Impact investing has become a hot topic in the financial world, and understandably so.Clients are increasingly asking investors to not only focus on financial returns but to also consider environmental and social criteria when developing their portfolios. As a result, sustainable investing has been soaring, and nearly 26% of worldwide assets with a value of 22 trillion USD are now sustainable (an increase of 25% from 2014 to 2016).Impact investments can also yield greater financial returns. According to a 2014 study by the Carbon Disclosure Project, S&P 500 industry leaders that have a strong focus on mitigating climate change have a return-on-equity 18% higher and are 50% less volatile than those that don't.
The majority of investors are now using environmental, social, and governance (ESG) screening criteria to exclude investments with negative impact. A growing percentage, however, are taking an impact investing approach — targeting for-profit social enterprises, for example.Regardless of the strategy they follow, many note that they still struggle to identify potential investments that can deliver strong financial returns and create positive environmental and social impact.
The circular economy aims to achieve inclusive economic, social and environmental prosperity within the boundaries of our planet, by making efficient use of our resources. The concept is well aligned with the goals and intentions of impact investing. By applying elements of the circular economy to their evaluation criteria, investors can identify high-impact investment opportunities, improve the value of their portfolios, and minimise their exposure to the risks of linear business practices.To help investors evaluate their investments against the elements of the circular economy, Circle Economy’s Finance Program has developed a comprehensive suite of services that provide practical solutions for investors throughout the investment cycle. From lead generation to due diligence, our tools and services help investors identify promising investments that meet their financial and non-financial impact targets. After an acquisition, we help investors initiate change in the first 100 days and grow companies in the longer-term. We do this by working closely with investors and portfolio companies to identify actionable and value-generating strategies and interventions.Are you an investor looking for new investment opportunities that can create positive impact and deliver financial returns? Or are you hoping to transform your portfolio to create long-term value and impact?Find out more about our services for investors by downloading our investor brochure.
The term 'closing the loop' continues to gain traction, from boardrooms to classrooms to living rooms. While the words are on everyone's lips, we may well ask why we have not seen a significant impact on business as usual. Why has the shift from a linear to a circular model been so fragmented, thus far?The truth is, while the bigger 'why' of a circular textiles industry is now well established, the 'how' is still unclear to many. In recent years, there has been a palpable increase in the industry's focus on improving the 1) collection and 2) recycling of post-consumer textiles. This work is spread across individual closed loop projects, and while they are achieving good results, these separate efforts can only amount to incremental change. The truth is, the industry currently lacks the broad foundation needed to close the loop for textiles. Without connecting the work, greater infrastructural bottlenecks will remain largely untouched. A systemic transition is necessary, and this will take collaboration across the entire textiles industry. Post-consumer textile collection is step one, but then what?The amount of textiles being produced and disposed of in inefficient ways is much higher than the amount that is collected and recycled. Recyclers throughout Europe indicate that only around 0.1% of all collected post-consumer textiles undergo high-value recycling. This means they are not regenerated into yarns, fabrics or garments but are downcycled into things like insulation - this is what's happening to the vast majority of non-rewearable textiles, when they even make it to the recycling process in the first place. The aim of a circular textiles industry is to keep materials and products functioning at their highest potential for as long as possible. Downcycling should be a last resort. Recent efforts of collecting and reverse logistics is one step in the right direction but not a complete solution. H&M came under fire from international press last year, with the leading accusation being that it would take the company 12 years to use recycled fibres from the 1,000 tonnes of used garments they aimed to collect during World Recycle Week. It is reported that in the past few years they have collected 13,600 tonnes of garments from consumers. This has led to a hard look at the industry today: If brands collect large volumes of post consumer garments that are mostly being downcycled, are they really doing the right thing?Pressure has been put on companies and governments to sign agreements to improve their garment collection and recycling efforts. This initiative is good, but it is only part of the solution. H&M is off to a good start, and the world should take note, but the industry must now address the steps after collection. The textile industry needs a solution for more efficient sorting of post-consumer textiles, and high value recycling technologies need a consistent and high-quality input for their processes. Until now there have been few options when it comes to supporting high-value recycling. We have actually been collecting more textiles than can be recycled into a high-value stream. The Fibersort, a technology that enables enable large volumes of post consumer textile sorting, is an exciting opportunity for the textile industry to get involved with and address this gap. It will lead to a tipping point for the high-value textile recycling industry and is a necessary part of the global infrastructure for a closed loop industry.So how is Fibersort part of the solution?An increase of low-quality fast fashion means the portion of rewearable post consumer garments is decreasing while the non-rewearable portion is on the rise. We need to support technologies that can tackle the growing fraction of non-rewearable textiles, and ensure that these precious resources make it back into the supply chain, at their highest value. The Fibersort is a technology that automatically sorts large volumes of finished textile products by fiber composition. This allows them to be recycled into new, high-quality textiles. Because most current and upcoming high-value recycling technologies require fibres of the same content to be recycled together, content purity is a major barrier - or is it an opportunity? Fibersort offers quality assured feedstock to recyclers. Essentially, there will be more control over what goes into the recycling process which means the quality of the output is greatly increased.
