In its new publication—Roadmap Circular Finance 2030—the Sustainable Finance Platform has developed four concrete actions that will promote cooperation within the financial sector, allowing this sector to become a driver of the circular transition.
Download the English summary of the study at the bottom of this page.
The circular economy is a means to an end—our end goal being an ecologically safe and socially just space. And the financial sector plays a crucial role in realising the transition to a circular economy. But it's not easy to go circular in a linear world: companies and projects seeking financing still face many obstacles in transitioning to circularity.
By following the actions outlined in this report, the financial sector can become a lever for and driver of the circular transition.
Are you a financial institution representative, a financial sector advisor or a policymaker? Would you like to accelerate your circular transformation?
Contact us at info@circle-economy.com
The Circular Economy working group was established in 2021 under the Sustainable Finance Platform. Members of the working group are representatives of financial institutions and various other organisations: Circle Economy, Invest-NL, Rabobank, ABN, Ministry of Infrastructure and Water Management, PGGM, ING, Bird&Bird, KPMG, Dutch Professional Organization of Accountants (NBA), NEN, European Investment bank, Nederlandse Waterschapsbank (NWB), Sustainable Finance Lab, Fair Capital Partners, Doen Participaties, Copper8, Nyenrode Business University
In recent years, Glasgow has looked to move beyond its heavy manufacturing past towards a vision for a more sustainable, net-zero carbon future. The circular economy has been pivotal for this vision: it holds significant potential for climate mitigation and resilience. In light of the UN Climate Change Conference (COP26) and the ongoing drive for businesses, cities, and nations to reach ‘net-zero’, Glasgow is now looking to link its circularity ambitions with its carbon targets and to empower local businesses to effectively achieve both goals. This report, by Circle Economy and Glasgow Chamber of Commerce, aims to help Glasgow businesses understand the links between the adoption of circular strategies and business models and reaching net-zero carbon. It highlights key opportunities for businesses in five sectors—food and drink, textiles, manufacturing, events and conferences and the built environment—where circularity helps achieve net-zero carbon. It also outlines ways forward for Glasgow to effectively leverage and enable the circular opportunities identified, with a focus on safeguarding positive impacts for people and the planet.
This newest launch from the Coalition Circular Accounting sums up accounting-related opportunities and challenges in the circular transition. Drawing from the CCA's last four white papers based on real-life business case studies, it illustrates the current state of accounting and reporting solutions, and how they can support businesses in driving the circular transition. It finds that going circular in a linear world isn't easy—accounting and financing practices aren't set up to accommodate circular businesses. To do so, we must redefine how we approach three key facets of accounting: value, impact and risk. By changing mindsets, rethinking our existing approaches and taking on more circularity-friendly vocabulary through cross-sector collaboration, accountants and financiers can support the business world in spearheading the systemic shift to a circular economy.
The first Circularity Gap Report presented the alarming statistic that the globe’s economy was only 9.1% circular, leaving a massive Circularity Gap. The Report, launched in January 2018 during the World Economic Forum in Davos, has since been updated and published every year. This iteration marks the fifth edition. The Reports provide highlevel insights into the globe’s material flows and key levers for transitioning to circularity. They also support decision-makers with clear metrics, global data and a measurement of the circular economy to guide their action.
As 2021 draws to a close, we have much to reflect on. While the world's richest continue to consume more than 100 billion tonnes of materials per year and waste most of it, this year saw the coming and going of Glasgow's COP26—branded a 'fragile win'—as well a rallying cry from people around the world to combat climate breakdown. We also this year reached the ten-year milestone for our organisation: a decade of advancing the circular economy transition with the ultimate aim of doubling global circularity by 2032. With this newly defined goal, we can limit global warming temperature to well below 2-degrees—tackling environmental pressures and enhancing economic resilience in the process and—if designed with just principles in mind—addressing deepening social inequalities. A 17% circular world holds many benefits for businesses, cities and nations, and will allow us to create an economic system where people and the planet can thrive.
But as our research has reported, the global economy continues to consume over 100 billion tonnes of materials annually, of which over 90% becomes waste. With a global population set to reach 10 billion people by 2050, our current production and consumption patterns are highly unsustainable.
In this Impact Report, we will highlight how we have supported and accelerated the global circular economy transition in the last ten years and spotlight our flagship product—the Circle Scan. We will reflect on both the highlights from the work we did in 2021, as well as projects we concluded in past years but that continue to bear their fruits.
Circle Economy and the United Nations Environment Programme have teamed up to develop a methodology for measuring employment related to the circular economy. The methodology processes employment, economic and environmental data, and displays its results on the Circular Jobs Monitor—a digital tool that maps jobs that drive circular strategies across the world.
At Circle Economy, we regularly review circular frameworks to help business identify metrics that work best for their context. The Circular Transition Indicators (CTI) framework introduced in this paper, allows businesses to determine circularity on a product, business unit, site or company level.
The framework focuses on the circular vs. the linear mass that flows into and out of the business. At the same time, it gives many additional options: These include assessing recovery potential and the actual recovery, identifying ways to optimise and value the mass flow and relating circularity to a business’ revenue.
CTI was developed by businesses for businesses. It is publicly available and free to use for everyone. Any company, regardless of size, and sector can it.
At Circle Economy, we regularly review circular frameworks to help business identify metrics that work best for their context. The CIRCelligence indicators framework, designed by BCG and introduced in this paper, helps business assess the circularity of their entire value chain—from input to end of life.
It provides a holistic assessment of resources flowing into the business (inflow), of resource use (slow flow) and the type and amount of resources flowing out of the company’s boundaries (outflow). Through a qualitative assessment it also takes into account whether the business model set-up is following circular thinking in itself.
CIRCelligence is desgined for the high-level management, CSR experts and executives of a business. It requires more input than most other circular economy metrics and hence creates a more thorough and detailed overview of an organisation’s circular performance. Results can also be used to report on the progress.
The Circle Carbon Scan shows the link between the quantities of food that flow through Greater London, fueled by Londoners' consumption, and their associated consumption-based emissions*. Mapping material flows and emissions through London’s entire food and beverage supply chain enables the identification of emissions hotspots. It also uncovers suitable circular interventions that can cut the city's consumption-based emissions.
In collaboration with ReLondon, we have developed scenarios to highlight where the greatest reductions in consumption-based emissions can be made at different points across London’s food and beverage supply chain.
Interventions associated with an ambitious scenario hold the potential to reduce the consumption-based emissions of Greater London’s food system by an estimated 31%. In this ambitious scenario, reducing per capita meat consumption by 70% was estimated to yield a 20% reduction in London’s food-related consumption-based emissions per year. Reducing food losses and waste generated in London by 50% could deliver an estimated 10.5% reduction while combining this reduction with the circular management of waste could bring a cumulative emissions reduction potential of 10.9%.
Do you also want to analyse the consumption-based emissions of a supply chain in your city and identify intervention hot spots? Click on the button below. We will contact you to discuss how you can pursue concrete and actionable solutions that will lower your consumption-based emissions, make your city more circular and help achieve your climate goals.
* Consumption-based emissions are allocated to the consumers or users of goods or services. They incorporate the lifecycle greenhouse gas emissions of products and services that are consumed, as well as the emissions associated with waste management activities. These emissions may occur both within and outside a given territory, and are allocated to the final consumers or users, rather than the producers of those emissions.
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