that an ambitious plan to move to a circular economy in Britain could create over half
a million jobs by 2030, and potentially offset around one-fifth of the expected future losses in
skilled employment, helping to address structural unemployment in badly affected regions.100
The circular economy vision can also inspire and inform the financial
services sector to develop its role as a positive force in society.
The principles of the circular economy can ultimately inform a reshaping of the financial sector
itself, so it is geared towards long-term value creation and the enablement of an economy that
is distributed, diverse, and inclusive.
TABLE 3
The circular economy can help financial services firms

deliver on regulators’ expectations regarding climate change
Example based on the July 2020 letter on climate change to finance CEOs by Bank of England
Deputy Governor Sam Woods101
Bank of England’s How the circular

expectations on economy can help firms
climate change deliver on expectations
Strategic responses The circular economy can inform strategies and

decision-making processes regarding climate
change responses, as it combines concrete
actions to address 45% of global GHG emissions
with a more fundamental rethink of our
economic model that goes beyond most current
net-zero strategies
Oversight of Driving an industrial transformation, the circular

climate-related economy provides a lens that can help identify
and improve understanding of relevant risks
financial risks
(e.g. stranded assets in plastics production, impact
of stricter regulation in various industries)
Metrics and Measuring circularity, such as through the

quantification Circulytics tool, will help capture the full potential
of the circular economy lens102
Risk management The circular economy can inform part of the

processes dialogue between financial services firms and
their clients about the risks they are exposed to
Scenario analysis The circular economy can inform scenario

analyses on more fundamental solutions, such
as the redesign of products and services, that
complement the current focus on supply-side
changes, with demand-side measures (e.g. car
electrification versus car-sharing models)
Disclosure Integrating circular economy concepts into

the way firms view risks and how these can be
mitigated, can strengthen existing disclosure
initiatives, such as TCFD
“The principles of the circular

economy can ultimately
inform a reshaping of the
financial sector itself, so
it is geared towards long-
term value creation and the
enablement of an economy
that is distributed, diverse,
and inclusive.”
4
How financial services

firms can seize the
circular economy
opportunity
The financial sector can already capitalise on the circular
economy opportunity by leveraging or adapting existing
products and services. An early track record of circular
economy financing is driven by pioneering institutions,
showing how many more opportunities can be seized.
This chapter aims to provide inspiration by giving an overview
of possible actions and examples across asset classes,
product and service types, and sectors in the real economy.
4.1 Investing
4.1.1 Equity and debt capital markets

Actions to seize the circular economy opportunity, and examples in practice:
Launch or invest in public equity funds

both active and passive, that invest in companies that adopt, enable or benefit
from the circular economy.
• BlackRock, Candriam, Cornerstone Capital, Decalia, NN Investment

Partners and RobecoSAM offer actively managed circular economy public
equity funds103,104,105,106,107,108
• BNP Paribas offers a circular economy-based ETF, (exchange-traded fund),

replicating the Circular Economy Leaders Equity Index built by ECPI109,110
• Crédit Suisse, Goldman Sachs, and Lombard Odier offer actively managed
public equity funds that invest in the circular economy (or elements of) and
related areas (e.g. responsible production and consumption)111,112,113
• MSCI has introduced a circular economy and renewable energy listed

equity index.114
Issue or invest in bonds or loans

that finance circular activity directly or enable companies to transition towards
the circular economy, e.g. through green, social, sustainability(-linked), and
(sustainable) transition bonds.
•A
lphabet’s USD 5.75 billion sustainability bonds to fund ongoing and new
projects in eight focus areas, including circular economy115
• BASF’s EUR 1 billion (USD 1.2 billion) green bond finances projects focused
on circular economy-adapted products, production technologies and
processes, and renewable energy116
• Daiken Corporation’s JPY 5 billion (USD 46 million) to fund circular measures,

including reuse of construction materials and industrial by-products117
• EBRD issued a EUR 500 million (USD 591 million) Green Transition Bond with
proceeds to be invested in projects including the implementation of circular
principles in manufacturing (e.g. chemicals, cement, and steel production)118
• EIB’s Sustainability Awareness Bonds can be allocated to lending

activities contributing to the circular economy transition, waste
prevention, and recycling119
• Henkel’s USD 70 million plastic waste reduction bond to finance projects

which contribute to its 100% reusable or recyclable target by 2025120
• Intesa Sanpaolo’s EUR 750 million (USD 884 million) Sustainability Bond has
been created to refinance its loans under its circular economy credit facility121
• Kaneka Corporation’s JPY 5 billion (USD 46 million) to manufacture,

research, and develop a bio-based polymer which contributes to the
circular economy for plastics122
• Mowi’s EUR 200 million (USD 236 million) bond to finance circular
economy-adapted products, production technologies and processes,
including circular packaging design123
•O
wens Corning’s USD 450 million bond to finance circular economy-
adapted products, production technologies and processes, as well as
renewable energy and energy efficiency projects124
• PepsiCo’s USD 1 billion green bond to fund key initiatives including

reducing its use of virgin plastics125
• Philips’ EUR 750 million (USD 884 million) green innovation bond dedicated
to, inter alia, the implementation of circular products and solutions.126
Require disclosure
of circular economy strategies and metrics, e.g. through the Circulytics
measurement tool, the New Plastics Economy Global Commitment, or other
relevant tools.
• BNP Paribas Asset Management, EIB, Federated Hermes, ING, Legal &
General Asset Management, Rathbone Greenbank Investments, Robeco,
Sarasin & Partners, and Sustainalytics, among others, endorsed the New
Plastics Economy Global Commitment127
•F
ederated Hermes published a guide on investor expectations on plastics,
linear risks and circular opportunities, including disclosure on plastics
footprint and related progress (sourcing, design, recycling)128
Engage companies and governments

governments in their transition as listed equity or debt holders through, e.g.
stewardship and active ownership, voting, and resolutions aligned with circular
economy principles; divesting or refusing to purchase new equity or debt
linked to non-circular practices.
• As You Sow’s Plastic Solutions Investor Alliance, with more than 40 members
with USD 2.5 trillion AUM, including Actiam, Aviva Investors, Candriam,
Federated Hermes, and Robeco, is actively engaging companies to adopt
circular economy solutions to plastic pollution by calling for reduced
usage of plastics, and plastic packaging to be recyclable, reusable or
compostable.129 Nearly a third of both Starbucks’ and McDonald’s
shareholders supported resolutions by As You Sow to phase out the use of
plastic straws and polystyrene cups, and to develop plans to meet packaging
reuse and recycling goals130,131
•E
OS at Federated Hermes’ stewardship team has made pollution, waste,
and the circular economy a key engagement theme132
• Robeco has an engagement programme on plastics, joined investor initiatives

on this topic, and endorsed the New Plastics Economy Global Commitment133
• Sustainalytics initiated in 2019 a three-year Stewardship and Risk engagement

on Plastics and the Circular Economy to help investors understand the topic
better, and to address the associated risks and opportunities134
• UN PRI’s Plastic Investing Working Group consists of 32 global investors

representing USD 6 trillion in assets, and is building an understanding of
how plastics fit in with the broader circular economy concept.135 UN PRI also
have engagement tools and case studies for listed equity and fixed income
ESG engagement which could be applied in a circular economy context136
4.1.2 Private equity

Launch or invest in PE
that focus on circular companies, or invest directly in private companies where
circular economy is a core value driver.
• Ambienta, with EUR 1.5 billion (USD 1.8 billion) AUM, invests in and scales
private growth-stage companies whose products and services improve
resource efficiency and pollution control, including through the adoption of
circular principles137
• Archipelago Eco Investors is establishing a PE Impact Fund with a

target size of EUR 100 million (USD 118 million) and is aiming to invest in
companies creating a circular economy for plastics138
• Closed Loop Partners has set up a PE Leadership Fund with a target size of
USD 300 million, focused on acquiring companies in recycling, packaging,
organics, fashion, and electronics to scale circular supply chains139
• Circularity Capital’s GBP 60 million (USD 78 million) PE fund invests in

growth-stage circular companies, such as Grover, Winnow and ZigZag
Global, with investors including Sitra, AXA Investment Management, BNP
Paribas Fortis, and Philips, among others140
• European Circular Bioeconomy Fund provides equity and mezzanine

finance to allow circular companies and projects to scale-up from
demonstration stage to industrialisation stage141
• Taaleri’s Circular Economy PE Fund accumulated approximately EUR 40

million (USD 47 million) just six weeks after it was opened to investors in
2016, with commitments from over 370 investors142
Launch or invest in PE
in their transition to the circular economy as a value-creation strategy.
• Korkia manages and advises PE funds investing in the circular economy,

including consulting on hands-on implementation for new growth143
• Tesi, which launched a EUR 75 million (USD 89 million) circular economy

investment programme, engages with investee companies to remodel their
business operations in line with circular principles144
4.1.3 Venture capital and early-stage investing

Invest in early-stage circular innovators

covering the broad range of opportunities, including ‘hard-tech’ or CapEx-
intensive ventures and innovations that require long-time horizons, such as
breakthrough technology and science-based innovation.
•A
lante Capital invests in innovators and market leaders to connect and
scale emerging technologies for apparel production and retail145
• Blue Oceans Partners expands VC support to circular economy innovators

that address the reuse, recycling, and replacement of plastics146
• Closed Loop Partners, through its second venture fund – Closed Loop
Venture Fund (II, targeting USD 50 million), deploys early-stage capital for
companies that increase the recycling of products and packaging147
• Angel investor networks, such as Finnish Business Angels Network and the
Green Angel Syndicate, have financed circular start-ups, including Alusid
and BuyMeOnce148,149
• The Greater London Investment Fund, a GBP 100 million (USD 131 million)
fund of funds, aims to support economic growth and a circular economy
ecosystem by providing loan and equity finance for early-stage circular
businesses150
• ING committed EUR 100 million (USD 118 million) for circular economy
‘scale-ups’, including Black Bear Carbon, Milgro, and Zero EMission
Services, or other innovative businesses with proven concepts which
generate positive environmental impacts151
• Prelude Ventures, an evergreen venture capital fund with a longer

investment time horizon, has funded circular innovators including AMP
Robotics, Trove, and Pivot Bio152
• Sky Ocean Ventures invests in leading innovators across the plastics and
packaging value chain, including those working in renewable materials and
recycling technologies, with its GBP 25 million (USD 33 million) venture fund153
Drive new partnerships

within and beyond the private financial sector, including collaboration with
public sector funders, philanthropic investors and large corporates, to develop
a strong pipeline of circular investment opportunities across growth stages and
value chains.
•B
reakthrough Energy Ventures, a fund with more than USD 1 billion
in committed capital, supports innovations that contribute to net-zero
emissions, including circular innovation, by bringing together governments,
research institutions, private companies, and investors154
• Circulate Capital’s Ocean Fund is a blended financing mechanism, created

in partnership with leading corporations and backed by USAID, which
contributes more than USD 100 million capital for innovative companies
that prevent plastic pollution and advance the circular economy155
• Closed Loop Partners’ Center for the Circular Economy leads industry
partnerships in pre-competitive collaboration for circular supply chain
solutions across material types156
• EIB and five European national promotional banks and institutions launched
the ‘Joint Initiative on Circular Economy’, a EUR 10 billion (USD 12 billion)
circular economy initiative providing loans, equity investment or guarantees,
and developing innovative financing structures for public and private projects157
•E
IB Group’s InnovFin Advisory developed the market case for the European
Circular Bioeconomy Fund, a EUR 250 million (USD 295 million) venture
capital fund aiming to invest in early stage innovative bioeconomy and circular
bioeconomy companies and projects. The fund has risk-sharing features,
including partial first loss guarantee to mobilise private investors. In August
2020, EIB made a EUR 100 million (USD 118 million) commitment in the fund.158
• MMC Ventures is deploying a significant proportion of the GBP 52 million

(USD 68 million) MMC Greater London Fund, backed by the London Waste
& Recycling Board, into circular economy businesses159
• Prime Coalition partners with philanthropic investors to place catalytic

capital into breakthrough climate ventures which address both energy and
industrial emissions, including by implementing circular strategies160
Develop expertise on circular innovation

focusing on opportunities and challenges, such as new business models with
unconventional collaboration or different risk profiles.
• BloombergNEF calculated that circular economy VC funding was up 128%

in March 2020 compared to March 2019161
• Intesa Sanpaolo, together with Fondazione Cariplo, launched the first

Italian Circular Economy Lab, dedicated to promoting open innovation and
supporting entrepreneurs to help the circular economy transition of the
Italian industrial system162
Provide corporate venture capital

to circular innovators and suppliers, or enable innovation to scale through
partnerships, guaranteed off-take, offering new payment facilities or
working capital solutions and providing expertise and access to supply
chains and infrastructure.
• Alibaba has invested in circular innovators, including clothing rental

platform YCloset163
• Global food and beverage brands such as Coca-Cola and Nestlé have co-
funded the NextGen Cup Challenge for reusable cup solutions, managed by
Closed Loop Partners164
• H&M Co:LAB has invested in circular start-ups in the fashion industry,

including textile-to-textile recycler Worn Again, recycled fibres producer
re:newcell, and re-commerce platform Sellpy165
• Ingka Investments, IKEA’s investment arm, has invested in returns

management start-up Optoro to help achieve their goal of becoming a
circular business by 2030166
4.1.4 Project finance for long-term infrastructure

and public services
Fund or invest in projects

at all scales that install and scale physical and digital infrastructure for the
circular economy, such as: reverse logistics, recycling capacity, digital platforms
for product tracing, and ‘Infra 3.0’ delivery models, including distributed,
digitised, pay-per-use or performance-based models for infrastructure or
nature-based solutions.167
• EIB has provided almost EUR 2.5 billion (USD 3 billion) in lending for
circular projects over the last five years, including collection and recycling
capacity for WEEE; and urban infrastructure integrating circular principles168
• Generate Capital, which secured more than USD 1 billion from global
institutional investors in early 2020, builds, owns, operates, and finances
infrastructure that is decentralised, modular, and resilient across renewable
energy, mobility, water, waste, and agriculture (e.g. anaerobic digesters,
precision agriculture, charging depots, microgrids)169
• Indorama Ventures has committed USD 1.5 billion to invest in plastics

recycling infrastructure, including greenfield and brownfield mergers and
acquisitions (M&A) investments focusing on bottle-to-bottle recycling170
• Inter-American Development Bank committed USD 1 billion in financing

to support a public-private initiative to promote economic growth in the
Caribbean by applying circular principles171
• Spring Lane Capital has raised over USD 150 million to provide deployment
capital for ‘distributed assets’ in the energy, food, water, and waste
industries, including commercial composting and distributed, service-based
wastewater recovery solutions172
• Ultra Capital deployed USD 200 million with its first fund to finance circular
economy infrastructure ‘waste-to-value’ projects (e.g. nutrient, plastic or
textile recycling)173
Drive new partnerships

beyond private finance, such as blended finance solutions, to make challenging
projects investable.
•C
irculate Capital’s blended finance partnership with USAID will provide
up to a USD 35 million, 50% loan-portfolio guarantee to incentivise private
capital investment and new business development in the recycling value
chain in South and Southeast Asia174
• Closed Loop Partners finances circular economy infrastructure for

collection, sorting, processing, and end-product manufacturing across
North America through its Closed Loop Infrastructure Fund, established
and funded by the world’s largest retail and packaged goods companies,
and its Closed Loop Beverage Fund, funded by the members of the
American Beverage Association175
Provide expert structuring and advisory services

to enable the financing of challenging projects, such as the recurring operational
expenditures of collection infrastructure.
• Asian Development Bank supports circular economy projects, including

USD 150 million to fund, among other things, regenerative farming pilots
and community-based circular economy initiatives in Pingjiang County,
China; and USD 1.7 million to build infrastructure to reduce plastic pollution
in Asia and the Pacific176,177
• InnovFin Advisory, a joint initiative from EIB and the European Commission
support and guide companies on how to structure circular economy
projects to improve access to finance178
• Minderoo Foundation’s ‘Sea The Future’ project brings together financial,

legal, and industry experts to fund market-led solutions to tackle plastic
pollution179
• Rabobank’s Circular Business Desk provides support and advisory services

for entrepreneurs on financing circular business models180
Require the adoption of circular principles

for the designing, building, and operation of portfolio infrastructure and real
estate projects.
• Delta Development Group, with ABN Amro as a lender, embedded circular

principles in the development of Park 20|20181
4.2 Banking and insurance
4.2.1 Investment banking

Structure and underwrite IPOs

of companies contributing to the circular economy.
• Bank of America, Credit Suisse, and UBS took part in underwriting the IPO
of The RealReal, the online consignment luxury goods seller182
Structure and underwrite fixed-income instruments

that support companies and governments at different stages in their transition.
• Banca IMI and Crédit Agricole CIB acted as green structuring advisors
and, together with ING and Société Générale, as bookrunners for Intesa
Sanpaolo’s EUR 750 million (USD 885 million) Sustainability Bond to
refinance its loans under the circular economy credit facility183
• Bank of America, Barclays, Citi, and HSBC acted as joint bookrunners for
EBRD’s USD 500 million Green Transition Bond184
• Citi and Stifel priced USD 228 million of private activity revenue bonds for
CalPlant’s rice straw recycling plant185
• HSBC acted as lead structuring advisor for Henkel’s USD 70 million plastic
waste reduction bond186
• ING was Green Structuring Advisor for the issuance of BASF’s EUR 1 billion (USD
1.2 billion) green bond, with Barclays, BNP Paribas, Deutsche Bank, ING, SMBC
Nikko Capital Markets Europe, and Société Générale as joint bookrunners187
• Morgan Stanley, Goldman Sachs, and Mizuho Financial Group underwrote

PepsiCo’s USD 1 billion bond deal, with Morgan Stanley as the structuring
advisor and lead underwriter188
• MUFG worked as bookrunner for Philips’ green innovation bond, together

with Rabobank, ABN Amro, BNP Paribas, Deutsche Bank, HSBC, ING,
Mizuho Securities, and UBS189
Build in-house expertise and establish client-facing teams

that understand the circular economy opportunity and how it can be
implemented across sectors.
• Barclays established a Sustainable and Impact Banking (SIB) team with the
circular economy as one of its four key pillars190
• ING has developed in-house circular economy expertise across their

commercial business, including the Wholesale Banking and Economics
departments191
Conduct research and publish

on the circular economy as an investment opportunity, e.g. as an industry disrupting
trend, or as a way to anticipate and mitigate linear risks, and to identify and address
hurdles that may currently impede investors from capturing the opportunity.
•B
ank of America, Barclays, Citi, Credit Suisse, HSBC, and Morgan Stanley,
among others, have all published research and analysis related to the
circular economy, including on plastics, fashion, and waste192
• Since 2015, EIB and ING have both published several reports and thought
leadership pieces on financing the circular economy193
4.2.1 Commercial banking

