Sustainable Investing in Focus: Investing in Circularity
In the fourth episode of Sustainable Investing in Focus, Ratana Tra, Senior Investment Director, and Alice Blackorby, Associate Investment Director, discuss why the circular economy is becoming an increasingly important theme for sustainable and impact investors and what that could mean in practice for portfolios.
A combination of environmental, economic, and political factors is driving that momentum. As demand rises for finite resources, including those essential to technologies such as electric vehicles and batteries, the case for using materials more efficiently and keeping them in circulation for longer is becoming clearer. Supply chain disruptions in recent years have added to that urgency, underscoring the value of resilience, localization, and resource efficiency.
Momentum is also being supported by regulation and corporate action. Policy changes in several markets are encouraging producers to take greater responsibility for waste, packaging, and recycled content, while many companies are strengthening sustainability commitments that align with more circular business practices.
The episode also explores how circularity intersects with broader impact priorities. In addition to complementing climate-focused strategies by helping reduce emissions linked to raw material extraction and the production of goods, circular economy approaches may also contribute to biodiversity and nature-related investing by reducing pollution and pressure on natural systems.
Read the rest of the publication here.