A new report from the Cornerstone Capital Group is titled Intentional Design: Embracing the Circular Economy. It looks across a range of sectors to identify critical resource issues and identify examples of companies that are adopting circular economy practices into their supply chain management.
The economic model of our current era is linear. We take resources from nature, make them into a product and then throw the item away when we’re done with it. The result? Overflowing landfills, trash-filled waterways and, too often, toxic waste. This rampant waste of resources poses an existential threat to the world as we know it.
What is the way forward? The circular economy, which is based on regeneration. A circular economy uses as few resources as possible in product creation; keeps resources in circulation for as long as possible, extracting the maximum value from them while in use; then recovers and regenerates products and their components at the end of their service life. Embracing circular economy principles is perhaps the most essential initiative we can undertake as a global society.
In many cases, companies are increasing their efficiency, reducing waste, and saving money through their investments in the relevant processes and technologies. The transition to a circular economy is also spurring new business models and collaboration across supply chains.
For investors, forward-thinking asset managers are increasingly incorporating circular economy considerations into their investment processes; “pure play” circular economy investment vehicles, though rare, do exist. The report highlights several existing investments considered to be under the circular economy umbrella. Investing in the circular economy is poised to become a central theme in sustainable and impact investing, and in regenerating our world.
Image courtesy of Cornerstone Capital.