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Investment funds

Buy, use and throw away. Throw away!?

Circular economy
Invertir en economía circular
Categoría
Investment funds
Tipo de contenido
Actualidad
Tiempo de lectura
4 minutos
Publicado
18 Aug 2022
Stop, we have to stop. We are drowning in our own waste. A planetary problem with devastating consequences for the environment that forces consumers, producers and governments to stop. A linear economy that gives way to another consumption model: the circular economy.

Why invest in this trend?

  • The traditional consumption cycle is environmentally unsustainable.
    A problem that demands urgent solutions that affect both the volume of waste we generate and the management of that waste. A situation that translates into a growth opportunity for many companies.
  • A consumption cycle (the current one) that is also proving to be uneconomical.
    Companies are facing inflation in the prices of raw materials and disruption in supply chains, which is favouring a change to a circular model based on local suppliers that present less price volatility and less logistics demand.
  • A transformation supported by governments and consumers.
    From governments: through new laws and taxes that encourage business practices directed towards circular economy models. And from consumers: changing their traditional habits for a more sustainable and responsible consumption.
Invest in sustainable consumption
Design, make, use, reuse, recycle and... start again.
The momentum of the circular economy has never been stronger. More and more companies are aware of the economic benefits of using more circular practices, abandoning the activity of buying, using and discarding if they wish to survive in the long run.
  • Plastic, the ogre of the story.
    It's not the only one, but we are all aware of the repercussions of this kind of waste. The reduction of plastic, its recycling and its replacement with new alternative materials increase interest in this trend.
  • Batteries.
    Another black hole that, little by little, is beginning to see the light. For example, electric vehicle batteries are already produced under a circular model. The increase in electric mobility is expected to multiply by four this year and by thirty(!) by 2028, a seismic shift that will have a major impact on business transformation and development.

Energy savings using recycled materials compared to manufacturing from new materials.


Source: BlackRock

Global measures for a global transformation.

  • From the European Union.
    The European Commission adopted a new Circular Economy Action Plan as part of the EU Green Deal. This plan focuses on the areas that use the most resources: electronics, batteries, packaging, textile plastics, etc.
  • From the USA UU.
    This determining country intends to promote circular business models through its infrastructure plans.
Invest in circular consumption

Our investment proposal focuses on a selection of companies that comply with the purest circular economy criteria, but that also represent an opportunity in terms of robust fundamentals, risk control and compliance with ESG criteria. These companies are classified into three groups:

  • Adopting companies.
    Those that incorporate circularity into their production processes.
  • Enabling companies.
    Such as, for example, the Norwegian Tomra, world leader in vending machines.
  • Beneficiary companies.
    Such the American Ball Corp, producer of aluminium containers, companies that benefit from this broad change, even without changing their business model.

What do the experts think?

The combination of the economic benefits that employing circular practices entails for companies, together with consumers who are more aware of the impact of their habits, is driving the demand for more sustainable products.

Our investment proposal

Invest in funds through shares in infrastructure corporates around the globe.

The value of investment funds1 can fall as well as rise, and you may get back less than you invested.


ISIN
Fund
Risk profile
Issuance
Investment policy
Minimum contribution
Fact sheet/Subscribe
LU2041044095
BGF CIRCULAR ECONOMY
High
USD
1000 €
LU2092758726
ROBECOSAM CIRCULAR ECONOMY
High
EUR
1000 €