Actions to seize the circular economy opportunity:
Actively seek to finance

circular projects and companies.
• ABN Amro has set a target to finance at least EUR 1 billion (USD 1.2 billion)
of circular business assets and finance a minimum of 100 initiatives and
businesses by end of 2020194
• ING has committed EUR 100 million (USD 118 million) for scale-ups that make
a positive environmental impact in areas including the circular economy195
• Lloyds Bank’s GBP 2 billion (USD 2.6 billion) Clean Growth Finance
Initiative offers discounted lending for ‘green purposes’ to SMEs, including
loans to circular businesses, such as Teemill196
Adapt financing solutions and provide advisory services

to better support corporates in their transition, through lending, working
together with circular economy knowledge centres or leveraging bank networks.
• ING collaborated with Philips to arrange a EUR 1 billion (USD 1.18 billion)
revolving credit facility with an interest rate linked to the company’s
sustainability performance as assessed by Sustainalytics. Sixteen banks
participated in the scheme including ABN Amro, Bank of America Merrill
Lynch, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, HSBC, ICBC,
JP Morgan, Mizuho Bank, Morgan Stanley, MUFG, Rabobank, and Société
Générale197,198
• ING helped set up the Circular Supply Chain Accelerator as part of the
World Economic Forum’s Platform for Accelerating the Circular Economy
to support the development and funding of circular solutions by large
manufacturers and their suppliers199
• Intesa Sanpaolo launched a EUR 5 billion (USD 5.9 billion) credit facility for
companies adopting circular business models200
• Rabobank offers ‘impact loans’ to SMEs and mid-caps with positive social
or environmental impact at a lower interest rate as a result of funding
support from the EIB201
Build expertise and develop new financing solutions

to make innovative circular business models ‘bankable’ through, for example,
leveraging partnerships beyond private finance, using guarantees or expanding
collateral eligibility.
• BNP Paribas Leasing Solutions launched Kintessia, the first platform

enabling professionals to rent and sell equipment for farming, transport,
construction, and public works, and partnered with 3 Step IT to offer
product-as-a-service financing solutions for technology equipment202
• China Development Bank Leasing and China Construction Bank Financial

Leasing rents e-buses to bus operating companies in Shenzhen, which
lowers the upfront capital cost for operating companies and incentivises
circular design for reuse and durability, as bus manufacturers retain
responsibility for bus maintenance203
• DLL Group, with EIB support, provides second-life financing programmes

and leasing services for refurbished or remanufactured assets (e.g.
partnership with Desso to offer a carpet leasing service)204,205
• The FinanCE Working Group published a thought leadership piece on

the financial perspective of the transition, and working group members
ABN Amro, ING, and Rabobank released the Circular Economy Finance
Guidelines, providing a common understanding of circular economy
finance206,207
• Glanbia Co-operative Society, Ireland Strategic Investment Fund,

Rabobank, and Finance Ireland set up a EUR 100 million (USD 118 million)
MilkFlex loan fund to provide affordable and flexible capital to farmers to
enable them to transition to regenerative farming practices208
Integrate the circular economy concept

in (credit) risk assessments and lending criteria to level the playing field with
linear practices.
• Intesa Sanpaolo’s circular economy credit facility is regulated by both

ordinary credit procedures and compliance with a set of eligibility criteria
based on circularity209
Engage corporate and institutional clients

on the circular economy as a value driver for transforming their industry.
• BNP Paribas Leasing Solutions engages companies and institutions on

the shift from an ‘ownership’ to an ‘access’ economy, and its impact on
financing, e.g. through solutions for financing electric-charging stations or
telecom devices210
Actively stimulate and scale innovation

for the circular economy, e.g. by connecting growth-stage entrepreneurs to
corporate clients.
• Barclays co-founded Unreasonable Impact (in partnership with

Unreasonable Group), an accelerator programme supporting growth-stage
ventures aiming to tackle pressing global challenges, including through
circular businesses211
• ING is a core partner of Impact Hub’s Investment Ready programme, a five-

month peer-learning programme for circular start-ups212
• Intesa Sanpaolo’s Startup Initiative Programme match-makes early-stage

circular economy start-ups with potential investors213
• Rabobank’s Circular Business Challenge brings entrepreneurs together to

help them develop and implement their circular ambitions214
4.2.3 Retail and private banking

Develop and promote circular economy

financing and investment products and services
tailored to retail and private banking clients.
• UBS, Morgan Stanley, Credit Suisse, JP Morgan, BNP Paribas, HSBC,

and other leading wealth managers offer investment opportunities with
exposure to the circular economy theme
4.2.4 Insurance services

Build expertise, adapt existing insurance products,

and develop new insurance solutions
to better address the risks of projects or clients in their transition and support
circular business models, such as sharing or product-as-a-service models.
• Allianz offers insurance for circular business models, such as Getaround, a

car-sharing and rental platform215
•A
XA XL has created tailored solutions for sharing economy companies like
Fainin, a peer-to-peer rental company, to arrange group insurance covering
both lenders and borrowers216
• GUARDHOG, a peer-to-peer sharing economy insurtech company,

created an insurance solution for lending platform Fat Llama by bundling
their policy with multiple sharing economy start-ups, enabling Hiscox to
underwrite the policy217
• MAIF encourages the use of recycled auto parts for post-accident repairs
through their Auto Insurance218
• Munich Re offers circular economy performance insurance solutions to

insure the technology risk of circular economy projects and innovation
in order to stabilise revenue streams, improve bankability, and access to
capital219
• Omocom is an early-stage B2B insurtech solution providing on-demand

insurance for circular economy platforms220

in risk assessments and insurance criteria to better reflect the risks of the
linear economy.
• SwissRe are assessing the durability of reused building materials or

construction technologies (in partnership with universities and companies)
to provide underwriting services to the built environment industry as they
adopt circular economy practices
4.3 Cross-cutting actions

Develop expertise and publish thought leadership pieces

on financing the circular economy.
• ABN Amro, Circularity Capital, EBRD, EIB, ING, Intesa Sanpaolo, PGGM,
Rabobank, and others have published thought leadership pieces on
financing the circular economy through the FinanCE Working Group221
• BlackRock and Intesa Sanpaolo are strategic partners of the Ellen

MacArthur Foundation, and are part of the Foundation’s circular economy
network, whose members produce collaborative thought leadership
pieces on a range of circular economy topics, such as the valuation and
accounting treatment of used parts222
• Climate Bonds Initiative produced a sector briefing for circular economy

opportunities in the green bond market223
• EIB’s InnovFin Advisory has published several reports, including

recommendations to increase access to finance for circular innovation,
which have led to the broadening of financing eligibility criteria, the launch
of the Circular Economy Finance Support Platform, and subsequently the
CE Finance Expert Group224,225
• Oliver Wyman, in cooperation with ABN Amro, has published a report on

the role of the financial sector in supporting the circular economy transition
in the Netherlands226
Measure and disclose circularity

of financed projects and companies. Box 3 gives an overview of definitions,
measurement, and disclosure frameworks for circular economy activities.
• Almost 600 companies (130+ companies with >USD 1 billion revenues) have
started to measure their circular economy progress using Circulytics, with
over 55 assessments completed as of June 2020227
• Closed Loop Partners’ Center for Circular Economy is tracking

environmental and economic performance of emerging and advanced
recycling technology companies228
• Hermes Federated tracks outcome-based circular economy metrics for

companies in their portfolio229
• ING discloses progress on its Terra approach – the strategy for steering
its EUR 600 billion (USD 709 billion) lending book in line with the Paris
Agreement goals230
• Intesa Sanpaolo tracks relevant targets and KPIs linked to loans from their
EUR 5 billion (USD 5.9 billion) circular economy credit facility, e.g. progress
towards Greencycle’s plastic recycling targets231

into existing or newly developed strategies, decision-making, targets and action
plans, recognising the role the circular economy plays as a solution to climate-
related and broader ESG risks.
• Circular economy is part of AXA’s ‘low carbon’ investment strategy, which,

among other investments, has resulted in an investment in Circularity
Capital’s European Growth Fund232
• Goldman Sachs includes the circular economy as part of the action plan for
its USD 750 billion commitment233
Build in-house understanding within existing teams

to apply circular economy principles to internal operations, including buildings
and infrastructure.
• ABN Amro’s multi-purpose pavilion was designed and built based on a

circular economy vision234
• Triodos’ HQ building was designed to be fully circular235
Develop fintech solutions

that promote or use the circular economy as a value driver.
• Clim8 Invest, which landed GBP 1.5 million (USD 1.96 million) in a pre-launch
crowdfunding campaign, offers a platform where users can invest in clean
energy, clean technology, sustainable food, smart mobility, and recycling236
4.4 Circular economy

opportunities across sectors
Circular economy opportunities can be found in nearly every
sector in the global economy. The plastics, fashion, and food
sectors stand out as some of the most likely to be significantly
impacted or even disrupted by the circular economy in the
near term, driven by innovation, regulation, and evolving
customer preferences.
Table 4 shows a heatmap with an overview of the circular economy growth

potential in 10 key sectors, selected to demonstrate a broad range of circular
economy opportunities.
The heatmap is based on a qualitative assessment of three circular economy

growth drivers by sector, based on publicly available data and expert interviews.
It aims to provide a first indication of sectors with high short-to-medium term
circular economy growth potential. More in-depth analysis by sector would
be required to inform investment or any other financial decision. The heatmap
focuses on growth potential, and does not intend to assess the current maturity
of circular economy activity (e.g. a sector may already be highly circular, yet
have limited further growth potential).
Details of the drivers of growth potential, opportunities and examples of large

corporates and innovators which are already using circular economy to create
value in each sector can be found in the Appendix.
A more public sector investment oriented view, asking the question how
public authorities can invest to build back better post-covid-19, can be
found in ‘Policy & investment opportunities shaping a resilient and low-
carbon economy recovery: 10 circular investment opportunities’ by the
Ellen MacArthur Foundation.237
TABLE 4
Heatmap with qualitative assessment of circular

economy growth potential in 10 key sectors
High potential for growth in the short-medium term
Increasing potential for growth in the short-medium term
Emerging or limited potential for growth in the short-medium term
Drivers of circular economy growth potential Overall circular

Sector economy growth
Innovation & Policies & Customer preferences
potential
corporate action regulation & macrotrends
Plastics &
packaged goods
High
Fashion & textiles High
Food & agriculture High
Electronics High
Automotive,
transport & logistics
High
Technology, media &

telecommunication
Increasing
Engineering &
construction Increasing
Waste management
& water
Increasing
Industrial
manufacturing Increasing
Paper, pulp &

forestry products
Increasing
5
The way forward

Now is the time for finance to capitalise on the existing
momentum and help scale the circular economy.
All aspects of finance will play an important role in
bringing forward the transition to a circular economy.
5.1 All aspects of finance will play an important

role in scaling the circular economy
The circular economy financing The financial services sector has
market is taking off. Yet while the reach and expertise to scale
the recent growth in financing is the circular economy market,
promising, far more capital and supporting leading companies,
activity will be needed to scale the and eventually entire industries,
circular economy and fully seize in their transition.
its opportunity.
The circular economy transition is not
Several barriers remain to unlock the only about financing perfectly circular
market’s full potential, including, for companies or turning away from
example, limited data availability, unpriced extractive ones, to achieve climate
externalities, and outdated accounting targets and build a resilient economy
rules not fully reflecting the value creation this transformation will require all sectors
of circular business models or linear risks. to shift. An overview of actions already
taken by leading asset managers, banks,
An overview of actions needed to and other financial services firms is given
overcome current barriers and scale in Chapter 4, as well as a qualitative
circular economy financing is given in assessment of circular economy growth
Figure 8, and detailed below. potential across sectors.
“While the recent growth in

financing is promising, far
more capital and activity
will be needed to scale the
circular economy and fully
seize its opportunity.”
FIGURE 8
Overview of actions to scale circular economy financing

Scale circular economy Integrate the
financial products circular economy
and services within strategies, capabilities,
building on existing targets and decision-making
Financial proofs-of-concept. across business lines.
services sector
Formalise the Innovate
circular economy to overcome barriers and close
through financial tools and financing gaps through, e.g. transition
frameworks, such as credit approval bonds, circularity-linked loans, bank
processes, circular bond framework, lending for harder-to-finance circular
circularity measurement. business models.
Set direction and provide Improve transparency

economic incentives through standardisation and reporting
through, for example pricing requirements, such as EU Taxonomy,
externalities or favourable fiscal Chinese supervisory scheme for green
Governments, treatment, such as Sweden’s tax bond verifiers, EU Non-Financial
breaks on product repairs.1 Reporting Directive.
financial regulators,
and central banks
Invest in circular activities, Integrate circularity
infrastructure, and innovation, in financial regulation, risk assessments
for example, EUR 3.5 billion dedicated and modelling, and explore
to circular economy innovation unconventional methods such as
between 2016 and 2020 in the EU.2 integration of circularity
in green quantitative easing.
Use blended finance mechanisms Provide technical assistance,

to de-risk investments and attract expert structuring and
private sector capital advisory services
to the circular economy by structuring and to enable financing of challenging
financing the harder-to-finance infrastructure projects, such as the recurring
Blended
and riskier, long-term innovation. operational expenditures of
finance market collection infrastructure.
Use philanthropic capital
to nurture and fund nascent circular
economy projects and innovation, creating
the market and providing proof-of-concept.
Scale dedicated circularity Build evidence base

+ + measurement tools for circular economy financing
(e.g. Circulytics) and investment, using financial
Underpinned and non-financial metrics.
by better data Integrate circularity metrics Adapt accounting rules
into leading existing frameworks to enable a more representative
(e.g. TCFD, SASB, CDP, SBT, valuation of circular business
EU Non-Financial Reporting Directive) models and linear risks.
1 World Economic Forum, ‘Sweden is Paying People to Fix Their Belongings Instead of ’Throwing Them Away’ (27th 2 European Commission, Implementation of the Circular Economy Action Plan (2019): https://ec.europa.eu/
October 2016): https://www.weforum.org/agenda/2016/10/sweden-is-tackling-its-throwaway-culture-with-tax- commission/sites/beta-political/files/report_implementation_circular_economy_action_plan.pdf
breaks-on-repairs-will-it-work/
Governments, financial Better data will be required to

regulators, and central banks can underpin the shift.
complement and enable the shift
in the private sector. If capital is to be reoriented at scale, more
transparent and consistent data on circularity
Governments can set direction, provide performance (both historical and forward-
economic incentives, directly invest looking) will be required. In addition to
in circular economy activities and scaling dedicated circularity measurement
innovation, and enhance transparency. The tools (for an overview, see Box 2 in Chapter
unprecedented stimulus packages following 2), it is essential to integrate such metrics in
the coronavirus pandemic have reinforced key initiatives such as CDP, SBT, SASB, TCFD,
the importance of government investment, and the EU non-financial reporting directive
while a wide range of examples ranging to help harmonise non-financial metrics
from the invention of the internet to the and reporting frameworks. Integrating
technologies used in the Apple iPhone these definitions and metrics in financial
demonstrate the crucial importance of market data processes, architecture, and
public innovation programmes to create classifications can maximise their uptake
new markets.238 and impact.
Financial regulators and central banks can The adaptation of accounting

integrate the circular economy concept rules would enable a more
into risk assessments, modelling and representative valuation of
financial regulation. Building on their circular business models and
actions on climate-related risks, they linear risks.
could integrate the circular economy
concept in requirements on identification Potential changes include adapting
of financial risks, disclosure and scenario approaches to depreciation and residual
analysis. They could also explore less value calculation for assets with multiple
conventional methods such as green use-cycles, and ensuring tax treatment
quantitative easing. For example, the reflects the characteristics of circular
circular economy could be considered as business models. Mechanisms enabling
a key delivery mechanism in the ECB’s effective pricing of positive and negative
examination of the potential of using its externalities, and a broader focus on non-
trillion-euro asset purchase scheme to financial capital in accounting standards and
pursue green objectives, or the European reporting, would further help reflect the true
Banking Authority’s work on a green value of circular companies and the risks of
supporting factor.239 extractive practices.
“Governments can set

direction, provide economic
incentives, directly invest in
circular economy activities
and innovation, and
enhance transparency.”
Appendix
Circular economy
growth potential by sector
1 Plastics and
packaged goods
Key circular economy strategies
• Eliminate problematic and unnecessary plastics and packaging
• Innovate plastics to be reusable, recyclable or compostable
• Ensure plastics are reused, recycled or composted in practice
Drivers of circular economy growth potential

Innovation and corporate action
Industry action • Growing number of plastics commitments by large FMCGs and retailers,
e.g. 850+organisations united behind vision for a circular economy for
plastics, the New Plastics Economy Global Commitment signatories
represent over 20% of the plastics value chain
Demand • Global demand for recycled plastic grew by 17% between 2012 and 2016240
for recycled
• Increased interest in recycling from plastic producers, evidenced by
materials major M&A activity (e.g. Borealis)
• Reusable plastic containers for fresh produce are projected to be one

of the fastest growing produce packaging segments in the US241 (e.g.
Amcor’s sales of reusable and refillable PET containers in markets where
refill programs exist doubled in the two years up to 2019)242
Innovation • Ongoing innovation across the value chain, including reuse models,
packaging design to increase recycled content and reusability,
recyclability and compostability, development of renewable feedstocks,
and chemical recycling
Policies and regulation
Increasing • Single-use plastics bans have been announced around the world
policies and including in China, India and South East Asia, 34 African countries,
regulation various Central American, Latin American and Caribbean countries and
cities, several US states and cities, and across the EU (e.g. Single-Use
Plastics Directive banning ten single-use plastic products by 2021)
• 63 countries had EPR measures in place in 2018 (e.g. Indonesia, Chile),243
such as product take-back schemes, deposit return systems (e.g.
Australia’s ‘Return and Earn’ scheme), and waste collection; the new
EU EPR schemes for certain single-use plastic products cover costs of
collection, awareness raising, clean-up, and reporting244
• Increasing landfill taxes, essential requirements for packaging (e.g.

recycled content mandates for beverage containers in California)
• National recycling targets (e.g. EU target 22.5% for plastic)
Incentives • Circular economy regulation, including new EU circular economy

Action Plan, EU Packaging and Packaging Waste Directive
•S
ubsidies and support for innovation (e.g. Smart Sustainable
Plastic Packaging)
Customer preferences and macrotrends
Changing • Increasing customer pressure regarding plastic pollution (e.g. ‘BBC Blue
preferences Planet II effect’)
and behaviour
• Changing behaviour towards reusable instead of single-use (e.g.
reusable cups and water bottles)
• 92% of EU citizens approve of action to reduce single-use plastics245
• Positive customer response to trials of unpackaged food products

by major supermarkets (e.g. Waitrose) demonstrates potential for
consumers to adapt to reuse models
Climate change •E
liminating unnecessary plastics, and reusing and recycling plastics,
and global can contribute significantly to objectives on climate change (global CO2
challenges emissions from plastics production and end-of-life processing could be
reduced by 56% in a circular scenario by 2050)246
Types of circular economy opportunity areas
Circular design Reuse, repurpose Repair, remanufacture

Circular business models and refurbish
and innovation and redistribute
Collect, sort Regenerative and renewable Enabling digital

and recycle practices and materials technologies
Current circular economy opportunity areas
Innovations that eliminate Collection of plastics Renewably sourced

the need for packaging (e.g. connecting informal waste materials
(e.g. dissolvable/edible sector to formal waste collection (e.g. plastics made from
packaging, solid shampoo, through digital tech) agricultural by-products)
farm-to-fork)
Identification and Innovative sorting and
sorting technologies recycling technologies
Business models based (e.g. digital watermarks) (e.g. chemical, solvent based,
on reusable packaging
(e.g. digital watermarks) robotic sorting)
Examples: Large corporates
Coca-Cola Brazil Borealis SABIC and BASF

has invested USD 400 million in the acquired plastics recyclers Ecoplast have developed chemical
expansion of their reuse infrastructure Kunststoffrecycling, mtm plastics, and recycling technologies to produce
(bottle cleaning and refilling facilities)247 mtm compact to increase recycled recycled plastic from mixed
plastic production after-use plastic streams
Nestlé
has committed to invest up to CHF 2 L’Oréal TC Transcontinental
billion (USD 2.9 billion) to shift to food- has committed EUR 50 million (USD acquired Enviroplast to vertically
grade recycled plastics and to innovate 58.96 million) to fund circular projects, integrate plastics recycling in its
packaging solutions including new business models to flexible plastic packaging production
tackle plastic pollution
Unilever
has committed to halve its use of virgin Indorama Ventures
plastics by 2025 committed USD 1.5 billion
to invest in plastics recycling
infrastructure
Examples: Innovators
Algramo Loop Já Fui Mandioca

operates a refill system for detergent operates an online shopping platform (formerly CBPAK) turns a non-edible
and has established multiple corporate for branded food and cosmetic starch component of cassava into a
partnerships, including with Unilever products in returnable and reusable compostable packaging material, and
and Nestlé packaging has partnered with BASF to produce a
protective film to improve durability
Bockatech MIWA
has developed technology to produce offers a complete business ecosystem RePack
low cost reusable plastic containers, for smart-powered reusable packaging provides a reusable and returnable
which are also lightweight and (it has recently partnered with Nestlé)248 packaging service for e-commerce
recyclable
2 Fashion
and textiles
• Adopt new business models to increase utilisation (e.g. resale, rental)
• Extend useful life through reuse and repair
• Ensure clothes are made from safe and renewable materials
• Ensure textiles are collected, sorted, and reused or recycled

Industry action • Growing number of fashion brands committing to and acting on reuse
or rental models, and design for durability, material health, recyclability,
and traceability (e.g. The Jeans Redesign project)249
Innovation • Ongoing innovation across the value chain, including reuse models,
packaging design to increase recycled content and reusability,
recyclability and compostability, development of renewable feedstocks,
and chemical recycling250
Increasing • Increasing regulation, e.g. new EU circular economy Action Plan, and
policies and French Circular Economy Law banning the destruction of unsold or
regulation returned consumer products, affecting luxury goods brands
Political • Increasing interest from global platforms like the UN (through UNEP,
priorities UNFCCC) and the OECD
• Policy Hub has proposed the need for green recovery principles
boosting circularity in the Textile, Apparel and Footwear industry for the
EU Green Recovery Plan251
Changing • Growing awareness of the current fashion system’s drawbacks, is driving

preferences the shift to, e.g. safer chemicals and regenerative sourcing252
and behaviour
•D
isappearing stigma around buying second-hand and increased
convenience of resale and rental due to enabling digital platforms


Clothing resale Digital enabling tech Fibre-to-fibre

business models (e.g. tracking and tracing) recycling technologies
(e.g. consignment or
peer-to-peer) Materials innovation
Clothing rental
business models (e.g. fibres from regenerative
Clothing and textiles
sources / by-products)
collection and sorting
infrastructure
H&M Group GAP Inc Rent the Runway

has committed to ‘100% Circular committed to circular design and offers one-off or subscription clothing
and Renewable’ by 2030, including exploring circular business models (e.g. rental and has been valued at over USD
use of recycled materials in all its with thredUP, a leading fashion resale 1 billion
products, and reusable, recyclable or platform)
compostable packaging by 2025
The RealReal
Lojas Renner sells authenticated second-hand
launched a collection of recycled luxury goods and was valued at over
clothing using technology to recycle USD 1 billion at IPO
discarded textiles from their suppliers
The Renewal Workshop AHLMA HireStreet

turns unsellable apparel into renewed sources over 80% materials from offers a clothing rental service for high
products, made from used or recycled leftover fabric, open sources designs, street apparel
materials feedstock and has a repair lab
Stuffstr Lizee
partners with retailers to buy back and helps brands set up a rental service
recirculate used clothing, increasing model using their logistics and
clothing utilisation managed service solution
YCloset Depop
is a fashion rental platform, with more is a peer-to-peer vintage and pre-
than 15 million customers across China owned fashion marketplace and
(it has partnered with H&M to test the online community
subscription model)
3 Food and
Agriculture
• Source food grown regeneratively, and locally, where appropriate
• Apply circular practices to controlled or precision agriculture solutions (e.g.
nutrient and water looping for vertical or indoor farming)
• Prevent surplus edible food in production

• Design food products and supply chains to eliminate waste, bring production
closer to consumption, and regenerate nature and soils
• Transform food by-products into new products, biomaterials, and agriculture

and aquaculture inputs to return nutrients to the soil
• Collect and recover resources from post-consumer organic waste

Industry action • Increasing industry action on climate change mitigation and tackling
biodiversity loss, e.g. OP2B, an international business coalition on
biodiversity including Barry Callebaut, Danone, McCain, Nestlé, Walmart
• Growing industry understanding of circular economy benefits beyond

packaging and waste management
Innovation • Emerging business models that redistribute surplus food and reduce
food waste
• Increasing AgTech innovation (e.g. regenerative agriculture, microbe

engineering, robotics, advanced data analytics, and agriculture
management software)
Increasing • Increasing regulation (e.g. reducing food waste), with fragmented

policies and incentives for regenerative practices, but attention is growing, e.g. the
regulation EU’s New Circular Economy Action Plan, EU ‘Farm to Fork’ Strategy, EU
Biodiversity Strategy, carbon farming initiatives in California (e.g. Marin
Carbon Project)
Public • Public procurement policies (e.g. Brazil National School Feeding policy
procurement prioritises local, organic, regenerative food sourcing; Good Food
Purchasing Program in cities across the United States)
Political • Attention on food security by shifting to regionalised, resilient food

priorities systems, reinforced by the Covid-19 crisis, is creating a rapidly changing
landscape (e.g. relocalisation of supply chains)
Health • Rising awareness of food-related health issues, including diabetes

and obesity
• Growing preference for diverse ingredients (e.g. proteins, indigenous

species) and shifting dietary preferences (e.g. towards plant-based, local
and seasonal)
Climate change • Emerging awareness of the connection between agriculture and

and global biodiversity loss, soil depletion, and water issues
challenges
• Increasing understanding of agriculture as major contributor to climate
change (CO2 emissions from the global food system could be reduced
by 49% in a circular scenario by 2050)253


Technologies to turn organic Community Supported Design of food products

waste streams, including human Agriculture model, which and menus based on circular
waste, into commercially viable connects growers and economy principles
agriculture inputs consumers providing mutual (e.g. innovate new plant-based
support and sharing the protein options as alternatives to
Regenerative agricultural risks and benefits of food
meat and dairy, develop products
practices, including shifting from production
and recipes that use food by-
synthetic to organic fertilisers,
Geospatial mapping products as ingredients, and
employing crop rotation, and
using greater crop variation solutions that provide encourage customers towards them)
visibility into food flows
(e.g. agroecology, rotational Digital customer-facing
and organic waste streams
grazing, agroforestry, conservation to effectively capture and tools to create transparency
agriculture, and permaculture) transform them on food products and
supply chains
Danone AB Inbev General Mills

has committed EUR 2 billion (USD turns brewing by-products into has committed to advance regenerative
2.4 billion) to scaling regenerative protein-rich food products agriculture practices on 1 million
agriculture, reducing virgin plastic in acres of farmland by 2030, and have
packaging, and shifting to renewable Balbo Group invested over USD 5 million to advance
energy, and has pledged to source 100% uses regenerative farming practices to soil health on US agricultural lands,
of ingredients produced in France from achieve 20% higher productivity than including RegenAg pilot projects
regenerative agriculture by 2025 conventional sugarcane production
Apeel Sciences Row 7 Greenplat’s Plataforma Verde

has developed an invisible coating seed company brings diverse plant blockchain software provides
made from plant material that extends varieties to food service players, geospatial mapping of organic material
the shelf-life of loose fruit and individuals, and chefs flows
vegetables
Feitosa Foodtech Ecovative
Winnow turns surplus bananas, otherwise wasted grows mycelium-based biomaterials to
uses AI machine-vision technology on farms, into banana ketchup create, e.g. alternative meat products
to reduce food waste in commercial and biodegradable packaging materials
kitchens Agricycle
provides drying technology to farmers Agriprotein
Sanergy in places like Africa to turn surplus fruits uses insects to convert organic waste
sanitation company treats human into shelf-stable snacks into valuable proteins
waste with black soldier flies to create
agriculture products Kaffe Bueno
valorises spent coffee grounds into
cosmetics and food products
4 Electronics
• Design products for repairability, disassembly and recyclability, using
recycled materials
• Keep electronics in use for as long as possible through circular business models
(e.g. rental or product-as-a-service) and by repairing, refurbishing, reusing,
reselling, repurposing or remanufacturing components and products
• Maintain value of materials by collecting, sorting, separating, and recycling

materials after a product’s useful life

Increased • Increase in urban mining/recycling efforts as the demand for rare

demand for earth metals rises in the electronics industry, with only 1% of rare earth
finite resources elements currently being recycled
Innovation • Technologies such as IoT, AI, 5G, or blockchain are enabling new
business models (e.g. streaming services, subscription models)
• Emerging design for repairability and reverse logistics solutions

Increasing • I ncreasing directives and regulation, such as new EU circular

policies and economy Action Plan, national policies and regulations (e.g. in
regulation Malawi, South Africa), right-to-repair, restrictions on hazardous
substances, EPR on Waste Electrical and Electronic Equipment (WEEE)
(e.g. China’s ‘Regulation on the Administration of the Recovery and
Disposal of WEEE’; South Korea’s EPR scheme for e-waste covers 27+
products nationally).
Political • Mounting political interest in access to rare earth metals (e.g. EU critical
priorities raw materials work), reinforced by Covid-19 crisis and geopolitical
tension (e.g. US-China trade)
Changing • More and more customers are opting for cheaper, as-new refurbished
preferences electronics or access-over-ownership models to get access to newest
and behaviour products, especially in the fast-moving electronics space


Electronics resale Disassembly and Electronics reverse

platforms and recycling technologies logistics/infrastructure
refurbished electronics for collection and
marketplaces sorting
Access-over-ownership
business models
Repair, maintenance, (e.g. rental, peer-to-peer lending or
and upgrade of devices subscription pay-per-use models)
Apple Dell Electrolux

have committed to use 100% recycled designs products for reuse, repair, and is trialling subscription pay-per-use
or renewable resources in all products recyclability, and committed to source business models for hardware products
in future and use customer returns 100% recycled or renewable materials in China and Sweden
programmes and robotic disassembly for packaging by 2030
to increase material recovery from Reclite
used iPhones Samsung collect, transport and recycle waste
offers subscription models that allow electronics in South Africa and
HP an upgrade to the latest device for a surrounding countries
offers an IoT enabled subscription monthly fee
model (‘printing-as-a-service’), closed
loop cartridge recycling, and has Cisco
partnered with Sinctronics to recover has pledged 100% product return using
and create value out of HP end-of-use returns programmes to repurpose,
electronic equipment repair, refurbish and remanufacture
telecom equipment
Grover Refind ReUrbi

offers ‘pay-as-you-go’ subscriptions Technologies develops systems for collects discarded IT equipment
to the latest user tech, including automatic classification and sorting of from businesses, then dismantles/
e-scooters e-waste, such as batteries and phones refurbishes it and sells it under the
Remakker brand, including warranty
Fairphone Back Market and technical assistance, at prices
offers a modular mobile phone, is a marketplace for refurbished that are up to 50% lower than for new
allowing customers to replace and consumer electronics and recently products
upgrade parts easily raised USD 120 million from Goldman
Sachs, Aglaé Ventures, and Eurazeo Close the Gap
Teleplan Growth254 refurbishes and redistributes used IT
offers lifecycle care of technology equipment for educational, medical,
products, focusing on screening and and social projects in developing and
testing, repairing and refurbishing, and emerging countries
recovering value from large flows of
used electronics
5 Automotive, transport,
and logistics
• Design vehicles and mobility infrastructure for shared use, adaptability,
disassembly and recyclability, accompanied by a shift to electrification
• Keep materials in use by remanufacturing and upgrading of parts, vehicles, and

infrastructure
• Diversify modes of transport and operating models (e.g. multimodal public

transport-as-a-service)
• Plan cities and regions to optimise mobility (including freight), and enable
effective reverse logistics and resource flows

Established • Second-hand car market is already well-established, with car

circular manufacturers often refurbishing and reselling
practices
• Car manufacturers have started to launch their own car-sharing
programmes with varying uptake
Innovation • Further shift towards and innovation into electrification of mobility
• Ongoing innovation in autonomous driving and connected vehicles,

but feasibility of implementation at scale is still uncertain
• Development and implementation of digital solutions that optimise

logistics and support the consolidation of freight services and reverse
logistics, including local ‘last mile’ solutions
Increasing • Increasing regulation on emissions restrictions, design with recycled

policies and content, end-of-life vehicle reuse and recycling, rechargeable batteries,
regulation product-as-a-service mobility solutions (e.g. Reusability, Recyclability,
and Recoverability Directive 2005/64/EC, which requires that new
vehicles to be sold in the EU be designed so that minimum thresholds of
parts and materials may be reused, recycled or recovered at the end of a
vehicle’s use-cycle,255 EU circular economy Action Plan)
• Increasing regulation on smart mobility (e.g. EU circular economy

Action Plan)
Incentives • Incentives for car-sharing (e.g. Chinese central government and local
municipalities have issued multiple policies to encourage car-sharing,
which is expected to grow rapidly in China)256
•C
ity planning to ease congestion and air pollution is changing approaches
to transport in cities, including walking and cycling action plans (e.g.
London’s Walking Action Plan and 450km of new Cycleways planned by
2024; Seattle, Brussels, and Milan are all limiting car use and developing
dozens of miles of bike lanes following the Covid-19 lockdown)
Changing • Increasing demand for electric vehicles (the global EV market is

preferences forecasted to grow by 21% annually between 2019 and 2030)257
and behaviour
• Changing customer preferences towards access-over-ownership (e.g.
car-sharing market exceeded USD 2.5 billion in 2019 and is estimated to
grow at 24% annually between 2020 and 2026)258
• Rapid growth in online shopping, including food and grocery,

increasing required logistics and reverse logistics capacity (e.g. online
spend in UK grew by 13% year on year (YoY) in July 2019),259 accelerated
by Covid-19 crisis (online YoY revenue growth for US retailers was up
68% as of mid-April 2020)260
Changing •R
apid urbanisation, with 68% of world’s population expected to live in cities
demographics by 2050, shared multimodal public transport becomes increasingly viable261


Remanufacturing Circular business models including Digital platforms

of spare parts and car-sharing, ride-sharing, logistics that enable circular
recycling of materials and freight load-pooling, mobility/ businesses such as
infra-as-a-service, and multimodal sharing models
integrated public transport,
accompanied by a shift to EVs
Renault DHL Toyota

has increased the use of recycled has introduced modular delivery has launched initiatives to establish
materials in their vehicle design, ‘Cubicycle’ units which can be loaded certified automobile dismantling
as well as the used vehicle onto electric cargo bicycles for last mile facilities and has rolled out car-to-car
collection, dismantling, reuse, and inner-city deliveries in Frankfurt and recycling technologies globally
remanufacturing, the recycling of Utrecht
components, batteries and vehicles,
LKQ Corporation
and it launched ZITY, an all-electric car- Daimler and BMW recovers, recycles, refurbishes or
sharing service have formed a joint venture, Share Now, remanufactures parts from trucks and
which offers ‘mobility-as-a-service’ cars to produce spare parts which can
car-sharing in urban areas be used to repair and upgrade vehicles
Whim Convoy Pony

offers access to (almost) all types is a platform that enables local freight operate a shared micro-mobility rental
of transport through an integrated drivers to pick up additional jobs en scheme with decentralised vehicle
mobility-as-a-service scheme in route and utilise empty load capacity ownership
Helsinki, the West-Midlands, and
Antwerp Connected Energy Black Bear Carbon
and Powervault turns used tyres into a raw material
Blablacar use second-life EV batteries for energy called ‘carbon black’ which can be used
enables car-pooling, using spare storage systems in a range of products, including pen
capacity in private vehicles on existing ink, smartphone covers, and new tyres
journeys Mobike
offers a bike-sharing service using IoT
technology in dozens of cities across
the world
6 Technology, Media,
and Telecommunications
• Improve knowledge of an asset’s location, condition, and availability using
technology solutions to optimise circular economy value drivers (e.g. extend
use cycle, increase utilisation, loop an asset, recover and reuse/recycle)
• Design technology and telecom equipment and infrastructure for life

extension, upgrade, reuse, and disassembly
• Reuse, redeploy, upgrade, refurbish, and recycle tech and telecoms equipment
and infrastructure (e.g. servers, network equipment)
• Operate shared data centre and network infrastructure (Infra-as-a-Service)

