Circular Finance
Interest in the topic of circular finance has been growing over the last few years globally, with Europe out in front. For example, the EU’s Sustainable Finance Action Plan includes six environmental objectives (including transitioning to a circular economy and the sustainable use of resources), as well as a categorization system to define related activities.
Research has shown that circular economy strategies can curb investment risk and drive superior risk-adjusted returns. Potential drivers of these circular economy benefits include a focus on design and business model innovation and diversification, achieving greater resource decoupling, anticipation of stricter regulation, and changing customer preferences.
The Circular Finance in Canada Work Stream is a 12-month initiative working with UNEP FI and Canadian banks and credit unions focused on developing:
- Collaborative partnerships amongst financial institutions to facilitate knowledge exchange on best practices and to foster a peer-to-peer network, including with internal, cross-departmental teams.
- A harmonized, definitional framework with key indicators and information to allow financial institutions to better understand circular economy opportunities, risks, and returns.
- Support for Canadian banks and other financial institutions with practical solutions and applied approaches for getting started on the subject of circular economy.
- Stronger linkages between circular finance and its potential to support broader sustainability related goals around ESG and climate / net-zero objectives in key sectors of the Canadian economy.
- Guidance that will support the ability for banks and other financial institutions in Canada to engage more meaningfully with clients on the subject of the circular economy and related business models, products, and services.
Publications, Blogs & Articles
- Circular Economy Funding Opportunities & Programs Canada (Author: CELC)
- Guidance for Banks: Resource Efficiency & Circular Economy Target Setting (Author: UNEP FI)
- The Circular Economy as a De-risking Strategy & Driver of Superior Risk-adjusted Returns (Authors: Ellen MacArthur Foundation, Bocconi University & Intesa SanPaolo)
- WCEF 2021Accelerator Session Summary Report: Financing the Circular Economy Transition (Authors: GLOBE Series, UNEP FI & CELC)
- Blog: Scaling the Circular Economy in Canada: The Role of the Finance Sector (Author: Elizabeth Shirt, GLOBE Series)
- Financing Circularity: Demystifying Finance for the Circular Economy (Author: UNEP FI)
- Financing the Circular Economy: Capturing the Opportunity (Author: Ellen MacArthur Foundation)
Supporting Partners
- Coast Capital Savings
- Desjardins
- National Bank of Canada
- Scotiabank
- TD Bank
- United Nations Environment Programme Finance Initiative (UNEP FI)