Financial Decision-Making in the Circular Economy

The third and final whitepaper, 6 Guidelines to Empower Financial Decision-Making in the Circular Economy, in our finance reporting series, 3 Essential Steps to Financing Circular Business Models, is finally out! The whitepaper is authored by Sustainable Finance Lab and Circle Economy and powered by Nederland Circulair! and provides financiers with practical guidelines to prepare for their new role in the circular economy.

The paper aims to outline the new role financiers have to play to accelerate the transition towards a circular economy. How can they change their own operations to better align with those of circular entrepreneurs? How should they judge the risks and opportunities that are presented by circular business models? What new dangers and securities do these new business models bring? What role can they play in this new economy?

“Circular business provides a great opportunity to the sustainable investment community, but to reap the benefits of this opportunity, the financial sector needs to take a different perspective.”

– Anne-Marie Rakhorst, Entrepreneur and Founder of Search Ingenieursbureau and

In the first two steps of the series we provided an understanding of circular business models and helped companies find their place on the Value Hill while the second report in the series walked businesses through a 10 step guide to creating a financeable circular business. Now it’s time for the financial sector to act!

This guide will help financiers thrive in the circular economy through 6 practical guidelines:

      1. Assess Different Securities
      2. Emphasize Relationship-based Financing
      3. Value Natural Capital Gains
      4. Become a Knowledge Partner
      5. Have a Long-term Vision
      6. Become a Financial Chain Director

“The circular economy requires a different vision on security. For example, for increased risks you get a stable cash flow in return.”  – Richard Piechocki, Sustainable Business Strategist at Rabobank

The system shift to the circular economy fundamentally changes the role of both the entrepreneur as well as the financier. In order to overcome this change, entrepreneurs and financiers need to find each other in this new economy.

Interested to learn how financiers can play a role in the circular economy?

Download the 6 Guidelines 

Just starting your business’ journey to circularity? Read the earlier two publications in our three step series: Master Circular Business with the Value Hill & Create a Financeable Circular Business in 10 Steps.