Increased • Increase in urban mining / recycling efforts as the demand for rare earth
demand for metals increases in the electronics industry, with only 1% of rare earth
finite resources elements currently being recycled
Innovation • Technological innovation (AI, IoT, blockchain) keeps rapidly broadening

the scope for circular business practices
• Cloud and edge computing are increasingly enabling intelligent assets
• Companies enabling virtualisation and offering (streaming) services

have already significantly disrupted the industry (e.g. Spotify, Kindle,
Netflix), with the subscription e-commerce market, from streaming
media to personal care products, having grown by over 100% annually
from 2011 to 2016262
Political • Growing understanding of how tech can enable solutions for urgent
priorities challenges (e.g. EU circular economy Action Plan, European approach to
Artificial Intelligence and Robotics)
Changing • Customers increasingly switching to subscription streaming models

preferences (global video streaming market exceeded USD 42 billion in 2019 and is
and behaviour estimated to grow by 20% annually between 2020 and 2027)263
Digitalisation • I ncreasing global digitalisation and connectivity (3.5 billion people globally
had mobile internet connectivity in 2019)264 gives citizens access to digital
platforms and marketplaces, resulting in trends such as growth in online
shopping (including groceries)
•A
doption of 5G could further enable IoT tech supporting the circular
economy (e.g. predictive maintenance of smart home appliances)


Technologies that Virtualisation of Repair, refurbish,

enable circular physical products and resale of tech
economy value drivers (e.g. media streaming) equipment
(e.g. predictive
As-a-Service delivery Development of enabling
maintenance, automated
models for network telecom technologies
sorting, reverse logistics
planning)
infrastructure (e.g. 5G)
Google Crown Hosting Cisco

applied circular economy principles provides data centres as a service to the provides infrastructure, platform and
to their data centres and server public sector in the UK software-as-a-service delivery models,
management, including buying as well as a Takeback and Reuse
remanufactured servers (18% in 2017), KPN Program for network equipment
refurbishing existing equipment, and set a target to get close to 100% circular
reselling used hardware operations and services by 2025 by
applying circular design principles, and
Thyssenkrupp by the end of 2019, 18 suppliers had
is using elevator data and IoT signed their KPN Circular Manifesto,
technology to enable predictive representing more than 70% of its
maintenance spend on materials
Provenance ReGen Villages Closing the Loop

uses blockchain technology to provide has developed software and a has partnered with T-Mobile and
information about products and supply simulator which uses artificial Samsung to collect and recycle a scrap
chains across multiple use cycles intelligence and machine learning phone for each new phone sold in the
to address the integration of high Netherlands, offsetting the material
ZenRobotics yield organic food, clean water, footprint on a one-to-one basis
combines AI and robotics to recover renewable energy and circular waste
recyclables from waste to aid resource management at the
neighbourhood scale
7 Engineering
and Construction
• Offer existing, underutilised building spaces for short-term use on online
platforms to maximise the utilisation of existing assets
• Retrofit existing buildings for alternative uses and design new buildings to be
adaptable to extend useful life
• Deploy and operate a portfolio of relocatable buildings –which are modular,

designed for deconstruction and made of durable, high-quality materials – on
unused sites to create short-term, or interim, spaces
• Create futures contracts, in which value is tied to the estimated future value
of materials in a building when deconstructed, which can be traded on a
centralised exchange to enable recovery and reuse of construction materials.
• Complement the reuse of deconstruction materials by using materials that are

renewable, non-toxic, have a high recycled content, and/or are sourced locally
• Pay for performance through product-as-a-service subscriptions for building

fixtures and fittings (e.g. heating-, cooling- or lighting-as-a-service)

Demand for • Rapid urbanisation is projected to double demand for steel and nearly
finite resources double demand for cement by 2050
• Unmet housing needs mean 1 billion new homes will be needed

worldwide by 2025265
Industry action • Growing awareness among leading clients and investors of the positive
business case for adopting circular models and increasing body of
research and knowledge and papers published on the topic
• Large demonstration development projects have been designed and

constructed using circular principles (e.g. Triodos Bank HQ and Park
20|20 in Amsterdam)
Innovation • Ongoing innovation in business models (e.g. Madaster’s platform creates

material passports for buildings and tracks the value of materials over
time),266 and building materials and design (e.g. hemp fibre cladding on
Flat House by Practice Architecture)267
Cost benefit • In 2019, solar, wind and hydropower projects were being deployed at
their fastest rate in four years and renewable power capacity is expected
to expand by 50% between 2019 and 2024.268 According to BNEF analysis,
utility-scale solar PV and onshore wind are now the cheapest forms of
new-build energy generation across two-thirds of the global population269
Increasing • Focus area of the new EU circular economy Action Plan, e.g. material
policies and recovery targets for construction and demolition waste and its material-
regulation specific fractions
• European Waste Framework Directive (2008/98/EC) has set a target for

70% of non-hazardous construction and demolition waste to be reused,
recycled or recovered by 2020
• Increased policy focus at the city-level, e.g. The new London Plan requires
all new developments of a certain size to submit a Circular Economy
Statement to help architects embed circular economy principles,270 and
Victoria State government’s ‘Recycled First’ programme for infrastructure
requires the prioritisation of recycled and reused materials271
Incentives • Decarbonisation of the energy sector is still high on the political agenda
(e.g. EU Green Deal), with incentive schemes varying and evolving
across geographies (e.g. solar panels vs home batteries)
Changing • Demographic evolution across regions requires different and changing

demographics housing needs
• Shifting working patterns require flexible spaces, accelerated by

Covid-19 crisis
Climate change • I ncreasing awareness that the construction sector accounts for over one
and global third of global resource demand and is a major contributor to climate
challenges change (a circular scenario could reduce global CO2 emissions from
building materials by 38% or 2 billion tonnes CO2 in 2050, due to a reduced
demand for steel, aluminium, cement, and plastic)272
Changing • I n 2019, over 40% of customers expressed a preference for renewable utility
preferences generation (25% in 2018), and 45% said they would be willing to pay more
and behaviour for 100% renewable energy273
•G
rowing interest in decentralised, off-the-grid energy production and
storage, driven by e.g. growth in the global EV market (forecasted CAGR of
21% between 2019 and 2030)274


Digital technologies Infrastructure- and product-as- Buildings as

which enable circular a-service business models for material banks
economy business models infrastructure assets, fixtures,
in engineering and fittings, and furniture
construction, including (e.g. solar panels offered as a service
material passports and to individuals and businesses)
predictive maintenance
Note:
Commercial-scale pilots are needed to demonstrate proof-of-concept of emerging real estate and infrastructure circular
business models
Steelcase Arup Schneider Electric

adopted product-as-a-service systems apply circular design principles to offers an Uninterruptible Power Supply
enabling recovery and redeployment of projects with clients and partners (e.g. rental service in Spain, with remote
furniture, and pay-for-use models The Circular Building, London, with asset management and predictive
Frener & Reifer, the Built Environment maintenance to extend asset life
BAM Trust and BAM, HAUT, Amsterdam,
constructed Circl, ABN Amro’s circular Transport Infrastructure Ireland, 1 Triton GE
pavilion in Amsterdam, with architects CIE Square with British Land, and the Quay offers digital and service solutions to
Quarter Tower in Sydney with AMP monitor, predict, and optimise wind
The Crown Estate Capital and 3XN/GXN) turbine performance and maintenance,
updated Development Sustainability and have a repair and refurbishment
Principles require design teams to Interface and Tarkett centre for spare parts276
incorporate circular principles into real design and manufacture modular carpet
estate development projects.275 tiles using recycled materials which can Enel’s
be disassembled and recycled after use Futur-e project is redeveloping the sites
of 23 thermal power stations using
circular economy principles
GlobeChain Oxara Enlighted

is a digitally enabled reuse marketplace facilitates the reuse of construction provides an IoT-based energy service
for construction material, while waste (excavation material) and system, claiming it saves their clients
collating data produces low cost secondary building 60–70% on lighting and 20–30% on
materials heating/cooling
Kaer
offers air-conditioning as a service, Strukton Winsun
taking responsibility for the design, has developed a mobile concrete uses 3D printing technology
installation, and operation of the recycling plant, Circuton, which for construction
AC system recycles demolished concrete on-site
into materials that can be reused to
produce new concrete
8 Waste management
and water
• Design for reusability, repairability, durability, recyclability, and/or
compostability, including phasing out hazardous materials and substances of
concern
• Collect and sort used products and materials (both non-renewable, e.g. metals,
plastics, chemicals, etc.; and renewable, e.g. wood, paper, cotton) for reuse,
remanufacturing, and recycling
• Reuse, remanufacture, and recycle materials, components and products and

improve efficiencies of recycling and recovery systems
• Collect, sort, and compost or anaerobically digest food and other organic
material, and create valuable products from residual biosolids (e.g. fertiliser)
• Recover, reuse, and recycle water and resources from wastewater

Innovation • Automation increasingly being implemented in the waste management

process (e.g. robotic sorting)
• Technology and data-driven innovation, such as route optimisation,

smart bins and trucks, RFID technology, and fill sensors
• Development of new recycling technologies, particularly focussed on

plastic (e.g. chemical recycling)
• Technological innovation in resource recovery from wastewater (e.g.

water innovation projects funded under Horizon 2020)277
Increasing • Stricter waste regulation, e.g. landfill taxes in the EU (EUR 5-100/
policies and tonne)278, Australia (USD 42-105/tonne)279, and California, US (USD 36-50/
regulation tonne)280, single-use plastic bans, EPR schemes, essential requirements
for packaging, and China’s National Sword policy banning import of
waste in 2018, including plastic, paper and metal, which has increased
global waste disposal costs
• National recycling targets (e.g. EU targets for plastic, paper, wood, glass,
and metals)
Incentives • Circular economy regulation, including new EU circular economy

Action Plan, EU Packaging and Packaging Waste Directive, is helping to
develop high-quality secondary raw materials markets
• National governments and cities implementing circular economy

roadmaps (e.g. Colombia, France, Slovenia, Germany, China; and
London, Charlotte, Beijing, São Paulo, Mexico City, Cape Town),
including approach to waste management and water
Changing • Growing awareness of waste and pollution, particularly single-use

preferences plastic and plastic leaking into the ocean, resulting in changing
and behaviour attitudes, spending and behaviour away from linear business models
(e.g. fast fashion and single-use plastic)
• Recycling rates in Europe have increased by 16% between 2004 and 2017
for municipal waste, and by 13% between 2005 and 2016 for packaging
waste281
• However, global waste is expected to grow to 3.4 billion tonnes by 2050,

more than double population growth over the same period, with at least
a third not managed in an environmentally safe manner282


Collection, sorting, Anaerobic digestion of post- Resource recovery

and recycling capacity customer organic waste from wastewater
High-quality recycling Use of organic waste as Automated sorting

technologies feedstock for innovative technologies
materials
Note:
In general, waste-to-energy is a linear activity which results in the loss of finite materials. It is therefore not considered to be
part of a circular economy
SUEZ Renewi GFL

generated 36% of their 2018 revenues are a waste-to-product business that has invested in circular processes
in Europe from recycling and recovery collect and recycle waste and turn it into across material streams, including soil
activities, and becoming 100% circular secondary raw materials and products recycling and reuse in construction
through reuse and recycling is part and development, and converting
of their 2030 value proposition; and Veolia organic waste into compost and
opened in 2020 a pioneering industrial generated EUR 4.8 billion (USD 5.66 fertilisers
unit for the recovery of ultra-fine billion) in 2018 (50% of waste revenues)
metal particles from household and from circular economy activities, Cambrian Innovation
industrial waste including recycling, biogas and offers distributed wastewater treatment
wastewater recycling, and partnered with and resource recovery as a service via
Unilever to jointly improve infrastructure its water-energy purchase agreement
for a circular economy for plastics
TerraCycle TriCiclos Kudoti

has programmes to recycle integrates the operation of collection, uses a digital platform to streamline
‘difficult to recycle’ products, such as sorting, and recycling stations with collection, sorting, processing, and
multilayer packaging and chewing gum the education of communities and recycling of materials streams across
strategic consulting with businesses to Africa to reduce pollution and improve
Loop Industries help them design out waste material recovery
produce recycled plastic feedstock of
virgin quality using chemical recycling Recycling Technologies AMP Robotics
have developed mass-producible uses AI and robotics to automate the
TOMRA modular technology which can be identification, sorting, and processing
provides reverse vending machines, installed on existing waste sites to of complex waste streams
waste sorting, and recycling solutions recycle plastic waste into feedstock for
and technology new plastic production
9 Industrial
manufacturing
• Use recycled or regeneratively sourced, renewable materials in production
• Design waste out of production processes, and reuse or valorise by-products
of production
• Design and manufacture products to be durable, repairable, and easy to disassemble

• Keep products in use through disassembly and demanufacturing,
remanufacturing of parts, products and machinery, and production of spare
parts to repair and upgrade products, machinery and infrastructure
• Keep materials in use through recycling end-of-life parts, products and machinery
to recover the materials as secondary inputs for manufacturing processes

Demand for • Manufacturing firms in the EU spend on average ~40% on materials

finite resources
Innovation • Manufacturers continue to innovate in advanced manufacturing and

digital technologies, such as AI, cloud computing, advanced analytics,
robotics, additive manufacturing, and 3D printing to the value chain to
reduce waste in production
• Transition to renewable energy sources to power production

Increasing • Increasing regulation, (e.g. new EU circular economy Action Plan, EU

policies and Industrial Strategy, EPR policies, landfill taxes)
regulation
• REACH regulation also covers by-products from production, with
additional compliance requirements in place for by-products considered
to be harmful to human health and the environment
Changing • Growing awareness of negative impacts of waste and pollution

preferences
and behaviour
Resilience to • Covid-19 crisis has created significant disruption to trade flows and
global shocks manufacturing, supply chains, with some reshoring of manufacturing
expected and increased instances of repair and remanufacture
(e.g. of ventilators)


Additive manufacturing Disassembly, Circular business

of components, demanufacturing, models offering
products, and and component and products as a service
spare parts material reuse
Remanufacturing of
components, vehicles,
and machinery
Caterpillar’s Siemens Mobility Neptuno Pumps

Cat Reman programme, produces 3D printing of train and rail parts cuts remanufactures industrial pumps
same-as-new quality components and manufacturing times by 95% and reuses or recycles end-of-life
replacement parts for a fraction of the parts to manufacture new pumps
cost of a new part IBM and spare parts
has demanufacturing and asset
Rolls Royce’s recovery centres to demanufacture used Jaguar Land Rover
‘Power-by-the-Hour’ engine electronics and harvest parts for reuse recycles aluminium from end-of-
maintenance management approach or resale life vehicles back into high-quality
(e.g. TotalCare programme) uses aluminium for the manufacture of new
predictive analytics for lifecycle vehicle bodies
engine maintenance, and enables
up to 95% of used engine parts to be
recovered or recycled
3YOURMIND Novo Nordisk Warner Babcock Institute has

has developed additive manufacturing and eight other private and public developed an additive to help recycle
software for 3D printing of spare parts, companies, have a commercially old asphalt into new
enabling Deutsche Bahn to create successful industrial symbiotic
a ‘digital spare parts warehouse’ for partnership in Kalundborg, exchanging Urban Mining Company
maintenance of vehicles and Bosch 25 different resource streams creating has developed a technology to
to produce industrial plastic parts in cost savings and socio-economic reprocess rare earth magnets from
small quantities, and 3D printing of benefits end-of-use products (e.g. electronics)
parts for hospitals and medical centers into new magnets
in response to the Covid-19 crisis
10 Paper, pulp, and

forestry products
• Source renewable materials from regenerative sources
• Keep materials in use by reusing and recycling paper, pulp, and wood through
cascades of use, before safely returning to the biosphere

Established • Recycling rates already fairly high, e.g. ~85% recycling rates of paper and
circular board packaging in Europe in 2018283
practices
Demand for • Plastic packaging disruption offers opportunities for alternative

alternative materials such as paper and cardboard (the shift away from plastic
materials packaging is estimated to create an extra USD 700 million in demand
for corrugated cardboard in Europe and the US between 2018 and 2022,
equal to 0.4% per annum of incremental growth)284
Increased • China’s National Sword policy banning import of waste in 2018,

policies and including plastic, paper, and metal, has increased global waste disposal
regulation costs and driven down recycled paper input costs (China took ~70% of
the world’s waste exports in 2017)
• National recycling targets (e.g. EU targets for paper and wood)
Changing • Increasing customer pressure and changing behaviour for packaging

preferences solutions (‘BBC’s Blue Planet II effect’)
and behaviour


Use of high-quality Use of paper or Automated sorting

recycled content to cardboard to replace technologies
replace virgin input plastics in packaging
DS Smith Smurfit Kappa International Paper

a global packaging company and has a Better Planet Packaging is targeting circular solutions
a net positive recycler, committed innovation initiative to design throughout their value chain and is one
to manufacture 100% reusable or alternatives to problematic packaging of the largest users of recovered fibre
recyclable packaging by 2025 formats globally
Stora Enso
design for circularity and have a value
chain Circular Packaging Programme
for driving collection and recycling of
paperboard packaging
The Loop Factory Spinnova Sulapac

has developed a manufacturing turns wood and cellulose waste produces packaging from renewable
technology for dry moulded streams into textile fibre materials, including by-products from
cellulose-based packaging from pulp, wood processing
named Yangi, which is renewable and Paptic
recyclable has produced a bio-based, recyclable,
reusable packaging material made
Noble Environmental from wood fibres
Technologies
have developed ECOR, a composite
panel made from recycled waste
fibres, using only water and heat
Disclaimer
This paper has been prepared and produced by the Ellen
MacArthur Foundation (the ‘Foundation’). The Foundation has
exercised care and diligence in the preparation of the paper, and
it has relied on information it believes to be reliable. However, the
Foundation makes no representations and provides no warranties
to any party in relation to any of the content of the paper
(including as to the accuracy, completeness, and suitability for any
purpose of any of that content).
The information contained in this paper does not constitute

investment advice of any sort and the Foundation is not an
investment advisor. The Foundation is not advertising, marketing,
promoting, endorsing, advising on, or selling any financial or
other services, instruments, products or investments, nor is
it recommending to any party to perform those functions.
Any reference in this paper to any such services, instruments,
products or investments must not be relied upon by any party
in connection with any financial or investment decision. In any
event, the Foundation (and its related people and entities and their
employees and representatives) shall not be liable to any party for
any claims or losses of any kind arising in connection with, or as a
result of, use of or reliance on information contained in this paper.
The Ellen MacArthur Foundation would like to thank the

organisations that contributed to the paper for their constructive
input. Contribution to the paper, or any part of it, should not
necessarily be deemed to indicate any kind of partnership or
agency between the contributors and the Ellen MacArthur
Foundation, nor an endorsement of its conclusions or
recommendations. Individuals and organisations listed in the
‘In support of this paper’ section support the paper’s general
direction, but do not necessarily agree with every individual
conclusion or recommendation.
To quote this paper, please use the following reference:

