Financiers can and must make the shift to circularity, ensuring the consumption and production patterns of the businesses they invest in make more efficient use of resources and minimize waste, pollution and carbon emissions.
The transition from our linear economy to a circular economy creates business opportunity for the financial industry. Financing Circularity: Demystifying Finance for Circular Economies explores the strategies and actions that financial institutions can take to accelerate financing of the transition towards a CE, and highlights ways in which financial institutions can manage related risks/barriers and scale up innovation and opportunities related to products, services and financial instruments/investments. Opportunities include rethinking of the design and manufacturing of products and services, circular agriculture and digital solutions to transform industries, coupled with waste management models designed to close material and resource loops and water management for efficiency, quality and supply security.
The report provides insights into practical approaches to financing circularity, such as the application of sectoral metrics in decision-making, and encourages financial institutions to formalise industry-wide support programmes and commitments for the transition to a circular economy and more sustainable patterns of consumption and production.