The concepts of circular economies, waste reduction and repeated use of products are not new, yet only a handful of funds are dedicated to the theme.
This is set to change. The European Green Deal has highlighted the circular economy as one of its focus areas, which covers more familiar issues such as removal of single-use plastic and less talked-about aspects, including recycling of electronics and textiles.
‘Economic stimulus post coronavirus, such as the Green Deal, is likely to be focused on green industries and should benefit companies operating in a circular fashion,’ said Evy Hambro, global head of thematic and sector investing at BlackRock.
Despite the overall positive trajectory, the circular economy, like many sectors, has been hit by Covid-19.
Hambro said sustainability, generally, and plastic pollution, in particular, took a back seat with customers and local governments during the initial stages of the pandemic.
‘With hygiene taking over as a bigger priority, the use of disposable plastic goods – from packaging, takeaway boxes, coffee…