Ellen MacArthur Foundation, Financing the circular economy -
Capturing the opportunity (2020)
www.ellenmacarthurfoundation.org/publications
Acknowledgements
We are very grateful for the support we have received in producing the
report. Special thanks go to the many leading academic, industry, NGO,
and government agency experts who provided invaluable perspectives.
CORE PROJECT TEAM EDITORIAL
Andrew Morlet Ian Banks

Chief Executive Editorial Lead
Rob Opsomer Lena Gravis

Executive Lead, Systemic Initiatives Editor
Michiel De Smet
Finance Programme Lead PRODUCTION
Emily Healy Sarah Churchill-Slough

Finance Programme Project Manager Design & Branding Manager
Giacomo Moretto Elisa Gilbert

Analyst Graphic Designer
Matthew Barber
COMMUNICATIONS Design Assistant
Iulia Strat
Communications Manager EXTERNAL CONTRIBUTORS
Katie Schuster Heather Farmbrough

Communications Executive Freelance Editor
Bex Worthington Joanna de Vries

Communications Executive Editor, Conker House Publishing
Ross Findon Grant Chapman

Media Relations Manager Senior Graphic Designer
Expert contributors
ACTED Barclays
Andre Krummacher May Jaramillo
Vice CEO Programmes, Head of Sustainable and Impact Banking
Impact & Accountability
Aurélien Daunay Blue Oceans Partners

Vice CEO Finance, Innovation,
Olivier Raybaud
Investment at ACTED & member
Co-Founder & Managing Partner
of the Impact Investment Lab (IILAB)
Alante Capital BNP Paribas Asset Management
Leslie Harwell Sebastien Soleille

Managing Partner Global Head of Energy Transition and
Environment
Robert-Alexandre Poujade
Amcor ESG Analyst
David Clark
Vice President, Sustainability
BNP Paribas Leasing Solutions
Annick Roussier
ANSA Services Head of CSR
Henry Saint Bris
Pierre Henri de la Marandais
Founder and President
Head of Company Engagement
Pauline Gasquet
Sustainability Analyst
Bockatech
Chris Bocking
Archipelago Eco Investors Founder
Justin Guest
Martin Blacher
Partner
Director
Lucy Mortimer
Partner
Carbon Tracker
Kingsmill Bond
Arup Energy Strategist
Richard Boyd
Senior Engineer
CDC Group
Alex Goodenough
As You Sow Funds and Capital Partnerships
Conrad MacKerron Investment Manager
Senior Vice President
Ellen Brookes
Executive, Climate Change
Bank of England
Juvaria Aumeerally
Sarah Breeden Equity Investment Manager
Executive Director, UK Deposit
Takers Supervision, and Executive Dr Veronica Di Bella
Sponsor for Climate Manager, Environment,
Social and Governance Impact
Ryan Barrett
Senior Analyst, Climate Hub Mark Eckstein
Environment, Social and Governance Director
Circularity Capital Emerging Markets Investors Alliance

Jamie Butterworth Alex Schay
Founder & CEO Director
Andrew Howell
Director and Head of Corporate Research
Citi
Zara Ahsanuddin Ashok Parameswaran
Vice President President and Founder
Nadine Cavusoglu
Managing Director
Climate Bonds Initiative
Vishwas Vidyaranya William Woo
Consultant Director
Closed Loop Partners Encourage Capital

Allison Shapiro Ellie Moss
Executive Director Senior Advisor
Kate Daly
Managing Director, Center for the European Bank for Reconstruction and
Circular Economy Development (EBRD)
Ron Gonen, Astrid Motta

Founder & CEO Principal, Energy Efficiency and Climate Change
Peter Hirsch
Associate, Energy Efficiency and Climate Change
Circulate Capital
Rob Kaplan
Founder & CEO European Investment Bank (EIB)
Arnold Verbeek
Senior Advisor, R&D and Innovation Finance
Credit Suisse
Liesbet Goovaerts
Marisa Drew
Environmental Engineer,
Chief Sustainability Officer & Global Head
Advanced Materials Division
Sustainability Strategy, Advisory and Finance
Paulina Brzezicka
Advisor, Innovation Finance Advisory
Danone
Shiva Dustdar
Eric Soubeiran
Head of Division, Innovation Finance Advisory
VP Nature & Water Cycle
Fashion for Good

Dassault Systèmes
Rogier Van Mazijk
Alice Steenland
Investments
CSO
Federated Hermes - International

DS Smith
Lisa Lange
Hugo Fisher ESG Engagement & Stewardship
Group Investor Relations Director
Sam Jones Aaron Hay
Sustainability Strategy and Communications Lead Engager, SDG Credit & Fixed Income
Manager, DS Smith
FSCS
Marshall Bailey OBE CFA
Non-Executive Chairman
GIZ
Christian Hudson
International Solid Waste Association
Lead, EU G7 and G20 Environmental
Diplomacy Support Aditi Ramola
Technical Director
Good Tech Lab

Intesa Sanpaolo Innovation Center
Benjamin Tincq
Co-Founder & CEO Anna Monticelli
Head of Circular Economy Desk
Christopher El Khoury
Hanover Investors
Circular Economy Analyst
Jamie Brooke
Portfolio Manager Max Tellini
Global Head - Circular Economy
Simone Carli
H&M
Circular Economy Specialist
Erik Karlsson
Investment Manager Stefano Martini
Head of Circular Economy Lab
Cecilia Brannsten
Environmental Sustainability Manager
Investment Circle
Lisa Spetz
Treasury Alexandre de Vaivre
Partner
William Bowdler-Raynar
IDB Invest
Partner
Paula Pelaez Zambrano
Head of MSME and Sustainability
JPMorgan Chase
Louise Pemberton
Impact Investing Institute Sustainable Finance, Associate
Olivia Dickson
Board Member and Lead Expert Mackenzie Huffman
Sustainability, Vice President
Katherine Hunter
ING
Impact Finance, Vice President
Nishant Parekh
Program Manager, Environment
& Circular Economy Legal & General Investment Management
Matthew Courtnell
Equity Specialist
Innovate UK
Shaunak Mazumder
David Richardson Global Equity Fund Manager
Innovation Lead for Energy Systems
London Waste and Recycling Board (LWARB)

Institute for Climate Economics (I4CE)
James Close
Michel Cardona Head of Circular Economy Programme
Senior Advisor - Financial Sector
and Climate Risks
Institutional Investors Group on Climate

Change (IIGCC)
Lewis Ashworth
Programme Manager
Macquarie Group Positive Money

Brooks Preston David Barmes
Managing Director, Macquarie Economist
Infrastructure and Real Assets
Chris Leslie
Global Head of Sustainability, Macquarie Rabobank Group
Infrastructure and Real Assets Björn Aarts
Sustainable & Circular Business Developer
Middlebury College
Frank Van Gansbeke
Professor of the Practice Rathbone Greenbank Investments
Sophie Lawrence
Senior Ethical, Sustainable and Impact Researcher
MMC Ventures
Asen Kostadinov
Manager Renault Group
Jean-Philippe Hermine
VP Strategic Environmental Planning
Moody’s Corporation
Anna Zubets-Anderson
Vice President - ESG Analyst RePack
Jeremy Davis Jonne Hellgren

Vice President - Corporate Social Responsibility CEO & Co-Founder
Martina Macpherson
Senior Vice President, Strategic Robeco
Partnerships & ESG Engagement
Peter van der Werf
Senior Engagement Specialist, Active Ownership
Moody’s Investors Service

James Leaton RobecoSAM
Vice President - Senior Credit Officer
Holger Frey
Senior Portfolio Manager
Morgan Stanley
Matthew Slovik SAM, a part of S&P Global
Managing Director and Head of Global
Lotte Griek
Sustainable Finance
Director, Head of Corporate
Sustainability Assessments
OLEX. Marie Froehlicher

Brett Olsher ESG Specialist
Founder and Managing Partner
Rosanna Brady,
ESG Operations Specialist
PepsiCo
Andrew Aulisi,
Vice President, Global Environmental Policy SASB
Gail Glazerman
Analyst, Sector Lead
Planet Tracker
Gabriel Thoumi Lynn Xia
Director of Financial Markets Lead Analyst - Food and Beverage
Matt McLuckie Taylor Reed

Director of Investor Relations Sector Analyst - Consumer Goods
Robin Millington
Executive Director
Sustainable Markets Initiative Telos Impact

Tony Ofori (Ph.D) Guillaume Boury
Sustainable Markets Financial Director Investment Associate
Baptiste Le Clerc
SDG Invest Investment Associate
Anne-Louise Thon
Partner, SDG Lead & Co-founder The Renewal Workshop
Jeff Denby
Mads Dahl-Hansen Co-Founder
Senior Sustainability Analyst
Nicole Bassett
Co-Founder
Schneider Electric
Gaurav Sharma
Director, Circular Business Models TriCiclos
Xavier Houot Veronica de la Cerda

SVP, Chief Environment Officer CEO
Solvay
Triodos Investment Management
Isabelle Gubelmann Bonneau
Hans Stegeman
Senior VP Circular Economy Head
Chief Investment Strategist
Michel Washer
Deputy Chief Sustainability Officer
UN Environment Programme (UNEP)
Stuffstr Charles Arden-Clarke

Head, One Planet Network (10YFP) Secretariat,
John Atcheson
Founder & Chair
UN-supported Principles for Responsible

Investment (UN PRI)
Sulapac
Gemma James
Tero Lehtinen
Head of Environmental Issues
CFO
Sustainalytics University College London (UCL)

Cathrine Steenstrup Olga Mikheeva
Associate Director, Engagement Services Research Fellow - Institute for
Innovation and Public Purpose
Enrique Figallo
Senior Associate, Engagement Services
Jonathan Kellar University of Cambridge

Manager, Engagement Services Nicky Dee
Fellow - Cambridge Institute for
Martin Vezér Sustainability Leadership
Manager, Thematic Research
Switchrs University of Exeter Business School

Jan Leyssens Ken Webster
Co-Founder Senior Lecturer in Circular Economy
SystemIQ
Katherine Stodulka University of Exeter
Programme Director,
Jack Oliver
Blended Finance Taskforce
Impact and Partnership Development Manager
Catharina Dyvik
Lead Sustainable Finance / Project Manager
Blended Finance Taskforce
About The Ellen

MacArthur Foundation
The Ellen MacArthur Foundation is a UK-based charity,
committed to the creation of a circular economy that tackles
some of the biggest challenges of our time, such as waste,
pollution, and climate change. A circular economy designs out
waste and pollution, keeps products and materials in use, and
regenerates natural systems, creating benefits for society, the
environment, and the economy.
The Foundation collaborates with: its Strategic Partners

(BlackRock, Danone, DS Smith, Google, H&M Group, Intesa
Sanpaolo, IKEA, Philips, Renault, SC Johnson, Solvay, Unilever,
The Eric and Wendy Schmidt Fund for Strategic Innovation,
SUN, MAVA, players of People’s Postcode Lottery (GB)) and
its wider network of businesses; governments, institutions,
and cities; designers; universities; and emerging innovators to
drive collaboration, explore opportunities, and develop circular
business initiatives.
Further information
www.ellenmacarthurfoundation.org
@circulareconomy
Endnotes
1 E
llen MacArthur Foundation, Material Economics, Completing the Picture: 30 E
U, ‘Event at COP25 on Combining Circular Economy Principles with
How the Circular Economy Tackles Climate Change (2019) GHG ’Reduction Strategies’ (2019): https://circulareconomy.europa.
eu/platform/en/news-and-events/all-news/event-cop25-combining-
circular-economy-principles-ghg-reduction-strategies; UNDP, ‘Circular
2 E
llen MacArthur Foundation, Material Economics, Completing the Picture: Economy and a New Generation of NDCs’ (2019): https://www.ndcs.undp.
How the Circular Economy Tackles Climate Change (2019) org/content/ndc-support-programme/en/home/impact-and-learning/
ideas-and-insights/20190/circular-economy-new-ndc-generation-.html;
3 W
RAP and Green Alliance, Employment and the Circular Economy: job Chile’s Nationally Determined Contribution (2020) https://www4.unfccc.
creation in a more resource efficient Britain (2015) int/sites/ndcstaging/PublishedDocuments/Chile%20First/Chile%27s_
NDC_2020_english.pdf; UNDP, Circular Economy Principles for NDCs and
Long-term Strategies: https://www.ndcs.undp.org/content/dam/LECB/
4 E
llen MacArthur Foundation, SUN, McKinsey & Co., Growth Within: a circular events/2019/20190625-circular-economy/undp-ndcsp-1.5Degree-circular-
economy vision for a competitive Europe (2015) economy-I4C-2019-Workshop-Summary.pdf
5 E
llen MacArthur Foundation, The Circular Economy Opportunity for Urban 31 E
llen MacArthur Foundation, Material Economics, Completing the
and Industrial Innovation in China (2018) Picture: how the circular economy tackles climate change (2019); WHO,
Circular Economy and Health: risks and opportunities (2018); European
Environmental Agency, Paving the Way for a Circular Economy: insights on
6 Philips, Annual Report 2019 (2019) status and potentials (2019)
7 Caterpillar, ‘Cat Reman’: https://www.caterpillar.com/en/brands/cat-reman.html 32 E