We have the technology and you have the perspective. Real change in our industry requires collaboration from us all! Are you a brand, retailer, manufacturer, textile collector, sorter, recycler or anything in-between? Do you want to be a part of something bigger that promotes the circular economy? There is a great need to address this current gap in high value textile recycling. Your feedback and ideas can help drive this innovation and bring change to our industry. Sign up to stay updated and informed of opportunities to provide your feedback on the development of Fibersort.
I want to be part of this change!
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On Thursday September 15th, the FIBERSORT project was announced as one of the few projects that will be funded by the INTERREG NWE programme for the next three years. With the support of INTERREG in the form of EUR 2 million, the consortium will further optimise the machine and demonstrate and validate this pioneering technology in the market. The project partners will add an additional EUR 1.5 million in funding to the project. Contact jade@circle-economy.com for more information about the Fibersort project.
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Today a broad coalition of Dutch companies, research institutes and organisations, including Circle Economy, appeal to the Dutch government to prioritise the SDGs within the upcoming government coalition agreement. All signatories, now already including 118 organisations, appeal to the current coalition negotiator Edith Schippers, to make sure that policy is aligned with the UN Sustainable Development Goals (SDGs) to which the Netherlands has committed in 2015: “We - a coalition of companies and social enterprises - cannot stress the importance of the SDGs more as a tool to create a sustainable society now and for future generations. They are vital for our global society, but also enable a healthy and resilient Dutch Economy.After the Dutch elections in May, the appointed coalition negotiator Edith Schippers is meeting with all elected political parties to explore the common ground in the proposed election programme's. The coalition of Dutch companies and organisation is now appealing to negotiator Edith Schippers, to steer towards a government that prioritises sustainable policy and centralises our commitment to achieve the SDGs. By doing so, a more balanced world will be made more tangible - prioritising issues as the transition to renewable energy, (over) production and consumption, poverty, hunger, health, inequality and climate change on a local, national and global level. The signatories are appealing the new government to:
Read more about the participating organisations, the appeal to the Dutch Coalition Negotiator and how to join here (dutch).
We are very proud to welcome Brightloops, a true trailblazer in circular textiles, to our Circle Membership. Brightloops is working to produce circular yarn, felt and knitwear from 100% recycled old sweaters. Their products, sold under the label Loop.alife, prove that excess post-consumer garments can be transformed into beautifully designed, high value products.So, what does it mean for Brightloops to be ‘truly circular’? It means using post-consumer local waste as a source of input, sorting post-consumer excess by material and color to avoid unnecessary dyeing (saving chemicals, water and energy), and mechanically recycling this excess. They practice full transparency throughout all business practices, focus on local production and new developments within Europe, and not only have a zero waste policy but practice it through continual product development.
What is the next step for the textile recycling industry?Making more ‘closed loop fashion production’ circles. We are convinced we should not transport waste streams over the globe but should find closer circles that have the right economy of scale. This means more - new and existing - production facilities working closer together within the Netherlands/Europe to close the textile loop. This leads to ‘local’ knowledge creation, new designs (for recycling) and product development, which is to sustainably use our mountain of post consumer textile.What areas need further development and support?We need more medium-scale production facilities; from high value fibering, yarn development and knitting and weaving to produce high value end products of recycled yarn.Can companies not involved in the circular economy adopt the technology you use?Yes, Brightloops also helps other textile companies to produce 100% recycled knitwear or felt for their collection. We produce custom made yarn and ready to wear knitwear from their own waste streams using their own label. Anyone who is interested can contact us.What are your recommendations to further close the loop and what is needed for recycled fibers to be incorporated into mass-marketed garments?More marketing, sales support and demand for sustainable fashion. We need retailers and online portals that actively help and support the sustainable brands that make beautiful products in the first place and also have a good story that make you proud to wear it.
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Our member community is an active group of businesses and institutions that have a shared ambition to make the circular economy a reality. As a member you will gain access to a powerful global network of change makers, thought leaders, peers, and stakeholders that share in our ambition to make the circular economy a reality.
Are you a changemaker? Learn more about our global network of innovators by clicking the link below.
