Publicatie
Circulaire verdienmodellen: beleidsmatige aanpassingen voor de circulaire transitie
Background
There is broad consensus in the Netherlands on the need for a transition to a circular economy. Copper8 and Circular Finance Lab (CFL) share the mission of helping to realize this transition. To achieve this, it is essential to collaborate across value chains and to rethink the business models within those chains. However, finance remains a major barrier to the further growth of new circular propositions.
Financial institutions are a fundamental part of society and therefore play a crucial role in the transition to a circular economy: as (potential) investors of circular projects and initiatives, but also as drivers of circular innovation and as knowledge partners for their clients. For investors, assessing risks is essential in making funding decisions – and they do this through risk models. If we want to realize the transition to a circular economy, we believe it is necessary to adapt these risk models to circular principles.
Research question
How can circularity be incorporated into the risk models used by investors?
Approach
We began this research in 2022. Different financial institutions including ABN AMRO, Rabobank, ING, and Invest-NL were involved. The research consists of three phases:
- Conceptual development of a circular risk model: We started by mapping existing models and identifying all risk variables currently included in risk models. We then supplement these with new variables that capture both linear and circular risks. As part of this, we also map the interrelationships between the variables.
- Modelling: consequently we built the new risk model (and adapt the existing model).
- Implementing and testing the model. Upon completion of the model, we run it in a shadow environment on 5–10 financing applications and existing investments. We then compare the results with those generated by an existing risk model.
Status
The first (PD) concept model is ready, based on input from the participating investors. In February 2024, the Circular Risk Scorecard was launched.
Results
Het resultaat van dit onderzoek is een risicomodel dat óf stand-alone door financiers gebruikt gaat worden om financieringsverzoeken van circulaire business modellen te beoordelen óf waarvan onderdelen worden gebruikt in de bestaande risicomodellen. Eindresultaat zou moeten zijn dat het makkelijker is voor circulaire ondernemers om financiering te verkrijgen.
