Strategies linked to the circular economy can reduce investment risks and generate superior risk-adjusted returns, according to the white paper ‘The circular economy as a de-risking strategy and driver of superior risk-adjusted returns’, produced by Bocconi University, the Ellen MacArthur Foundation and Intesa Sanpaolo.
The paper reveals how circular economy strategies can reduce investment risk by decoupling economic growth from resource consumption, diversifying business models and enabling companies to better anticipate tighter regulation and changing customer preferences. Incorporating circular economy principles also reduces exposure to supply chain disruptions and resource price volatility.