The third and final whitepaper, 6 Guidelines to Empower Financial Decision-Making in the Circular Economy, in our finance reporting series, 3 Essential Steps to Financing Circular Business Models, is finally out! The whitepaper, authored by, Sustainable Finance Lab and Circle Economy and powered by Nederland Circulair!, provides financiers with practical guidelines to prepare for their new role in the circular economy.
The paper aims to outline the new role financiers have to play to accelerate the transition towards a circular economy. How can they change their own operations to better align with those of circular entrepreneurs? How should they judge the risks and opportunities that are presented by circular business models? What new dangers and securities do these new business models bring? What role can they play in this new economy?
“Circular business provides a great opportunity to the sustainable investment community, but to reap the benefits of this opportunity, the financial sector needs to take a different perspective.”
– Anne-Marie Rakhorst, Entrepreneur and Founder of Search Ingenieursbureau Agency and Duurzaamheid.nl
In the first two steps of the series we provided an understanding of circular business models and helped companies find their place on the Value Hill while the second report in the series walked businesses through a 10 step guide to creating a financeable circular business. Now it’s time for the financial sector to act!
This guide will help financiers thrive in the circular economy through 6 practical guidelines:
- Assess Different Securities
- Emphasise Relationship-based Financing
- Value Natural Capital Gains
- Become a Knowledge Partner
- Have a Long-term Vision
- Become a Financial Chain Director
The system shift to the circular economy fundamentally changes the role of both the entrepreneur as well as the financier. In order to overcome this change, entrepreneurs and financiers need to find each other in this new economy. Interested to learn how financiers can play a role in the circular economy?
“The circular economy requires a different vision on security. For example, for increased risks you get a stable cash flow in return.”
– Richard Piechocki, Sustainable Business Strategist at Rabobank
Just starting your journey to circularity? Read the earlier publications in our three step series.
Circle Economy’s Circle Finance Programme
Our mission is to realign the current financial system with the real economy by identifying financial barriers to circular business practices and developing solutions to overcome them. Over the last few decades the financial economy has taken on a life of its own. Money has become disconnected to the real world and this realisation has been manifested through an accumulation of capital, rapid growth of inequality, leakage of money into the virtual economy, and reliance on international markets. Contradicting core elements of the circular economy, our current financial cycles need to be restored. Having the ability to alter human behaviour, and human activity, money and the way we manage it can be a major catalyst in the transition towards a circular society.