PRI Urges Investors to Support Circular Economy Transition

The UN-convened Principles for Responsible Investment (PRI) has published guidance outlining how investors can support the transition to a circular economy through their investment and ownership decisions. Investors should identify sectors with high linear material use and environmental impact as part of their investment process, PRI said, so that they can allocate capital to investee companies that are supporting circularity. Further, PRI has urged investor engagement with companies to encourage the implementation of circularity, such as re-using materials or disposing of waste responsibly. It added that investors should also engage with other stakeholders, such as policymakers and data service providers, to address of the underlying barriers to a circular economy transition. The report said: “The PRI will continue to support investors to scale up action on the circular economy, building on our previous work to help them address plastic waste and pollution. The PRI will support investors to consider risks and opportunities across a wider range of relevant value chains (beyond plastic), as well as integrate circularity into their existing work on climate and nature issues.” 

 

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