According to Zara there are four main drivers of de-risking an asset when it becomes circular: decoupling economic growth from the exploitation of finite raw materials; better management of natural capital; increasing resilience through the diversification of business models; and reducing negative externalities.
The team also found evidence that adopting circular economy business models can make the economy overall more resilient to external shocks. However, while the circular economy represents a valuable opportunity, it could involve high initial operational costs and long payback periods when transitioning to a circular business model. This is where Intesa Sanpaolo is helping, funding companies which are transforming their assets in a circular way.
