francefr
Sustainable Investing Glossary

Circular economy

The circular economy is an economic model that places a greater reliance on reusing existing materials in a series of loops. It aims to replace the current linear economy, which is based on the take-make-waste system of extracting minerals, turning them into manufactured products and then disposing of them at the end of their useful life.

Much of the concept of the circular economy involves words beginning with ‘re-‘: recycling, redesigning, reusing, refining, refurbishing and repairing – to name the most common descriptors. This has two main objectives:

  • Making more efficient use of the Earth’s resources, as research shows that the linear model consumes finite resources at 1.75 times the planet’s annual regenerative capacity. In some areas such as farming and mining, we are already approaching planetary boundaries regarding deforestation, biodiversity and extractive limits.
  • Eliminating the billions of tons of waste that are produced by the linear economy every year, much of which ends up in unsustainable landfill, or is dumped in the ocean. Plastic packaging is a particular problem, since 80% of it is never recycled. Electronic devices are also commonly discarded, when it would be possible to retain up to 90% of the product’s value by using a more modular and recyclable design.
Générer des performances qui profiteront à tous
Générer des performances qui profiteront à tous
Investissement durable
Keeping products in the loop creates value. Source: Robeco

Rather than downsizing the economic model, proponents of the circular economy predict it will create USD 4.5 trillion in market opportunities by 2030 – principally through new means of production, recycling and sharing. New technologies such as developing biodegradable plastics, as well as changing consumer preferences regarding longer lasting products, are seen as major drivers.

In order to capitalize on this trend, Robeco founded its RobecoSAM Circular Economy Equities strategy in January 2020 to target those companies that are contributing towards this concept. It does so through four clusters: redesigning inputs, enabling technologies, implementing circular use, and looping resources, as shown in the graphic below:

Redesign inputs
Redesign inputs
  • Consumer Packaging
  • Renewable Feedstock & Fiber
  • Building Materials
  • Precision Farming
Enabling technologies
Enabling technologies
  • Digitization
  • Product as Service
  • Logistic & Testing
Circular use
Circular use
  • Nutrition
  • Fashion & Leisure
  • Household & Lifestyle
  • Sharing Economy
Loop resources
Loop resources
  • Lifetime Extension
  • Collection & Sorting 
  • Recovery & Recycling

The move towards a circular economy is becoming more urgent as increasing urbanization, a rising hyper-consuming middle class and a global population approaching 10 billion, create unsustainable pressure on resources and waste management. According to the European Union’s Circularity Gap Report 2020, only 9% of the current world economy is circular.

See also: Thematic investing, ESG integration

Le risque climatique et la décarbonation des portefeuilles sur le devant de la scène
Le risque climatique et la décarbonation des portefeuilles sur le devant de la scène
Les compagnies d’assurances sont directement exposées au risque climatique, et l’impact de celui-ci sur leurs bilans est examiné de plus en plus près par les régulateurs.
14-01-2021 | Interview
Why human production needs to go on a diet
Why human production needs to go on a diet
The weight of man-made objects on Earth now exceeds the mass of all living things, new research reveals.
13-01-2021 | Statistiques stupéfiantes
Lettre du CIO : rester contrariant
Lettre du CIO : rester contrariant
En 2021, nous continuerons de remettre en cause le consensus, déclare Victor Verberk, directeur des investissements obligataires et durables chez Robeco.
07-01-2021 | Vision
Logo

Information importante

L’information publiée dans les pages de ce site internet est plus particulièrement destinée aux investisseurs professionnels.

Certains fonds mentionnés dans le site peuvent ne pas être autorisés à la commercialisation en France par l’Autorité des Marchés Financiers. Les informations ou opinions exprimées dans les pages de ce site internet ne représentent pas une sollicitation, une offre ou une recommandation à l’achat ou à la vente de titres ou produits financiers. Elles n’ont pas pour objectif d’inciter à des transactions ou de fournir des conseils ou service en investissement. Avant tout investissement dans un produit Robeco, il est nécessaire d’avoir lu au préalable les documents légaux tels que le document d’information clé pour l’investisseur (DICI), le prospectus complet, les rapports annuels et semi-annuels, qui sont disponibles sur ce site internet ou qui peuvent être obtenus gratuitement, sur simple demande auprès de Robeco France.

Nous vous remercions de confirmer que vous êtes un investisseur professionnel et que vous avez lu, compris et accepté les conditions d’utilisation de ce site internet.

Je n’accepte pas