Finance

FINANCING THE CIRCULAR ECONOMY
Session 1: Circular business models; financial opportunities and challenges
Fieke de Haan, Circle Economy
Aglaia Fischer, Circle Economy & Sustainable Finance Lab

The circular economy is characterized by the development of new business models. From start-ups to multinationals, operating in the circular economy means basing the business model on the principles of circular economy (i.e. re-use, re-furbish, re-cycle). Financiers have to understand the (future) value of these new activities. Moreover, since circular economy is about optimizing resource use and closing the loop, tracing products and resources in collaboration with value chain partners becomes more important. What does the circular economy ecosystem look like and what are the financial opportunities and challenges? Using several cases, we will illustrate circular economy business and the financing implications.

Sesssion 2: Financing Fairphone-as-a-Service
Fieke de Haan, Circle Economy
Aglaia Fischer, Circle Economy & Sustainable Finance Lab

In a multi-stakeholder consortium, we cracked a the Fairphone-as-a-Service case. The outcome is a financially viable Product-as-a-Service business model for the B2B market. To really grasp the challenges that occur when creating a circular business model, and to get an idea of how knowledge and resources can be mobilized to overcome them we had to dive deep. We connected the dots between the business proposition, legal aspects, operational aspects, cash flows and balance sheet, and finally financing aspects. The outcome the whitepaper The Circular Phone, a circular service contract template and a cash flow tool. Using the Fairphone case (https://www.circle-economy.com/the-circular-phone), we will deep dive in the reality of a specific circular business model and the financial aspects.