Circular Australia and Mercer collaborated on a new report and guide for investor and lender practitioners. It demonstrates a transition to a more circular economy is expected to be profitable, actionable and achievable for the financial sector.

The report, Circular Economy for Investors and Lenders and its four step Circular Investor & Lender Guide – uses circular economy heatmaps to highlight sectors facing the highest risks in multiple areas to identify priorities for a linear to circular transition.

It shows a more circular economy:

• Is increasingly inevitable given the inherent risks in linear business models and the opportunity in circular solutions

• Addresses multiple risks at once by supporting more positive economic and risk/return outcomes; reducing both financed emissions by tackling embodied carbon; and reducing dependencies and impacts on nature

• Is now possible and practical to implement within investor and lender processes with qualitative and quantitative inputs and various portfolio actions