We mean it, when we say that the way to go is circular.
Which is why we have founded The Circular Way Invest. Here we use our knowledge about circular economy business models, markets and future trends to invest in circular economy businesses.
The investment company is run as a separate entity, but we actively use the synergies between the two companies to optimize results. Combining the consultancy and the investment company gives us a unique view and understanding of the circular economy. In particularly in terms of what is happening in the market with regards to innovative start-ups, new technology and business models and global emerging trends.
Our investment philosophy is based on three current important global trends: One is the rapid growth of the population and rise of the middle class in the third world, creating an enormous rise in demand and consumption. To make the growth in human population more tangible, try and visualize that every minute the global population grows by 5 school classes of 28 students. Or put differently, three times a day, a full old Trafford stadium of babies are brought into the world.
Increasing population and its demand for consumption requires us to start consuming resources and goods in a fundamentally different way — a circular way.
Secondly, we must lower our carbon footprint radically to avoid a fatal rise in temperature that will change the world as we know it today. At the moment, global emissions of greenhouse gases are rising. According to Intergovernmental Panel of Climate (IPCC) emissions should be lowered by 40 to 70 percent, compared to 2010, by 2050 if we are to succeed in lowering emissions to an acceptable level. Meanwhile our population and its demand for housing, consumption and transportation are increasing, which require us to start consuming resources and goods in a fundamentally different way - A circular way.
Thirdly, climate change is taking place and at a rapid speed. We see how biodiversity and weather phenomena are changing while the full consequences are still unknown. What we do know is, that it is of outmost importance that we prevent temperature rise above two degrees if we are to avoid the most fatal changes. The challenge is huge and the consequences frightening, but it is also an enormous opportunity for businesses to be part of the sustainable solution catering the growing demand, without negatively impacting the planet.
Therefore we have built the investment policy for The Circular Way Invest to address the above - as circular economy is the tool to create financial return while mitigating climate change without compromising our global well-being.