I n v e stors U p Thei r Be t s on th e Ci r cul ar E c o nom y By Lauren Trucksess, Global Marketing Manager
The global shift toward a ‘circular’ economy that is based on recovering, repairing and reusing materials – and away from the traditional ‘take-make-waste’ systems – is gaining significant traction as an investment theme. By increasing the lifespan of finite resources and
the EU alone, with savings of up to US$700 billion for
materials and reusing what we already have, the circular
fast-moving consumer goods (FMCGs) globally.
economy helps protect the planet’s natural capital and reduce greenhouse gases. But this circular approach can also boost profit margins, give rise to new business models, and inspire the next wave of tech innovation – all of which makes ‘doing good’ wise business sense. Experts have predicted by 2030, the circular economy could yield up to US$4.5 trillion in economic benefits globally. As companies of all shapes and sizes look to decouple growth from the depletion of finite resources, the impacts are likely to be felt across nearly every sector and industry. For example, according to the Ellen MacArthur Foundation, utilizing materials more effectively could result in an annual net-material cost savings of up to US$630 billion for medium-lived
As the push to create a circular economy drives innovation and opens new markets, this multi-trilliondollar opportunity is catching the attention of savvy, growth-focused investors. A recent report by Phenix Capital Group shows that the number of investment funds targeting the circular economy reached record highs last year. Data from the company’s Impact Database, which gathers information from 2,000 impact funds and nearly 900 fund managers, reveals that 40 funds were launched in 2021. That’s five times more than the number of funds launched in 2018. For context, an average of nine such funds were launched each year between 2015 and 2018.
products such as mobile phones and white goods in
amane currents
| Summer 2022
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