Circular Economy in Sustainable Finance: Business Resilience Through Circular Models
The growing scarcity of virgin and critical demands innovative business strategies for resource efficiency and resilience. In this video, Michael explains how this business necessity leads to new business model. He further describes The Product-Service Systems model and the regulations that are supporting its implementation.
Main Takeaways
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The role of sustainable finance, where we study investment decisions, business models, valuation, and reporting of sustainability is paramount, emphasizing its potential to ensure business stability and long-term profitability.
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PSS shifts the focus from selling products to delivering services, allowing companies to maintain ownership of materials while providing customer value.
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Regulations like the Critical raw Material Act (CRMA) and the Corporate Sustainability Reporting Directive (CSRD), significantly affect business models because they provide companies with both a framework and an incentive to adopt circular models.
Further Reading
- Roncalli, T. (2025). Handbook of Sustainable Finance: http://www.thierry-roncalli.com/SustainableFinanceBook.html
- Veith, T., Conrads, C. & Hackelberg, F. (Eds.).(2022). ESG and Real Estate: A practical guide for the entire real estate and investment life cycle: https://dokumen.pub/esg-and-real-estate-a-practical-guide-for-the-entire-real-estate-and-investment-life-cycle-9783648163481-9783648163498-3648163485.html
- Kohtamäki, M, Baines, T., Rabetino, R., Ziaee Bigdeli, A., Kowalkowski, C., Oliva, R. & Parida V. (2021). The Palgrave Handbook of Servitization: https://link-springer-com.tudelft.idm.oclc.org/book/10.1007/978-3-030-75771-7