The Circulate Initiative’s Post

We are pleased to share the latest edition of the Plastics Circularity Investment Tracker developed by our mission-aligned partner, The Circulate Initiative, with support from IFC - International Finance Corporation. 📈 Providing data on 100 countries, 5,500+ deals, and 3,000+ companies, the Plastics Circularity Investment Tracker is a comprehensive resource for financial decision-makers and stakeholders across the plastics value chain. 𝐖𝐡𝐲 𝐢𝐭 𝐦𝐚𝐭𝐭𝐞𝐫𝐬: Both private and public capital are crucial to an effective and robust treaty to tackle plastics pollution. Yet, the latest data reveals that only an average of US$ 32 billion a year of private investment went to plastics circularity between 2018 and 2023, far below the one trillion dollars needed annually. 🔎 𝐆𝐨 𝐝𝐞𝐞𝐩𝐞𝐫: Explore the tracker ➡ https://lnkd.in/g-3fT23d Read the insights from the tracker ➡ https://lnkd.in/gCAQKAjS #plasticpollution #circulareconomy #plasticinvestment #datagap #plasticwaste #financing #financinggap #investment #oceanplastic

We are sharing some of our recent work on plastics as an illustration of why adopting an inverted investment approach helps investors navigate the shifting regulatory landscape. Rather than the traditional top-down, black-and-white (risk/return only) operating model, leveraging AI through our integrated coloured lens, we extrapolate the implications of multiple policies across silos to look around the corner and identify how superior risk-adjusted returns will be driven—and how to unlock them. 💡 Ahead of the Global Plastic Treaty in Busan next month, we are engaging with multiple policymakers and stakeholders to address one of the most significant systemic risks resulting from plastic pollution and how their related emissions are set to surpass those from energy. While policy aims to reflect long-term public interest, shaping the actual outcomes requires them to mobilise private sector incentives and work through the transmission mechanisms. We are clearly shifting from a world where “you can have an impact and generate returns” to one where “it is hard to avoid losses unless you consider impact.” Reach out to explore how we can help you adapt your investment strategy, seeding, GP stakes, and value creation approach. #Sustainability #AlternativeInvestments #CarbonBorderAdjustmentMechanism #CBAM #Plastics #PrivateEquity #ESG #InvestmentStrategy #Decarbonization #CircularEconomy #PrivatedEbt #Eventdriven #globalplasticstreaty #INC5 #sustainablevaluecreation #secondaries #CSDDD #Carbonismacro

🔄 What if CBAM included plastics? 📈 What if we get a short squeeze on the ETS? ♻️ What if we cannot reduce the embedded carbon content despite the projected circularity and recycling capacity? 💰 What if plastic polymer prices influence EBITDA for the widest range of debt-laden, cash-generative SMEs? ⚠️ What if an 18% price hit triggers a series of covenants across legacy private market vintages and NAV lending cascades? 💼 What if aggressive valuations underpinned by consumer adoption growth models had assumed cost structures were predictable? 📉 What if the “value creation” expertise that LPs bought into only included financial engineering and did not invest in the right ESG-literate talent beyond their compliance, data, and reporting needs? 🌊 What if the implications of this one policy on one product in one region are just the tip of the iceberg? Might you look at your valuation assumptions, portfolio exposures, and allocation process differently?

With #INC4 officially now wrapped up, we, +220 businesses and financial institutions working across the plastics value chain, have taken stock of its outcome. It is encouraging to see:  ⬆️ Broad support of governments for intersessional work.  ⬆️ Some initial alignment on the importance of key areas (e.g. product design) and new proposals on more controversial topics (e.g. chemicals of concern, and problematic & avoidable plastic products).  ⬆️ Progress on streamlining text in the provisions related to our focus areas. However, we are also seeing: ⬇️ Too much emphasis on national measures, as more and more agree that #BusinessNeedsGlobalRules to level the playing field for industry. ⬇️ More work is needed urgently on reduction and reuse & refill models. ⬇️ A strong divide in positions between countries, and very limited time left to overcome them: there is only one more INC to conclude on text negotiation, in November this year. There is no time to waste, and ambition is critical to success. At UNEA 5, UN member states agreed to “end plastic pollution”. We must not settle for a treaty that falls short of delivering this goal. Read our full statement at https://lnkd.in/daKYstfY #PlasticsTreaty #Biz4PlasticsTreaty

Like I care! or a weary groan may be the reaction in C-suites and boardrooms of the financial industry at the suggestion they need to start worrying about plastic waste. Climate is difficult enough and didn't you ask us to start having policies on biodiversity as well? Sorry to say it, but you will have to care. The poisoning of the environment with plastics, most of them invisibly small particles, is accelerating so fast that it threatens to overwhelm ecosystems. They're already in the water we drink and human organs. Plastics production is set to more than double in coming decades. A Global Plastics Treaty is being negotiated, and could be finalised this year. Key talks will be held in April. The investment needed to make plastic (or alternatives) sustainable is put at $1.6tr. Are financial firms up to speed? Are they heck. UNEP FI gathered a leadership group of concerned institutions last year including ING, Allianz, Woori Bank and Bancolombia which can see the risks. They have produced recommendations for the treaty. This week ING became the first signatory of what supporters hope will be a widely backed call from the financial sector to the negotiators - above all, to make the treaty workable so the financial sector can play its vital role in financing the #plastictransition. Which firm will be next to see what's coming and get up the curve on this issue which is going to rise hugely in importance? Non-subscribers to GlobalCapital can register to read. #esg #sri #climatefinance #sustainablefinance #responsibleinvestment #plasticpollution #plastics #sdgs #sustainabledevelopment #greenbonds United Nations Environment Programme Finance Initiative (UNEP FI) CDP De Vereniging van Beleggers voor Duurzame Ontwikkeling (VBDO) Joost van Dun Floske Kusse Peggy Lefort Principles for Responsible Investment Finance for Biodiversity