[cta link="http://www.circle-economy.com/membership/" ]I'm a changemaker![/cta]
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A transition to the circular economy is essential to fight climate change, resource depletion and achieve sustainable growth. To ensure that policymakers and governments know how and where to implement the circular economy effectively, there is a great need for practical tools to measure it.Aimed at defining, identifying and quantifying employment opportunities that are needed in the circular economy, Circle Economy and the Erasmus Research Institute for Happiness Economics (Ehero) have developed a standardised and replicable methodology that measures circular employment in cities around the world. This opens up the possibility of monitoring circular employment and therefore empowers cities and governments to effectively invest in the jobs of the future.
“Implementing the circular economy is as much about people as it is about resources and sustainability” - Annerieke Douma, Director Programme and Business Development
The initial findings of this joint research show that 8.1% of all jobs in the Netherlands are currently circular. Once identified, the circular jobs were categorised according to the seven key elements of the circular economy, showing that a large majority are focused on ‘incorporating digital technology’ and ‘preserving and extending what’s already made’. In the past fifteen years, activities that involve 'repair & maintenance' have remained stable in numbers, with the 'incorporation of digital technologies' becoming an up and coming job provider. This points to the importance of knowledge-intensive industries and innovation within the Dutch economy.
To learn more about how circular jobs are defined, how they are distributed throughout the Netherlands and the method behind how they are quantified, download the report.
[cta link="http://www.circle-economy.com/Circular-Jobs" ]Download the report[/cta]
Complicated derivatives, excessive bonuses, amoral incentives, irresponsible loans and, excessive leverage and asset bubbles are continually highlighted as issues our current financial system faces. However, the real fundamental financial issue of today is the severe imbalance between the financial world and the real world in which we live in. The real world, in which value is created through the use of precious resources and care is not taken to preserve them. This imbalance is at the root of the problem, but how can we address it?Our financial system is responsible for the efficient allocation of money and moving it from points of excess to points of need. But money has become so much more than a simple oil that allows the economic machine to run smoothly. Money deeply affects our behaviour as individuals and as a collective society. It gives us a feeling of individual freedom, yet anchors our dependency on others across the world. Additionally, we use it to express the value of everything: products - of course - but also intangible things such as health, wealth, safety, political power and, human lives. With that in mind, can we really trust our current financial system to facilitate the well-being of the real world?To answer these questions we need to understand what money is. To most people, the nature of money and the world of finance is a mystery, despite the fact that we use it for everything we do and in doing so, influence its function. A survey by Motivaction International and the Sustainable Finance Lab revealed that among 23,000 people, in 20 countries, less than 20% of the respondents were aware of the fact that commercial banks create more than 95% of the money in circulation.This money comes into existence in the process of interest-bearing credit (and debt) creation and relies upon an ever-expanding economic system, that cannot be sustained by the finite system we call earth. Financial system innovation is, therefore, a critical factor and important enabler to create a balance between the financial world and the real world. The money system is a social construct (we humans invented it) and therefore it can be re-designed to include incentives that influence more desirable outcomes. These systems can be complementary to our current monetary realm and create a more diverse and resilient financial system. With financial technology innovations, such as blockchain, it is possible to create these incentives and nurture economic value at the local level by preventing wealth from ‘leaking away’. It provides new social institutions for collaborative consumption and ‘product service systems’, and can facilitate resource-sharing and reuse markets for unwanted goods. But pro-environmental behaviour can also directly be addressed, for example, rewarding citizens who participate in recycling programmes or the development of new green technologies could be rewarded, through for example a cryptocurrency based on renewable energy.An example of such a system is the WASTED Reward System, which aims to incentivise citizens to recycle and create awareness regarding plastic waste in Amsterdam Noord. Plastic waste of participating households is tracked through QR codes and linked to their personal account. For every 5 bags of plastic they recycle, they are rewarded with 5 coins, which can be spent at local shops and restaurants. For example, 5 full bags of plastic are worth a 3-course meal! This programme not only enhances local economic activity but also increases awareness of plastic consumption and results in a cleaner neighbourhood. Currently, the scaling opportunities for such a programme are limited due to the need for manual operations (i.e. a physical currency that has to be collected and distributed). Therefore a digital version of the currency based on blockchain technology is being developed together with Circle Economy. This digital currency will also be able to be used in webshops and make it easier to monitor and evaluate its use. At Circle Economy, we embrace this challenge and together with Sustainable Finance Lab, we aim to leverage financial innovation to enable the circular economy.
[cta link="mailto:elisa@circle-economy.com" ]Get in touch[/cta]
The Dutch province of North-Holland has chosen to strive for a circular economy.By applying smart strategies that help increase the reuse of resources within company conglomerates, the demand for virgin resources will decrease, energy savings will be achieved and jobs will be created. North-Holland wants to transition to a circular economy in order to prepare the province for a sustainable future, while at the same time creating a healthy economic and liveable climate. To make this ambitious transition a reality, the province has asked the social enterprise, Circle Economy, to identify and visualise the opportunities within North-Holland by completing a Circle Regional Scan. Upon completion of the scan, Circle Economy identified 58 practical, circular opportunities for the province and visualised them through tangible examples.
Using tomato plant waste to create paper? This is actually possible. This example shows how rest materials from one sector can be used as a resource by another sector.The opportunity map created by Circle Economy focuses on seven clusters within the province that represent the largest economical value and offer the most employment. These seven pivotal clusters identified in North Holland (tourism, logistics, road construction, hospitals, horticulture & seeds, and food processing & retail) provide 310.000 jobs and represent an economic value of 22 billion euro. The total material consumption in all of these clusters combined is a staggering 12 million tonnes annually, the vast majority of which is not used to the fullest extent at the end of its life-cycles. By applying circular strategies within these major, material consuming clusters, the biggest economical and ecological impact can be made.
“The transition towards a circular economy provides huge opportunities for the economic development of companies within North-Holland. The opportunity map provides us with a very comprehensive overview as to where these opportunities lie. In the coming period we will connect with the industry in our province to verify what their specific needs are and how we can be an enabler for them. Combining this information will determine where the province will focus its energy in the first half of 2017”
- Jack van der Hoek - Province Deputy of North Holland
nbsp;Implementing Circular Projects
The mobility sector produces 2,800 tonnes of waste yearly in the form of run down cars and discarded car parts like car tires. Worldwide more that 1.5 billion tires are removed from vehicles every year, creating around 13.5 million tonnes of solid waste. More than half of these tires are burned or landfilled. A circular answer to this issue could be to recover carbon black from these old tires, instead of burning them to produce crude oil. The amount of CO₂ emissions saved by this process will contribute to achieving the Paris Climate Agreements.
“Implementing the circular economy is not just about creating a sustainable future, but about creating jobs and rejuvenating industries. It brings business opportunities in the form of new chain collaborations and material savings”
- Jurn de Winter - Project Manager Circle Cities Programme
Tourism also plays a vital part in the economy of North-Holland. The sector is responsible for some of the largest waste streams of the province with 7,000 tonnes of food being wasted on a yearly basis, matching the yearly food consumption of 100,000 people. One of the solutions Circle Economy suggests is to find ways to consume food that is now considered waste. A restaurant chain in Amsterdam uses food that, due to strict regulations, cannot be sold in supermarkets, but is still completely edible, as a source for their meals. This restaurant in Amsterdam proves that per restaurant they can save around one ton of food from ending up in waste bins every week.
These examples highlight just two of the 58 circular opportunities that the province could implement together with local businesses.
[cta link="http://www.circle-economy.com/Circular-North-Holland" ]Explore all 58 Circular Opportunities[/cta]nbsp; nbsp;
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The Circle Cities Programme is a global platform through which cities, regions and local businesses can make the transition towards the circular economy. By joining the programme, members gain access to Circle Economy’s tools, knowledge and support to implement practical and scalable circular solutions.
Contact us to learn more about how your city or region can become a member of the Circle Cities community!
[cta link="mailto:jurn@circle-economy.com" ]Contact us[/cta]
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During this year’s Goed Geld Gala on 6 February National Postcode Lottery announced its continued support for Circle Economy with a 1 million Euro grant. Thanks to the organisations funding in recent years, Circle Economy has built a solid foundation for a truly impactful organisation and with their continued support we will be able to deliver on our mission to accelerate the practical and scalable implementation of the circular economy. Since the organisation’s founding, Circle Economy has focused on developing practical and scalable solutions for the circular economy. We work with stakeholders throughout value chains, in key sectors, like textiles and construction, to identify and overcome system leaks. From cities to regions, we create actionable implementation plans to guide the transition and have collaborated with the financial sector to create new, financially sound business models.With an open-source ethos at the heart of our organisation, Circle Economy focusses on developing scalable services that help businesses, governments and citizens bring circularity into practice, on a global level. Now as we look to the future, we believe that In order to have successful, on the ground, implementation of the circular economy we need to digitise, scale and distribute our solutions worldwide.. We would like to extend our gratitude to the National Postcode Lottery and the lottery players for their continued support. Together with our growing, international network of members and partners we are looking forward to continuing our mission and shaping a visionary and practical future for our planet. [caption id="attachment_12029" align="aligncenter" width="4422"]
Image: Roy Beusker[/caption]
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