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ESG & Sustainable Finance

Circular Economy

Also called: circularity, cradle to cradle, closed loop economy

A circular economy designs out waste by keeping materials in use through repair, reuse, remanufacture and recycling, in contrast to the linear take-make-dispose model. Its financial appeal is input cost and supply security rather than sentiment: recovering materials hedges commodity prices and reduces exposure to extraction disruption. Regulation on repairability and packaging is turning it from a concept into a compliance cost.

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