Joining forces to create a circular economy
We are rapidly depleting our natural resources. So we need to prevent waste and keep raw materials in circulation. ABN AMRO offers advice and loans to support companies that want to make their business circular.
Circular products becoming mainstream
More and more consumers are opting for circular products and companies are increasingly shifting to circular production. Circularity is becoming mainstream. You might even be doing more in this respect than you think. You return empty bottles, have your clothes repaired, share tools with your neighbours – it all contributes to a society without waste. And that’s exactly what circularity is all about.
What is a circular economy?
In a circular economy products and parts retain their value and raw materials are re-used. Discarded products are not thrown away, but repaired or recycled where possible, or turned into new products and raw materials. This creates a closed cycle without waste. The opposite of a circular economy is a linear economy, where production, use and disposal of products leads to massive waste of raw materials.
The 9 R’s of a circular economy
The letter ‘R’ plays a prominent role in the circular economy. Together, the 9 R’s can be used to describe circularity. From Refuse to Reuse and from Repair to Recycle. In all circular businesses, one or more of these R’s are central to their business models. Read what they stand for below. The order in which they are listed is not coincidental: it goes from requiring no effort (Refuse) to requiring a lot of work (Recover).
Refuse
The first question we should ask ourselves is: Is it really necessary to buy or develop a product, or to use a certain raw material? If it isn't: don't do it!
Joining forces for a circular world
More and more companies are working on initiatives that support the circular economy. For example, companies offer their products as a service – this is called Product-as-a-Service. When the service ends, the products return to the company. The company stays the owner, so it benefits when the products last a long time. ABN AMRO supports these and other companies with financing and advice from our relationship managers and financing specialists. This way, we all do our part for the circular economy.
Circular economy & biodiversity
The shift to a circular economy will also make a positive difference for nature. By keeping raw materials in the loop, we reduce greenhouse gas emissions, prevent pollution. And so we do less damage to nature in our quest for virgin raw materials. This is good for our planet’s biodiversity, which has deteriorated dramatically as a result of human activity. ABN AMRO is committed to help stop and reverse biodiversity loss by working with clients and other stakeholders to address the root causes.
