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  • AutorenbildMako Muzenda

Investing in the circular economy

The current global economic system relies heavily on the extraction, consumption and reliance of fossil fuels. From infrastructure and clothing to food systems and energy, the fossil-based economic model is entrenched in modern society – a dominance that has come at the cost of the natural environment. Enter the circular economy, a revolutionary model that redefines the consumption and value of resources. The circular economy proposes an alternative vision of production and consumption, reducing waste to a minimum and reshaping the cycle from production to consumption to waste.  

Having its origins in 19th century philosophy on resource management, the conceptual development of the circular economy model began in the 1990s, with the Ellen Macarthur Foundation popularising the term in the 2010s. Its key principles are the elimination of waste and pollution, the circulation of products and materials and the regeneration of nature. The end-to-end sustainability approach of the circular economy goes beyond individual stages and covers the entire life cycle, focusing on the interconnectedness of everything from extraction to final disposal. The five elements of the circular economy are to: i) prioritise regenerative resources, ii) extend the lifetime of products, iii) use waste as a resource, iv) adopt sustainable design, v) promote collaboration. 

The circular economy model is still relatively new, carrying both the risks and rewards of new approaches and systems. Circular investing refers to investing in the circular economy, channelling financial resources towards companies, projects, and initiatives that actively promote and contribute to the principles of the circular economy. It also refers to implementing circular economy principles to investment strategies, achieving financial returns and positive environmental impact. Circular investing is the opportunity to make an impact in end-to-end sustainability practices and have a positive influence on the life cycle process. There are different sectors that are adopting the circular economy, with examples of concepts such as clothing rentals, reusable packaging, upcycled plastic, refurbished electronics and vertical and urban farming. 

As an investment company, Ghazan Global is a proud supporter of the circular economy. We practice circular investing through our investments in Plastrans, BioLogiQ and CO2BioClean, and we integrate circular economy principles into our investment strategy and company’s processes.  





Photo by Josh Power on Unsplash

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