Although the opportunities for investing in circular business models are widely available, current investment methods do not match the needs of these unique businesses.
To finance these business models, companies as well as the financial sector need to adapt. Businesses need to create an attractive business model for financiers, and financiers need to change the way they perceive the risks and opportunities associated with these models.
To help businesses position themselves in a circular context and develop future strategies for doing business in a circular economy, Sustainable Finance Lab, Circle Economy, Nuovalente, TUDelft, and het Groene Brein got together to create the Value Hill.
The Value Hill proposes a categorisation based on the lifecycle phases of a product: pre-, in- and post- use. This allows businesses to position themselves on the Value Hill and understand possible circular strategies they can implement as well as identify missing partners in their circular network. The Value Hill provides an overview of the circular partners and collaborations essential to the success of a circular value network.
This report is the first in a series of three reports that will help you to finance a successful circular business model: