Sustainable Investing in Focus: Investing in Circularity

In the fourth episode of Sustainable Investing in Focus, Ratana Tra, Senior Investment Director, and Alice Blackorby, Associate Investment Director, discuss why the circular economy is becoming an increasingly important theme for sustainable and impact investors and what that could mean in practice for portfolios.

A combination of environmental, economic, and political factors is driving that momentum. As demand rises for finite resources, including those essential to technologies such as electric vehicles and batteries, the case for using materials more efficiently and keeping them in circulation for longer is becoming clearer. Supply chain disruptions in recent years have added to that urgency, underscoring the value of resilience, localization, and resource efficiency.

Momentum is also being supported by regulation and corporate action. Policy changes in several markets are encouraging producers to take greater responsibility for waste, packaging, and recycled content, while many companies are strengthening sustainability commitments that align with more circular business practices.

The episode also explores how circularity intersects with broader impact priorities. In addition to complementing climate-focused strategies by helping reduce emissions linked to raw material extraction and the production of goods, circular economy approaches may also contribute to biodiversity and nature-related investing by reducing pollution and pressure on natural systems.

Watch the video below to hear Ratana and Alice's insights on investment opportunities within the circular economy.

Sustainable and impact investing at Cambridge Associates focuses on helping clients invest in ways that support positive social and environmental outcomes alongside financial returns. Sustainable Investing in Focus is designed to make these topics accessible to everyone by explaining key concepts in a clear and simple way. By sharing practical examples and insights, the series helps viewers understand how sustainable investing works, why it matters and how it's changing.