Increasingly, financial institutions are looking to align business decisions with environmental principles.
ABN AMRO, ING, and Rabobank have teamed up to publish guidelines for investing in the circular economy. The banks have designed the guidelines to help financial services companies around the globe transition towards a circular economy by increasing capital allocated to projects with circular business models (CBMs). These are business models that “strive for 1) employing fewer materials and resources for producing products and/or services; 2) extending the life of current products and/or services through refurbishment and remanufacturing; and 3) closing the loop of products’ life by recycling. In short, CBM seeks to reduce, retain, and recycle.” 
The banks are closely linked to the UK-based environmental charity Ellen MacArthur Foundation which was one of the first to “define and conceptualize the circular economy” and stresses the “crucial role” the financial industry plays in accelerating the transition to a circular economy. Continue Reading