Sustainable finance and the circular economy can support each other. The latter, characterized by its ability to regenerate itself autonomously, presents a paradigm that allows us to overcome the traditional linear economic model, in which the “extract-produce-use and dispose” steps trigger a vicious circle that creates negative externalities and unfavorable repercussions on our “common home.” Sustainable finance, with its nature as a financial intermediation process that allows financial resources to be transferred from surplus entities (savers/investors) to deficit entities (i.e., companies and states) characterized by sound environmental, social, and governance (ESG) management, makes it possible to pursue sustainable development, while at the same time facilitating the establishment of a circular economic model in compliance with the same principles.
Circular Economy and Sustainable Finance: ESG Funds as a Tool of Policy and Transition
Mariantonietta Intonti
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2025-01-01
Abstract
Sustainable finance and the circular economy can support each other. The latter, characterized by its ability to regenerate itself autonomously, presents a paradigm that allows us to overcome the traditional linear economic model, in which the “extract-produce-use and dispose” steps trigger a vicious circle that creates negative externalities and unfavorable repercussions on our “common home.” Sustainable finance, with its nature as a financial intermediation process that allows financial resources to be transferred from surplus entities (savers/investors) to deficit entities (i.e., companies and states) characterized by sound environmental, social, and governance (ESG) management, makes it possible to pursue sustainable development, while at the same time facilitating the establishment of a circular economic model in compliance with the same principles.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
