Investing in a Circular Economy: Opportunities and Practical Steps
The Circular Economy Stakes
Australia has set a target to double the circularity of its economy by 2035, and CSIRO modelling suggests a more circular Australian economy could increase national GDP by up to $26 billion per year by 2035.
Advocates for a circular economy say linear business models rely on finite resources and expose companies and investors to growing risks, including supply chain disruption and environmental degradation.
They say a more circular economy that avoids the dominant ‘take-make-waste’ model could be a key lever to reach net zero.
What’s new
New research by Circular Australia and Mercer shows what this means for investors and lenders, highlighting the benefits of integrating circular economy considerations into investment and financing decisions.
The accompanying Circular Investor & Lender Guide translates these insights into four practical steps to help investors embed circular thinking across governance, risk management, strategy and portfolio decisions.
The Productivity Commission has also just released circular economy recommendations to government on key actions to unlock progress, including addressing regulatory barriers, strengthening product stewardship and supporting circular business models.
Why this matters
For investors, circular business models are also increasingly relevant to long-term portfolio resilience by supporting more secure supply chains, lowering emissions and helping protect the natural systems on which economic activity depends.
Here’s a earlier IGCC paper on this topic.
At our upcoming member briefing, report authors Lisa McLean (Circular Economy) and Jillian Reid (Mercer) will present the key findings from the research and share practical guidance on how investors can begin integrating circular economy considerations into their investment processes.
This is a member-only event. Please register to attend below: