World’s largest asset manager launches circular economy fund

BlackRock, the world’s largest asset manager, has launched its first circular economy fund.

The fund is in partnership with the Ellen MacArthur Foundation and comes as they announce a global partnership.

The Ellen MacArthur Foundation says the fund sends a “strong signal” to other investors and companies and aims to drive investment in businesses already contributing to, or benefiting from, the transition to a circular economy.

Given the size and urgency of the global issues, we now need to accelerate the shift and scale circular solutions rapidly

The partnership will bring together the power of investment and the value creation opportunity of a circular economy. Doing so, it aims to accelerate the transition and play a role in addressing major issues such as climate change, biodiversity loss, and pollution

The Foundation provides BlackRock with expert insights and guidance on circular economy principles and practices, which are used by BlackRock to inform the investment methodology of the fund.

Finance is “vital”

The Foundation says finance is now “vital” to accelerate the shift towards the circular economy.

The circular economy is increasingly adopted as a powerful framework to address the world’s most pressing challenges. Industry leaders are recognising that they have the power to shift to circular solutions through innovation, reinforced by changing consumer trends and supportive regulations.

“Given the size and urgency of the global issues, we now need to accelerate the shift and scale circular solutions rapidly,” The Ellen MacArthur Foundation says. “To do so, the finance sector needs to be onboard to provide capital and services, and engage with companies.” 

The Ellen MacArthur Foundation considers the partnership and fund as important milestones towards its broader agenda of unlocking the power of finance and investments to scale the circular economy.

The Foundation is looking to increase its work in this area over the coming months and years, working with its Global Partners BlackRock and Intesa Sanpaolo, as well as other financial institutions and stakeholders.

The Foundation will support them to accelerate the transition by allocating capital, providing services, and engaging companies on the circular economy.

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