🤜 #Plastic took a big hit today! 🥳 ✍ 160 financial institutions representing $15.5 trillion in combined assets signed the Finance Statement on Plastic Pollution, calling on governments for an ambitious plastic treaty that accounts for the realities of the #finance sector. 👏 We are pleased to see a significant segment of the global finance industry sending a strong signal to policymakers for a historic environmental treaty ahead of the fourth round of international negotiations (#INC4) in Canada next week. 💪 It’s time to #BeatPlasticPollution. Read more United Nations Environment Programme Finance Initiative (UNEP FI): https://lnkd.in/ddgTHmfH 📣 Shout-out @ Usher, E. Principles for Responsible Investment, David Atkin, Business For A Plastics Treaty, Finance for Biodiversity, a.s.r. verzekeringen, Achmea, Achmea Investment Management, ASN Bank, ASN Impact Investors, Candriam, Cardano, Legal & General Investment Management (LGIM), MN, Pensioenfonds Metaal en Techniek ( PMT ), Pensioenfonds Rail & Openbaar Vervoer, PGGM, PME pensioenfonds, Robeco, Triodos Bank, Triodos Investment Management, Freek van Til, Angélique Laskewitz

🌐 𝗘𝗨 𝗮𝗻𝗱 𝗖𝗵𝗶𝗻𝗮 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗲 𝗼𝗻 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 : A Win-Win for Sustainability and Bioplastics ! 🌍 The European Union (EU) and China have taken a significant step towards a more sustainable future by agreeing to enhance their cooperation on the circular economy. In a joint roadmap, Brussels and Beijing have outlined specific actions to implement under the EU-China Memorandum of Understanding. This collaboration could represents a 𝗴𝗼𝗹𝗱𝗲𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗯𝗶𝗼𝗽𝗹𝗮𝘀𝘁𝗶𝗰 industry in both regions. 🔄 Circular Economy Roadmap Highlights: Plastics Focus: The roadmap is mainly focused on plastics, including ongoing negotiations for a global plastics treaty. These actions will be crucial for reducing plastic waste and promoting resource efficiency and circularity. Bio-Based Plastics: As part of this collaboration, the 𝗘𝗨 𝗮𝗻𝗱 𝗖𝗵𝗶𝗻𝗮 𝗿𝗲𝗰𝗼𝗴𝗻𝗶𝘇𝗲 𝘁𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝗯𝗶𝗼𝗽𝗹𝗮𝘀𝘁𝗶𝗰𝘀. These materials, derived from renewable resources like corn or wheat starch, offer a 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗮𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝘁𝗼 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗽𝗲𝘁𝗿𝗼𝗹𝗲𝘂𝗺-𝗯𝗮𝘀𝗲𝗱 𝗽𝗹𝗮𝘀𝘁𝗶𝗰𝘀. 📚 Source: https://lnkd.in/eRJ9Nk-B #CircularEconomy #Sustainability #Bioeconomy #PLA #EUChinaCooperation

Why a regional approach towards eliminating unnecessary single use plastics across East Africa makes even more sense now. Join the growing movement of individuals, civil society organisations and even governments supporting reduction of production and consumption as central to tackling plastic pollution: https://lnkd.in/dXDRJcb2 The SMEP Programme ALN Kenya | Anjarwalla & Khanna UN Trade and Development (UNCTAD)

Our Managing Director, Stefanie Beitien, alongside other industry players, discussed with Carbon Pulse the critical role of plastic credits in the treaty as a key financing mechanism to bridge the funding gap for waste collection and management. "While negotiators touched on financing at INC4 as one of many topics on a packed agenda, it was a major topic of discussion at side events in Ottawa. This was exciting to see, because we need US$1.64 trillion by 2040 to beat plastic pollution. Market-based mechanisms like plastic credits, which channel funds from the private sector into recycling, upcycling and clean-up projects, are an important option for emerging markets which lack funding and infrastructure." Read more here about the key role of plastic credits in supporting the Global Plastics Treaty: https://lnkd.in/g6aGmnqX #PlasticCredits #INC4 #Financing #Sustainability #PlasticPollution #GlobalImpact Nanette Medved-Po Athalie Reyes Kath Fruelda Andrea Onglao Jessa Mae Mangyao

Learn about the role of plastic credits in the treaty with our Managing Director Stefanie Beitien at the PREVENT Waste Alliance Networking event. Register here to join the conversation: https://lnkd.in/ejkWSRcU #SustainableFinance #PlasticCredits #INC4 #PlasticTreaty