llen MacArthur Foundation, A New Textiles Economy: redesigning
fashion’s future (2017)
8 thredUP (GlobalData Market Sizing), ThredUP 2020 Resale Report (2020)
33 E
xamples of regenerative practices include shifting from synthetic to
9 E
llen MacArthur Foundation, ‘“It’s time to step up, not step back” — more organic fertilisers, employing crop rotation, and using greater crop
than 50 global leaders pledge to build back better with the circular variation to promote biodiversity. Farming types such as agroecology,
economy’: https://www.ellenmacarthurfoundation.org/news/more-than-50- rotational grazing, agroforestry, conservation agriculture, and
global-leaders-pledge-to-build-back-better-with-the-circular-economy permaculture all fall under this definition.
10 Analysis conducted by the Ellen MacArthur Foundation 34 Ellen MacArthur Foundation, Cities and circular economy for food (2019)
11 B
ank of England, ‘Letter from Sam Woods “Managing climate-related 35 E
llen MacArthur Foundation, The Circular Economy Opportunity for Urban
financial risk – thematic feedback from the PRA’s review of firms’ SS3/19 and Industrial Innovation in China (2018)
plans and clarifications of expectations”’ (July 2020): https://www.
bankofengland.co.uk/prudential-regulation/letter/2020/managing-the- 36 E
llen MacArthur Foundation, SUN, McKinsey & Co., Growth Within: a
financial-risks-from-climate-change circular economy vision for a competitive Europe (2015)
12 E
uropean Commission, EU taxonomy for sustainable activities https:// 37 B
usiness Europe Circularly, ‘Renault Remanufacturing of ’Spare Parts’
ec.europa.eu/info/business-economy-euro/banking-and-finance/ (2017): http://www.circulary.eu/project/renault-spare-parts/
sustainable-finance/eu-taxonomy-sustainable-activities_en
38 V
eolia, Integrated Report 2018 (2018): https://www.veolia.com/sites/g/files/
13 E
llen MacArthur Foundation, Circulytics: https://www. dvc2491/files/document/2019/04/Veolia-Integrated-Report-2018.pdf
ellenmacarthurfoundation.org/resources/apply/circulytics-measuring-
circularity
39 R
egenerative agriculture focuses on food production using approaches that
contribute to the improved health of the surrounding natural ecosystem.
14 T
ask Force on Climate-related Financial Disclosures (TCFD): https://www.
fsb-tcfd.org/
40 G
reenbiz, ‘Danone Cultivates Multinational Effort to Restore Biodiversity’
(2nd October 2019): https://www.greenbiz.com/article/danone-cultivates-
15 S
ustainability Accounting Standards Board (SASB) Foundation: https:// multinational-effort-restore-biodiversity
www.sasb.org/
41 t hredUP (GlobalData Market Sizing), ThredUP 2020 Resale Report (2020):
16 O
pimas, ESG Data Integration by Asset Managers: targeting alpha, https://www.thredup.com/resale/
fiduciary duty and portfolio risk analysis (2020): http://www.opimas.com/
research/570/detail/
42 Philips, Annual Report 2019 (2019)
17 G
SIA, 2016 Global Sustainable Investment Review (2016): http://www.gsi-
alliance.org/wp-content/uploads/2017/03/GSIR_Review2016.F.pdf 43 W
RAP and Green Alliance, Employment and the Circular Economy: job
creation in a more resource efficient Britain (2015)
18 D
eutsche Bank, Big Data Shakes Up ESG Investing (2018): https://www.
dbresearch.com/PROD/RPS_EN-PROD/PROD0000000000478852/ 44 thredUP (GlobalData Market Sizing), ThredUP 2020 Resale Report (2020)
Big_data_shakes_up_ESG_investing.pdf
45 E
llen MacArthur Foundation, ‘Case Studies: Balbo Group – regenerative
19 U
N PRI, ‘About the PRI’: https://www.unpri.org/pri/about-the-pri; UN PRI, agriculture at scale’: https://www.ellenmacarthurfoundation.org/case-
PRI Update: Q2 2020 (2020) studies/regenerative-agriculture-at-scale
20 S
cience Based Targets, ‘Financial Institutions’ (as of 10th June 2020): 46 ICIS, ‘EU Agrees Tax on Plastic Packaging Waste’ (2020): https://www.icis.
https://sciencebasedtargets.org/financial-institutions/; UNEP Finance com/explore/resources/news/2020/07/21/10532318/eu-agrees-tax-on-
Initiative and PRI, ‘UN-convened Net-Zero Asset Owner Alliance’ (as of plastic-packaging-waste
10th June 2020): https://www.unepfi.org/net-zero-alliance/
47 E
uropean Parliament and Council, ‘Directive (EU) 2019/904 on the
21 B
loomberg, ‘BlackRock Joins $41 Trillion Investor Climate Campaign’ Reduction of the Impact of Certain Plastic Products on the Environment’
(2020): https://www.bloomberg.com/news/articles/2020-01-09/blackrock- (2019): https://eur-lex.europa.eu/eli/dir/2019/904/oj
joins-investor-group-campaigning-for-climate-action; London Stock
Exchange, ‘Barclays Announces Ambition to be a Net-Zero Bank by 2050’
(2020): https://www.londonstockexchange.com/news-article/BARC/ 48 T
he New Plastics Economy Global Commitment, 2019 Progress Report
climate-policy-ambition-to-be-net-zero-by-2050/14482615 (2019): https://www.newplasticseconomy.org/about/publications/
globalcommitment-2019-progress-report
22 F
inancial Times, ‘Barclays Targets Net-Zero Carbon Emissions by 2050’
(2020): https://www.ft.com/content/e9ededd2-ddfc-498a-b63c- 49 F
ederated Hermes, Investor Expectations For Global Plastics Challenges
409a9e4b43c3 (2020): https://www.hermes-investment.com/uki/wp-content/
uploads/2020/04/investor-expectations-for-global-plastics-challenges-
april-2020.pdf
23 T
he People’s Bank of China, ‘The People’s Bank of China and Six Other
Agencies Jointly Issue “Guidelines for Establishing the Green Financial
System”’ (2016): http://www.pbc.gov.cn/english/130721/3131759/index.html 50 E
llen MacArthur Foundation, World Economic Forum and
McKinsey&Co.,The New Plastics Economy - Rethinking the future of
plastics (2016)
24 N
etwork for Greening the Financial System (NGFS): https://www.ngfs.net/
en; Task Force on Climate-related Financial Disclosures (TCFD): https://
www.fsb-tcfd.org/ 51 U
N Environment, Legal Limits On Single-Use Plastics And Microplastics:
A Global Review Of National Laws And Regulations (2018): https://
wedocs.unep.org/bitstream/handle/20.500.11822/27113/plastics_limits.
25 International Resource Panel, Global Resources Outlook 2019 (2019): pdf?sequence=1&isAllowed=y
https://www.resourcepanel.org/global-resources-outlook-2019
52 E
uropean Parliament and Council, ‘Directive (EU) 2019/904 on
26 E
llen MacArthur Foundation, Material Economics, Completing the Picture: the Reduction of the Impact of Certain Plastic Products on the
How the Circular Economy Tackles Climate Change (2019) Environment’(2019): https://eur-lex.europa.eu/eli/dir/2019/904/oj
27 In 2010, 22.1 billion tonnes of CO2e per year were related to the production 53 R
euters, ‘Microsoft, Nike, Unilever Team Up To Combat Global
of goods and management of land. Carbon Emissions (2020): https://uk.reuters.com/article/us-climate-
changecoalition/microsoft-nike-unilever-team-up-to-combat-global-
carbonemissions-idUKKCN24M0P0
28 E
llen MacArthur Foundation, Material Economics, Completing the Picture:
how the circular economy tackles climate change (2019)
54 A
s You Sow, ‘Nearly Half of Starbucks Shareholders Support As You
Sow Proposal on Reusable Drinking Containers and Recycling Goals’
29 E
llen MacArthur Foundation, Material Economics, Completing the Picture: (27th March 2019): https://www.asyousow.org/press-releases/starbucks-
how the circular economy tackles climate change (2019) shareholder-vote-plastic-recycling-goals; As You Sow, ‘McDonald’s Agrees
to Replace Paper for Polystyrene Cups at All US restaurants’ (2013):
https://archive.asyousow.org/companies/
55 U
N Environment Programme, ‘China’s Trash Ban Lifts Lid On Global
Recycling Woes But Also Offers Opportunity’ (2020): https://www.
unenvironment.org/news-and-stories/story/chinas-trash-ban-lifts-lidglobal-
recycling-woes-also-offers-opportunity
56 U
nilever, Rethinking Plastic Packaging: towards a circular economy (2019): 81 B
ond Buyer, ‘Private ’Activity Bond Deal Spins Rice Straw Into High Yield
https://www.unilever.com/sustainable-living/reducing-environmental- Tax-Exempts’ (1st June 2017): https://www.bondbuyer.com/news/private-
impact/waste-and-packaging/rethinking-plastic-packaging/; Solvay, ‘10 activity-bond-deal-spins-rice-straw-into-high-yield-tax-exempts; California
Sustainable Key Goals’: https://www.solvay.com/en/sustainability/10-key- State Treasurer, ‘Treasurer Fiona Ma Announces $73.7 Million Green Bond
goals Solvay, ‘10 Sustainable Key Goals’: https://www.solvay.com/en/ Sale for Rice Waste Recycling Plant’ (15th August 2019): https://www.
sustainability/10-key-goals treasurer.ca.gov/news/releases/2019/20190815/75.asp
57 G
artner, ‘Gartner Survey Shows 70% of Supply Chain Leaders Plan to Invest 82 Council of Development Finance Agencies, ‘CDFA Announces Winners
in the Circular Economy’ (26th February 2020) https://www.gartner.com/ of the CDFA Excellence in Development Finance Award’ (2019): https://
en/newsroom/press-releases/2020-02-26-gartner-survey-shows-70--of- columbiapulp.com/wp-content/uploads/2019/11/Press-Release-Project-
supply-chain-leaders-plan WEDFA.pdf
58 C
isco, ‘Cisco Celebrates Earth Day with Relaunch of Product Takeback 83 C
hina Daily, ‘Qaidam Circular Economy Pilot Zone’ (2018): http://subsites.
and Reuse Program’ (22nd April 2020): https://blogs.cisco.com/csr/cisco- chinadaily.com.cn/InvestinChina/2018-10/24/c_285324.htm
celebrates-earth-day-with-re-launch-of-product-takeback-and-reuse-program
84 E
uropean Commission, ‘Financing the Green Transition: the European
59 C
aterpillar, ‘Circular Economy’: https://www.caterpillar.com/en/company/ Green Deal Investment Plan and Just Transition Mechanism’ (14th
sustainability/remanufacturing.html January 2020): https://ec.europa.eu/regional_policy/en/newsroom/
news/2020/01/14-01-2020-financing-the-green-transition-the-european-
green-deal-investment-plan-and-just-transition-mechanism
60 thredUP (GlobalData Market Sizing), ThredUP 2020 Resale Report (2020)
85 E
IB, The EIB Circular Economy Guide (2020); EIB, ‘EUR 10 billion to support
61 t hredUP (GlobalData Market Sizing), ThredUP 2020 Resale Report (2020): the Circular Economy in the EU’ (2019): https://www.eib.org/en/press/
https://www.thredup.com/resale/ all/2019-191-eur-10-billion-to-support-the-circular-economy-in-the-eu.htm
62 E
llen MacArthur Foundation, ‘A Global Commitment: a circular economy 86 C
EFC, ‘Australian Recycling Investment Fund’ (2018): https://www.cefc.
for plastic in which it never becomes waste’ (2020): https://www. com.au/where-we-invest/about-our-finance/investment-programs/
newplasticseconomy.org/projects/global-commitment australian-recycling-investment-fund/
63 E
uropean Commission, ‘COM/2019/640 final’ 87 A
nalysis includes AUM of public equity funds with circular economy as the
(2019): https://eur-lex.europa.eu/legal-content/EN/ sole or partial investment focus on 1 January 2020 and 31 August 2020.
TXT/?qid=1588580774040&uri=CELEX:52019DC0640; European
Commission, Circular Economy Action Plan: for a cleaner and more
competitive Europe (2020): https://ec.europa.eu/environment/circular- 88 P
hys.org, ‘Nestlé to Invest 2bn Swiss Francs in Recycled Plastics (2020):
economy/pdf/new_circular_economy_action_plan.pdf https://phys.org/news/2020-01-nestle-invest-2bn-swiss-francs.html
64 E
uropean Commission, Memorandum of Understanding on Circular 89 G
roupe Renault, ‘All You Need to Know About Battery Leasing for the
Economy Cooperation (2018) https://ec.europa.eu/environment/ Renault Zoe’: https://easyelectriclife.groupe.renault.com/en/day-to-day/
circular-economy/pdf/circular_economy_MoU_EN.pdf; UN Environment all-you-need-to-know-about-battery-leasing-renault-zoe/; Groupe Renault,
Programme, ‘World Pledges to PPDPProtect Polluted, Degraded Planet ‘Car Sharing : Zity arrives in Paris’: https://easyelectriclife.groupe.renault.
as it ABAdopts Blueprint for MSF’More Sustainable Future’ (2019): com/en/day-to-day/carsharing-zity-arrives-in-paris/
https://www.unenvironment.org/news-and-stories/press-release/world-
pledges-protect-polluted-degraded-planet-it-adopts-blueprinthttps://
www.unenvironment.org/news-and-stories/press-release/world-pledges- 90 E
llen MacArthur Foundation, ‘Case Studies: HP Brazil & Sintronics – creating
protect-polluted-degraded-planet-it-adopts-blueprint a reverse logistics ecosystem’: https://www.ellenmacarthurfoundation.org/
case-studies/creating-a-reverse-logistics-ecosystem
65 E
uropean Commission’s Expert Group on Circular Economy Financing,
Categorisation System for the Circular Economy (2020): https://ec.europa. 91 R
olls-Royce, ‘Power by the Hour’ (2017): https://www.rolls-royce.com/
eu/info/publications/categorisation-system-circular-economy_en media/our-stories/discover/2017/totalcare.aspx
66 E
uropean Commission, ‘EU taxonomy for Sustainable Activities (2018): 92 A
bInBev, ‘A Nutritional Drink Based on Saved Grains (2018): https://ab-
https://ec.europa.eu/info/business-economy-euro/banking-and-finance/ inbev.eu/news/a-nutritional-drink-based-on-saved-grains/
sustainable-finance/eu-taxonomy-sustainable-activities_en
93 HP, ‘HP Instant Ink’, https://instantink.hpconnected.com/ie/en/l/
67 E
uropean Commission, ‘Sustainable Finance: Commission welcomes the
adoption by the European Parliament of the Taxonomy Regulation’ (18th 94 F
inanCE working group, Linear Risks (2018); VITO, Two Out of Three
June 2020), https://ec.europa.eu/commission/presscorner/detail/en/ Circular Companies Well Resistant to Corona Crisis (2020): https://vito.be/
ip_20_1112 en/news/two-out-three-circular-companies-well-resistant-corona-crisis
68 E
llen MacArthur Foundation, ‘Circulytics: measuring circularity’: https:// 95 A
nalysis period covers 1 January to 30 June 2020. Fund performance as
www.ellenmacarthurfoundation.org/resources/apply/circulytics- measured by changes in Net Asset Value, compared to performance of
measuring-circularity respective Morningstar category benchmarks (MSCI World or MSCI ACWI).
Average outperformance includes funds launched in the period from the
69 T
he New Plastics Economy Global Commitment, 2019 Progress Report point of inception. The analysis period, H1 2020, has been taken as the
(2019): https://www.newplasticseconomy.org/about/publications/global- first period where full performance data is available for greater than three
commitment-2019-progress-report funds with circular economy as sole or partial investment focus. Extending
this period to between 1 January and 31 August 2020 results in an average
outperformance of 7.5% across all funds.
70 T
he World Benchmarking Alliance, Measuring What Matters Most
(2019): https://www.worldbenchmarkingalliance.org/wp-content/
uploads/2019/10/WBA-sevensystemstransformations-report.pdf 96 IEA, The Future of Petrochemicals: towards more sustainable plastics and
fertilisers (2018)
71 G
lobal Reporting Initiative, GRI 306: Waste 2020: https://www.
globalreporting.org/standards/gri-standards-download-center/gri-306- 97 T
he American Chemistry Council (ACC), ‘U.S. Chemical Industry Investment
waste-2020/ Linked to Shale Gas Reaches $200 Billion’ (11th September 2018): https://
www.americanchemistry.com/Media/PressReleasesTranscripts/ACC-news-
releases/US-Chemical-Industry-Investment-Linked-to-Shale-Gas-Reaches-
72 E
llen MacArthur Foundation, Granta Design, ‘Material circularity indicator’ 200-Billion.html
(2015): https://www.ellenmacarthurfoundation.org/resources/apply/
material-circularity-indicator
98 M
cKinsey & Company, How Plastics-Waste Recycling Could Transform the
Chemical Industry (2018)
73 WBCSD: https://www.wbcsd.org/
99 M
SCI, ‘The Last Straw: will plastics become the new stranded asset?’
74 S
ustainability Accounting Standards Board (SASB) Foundation: https:// (2019): https://www.msci.com/www/blog-posts/the-last-straw-will-
www.sasb.org/ plastic/01568008155
75 Task Force on Climate-related Financial Disclosures (TCFD): https://www. 100 W

RAP and Green Alliance, Employment and the Circular Economy: job
fsb-tcfd.org/ creation in a more resource efficient Britain (2015)
76 CDP: https://www.cdp.net/en 101 B

