ABN AMRO supports the transition to a circular economy, and proactively seeks out clients wishing to switch to a circular business model. But what is a circular economy? A circular economy is one where energy and raw materials are utilised with greater awareness and more efficiency. This requires changing from a supply chain of ‘making-using-discarding’ products to a supply chain where one party’s waste is another party’s raw material.
A circular economy reduces the risk of scarcity by innovative use and reuse of energy, products, parts and raw materials. Through innovation and quality improvement, products have a longer useful life and a wider range of applications. Circular business models help bring about innovation, a stable economy and a sustainable society.
A bank with an impact
Having an impact and actually achieving the object of a circular economy requires more than thought leadership alone: it demands action leadership. We will conduct a trial in which we finance new business and ownership models for our clients. This experiment will bring together an understanding of circular business models with our expertise in the area of financial products and risk management to enable our clients’ businesses to make a difference in the circular economy. We will work together with our clients to achieve three goals by 2020:
finance 1 billion euros in circular assets,
finance 100 circular loans,
cut CO2 emissions by 1 million tons.
ABN AMRO helps clients move towards greater sustainability
In order to accelerate the transition to a circular economy, ABN AMRO provides its clients with advice about sustainable business models. We have a four-pronged approach:
We study the financing needs, opportunities and risk of circular business models. By actively engaging with our clients, we make sound analyses and realistic risk assessments.
We share knowledge through publications, round table sessions and individual business advice.
We provide financing for circular business activities. If we cannot do so with our existing products and services, we go in search of solutions, together with our clients.
We encourage the development of circular production. For example, by adjusting our procurement policy to include recycling options and the purchase of circular products.
Banks join forces to support a circular economy
By recycling existing products and making new products in such a way that we can recycle them easily in the future, we use fewer raw materials. At the end of the day, this will make us less dependent on natural resources. Needless to say, this is better for the environment and for society as a whole, but it will also save us money. ABN AMRO, ING and Rabobank have joined forces with MVO Nederland, the Dutch association for corporate social responsibility, to accelerate the transition to a circular economy. This development is set to boost the economy.