June 2022 / ESG
ESG Integration in Action—Circular Economies
How a circular model could support economic and population growth
- Investors can play a role in helping to close the food gap, but we also must ensure that our investment is being deployed sustainably.
- Plastics have come to epitomize the problems of the end-to-end (or linear) economy.
- The circular economy underpins a transition to renewable energy and materials.
The vast majority of economic activities are built on a linear model, where raw materials are taken from the earth, used to make products, and eventually discarded. Economic and global population growth have created impacts that mean this linear model cannot be sustained. If global economies are to prosper and support the world’s burgeoning population, a shift to a circular economy is needed.
The circular economy is based on three principles— eliminating waste and pollution, circulating products and materials, and regenerating nature. It is underpinned by a transition to renewable energy and materials, helping to decouple economic activity from the consumption of finite resources.
We demonstrate how our in-house research and stewardship activities evaluate three principal themes within the circular economy:
Read the full paper here.
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