ank of England, ‘Letter from Sam Woods “Managing climate-related
financial risk – thematic feedback from the PRA’s review of firms’ SS3/19
plans and clarifications of expectations”’ (July 2020): https://www.
77 F
orbes, ‘8 Characteristics of Millennials That Support Sustainable bankofengland.co.uk/prudential-regulation/letter/2020/managing-the-
Development Goals (SDGs)’ (19th June 2019): https://www.forbes.com/ financial-risks-from-climate-change
sites/margueritacheng/2019/06/19/8-characteristics-of-millennials-that-
support-sustainable-development-goals-sdgs/#6dae579529b7https://
www.forbes.com/sites/margueritacheng/2019/06/19/8-characteristics- 102 E
llen MacArthur Foundation, ‘Circulytics: measuring circularity’: https://
of-millennials-that-support-sustainable-development-goals- www.ellenmacarthurfoundation.org/resources/apply/circulytics-
sdgs/#6dae579529b7 measuring-circularity
78 E
llen MacArthur Foundation, ‘Covid-19: The economic recovery; Insights: 103 B
lackRock, ‘BGF Circular Economy’ (2019): https://www.blackrock.com/
build back better with the circular economy’ (2020): https://www. uk/intermediaries/products/310167/
ellenmacarthurfoundation.org/news/covid-19-insights-build-back-better-
with-the-circular-economy; FinanCE working group, Linear Risks (2018);
VITO, Two Out of Three Circular Companies Well Resistant to Corona Crisis 104 C
andriam, ‘SRI Equity Circular Economy’ (2020): https://www.candriam.
(2020): https://vito.be/en/news/two-out-three-circular-companies-well- com/en/professional/funds-search/be---candriam-sri-equity-circular-
resistant-corona-crisis economy/
79 E
llen MacArthur Foundation, ‘A solution to build back better: the 105 D
ecalia, ‘Decalia Launches the First Equity Fund Dedicated to the Circular
circular economy’ (2020): https://www.ellenmacarthurfoundation. Economy (2018): https://www.decaliagroup.com/en/decalia-launches-the-
org/assets/downloads/emf-joint-statement.pdf): https://www. first-equity-fund-dedicated-to-the-circular-economy/
ellenmacarthurfoundation.org/assets/downloads/emf-joint-statement.pdf
106 R
obecoSAM, ‘RobecoSAM Launches Circular Economy Strategy’
80 C
runchbase news, ‘Startups Raise Record Sums to Take on Packaging (30th January 2020) https://www.robecosam.com/en/media/press-
Waste’ (17th January 2020): https://news.crunchbase.com/news/startups- releases/2020/robecosam-launches-circular-economy-strategy.html
raise-record-sums-to-take-on-packaging-waste/; BloombergNEF, Covid-19
Indicators: Advanced Materials (2020) 107 Cornerstone Capital, https://www.cornerstonecapitalfunds.com/
108 N
N Investment Partners, https://www.nnip.com/en-INT/non-professional/
funds/detail/LU2033393567
109 E
TFstrategy, ‘BNP Paribas Launches Global “Circular Economy” ETF’ 137 Ambienta: https://www.ambientasgr.com/
(23rd May 2019): https://www.etfstrategy.com/bnp-paribas-launches-
global-circular-economy-etf-94578/
138 Archipelago Eco Investors: https://www.slideshare.net/
GlobalLandscapesForum/dragons-den-archipelago-eco-investors
110 E
CPI, ECPI Circular Economy Leaders Equity Index (March 2019): https://
www.ecpigroup.com/wp-content/uploads/rules/ECPI_Circular_Economy_
Leaders_Equity_INDEX_RULES.pdf 139 C
losed Loop Partners, ‘Closed Loop Leadership Fund’: https://www.
closedlooppartners.com/funds/closed-loop-leadership-fund/
111 C
rédit Suisse, ‘Crédit Suisse Launches a Responsible Consumer Fund
Tracking the UN’s 12th Sustainable Development Goal: “Responsible 140 P
rivate Equity Wire, ‘Macfarlanes Advises Circularity Capital as Debut
Consumption and Production”’ (12th November 2019) https://www. Fund Closes at GBP60m Hard Cap’ (2019): https://www.privateequitywire.
credit-suisse.com/about-us-news/en/articles/media-releases/credit-suisse- co.uk/2019/01/09/271923/macfarlanes-advises-circularity-capital-debut-
launches-a-responsible-consumer-fund-tracking-sust-201911.html fund-closes-gbp60m-hard-cap
112 C
itywire, ‘Goldman Sachs Launches Environmental Impact Fund’ (18th 141 European Circular Bioeconomy Fund: https://www.ecbf.vc/about
February 2020): https://citywire.co.uk/wealth-manager/news/goldman-
sachs-launches-environmental-impact-fund/a1325148 142 T
aaleri: https://www.taalerivarainhoito.com/en/investment-solutions/
alternative-investments/circular-economy
113 C
itywire, ‘Credit Suisse Launches Environmental Impact Fund’ (5th
June 2020): https://citywireselector.com/news/credit-suisse-launches- 143 Korkia: https://www.korkia.fi/en/
environmental-impact-fund/a1364862
144 T
esi, ‘Tesi Finances the Circular Economy Through Companies and Funds’
114 M
SCI, MSCI WORLD Select ESG Circular Economy and Renewable Energy (2019): https://dtg.tesi.fi/circular-economy/tesi-finances-the-circular-
Index Methodology (November 2019): msci.com/eqb/methodology/meth_ economy-through-companies-and-funds/
docs/MSCI_WORLD_Select_ESG_Circular_Economy_And_Renewable_
Energy_Index.pdf
145 Alante Capital: https://www.alantecapital.com/
115 A
lphabet, ‘Alphabet Issues Sustainability Bonds to Support Environmental
and Social Initiatives’ (3rd August 2020): https://blog.google/alphabet/ 146 Blue Oceans Partners: https://www.blueoceanspartners.com/
alphabet-issues-sustainability-bonds-support-environmental-and-social-
initiatives/
147 C
losed Loop Partners, ‘Closed Loop Venture Fund’: https://www.
closedlooppartners.com/funds/closed-loop-venture-fund/
116 B
ASF, ‘BASF Issues €2.0 billion in Corporate Bonds’ (29th May 2020): https://
www.basf.com/global/en/media/news-releases/2020/05/p-20-209.html
148 Finnish Business Angels Network: https://www.fiban.org/
117 C
limate Bonds Initiative, ‘Daiken Corporation Green Bond Factsheet’
(2019): https://www.climatebonds.net/files/files/2019-09%20JP%20 149 Green Angel Syndicate: https://greenangelsyndicate.com/
Daiken%20Corporation.pdf
150 Greater London Investment Fund, https://glif.co/
118 G
reen, Social and Sustainability Bonds: https://www.icmagroup.org/
Emails/ICMA-events/2019/11/8/green-bonds-november.html
151 ING, ‘ING invests in Green Inland Shipping’ (5th June 2020): https://www.
ing.com/Newsroom/News/ING-invests-in-green-inland-shipping-.htm
119 E
IB, Sustainability Awareness Bonds (September 2019): https://www.eib.
org/attachments/fi/0_sab_website.pdf
152 Prelude Ventures: https://www.preludeventures.com/
120 H
enkel, ‘Henkel First Company to Conclude a Plastic Waste Reduction
Bond’ (3rd July 2020): https://www.henkel.com/press-and-media/ 153 S
ky Ocean Ventures, ‘Accelerating Ideas to Solve the Ocean Plastic Crisis’:
press-releases-and-kits/2020-07-03-henkel-first-company-to-conclude-a- https://www.skyoceanrescue.com/skyoceanventures
plastic-waste-reduction-bond-1099796
154 Breakthrough Energy: https://www.breakthroughenergy.org/
121 Intesa Sanpaolo, ‘Intesa Sanpaolo Successfully Completes the Placement
of the First Sustainability Bond Dedicated to the Circular Economy’ (27th 155 R
ecycling Today, ‘Circulate Capital closes USD 106m Circulate Capital
November 2019): https://group.intesasanpaolo.com/en/newsroom/press- Ocean Fund’ (2019): https://www.recyclingtoday.com/article/circulate-
releases/2019/11/sustainability-bond-en capital-ocean-fund-announces-first-close/
122 K
aneka Corporation, ‘Kaneka Issues the First Green Bond by a Chemical 156 C
losed Loop Partners, ‘The Center for the Circular Economy’: https://www.
Company in Japan’ (26th August 2019): https://www.kaneka.co.jp/en/ closedlooppartners.com/the-center/
service/news/nr20190826/
157 E
IB, ‘EUR 10 billion to support the Circular Economy in the EU’ (2019):
123 M
owi, ‘First-Ever Green Bond Issue from a Seafood Company’ (2020): https://www.eib.org/en/press/all/2019-191-eur-10-billion-to-support-the-
https://mowi.com/blog/2020/01/24/first-ever-green-bond-issue-from-a- circular-economy-in-the-eu.htm
seafood-company/
158 EIB, ‘A European Fund to Support the Circular Bioeconomy’ (29th
124 O
wens Corning, ‘Owens Corning Issues $450 Million Green Bond’ (12th November 2019): https://www.eib.org/en/press/all/2019-328-a-european-
August 2019): https://newsroom.owenscorning.com/press-release/ fund-to-support-the-circular-bioeconomy
company-news/owens-corning-issues-450-million-green-bond
159 M
MC Ventures, ‘MMC Greater London Fund’ (2019): https://mmc.vc/funds/
125 P
epsiCo, ‘PepsiCo Prices USUSD 1 Billion Green Bond to Fund Key institutional/mmc-greater-london-fund
Sustainability Initiatives’ (10th July 2019): https://www.pepsico.com/
news/press-release/pepsico-prices-us1-billion-green-bond-to-fund-key-
sustainability-initiatives10072019 160 Prime Coalition, ‘What is Prime?’: https://primecoalition.org/what-is-prime/
126 P
hilips, ‘Philips issues inaugural Green Innovation Bond’ (15th May 2019): 161 B
loombergNEF, Covid-19 Indicators: Advanced Materials (2020)
https://www.philips.com/a-w/about/news/archive/standard/news/
press/2019/20190515-philips-issues-inaugural-green-innovation-bond.html
162 Intesa Sanpaolo, ‘Taking a Bite Out of the Circular Economy’ (17th July
2019): https://www.world.intesasanpaolo.com/taking-bite-circular-
127 E
llen MacArthur Foundation, The New Plastics Economy Global economy/; Ellen MacArthur Foundation, ‘Global Partner Intesa Sanpaolo
Commitment 2019 Progress Report Signatories https://www. Launches 5 billion Euro Circular Economy Credit Facility’ (26th September
newplasticseconomy.org/about/publications/global-commitment-2019- 2018): https://www.ellenmacarthurfoundation.org/news/global-partner-
progress-report intesa-sanpaolo-launches-5-billion-euro-fund
128 F
ederated Hermes International, The Circular (2020): https://www. 163 S
&P Global, ‘Alibaba Invests in Clothes Rental Platform YCloset’ (18th
hermes-investment.com/uki/insight/outcomes/the-circular/ September 2018): https://www.spglobal.com/marketintelligence/en/news-
insights/trending/d9kpzjatq27yzmh-pw2jqa2
129 A
s You Sow, ‘As You Sow Launches Investor Alliance to Engage
Companies on Plastic Pollution’ (14th June 2018): https://www.asyousow. 164 C
losed Loop Partners, ‘The Journey to Innovate How We Drink on the Go:
org/blog/2018/6/14/as-you-sow-launches-investor-alliance-to-engage- 2 years into the NextGen Consortium (20th February 2020): https://www.
companies-on-plastic-pollution closedlooppartners.com/the-journey-to-innovate-how-we-drink-on-the-
go-2-years-into-the-nextgen-consortium/
130 A
s You Sow, ‘Nearly Half of Starbucks Shareholders Support As You
Sow Proposal on Reusable Drinking Containers and Recycling Goals’ 165 H
&M, ‘H&M Group Invests in New Recycling Technology’ (10th October
(27th March 2019): https://www.asyousow.org/press-releases/starbucks- 2017): https://about.hm.com/news/general-2017/h-m-group-invests-in-
shareholder-vote-plastic-recycling-goals new--unique-recycling-technology.html
131 A
s You Sow, ‘McDonald’s Agrees to Replace Paper for Polystyrene Cups 166 Ingka Group, ‘Ingka Group Invests in Tech Startup to Optimise Returns’
at All US restaurants’ (2013): https://archive.asyousow.org/companies/ (4th December 2019): https://www.ingka.com/news/ingka-group-invests-
mcdonalds/ in-tech-startup-to-optimize-returns/
132 F
ederated Hermes International, Responsibility Report 2020 (2020): 167 T
he Blended Finance Taskforce, Infra 3.0: Better Finance, Better
https://www.hermes-investment.com/ukw/wp-content/uploads/2020/06/ Infrastructure (2019): https://www.blendedfinance.earth/infra-3-0
federated-hermes-responsibility-report-2020.pdf
168 EIB, The EIB Circular Economy Guide (2020)
133 R
obeco, ‘Single-Use Plastic Among Robeco’s 2019 Engagement Themes’
(2019): https://www.robeco.com/uk/insights/2019/01/single-use-plastic-
among-robecos-2019-engagement-themes.html 169 Generate Capital: https://generatecapital.com/
134 S
ustainalytics, ‘Plastics: a material issue for investors (18th December 170 US News, ‘Plastics Maker Indorama Commits USD 1.5 Billion to Recycling’
2019): https://www.sustainalytics.com/esg-blog/plastics-material-issue- (21st August 2019): https://money.usnews.com/investing/news/
for-investors/ articles/2019-08-21/plastics-maker-indorama-commits-15-billion-to-recycling
135 U
N PRI, ‘Plastics’: https://www.unpri.org/esg-issues/environmental-issues/ 171 Inter-American Development Bank, ‘Caribbean Leaders Launch Plan to
plastics Make Region a “climate-smart zone,” with IDB Support’ (11th December
2017): https://www.iadb.org/en/news/caribbean-leaders-launch-plan-
make-region-climate-smart-zone-idb-support
136 U
N PRI, ESG Engagement for Fixed Income Investors: managing risks,
enhancing returns (2018): https://www.unpri.org/fixed-income/esg-
engagement-for-fixed-income-investors-managing-risks-enhancing-
returns/2922.article
172 P
R Newswire, ‘Spring Lane Capital Announces Final Close of Inaugural 198 ING, ‘ING and Philips Collaborate on Sustainable Loan’ (19th April 2017):
Fund Focused on Deployment Capital’ (10th December 2019): https:// https://www.ing.com/Newsroom/News/ING-and-Philips-collaborate-on-
www.prnewswire.com/news-releases/spring-lane-capital-announces-final- sustainable-loan.htm
close-of-inaugural-fund-focused-on-deployment-capital-300972233.html
199 ING, Opportunity and disruption: how circular thinking could change US
173 G
reenBiz, ‘10 Questions with Ultra Capital: infrastructure financiers business models (2019): https://www.ingwb.com/media/2692501/ing_us-
greasing the circular economy’s wheels’ (17th July 2019), https://www. circular-economy-survey-05-02-2019.pdf
greenbiz.com/article/10-questions-ultra-capital-infrastructure-financiers-
greasing-circular-economys-wheels
200 Intesa Sanpaolo, ‘The Circular Economy and Sustainability in Intesa
Sanpaolo’ (2020): https://group.intesasanpaolo.com/en/newsroom/
174 C
irculate Capital, ‘Circulate Capital And USAID Team Up To Fight Ocean indepth/all-indepth/2020/the-circular-economy-and-sustainability-in-
Plastic Pollution’ (31st December 2019): https://www.circulatecapital.com/ intesa-sanpaolo
post/circulate-capital-and-usaid-team-up-to-fight-ocean-plastic-pollution
201 E
IB, ‘Rabobank and EIB Expand Support for Environment-Conscious
175 C
losed Loop Partners, ‘Closed Loop Infrastructure Fund’: https://www. Entrepreneurs’ (27th July 2018): https://www.eib.org/en/press/all/2018-
closedlooppartners.com/funds/project-finance/closed-loop-infrastructure- 206-rabobank-and-eib-expand-support-for-environment-conscious-
fund/; Closed Loop Partners, ‘Closed Loop Beverage Fund’: https://www. entrepreneurs
closedlooppartners.com/funds/project-finance/closed-loop-beverage-fund/
202 B
NP Paribas Leasing Solutions, Kintessia: the first platform to rent and
176 A
DB, Hunan Miluo River Disaster Risk Management and Comprehensive sell professional equipment (2018): https://group.bnpparibas/en/news/
Environment Improvement (2019): https://www.adb.org/ leasing-rental-financing-method-line-circular-economy BNP Paribas
projects/53052-001/main#project-pds Leasing Solutions, ‘BNP Paribas 3 Step IT Launches Circular Economy
Based European Sales for Technology Equipment’ (5th November 2019):
https://leasingsolutions.bnpparibas.com/en/bnp-paribas-3-step-it-
177 A
DB, Promoting Action on Plastic Pollution from Source to Sea in Asia launches-circular-economy-based-european-sales-offer-for-technology-
and the Pacific (2019): https://www.adb.org/projects/53068-002/ equipment/
main#project-pds
203 E
llen MacArthur Foundation: ‘Case Studies: Shenzhen: switching
178 E
IB, ‘InnovFin Advisory’: https://www.eib.org/en/products/advising/ to an electric mobility system in the city’ (2019): https://www.
innovfin-advisory/index.htm ellenmacarthurfoundation.org/assets/downloads/Shenzhen_-Case-
Study_Mar19.pdf
179 M
inderoo Foundation, Global Industry Initiative Launched to End Plastic
Pollution (2019): https://www.minderoo.org/minderoo-foundation/news/ 204 D
LL, ‘Second-Life Financing’: https://www.dllgroup.com/gb/en-gb/
global-industry-initiative-launched-to-end-plastic-pollution/ solutions/lcam/second-life-financing
180 R
abobank, ‘Circular Business Desk’: https://www.rabobank.com/en/ 205 F
reightWeek, ‘Carpet Leasing Lays Groundwork for Reverse
about-rabobank/in-society/sustainability/circular-economy/circulair- Logistics’: https://www.freightweek.org/index.php/en/latest-news/88-
ondernemen-desk/index.html manufacturer/244-carpet-leasing-lays-groundwork-for-reverse-logistics
181 D
elta Development Group, Park 20|20: https://www.deltadevelopment.eu/ 206 F
inanCE Working Group, Money Makes the World Go Round (2016):
en/project-development/projectdevelopment/park-2020 https://www.ellenmacarthurfoundation.org/assets/downloads/ce100/
FinanCE.pdf
182 F
orbes, ‘The RealReal IPO: First Startup From Resale’s New Wave To Go
Public Sees Shares Soar’ (28th June 2019): https://www.forbes.com/sites/ 207 A
BN Amro, ING, Rabobank, Circular Economy Finance Guidelines (July
glendatoma/2019/06/28/the-realreal-ipo-luxury-reseller-latest-retailer-to- 2018): https://www.rabobank.com/en/images/circular-economy-finance-
go-public/#1472aa626289 guidelines-secure-july-2018.pdf
183 Intesa Sanpaolo, ‘Intesa Sanpaolo Successfully Completes the Placement 208 G
lanbia Connect, ‘Glanbia Launch New 100m Euro MilkFlex Fund’ (2016):
of the First Sustainability Bond Dedicated to the Circular Economy’ (27th https://www.glanbiaconnect.com/news/milkflex-fund
November 2019): https://group.intesasanpaolo.com/en/newsroom/press-
releases/2019/11/sustainability-bond-en
209 Intesa Sanpaolo, ‘Support to the Circular Economy’: https://group.
intesasanpaolo.com/en/sustainability/environment/green-products/
184 G
lobal Capital, ‘EBRD EUR 500m 0% Oct 24 Green Transition Bond’ (11th support-to-circular-economy
October 2019): https://www.globalcapital.com/article/b1hjy6nf4558qg/
ebrd-eur500m-0-oct-24-green-transition-bond
210 B
NP Paribas Leasing Solutions, A change in ownership: how resellers
can benefit from the circular economy (9 August 2017) https://
185 B
ond Buyer, ‘Private Activity Bond Deal Spins Rice Straw Into High Yield leasingsolutions.bnpparibas.co.uk/a-change-in-ownership-how-resellers-
Tax-Exempts’ (1st June 2017): https://www.bondbuyer.com/news/private- can-benefit-from-the-circular-economy/
activity-bond-deal-spins-rice-straw-into-high-yield-tax-exempts; California
State Treasurer, ‘Treasurer Fiona Ma Announces $73.7 Million Green Bond
Sale for Rice Waste Recycling Plant’ (15th August 2019): https://www. 211 U
nreasonable Impact: https://unreasonablegroup.com/initiatives/
treasurer.ca.gov/news/releases/2019/20190815/75.asp unreasonable-impact/
186 H
enkel, ‘Henkel First Company to Conclude a Plastic Waste Reduction 212 Investment Ready Programme: https://www.investment-ready.nl/en/
Bond’ (3rd July 2020), https://www.henkel.com/press-and-media/
press-releases-and-kits/2020-07-03-henkel-first-company-to-conclude-a-
plastic-waste-reduction-bond-1099796 213 Intesa Sanpaolo, ‘Startup Initiative’: http://www.startupinitiative.com/
en/news-events/Events/invest_in_the_future_disruptive_materials_for_
circular_economy.html
187 B
ASF, ‘BASF Issues €2.0 Billion in Corporate Bonds, Including Its First
Green Bond’ (29th May 2020): https://www.basf.com/global/en/who-
we-are/sustainability/whats-new/sustainability-news/2020/basf-issues- 214 R
abobank, ‘Circular Business Challenge’: https://www.rabobank.com/en/
corporate-bonds.html about-rabobank/in-society/sustainability/circular-economy/rabobank-
circular-economy-challenge/index.html
188 P
epsiCo, ‘PepsiCo Prices USD 1 Billion Green Bond to Fund Key
Sustainability Initiatives’ (10th July 2019): https://www.pepsico.com/ 215 G
etaround, ‘Allianz Partners with Drivy to Provide Car Sharing Insurance’:
news/press-release/pepsico-prices-us1-billion-green-bond-to-fund-key- https://uk.getaround.com/press/drivy-allianz-insurance-partnership
sustainability-initiatives10072019
216 A
XA, ‘Insuring the Sharing Economy’ (11th December 2018): https://axaxl.
189 P
hilips, ‘Philips Issues Inaugural Green Innovation Bond’ (15th May 2019): com/fast-fast-forward/articles/insuring-the-sharing-economy
https://www.philips.com/a-w/about/news/archive/standard/news/
press/2019/20190515-philips-issues-inaugural-green-innovation-bond.html 217 E
sther Val, Insurance for online marketplaces: https://www.sharetribe.
com/academy/insurance-for-online-marketplaces-ebook/
190 B
arclays, ‘The Sustainable and Impact Banking Group’: https://home.
barclays/society/our-approach-to-sustainability/Making-growth-green- 218 M
AIF, ‘Recycled Automotive Parts’: https://www.maif.fr/particuliers/auto-
sustainable-and-inclusive/ moto/recycler-auto/recycler-voiture.html
191 ING, ‘Circular Economy’: https://www.ing.com/Sustainability/Sustainable- 219 M

unich Re, ‘Renewable Energy and Energy Efficiency’: https://www.
business/Circular-economy.htm munichre.com/en/risks/renewable-energy-and-energy-efficiency.html
192 B
ank of America Merrill Lynch, Global Waste Primer (2013, 2018, 2020); 220 Omocom: https://www.omocom.se/?lang=en
Barclays, Plastic Waste: don’t lose your bottle (2019); Barclays, Food Waste:
ripe for change (2019); Citi, Rethinking Single-use Plastics (2018); Credit
Suisse, The Responsible Consumer (2019); Credit Suisse, Investors and 221 F
inanCE Working Group, Money Makes the World Go Round (2016): https://
the Blue Economy (2020); HBSC, Waste Less, Grow More (2019); Morgan www.ellenmacarthurfoundation.org/assets/downloads/ce100/FinanCE.pdf
Stanley, ‘Has the Environment Reached Peak Plastic?’ (11th May 2018)
222 Rethinking the value of used parts white paper due to be published Q4 2020.
193 E
IB, Access-to-Finance Conditions for Projects Supporting Circular
Economy (December 2015); EIB, The 15 Circular Steps for Cities (2018);
EIB, The EIB Circular Economy Guide: supporting the circular transition 223 C
limate Bonds Initiative, Financing Waste Management,
(2020); ING, Rethinking Finance in a Circular Economy (2015); ING, Plastic Resource Efficiency and Circular Economy in the Green Bond
Packaging in the Food Sector: six ways to tackle the plastic puzzle (2019); Market (March 2020): https://www.climatebonds.net/system/
ING, Rethinking the Road to the Circular Economy (2020); ING, Learning tdf/reports/markets_waste_resource_efficiency_briefing_2020.
from Consumers: how shifting demands are shaping companies’ circular pdf?file=1&type=node&id=47168&force=0
economy transition (2020)
224 InnovFin Advisory, Access-to-Finance Conditions for Projects Supporting
194 A
BN Amro, ‘Joining Forces to Create a Circular Economy’: https://www. Circular Economy (December 2015): https://www.eib.org/attachments/pj/
abnamro.com/en/about-abnamro/in-society/sustainability/circular- access_to_finance_study_on_circular_economy_en.pdf
economy/circular-economy.html
225 E
uropean Commission, ‘Circular Economy: commission delivers on its
195 ING, ‘ING Commits EUR 100 million to Fund Sustainable Investments’ (18th promises, offers guidance on recovery of energy from waste and works
January 2018): https://www.ing.com/Newsroom/News/ING-commits-EUR- with EIB to boost investment’ (26th January 2017): https://ec.europa.eu/
100-million-to-fund-Sustainable-Investments.htm commission/presscorner/detail/en/IP_17_104
196 L
loyd’s Bank, ‘Sustainable Clothing Manufacturer’s Expansion Will 226 O
liver Wyman, ‘Supporting the Circular Economy Transition: The
Grow Capacity Tenfold, Thanks to Six-Figure Funding Package’: https:// Role of the Financial Sector in the Netherlands’ (2017): https://www.
resources.lloydsbank.com/case-studies/teemill/ oliverwyman.com/content/dam/oliver-wyman/v2/publications/2017/sep/
CircularEconomy_print.pdf
197 P
hilips, ‘Philips Couples Sustainability Performance to Interest Rate
of its New EUR 1 Billion Revolving Credit Facility’ (19th April 2017): 227 E
llen MacArthur Foundation, ‘Circulytics: measuring circularity’: https://
https://www.philips.com/a-w/about/news/archive/standard/news/ www.ellenmacarthurfoundation.org/resources/apply/circulytics-
press/2017/20170419-philips-couples-sustainability-performance-to- measuring-circularity
interest-rate-of-its-new-eur-1-billion-revolving-credit-facility.html
228 C
losed Loop Partners, ‘Closed Loop Partners Launches Advanced 255 E
uropa, Re-use, Recycling and Recovery of Vehicle Parts and Materials:
Recycling Innovator Program As Part of its Circular Plastics Strategy’ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=legissum:n26102
(2020): https://www.closedlooppartners.com/category/press-release/
256 Roland Berger, Car-sharing in China (2017)
229 H
ermes, 2018 Annual Impact Report (2019): https://www.hermes-
investment.com/uki/wp-content/uploads/2019/12/bd004059-hermes-
impact-opportunities-annual-impact-report.pdf 257 M
arkets and Markets, Electric Vehicle Market: Global Forecast to 2030
(2019)
230 ING, ‘Terra Approach’: https://www.ing.com/Sustainability/Sustainable-
business/Terra-approach.htm 258 Global Market Insights, Car Sharing Market Size, Industry Analysis Report,
2020–2026 (2019)
231 Intesa Sanpaolo, ‘Intesa Sanpaolo: Circular Economy Financing Provided
to Schwarz Group Subsidiary GreenCycle in Germany’(2020): https:// 259 Office for National Statistics, Retail Sales: Great Britain (2019)
group.intesasanpaolo.com/en/newsroom/press-releases/2020/1/intesa-
sanpaolo--circular-economy-financing-provided-to-schwarz- 260 C
ovid-19 Commerce Insight, ‘US Retailers See Online Growth YoY in April
Similar to Recent Holiday Season’ (17th April 2020): https://ccinsight.
232 A
XA, ‘Is The Circular Economy the Economy of the Future?’(2018): org/observations/us-retailers-see-online-growth-yoy-in-april-similar-to-
https://www.axa.com/en/magazine/is-the-circular-economy-the- recent-holiday-season/
economy-of-the-future
261 U
N Department of Economic and Social Affairs, ‘68% of the World
233 C
NBC, ‘Goldman Pledges USD 750 Billion for “Large Opportunities” Population Projected to Live in Urban Areas by 2050, Says UN’ (16th May
in Sustainable Finance’ (19 December 2019): https://www.cnbc. 2018): https://www.un.org/development/desa/en/news/population/2018-
com/2019/12/19/goldman-pledges-750-billion-for-opportunities-in- revision-of-world-urbanization-prospects.html
sustainable-finance.html
262 M
cKinsey & Company, ‘Thinking Inside the Subscription Box: new research
234 A
BN Amro, ‘Circl: international symbol for circular innovation’: on e-commerce consumers’ (9th February 2018): https://www.mckinsey.
https://www.abnamro.com/en/about-abnamro/in-society/ com/industries/technology-media-and-telecommunications/our-insights/
sustainability/social-impact/circular-economy/circular-construction/ thinking-inside-the-subscription-box-new-research-on-ecommerce-
index.html#:~:text=Circl%2C%20ABN%20AMRO’s%20 consumers
multi%2Dpurpose,striking%20wood%20and%20glass%20design.
263 G
rand View Research, Video Streaming Market Size, Share & Trends
235 F
ast Company, ‘This Office Was Built With 165,312 Screws So It Can Analysis Report (2020)
Be Disassembled and Reused (25th November 2019): https://www.
fastcompany.com/90434358/this-office-was-built-with-165312-screws-so- 264 GSMA, The state of mobile internet connectivity 2019 (2019)
it-can-be-disassembled-and-reused
265 U
N Habitat, ‘Chapter 3: The Fate of Housing’ in Urbanization and
236 C
lim8, ‘£1,500,000 Raised in Clim8’s Crowdfunding Campaign: Here’s Development: emerging futures world cities report (2016): http://wcr.
What’s Next’ (2020): https://clim8invest.com/1500000-raised-in-clim8s- unhabitat.org/wp-content/uploads/2017/03/Chapter3-WCR-2016.pdf
crowdfunding-campaign-heres-whats-next/
266 Madaster: https://www.madaster.com/en

237 E
llen MacArthur Foundation, Covid-19: The economic recovery - Policy &
investment opportunities (2020): https://www.ellenmacarthurfoundation.
org/our-work/activities/covid-19/policy-and-investment-opportunities 267 P
ractice Architecture, Flat House: https://practicearchitecture.co.uk/
project/flat-house/
238 P
roject Syndicate, ‘The Big Failure of Small Government’ (19th
May 2020): https://www.project-syndicate.org/commentary/small- 268 IEA, Renewables 2019: Analysis and Forecast to 2024 (2019)
governments-big-failure-covid19-by-mariana-mazzucato-and-giulio-
quaggiotto-2020-05?barrier=accesspaylog; MIT Technology Review,
‘Why Venture Capital Doesn’t Build the Things We Really Need’ 269 e
die, ‘Onshore Wind and Solar “Cheapest” Form of Energy for Two-Thirds
(2020): https://www.technologyreview.com/2020/06/17/1003318/ of Global Population’ (28th April 2020): https://www.edie.net/news/10/
why-venture-capital-doesnt-build-the-things-we-really-need/?utm_ Onshore-wind-and-solar--cheapest--form-on-energy-for-two-thirds-
medium=tr_social&utm_campaign=site_visitor.unpaid.engagement&utm_ of-global-population/#:~:text=Utility%2Dscale%20solar%20PV%20
source=Twitter#Echobox=1593194618 and,have%20plummeted%20in%20recent%20years.
239 R
esponsible Investor, European Banking Authority outlines plans for 270 M
ayor of London, Circular Economy Statement (March 2020): https://
climate stress test, disclosure requirements and a Green Supporting www.london.gov.uk/sites/default/files/ggbd_circular_economy_
Factor (6 December 2019) https://www.responsible-investor.com/ statement_guidance_2020_web.pdf
articles/european-banking-authority-outlines-plans-for-climate-stress-
test-disclosure-requirements-and-a-green-supporting-factor; European
Banking Authority, Action plan on sustainable finance (2019) https://eba. 271 V
ictoria’s Big Build, ‘Projects Get a Sustainability Boost with Recycled
europa.eu/sites/default/documents/files/document_library//EBA%20 First’ (3rd March 2020): https://bigbuild.vic.gov.au/newsfeed/projects-
Action%20plan%20on%20sustainable%20finance.pdf get-a-sustainability-boost-with-recycled-first
240 K
PMG, The Plastics Recycling Opportunity (2019): https://assets.kpmg/ 272 E
llen MacArthur Foundation, Material Economics, Completing the Picture:
content/dam/kpmg/xx/pdf/2019/10/the-plastic-recycling-opportunity. how the circular economy tackles climate change (2019)
pdf
273 B
loomberg, ‘Consumer Demand for Clean Energy Significantly
241 P
ackaging Europe, ‘Increased Demand for Reusable Plastic Containers in Increases’ (22nd April 2019): https://www.bloomberg.com/press-
the US’ (12th July 2018): https://packagingeurope.com/increased-demand- releases/2019-04-22/consumer-demand-for-clean-energy-significantly-
for-reusable-plastic-containers-in-the-us/ increases?sref=8TSQz2P1
242 A
mcor, 2019 GRI Sustainability Report (2019): https://www.amcor.com/ 274 M
arkets and Markets, Electric Vehicle Market, Global Forecast to 2030
sustainability-report (2019)
243 U
N Environment Programme, Legal Limits on Single-Use Plastics and 275 T
he Crown Estate, Development Sustainability Principles (April
Microplastics: a global review of national laws and regulations (2018): 2019): https://www.thecrownestate.co.uk/media/3003/development_
https://wedocs.unep.org/bitstream/handle/20.500.11822/27113/plastics_ sustainability_principles_2019.pdf
limits.pdf?sequence=1&isAllowed=y
276 G
E Renewable Energy, ‘Onshore Wind: Energy Digital Services’: https://
244 E
U, Directive (EU) 2019/904 on the Reduction of the Impact of Certain www.ge.com/renewableenergy/wind-energy/onshore-wind/services
Plastic Products on the Environment (2019): https://eur-lex.europa.eu/eli/
dir/2019/904/oj 277 E
uropean Commission, H2020 Water Innovations for Sustainable Impacts
in Industries and Utilities (September 2020): https://op.europa.eu/en/
245 R
ethink Plastic Alliance, Reusable Solutions: how governments can help publication-detail/-/publication/4cac17d6-49bb-11ea-8aa5-01aa75ed71a1/
stop single-use plastic pollution (2019): https://rethinkplasticalliance.eu/ language-en/format-PDF/source-115839553
wp-content/uploads/2019/10/bffp_rpa_reusable_solutions_report.pdf
278 C
EWEP, Country Landfill Tax in EUR /t (2020): https://www.cewep.eu/wp-
246 M
aterial Economics, The Circular Economy: the next low-carbon frontier content/uploads/2017/12/Landfill-taxes-and-bans-overview.pdf CEWEP,
(2019) Country Landfill Tax in EUR /t (2020): https://www.cewep.eu/wp-content/
uploads/2017/12/Landfill-taxes-and-bans-overview.pdf
247 P
ackaging Europe, ‘Reuse: a closer look at Coca-Cola Brazil’s
unique returnable bottle initiative’ (11th February 2020): https:// 279 A
ustralian Government Department of Agriculture, Water and Environment,
packagingeurope.com/coca-cola-brazil-returnable-bottle-initiative/ The Full Cost of Landfill Disposal in Australia (2009): environment.
gov.au/protection/waste-resource-recovery/publications/full-cost-
landfill-disposal-australia#:~:text=Estimated%20costs%20of%20the%20
248 F
astCompany, ‘Nestlé has new refill stations to help shoppers ditch disposal,management%20controls%20and%20prevailing%20climate
single-use packaging’ (10th June 2020): https://www.fastcompany. environment.gov.au/protection/waste-resource-recovery/publications/
com/90514760/nestle-has-new-refill-stations-to-help-shoppers-ditch- full-cost-landfill-disposal-australia#:~:text=Estimated%20costs%20of%20
single-use-packaging the%20disposal,management%20controls%20and%20prevailing%20
climate
249 E
llen MacArthur Foundation, ‘The Jeans Redesign’: https://www.
ellenmacarthurfoundation.org/our-work/activities/make-fashion-circular/ 280 C
alRecycle, Landfill Tipping Fees in California (February 2015): https://
projects/the-jeans-redesign www2.calrecycle.ca.gov/Publications/Download/1145?opt=dln
250 thredUP, 2019 Fashion Resale Market and Trend Report (2019) 281 E
uropean Environment Agency, ‘Are Recycling Rates Increasing in
Europe?’ (9th April 2019): https://www.eea.europa.eu/data-and-maps/
indicators/waste-recycling-1/are-recycling-rates-increasing-in-europe
251 P
olicy Hub, Proposal for an EU Green Recovery Plan in the Textile, Apparel
and Footwear Industry (June 2020): https://assets-global.website-files.
com/5dcda718f8a683895d9ea394/5ee8906ea24132235b29876b_ 282 W
orld Bank, What a Waste 2.0: a global snapshot of solid waste
Policy%20Hub_Green%20Recovery%20Plan%20Proposal_June2020.pdf management to 2050 (2018)
252 V
ogue, ‘Regenerative Agriculture Can Change the Fashion Industry—And 283 e
urostat, ‘Recycling Rates for Packaging Waste’ (2017): https://ec.europa.
the World. But What Is It?’ (12th May 2020): https://www.vogue.com/ eu/eurostat/web/products-datasets/product?code=ten00063
article/regenerative-agriculture-sustainable-fashion-christy-dawn-fibershed
284 JP Morgan, ‘The Plastic Economy: how the packaging industry is tackling
253 M
aterial Economics, The Circular Economy: the next low-carbon frontier plastic pollution’ (17th April 2019): https://www.jpmorgan.com/global/
(2019) research/plastic-economy
254 T
echCrunch, ‘Back Market Raises $120m for Its Refurbished Device
Marketplace’ (5th May 2020): https://techcrunch.com/2020/05/04/back-
market-raises-120-million-for-its-refurbished-device-marketplace/
© COPYRIGHT 2020
ELLEN MACARTHUR FOUNDATION
www.ellenmacarthurfoundation.org
Charity Registration No.: 1130306

OSCR Registration No.: SC043120
Company No.: 6897785

Financing The Circular Economy

Uploaded by

Copyright:

Available Formats

Financing The Circular Economy

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Financing The Circular Economy

Uploaded by

Copyright:

Available Formats

Financing the

 The circular economy is a systems approach that combines economic

Second, it highlights how investors, banks, and insurers are already

Third, it provides a direction of travel for finance to fully capitalise on the

This paper is intended as an initial exploration rather than a detailed analysis

Design out WE ARE Keep products

Completing the picture: tackling the overlooked emissions

Design out waste and pollution

55% 45% Keep products and materials in use

Regenerate natural systems

Research suggests that if a circular economy practices at scale in five key

Shifting towards a circular economy model Megatrends such as shifting demographics,

Number of public equity Number of outstanding

Number of private market funds

2016 2017 2018 2019 H1 2020

Source: Ellen MacArthur Foundation

“Since the beginning of 2020,

The financial sector is starting initiative dedicated to the circular

The way forward

Now is the time for finance to capitalise on this

All aspects of finance will play an important

Governments, central banks, and financial

The circular economy

1.1 Climate change and ESG have

Our current economic

TAKE MAKE WASTE

within 1 year of being made5

Food & (2017)

... Result in massive economic value loss

ANNUAL SHARE OF OTHER

1.2 The circular economy is

Box 1: The concept of a circular economy

The concept recognises the Regenerate

Design out waste and pollution

55% 45% Keep products and materials in use

Regenerate natural systems

The circular economy is key to emissions and achieving climate targets.30

1.3 The circular economy presents a

Stricter regulation Innovation and growth opportunity

Risk to brand and social Innovation and growth opportunity

Packaged goods audits exposing the world’s largest brands.

Stricter regulation Innovation and growth opportunity

Enhancing resilience of supply chains

2.1 More and more companies are already

The circular economy

Number of companies globally with transformative 2025 plastics

1 *Refers to January of each year

Resale expected to be bigger The sharing economy market

Overview of initiatives aiming to define, measure,

The circular economy is one of the The Global Reporting Initiative

Several megatrends are The Covid-19 crisis has shown

3.1 Financial services activity in the circular

“The investable universe

Early-stage and growth-stage both large institutions, such as AXA, and

“In the last 18 months, at

Number of public equity Number of outstanding

Number of private market funds

2016 2017 2018 2019 H1 2020

Source: Ellen MacArthur Foundation

“Since the beginning of 2020,

“The investable universe

“In the last 18 months, at

“Hundreds of companies are

• Valorisation of by-products: e.g. AB Inbev turns brewing by-products into

• Innovation and new markets: e.g. by offering an IoT-enabled ‘printing-as-

“The principles of the circular

• BlackRock, Candriam, Cornerstone Capital, Decalia, NN Investment

• BNP Paribas offers a circular economy-based ETF, (exchange-traded fund),

• MSCI has introduced a circular economy and renewable energy listed

• Daiken Corporation’s JPY 5 billion (USD 46 million) to fund circular measures,

• EIB’s Sustainability Awareness Bonds can be allocated to lending

• Henkel’s USD 70 million plastic waste reduction bond to finance projects

• Kaneka Corporation’s JPY 5 billion (USD 46 million) to manufacture,

• PepsiCo’s USD 1 billion green bond to fund key initiatives including

• Robeco has an engagement programme on plastics, joined investor initiatives

• Sustainalytics initiated in 2019 a three-year Stewardship and Risk engagement

• UN PRI’s Plastic Investing Working Group consists of 32 global investors

• Archipelago Eco Investors is establishing a PE Impact Fund with a

• Circularity Capital’s GBP 60 million (USD 78 million) PE fund invests in

• European Circular Bioeconomy Fund provides equity and mezzanine

• Taaleri’s Circular Economy PE Fund accumulated approximately EUR 40

• Korkia manages and advises PE funds investing in the circular economy,

• Tesi, which launched a EUR 75 million (USD 89 million) circular economy

• Blue Oceans Partners expands VC support to circular economy innovators

• Prelude Ventures, an evergreen venture capital fund with a longer

• Circulate Capital’s Ocean Fund is a blended financing mechanism, created

• MMC Ventures is deploying a significant proportion of the GBP 52 million

• Prime Coalition partners with philanthropic investors to place catalytic

• BloombergNEF calculated that circular economy VC funding was up 128%

• Intesa Sanpaolo, together with Fondazione Cariplo, launched the first

• Alibaba has invested in circular innovators, including clothing rental

• H&M Co:LAB has invested in circular start-ups in the fashion industry,

• Ingka Investments, IKEA’s investment arm, has invested in returns

• Indorama Ventures has committed USD 1.5 billion to invest in plastics

• Inter-American Development Bank committed USD 1 billion in financing