Our societies have always relied
on a variety of critical resources
Throughout history the linear economy model has focused on extracting, manufacturing, consuming and disposing natural resources to put roofs over our heads, heat our homes, and advance our well-being. Our capacity to survive and thrive relies directly on our ability to match the supply of resources with society’s demands. As we look to the future, there are a series of challenges that may require us to rethink the linear approach to resource extraction, and usage:
Growing population
The demand for resources will
continue to grow in line with
population growth
Resource independence
A resurgence in geopolitical tension has made energy and resource independence a strategic priority
Environmental impact
On the current track, GHG* emissions related to resource extraction are projected to increase 44% by 2060
The Circular Economy Proposes:
A novel model of production & consumption
Circular Economy Principles
Sustainable Supply
Aims to exploit/extract natural resources by limiting operational waste and environmental impacts
By facilitating a significant reduction in energy usage and GHG emissions linked to the extraction and consumption of raw materials
The integration of circular economy principles
contributes directly to global Net Zero ambitions!
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By analysing the structural challenges and opportunities presented by sweeping societal trends, investors can identify companies that are most likely to benefit and contribute within investable sub-themes. This provides a potential path for investors to generate returns while acting as conscientious stakeholders in a collective future.
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Important Information
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of March 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use: April 2023
Doc ID#2630051
The Circular Economy
A new model of production & consumption
Marketing Communication
1
The Circular Economy framework prioritizes ensuring sustainable growth throughout all stages of the product lifecycle, and aims to deliver a broad variety of environmental and societal benefits:
Sources: (1) UNEP Global Resources Outlook 2019; (2) Ellen Macarthur Foundation, Material Economics 2021; *Greenhouse Gas; **cement, plastics, steel, aluminium, and food
CIRCULAR ECONOMY PRINCIPLES
Eco-design
Means designing a product, good or service that reduces its negative effects on the environment via its life cycle by striving to preserve its qualities or performance
Industrial & territorial
ecology
Constitutes a mode of inter-company organisation through exchanges of flows or pooling on needs
Economy of
functionality
Favours use over possession and tends to sell services related to the products rather than the products themselves
Responsible
consumption
Aims to take into account environmental impacts at all stages of the life cycle of the product
Sustainable Supply
Aims to exploit/extract natural resources by limiting operational waste and environmental impacts
Aims to disseminate a
set of techniques for transforming waste after recovery, with the aim of reintroducing all or part of it into a production cycle
Life extension
Consists of repair, second-hand goods sale or donation or purchase of second-hand goods for reuse or re-use
The integration of circular economy principles
contributes directly to global Net Zero ambitions!
By facilitating a significant reduction in energy usage and GHG
emissions linked to the extraction and consumption of raw materials
A variety of businesses are voluntarily
adopting Circular Economy principles
Reducing waste and promoting sustainability in consumer products
An eco-friendly cleaning, paper, and personal care product company uses recycled materials in its packaging and offers refillable products to reduce waste
Europe’s first circular
economy vehicle factory
To create mobility solutions with a negative
CO2 balance by 2030, while at the same time generating employment for 3,000 people
Fashion industry of today with circular economy
In this way, upgrades modifications and repairs are easily achieved so that every single product can have multiple lives
Leading retailers exploring the rollout of reusable food packaging
Enabling customers to select reusable packaging for a small charge, which is returned when cups and boxes are brought back to collection points for reuse
The power of innovation
Innovation is fortunately an unlimited resource, and many businesses and public
programs will continue to develop ingenious ways to reduce, reuse and recycle
The Circular Economy framework prioritises ensuring sustainable growth over the long term, and aims to deliver a broad variety of societal benefits:
Reducing waste and promoting
sustainability in consumer products
An eco-friendly cleaning, paper, and personal care product company uses recycled materials in its packaging and offers refillable products to reduce waste
Generate new jobs and
strengthen broader economy
Integration of circular economy principles across the EU can increase GDP by an additional 0.5% by 2030, creating over 700,000 new jobs
Reduce waste and protect biodiversity
Reducing waste and pollution lessens the threat to biodiversity, and leaves more room for nature to regenerate and thrive
Eco-design
Means designing a product, good or service that reduces its negative effects on the environment via its life cycle by striving to preserve its qualities or performance
Industrial & territorial
ecology
Constitutes a mode of inter-company organisation through exchanges of flows or pooling on needs
Economy of
functionality
Favours use over possession and tends to sell services related to the products rather than the products themselves
Responsible
consumption
Aims to take into account environmental impacts at all stages of the life cycle of the product
Life extension
Consists of repair, second-hand goods sale or donation or purchase of second-hand goods for reuse or re-use
A variety of businesses are voluntarily adopting Circular Economy principles
Fashion industry of today with circular economy
In this way, upgrades modifications and
repairs are easily achieved so that every
single product can have multiple lives
Europe’s first circular
economy vehicle factory
To create mobility solutions with a negative CO2 balance by 2030, while at the same time generating employment for 3,000 people
Reducing waste and promoting
sustainability in consumer products
An eco-friendly cleaning, paper, and personal care product company uses recycled materials in its packaging and offers refillable products to reduce waste
Leading retailers exploring the rollout of reusable food packaging
Enabling customers to select reusable
packaging for a small charge, which is
returned when cups and boxes are brought back to collection points for reuse
The power of innovation
Innovation is fortunately an unlimited resource, and many businesses and public programs will continue to develop ingenious ways to reduce, reuse and recycle
Source: Amundi Asset Management as March 2023
Source: Amundi Asset
Management as March 2023
1. Economic player’s offer
3. Waste Management
2. Consumer demand & behavior
Recycling &
waste recovery
Recycling & waste recovery
Aims to disseminate a
set of techniques for transforming waste after recovery, with the aim of reintroducing all or part of it into a production cycle
Learn more about Megatrends
Reduce emissions and curb energy usage habits
Integration of circular economy principles across the EU can increase GDP by an additional 0.5% by 2030, creating over 700,000 new jobs
2
3
Reducing waste and pollution lessens the threat to biodiversity,
and leaves more room for nature to regenerate and thrive
Applying circular economy strategies in 5 key areas** can bring emissions 45% closer to their net-zero emission targets
Generate new jobs and
strengthen broader economy
Reduce waste and
protect biodiversity