In the current context of economic crises, climate-related changes and geopolitical instability, the Circular Economy (CE) has progressively established itself as a new development paradigm, capable of decoupling the economic and social growth of businesses and communities from the exploitation of exhaustible natural resources. 

It is no longer a matter of just making the existing linear economic system, based on “make-take-waste”, environmentally and socially sustainable, but of collectively rethinking the system itself. 

The Circular Economy is an economic model which regenerates natural capital, by redesigning industrial processes and business models, using innovative technological solutions across the entire value chain.

In economic terms, this model offers an innovative vision of industrial policy, providing enterprises the opportunity to diversify their economic returns and mitigate the risks associated with the importation of raw materials, consequently strengthening their positioning and competitiveness.  

The development of the Circular Economy is, therefore, a strategic objective, not only for addressing the problems of biodiversity loss and climate crisis caused by human activities, but also for shaping geopolitical dynamics, particularly in relation to the availability of key commodities, dependence on fossil fuels, and market stability. This is the reason why this issue is now at the heart of national and international political agendas, especially in Europe.

The financial sector plays an essential role in envisioning a “human-friendly” progress, which regenerates natural resources and preserves the value of products and services over time. Italian business and industry have the opportunity to play a leading role in this monumental shift, especially thanks to the distinctive appeal of the Made in Italy banner, with the strategic goal of protecting and increasing the competitiveness of companies and their resilience over the medium to long-term. 

Conscious of our economic, social and environmental impact in Italy, we are at the forefront in promoting and leading the Country’s transition to an inclusive Circular Economy, as stated by our CEO in this interview. We are pursuing this commitment through a systemic and practical approach. We have the support of the Intesa Sanpaolo Innovation Center, the Group’s competence centre for the Circular Economy; additionally, we collaborate with the Ellen MacArthur Foundation, one of the most significant and prominent organisations in this field, with which our Group has been a strategic partner since 2015. 

Besides, we are contributing to the global dialogue with supranational organisations, institutions and policymakers, participating in the main national and international advocacy forums, for example with the United Nations Environment Programme - Finance Initiative (UNEP FI) and the Italian government.

To provide concrete support to companies engaged in the circular transition process, we have renewed the credit plafond dedicated to the circular economy, which was inaugurated with the 2018-2021 Business Plan, allocating an additional 8 billion euro over the period of the 2022-2025 Business Plan.

Our Green, Social & Sustainability Bond Framework document, which sets out the basis for the issuance of green, social and sustainability bonds more generally, includes an entire category devoted to the Circular Economy. In 2022, the CE accounted for around 20% of the Bank’s green portfolio (almost 2 billion euro), contributing 55% of the avoided financed CO2 emissions (over 4 million tonnes), as detailed in the Green and Social Bond Report 2022 (ENG).

Eventually, our commitment to the Circular Economy also extends to the asset management area, for example with the launching of mutual funds that invest predominantly in global equities of companies engaged in the transition to a Circular Economy, and the report “Identifying companies leading the transition to Circular Economy” published in September 2023 by Eurizon Capital, the Intesa Sanpaolo Group’s asset management division.

Together with Intesa Sanpaolo Innovation Center, Fondazione Cariplo and Cariplo Factory, in 2018 Intesa Sanpaolo launched the Circular Economy Lab, the first Italian laboratory entirely devoted to the circular economy. The Circular Economy Lab serves as a key national hub for companies and organisations dedicated to circular innovation, providing Education, Connection and Advisory solutions to enterprise and corporate clients aimed at transforming their business models according to a circular approach.

One of the Circular Economy Lab’s most significant and systemic projects is the initiative with the Government of the United Arab Emirates, under the Strategic Master Agreement signed at the end of 2023 between Intesa Sanpaolo, Intesa Sanpaolo Innovation Center and the UAE Ministry of Economy, aimed at promoting the adoption of Circular Economy principles and the design of a circular ecosystem in the country.

Additionally, through Intesa Sanpaolo Innovation Centre, we contribute to the main national and international working groups on the Circular Economy, cooperating with institutions and stakeholders in the areas of finance, agrifood, plastics, mobility, construction, fashion and energy. 

The Progetto Cultura provided for in our Business Plan included the inauguration on 20 September 2023 of the exhibition “Luca Locatelli. The Circle” at the Gallerie d’Italia in Turin. Organised in collaboration with the Fondazione Compagnia di San Paolo and Fondazione Cariplo, and developed with the support of the Ellen MacArthur Foundation, the exhibition featured a series of works in which the artist documented the most significant experiences aimed at protecting, sustaining and restoring the planet’s natural ecosystems through a circular approach.

Our commitment reflects also in various initiatives to promote a widespread culture of circularity, both within and outside the company. In addition to initiatives aimed at enhancing the skills of Intesa Sanpaolo’s people, we support projects dedicated to training the talents of tomorrow, working with numerous universities and launching specific initiatives, such as the BioCircE Masters (the first Italian master’s course on the circular bio-economy), sponsorship of the Circular Economy Management course at LIUC University, the collaboration with Bocconi University and with the Energy & Strategy Observatory of the Milan Polytechnic, and, lastly, the  study (ENG) with the Centre for Corporate Reputation at Oxford University. 

In 2022, the partnership between Intesa Sanpaolo Innovation Center and Bocconi University was renewed. The collaboration provides for research and advisory on Finance and the Circular Economy, also through the publication of reports and specific studies examining the reduction of financial risk and the improvement of economic performance in companies that apply circular economy principles.