The circular economy: It’s not just about recycling

May 09, 2022

As the world continues to move towards a more environmentally-sustainable, resource-efficient future, demand for businesses that use a ‘circularity model’ is rising.

5 circular economy facts

  • The notion of a ‘circular economy’ was first touted in the 1970s but caught on in 2010, when Dame Ellen MacArthur set up the Ellen MacArthur Foundation to champion the concept.
  • A circular economy goes beyond recycling, as it is based around a restorative system geared towards designing out waste, keeping materials in use and regenerating natural systems.
  • Digital technologies play a key role in supporting the new business models that underpin the emerging circular economy.
  • The first World Circular Economy Forum took place in 2017, at which hundreds of global industry leaders met to exchange ideas and promote the benefits of a circular economy model.
  • Keeping materials and products in use for as long as possible could unlock USD 4.5 trillion in economic growth by 2030.

We believe the circular economy has the potential to provide investment opportunities, and investors leading the way in this space could be at the forefront of a growing and innovative concept.

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The circular economy is one of the seven investment themes within our Impact-Aligned Bond strategy, a sustainability-focused, thematic public debt strategy that allocates capital to ‘solution providers’ – companies that make a difference today by addressing the problems of tomorrow. Learn more about the strategy.

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