MSCI Thematic Insight
Subject Area: Circular Economy

Transitioning to a Circular
EconomyOpportunities for Growth and Societal
Transformation
Enter

This is an interactive brochure

02

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Merging the circular economy withthe sustainability agenda

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

Contents
This is an interactive brochure

Introduction

Merging the circular
economy with thesustainability agenda

Opportunities for measuring
the circular economy

Leading circular businessmodels and emerging
themesConclusion

03

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Merging the circular economy withthe sustainability agenda

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

Introduction
Around the world, there is growing interest and momentum
behind a transition from a linear “take-make-use-dispose”
approach and towards a “circular economy.” 1, 2, 3, 4, 5, This is an
economy that, by design, better embraces an economic
model of production and consumption that seeks to eliminate
waste and pollution, keep materials at their highest economic
value, recirculate products and materials through the value
chain, and create regenerative systems. The concept is notnew, but over the last several years, activity related tocircularity has increased markedly — and at scale, thiscircularity would transform how the world interacts.
From its initial focus on minimizing waste generation, thecircular economy has been gradually evolving into a broaderbased approach to make resource-use more efficient andsustainable with the hope of reducing energy and resource
expenditures. A central appeal of a circular economy is theopportunities it may create, not only for resource savings andimproved social well-being, human health and environmental
outcomes, but also for trade and economic diversification. In
a still globalized world and as commercial interest in scaling
up the circular economy grows, it will be more important thatpolicies are designed and implemented with the goals of acircular economy in mind.
Several drivers have helped accelerate progress towards a
circular economy. Increased consumer awareness on waste
and pollution has shifted preferences for sustainable andeco-friendly products. Brand owners, industries andgovernments are adapting to these consumer preferences

and have announced voluntary sustainability commitmentsthat are themselves changing the structure and the dynamicof existing markets and demand. There is also an ongoingtransformation in investment criteria of debt and equity
investors, making access to capital more challenging forcompanies that do not alter their sustainability strategies. 6, 7,
8, 9, 10, 11
A range of new companies, investors and other actors
are entering the market throughout the value chain with
innovative technologies, tools and offerings in pursuit ofemissions reduction pathways. The establishment of a broad
range of public and private initiatives continue to expand
worldwide in an effort to contribute to the delivery of theUnited Nations Sustainable Development Goals. All of thesechanges are taking place against a backdrop of increasing
policies and regulation in both developed and emerging
economies, such as bans, recycling quotas, taxation andextended producer responsibility schemes.

Exhibit 1:
Countries with national circular economy legislation*
Source: Generated as a part of ongoing research for Rice University, Baker Institute for Public Policy

The number of sovereign states with circular economy
related initiatives and the variety of policies and regulation
has increased significantly leading to a heterogeneous,fragmented landscape. As the circular economy builds,
several major gaps have emerged that are potential
opportunities for future research and investment: insufficientfunding to meet targets and financial risks, inadequate andfragmented policy frameworks, awareness and culturalbarriers, and capacity deficiencies.12*D epicts countries with explicit national circular economy legislation. Map does not include countries with implicit laws or regulations that may or may not represent activities
towards the circular economy, e.g., product-specific bans, taxes, waste management or recycling laws.
1		https://news.un.org/en/story/2021/06/10938022		https://www.environmentalleader.com/2021/11/circular-economy-to-grow-rapidly-in-the-next-five-years-says-abi-research/
3		 Closing the loop – the circular economy, what it means and what it can do for you 9 circular economy tools 70+ corporate case studies Industry 4.0 outlook. PwC. 2018.
4		 Intelligent Industry: The rise of circularity. 2022. Capgemini. https://www.capgemini.com/insights/research-library/intelligent-industry-the-rise-of-circularity/
5		 Organisation for Economic Co-operation and Development. (2021). Towards a more resource-efficient and circular economy: The role of the G20.
6		 Boffo, R., and R. Patalano (2020), “ESG Investing: Practices, Progress and Challenges”, OECD Paris, www.oecd.org/finance/ESG-Investing-Practices-Progress-and-Challenges.pdf
7		 Hartzmark, S. M., & Sussman, A. B. (2019). Do investors value sustainability? A natural experiment examining ranking and fund flows. The Journal of Finance, 74(6), 2789-2837.

8		 Cheng, Beiting, Ioannis Ioannou, and George Serafeim. “Corporate Social Responsibility and Access to Finance.” Strategic Management Journal 35, no. 1 (January 2014): 1–23.
9		https://kogod.american.edu/news/sustainability-more-investment-capital10		 https://www.ey.com/en_lu/ipo/why-successful-investors-focus-on-sustainability-pre-and-post-ipo11		 https://www.morningstar.in/posts/65105/esg-access-capital.aspx
12		 Organisation for Economic Co-operation and Development.2020. The Circular Economy in Cities and Regions: Synthesis Report https://www.oecd.org/regional/the-circulareconomy-in-cities-and-regions-10ac6ae4-en.htm

Introduction

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Merging thecircular economy
with thesustainability
agendaExhibit 3:
Elements of a CE Diagram
Source: Adapted from PBL
Netherlands Environmental
Assessment Agency

Alternative energy

Economics

Use of non-toxic substances and no depletion ofnatural resources

Pro
du
ct
i

Longer product lifespan,longer use of product parts
through high-value reuse andrecycling, repair,remanufacture, andupgradingSociety

Re
so
urc
es

Transition towards alternative forms of energy

Source: Rachel Meidl

A balance between theeconomics and theleast energy andresource intensive
pathways and the best
environmental
performance and social
outcomes across life
cyclesConclusion

Natural Capital

Regenerative materials
cyclesEnvironment

Leading circular business models
and emerging themes

In comparison, the model of a circular economy offers a regenerative framework for creating long-term economic prosperity and improved natural and human systems through resource
efficiency. The circular economy encompasses a rethink of production and consumption models, services, technologies and infrastructure and is based on three principles: i) design out waste
and pollution; ii) keep products and materials in use; and iii) regenerate natural systems.13 Clearly, the circular economy has significant sustainability potential. However, a limited conceptual
grounding and weak connection to sustainable development have allowed a wide array of circular economy “solutions” to be presented which have adverse effects on sustainability.14

Exhibit 2:
Sustainability schematic

Sustainability

Opportunities for measuring
the circular economyonIn a pure sense, sustainability aims to ensure long-term
prosperity while contributing towards social and economic
development, a healthy environment and a thriving society forcurrent and future generations.

Merging the circular economy withthe sustainability agenda

e
us
e
R

Re
cyc
ling

Rethinking waste
In a circular economy, waste
is considered a resource thaton
can be reintegrated into therati
Disposal & Incine
system13		 The Ellen MacArthur Foundation (EMF). (2021). What is a circular economy? London: The Ellen MacArthur Foundation. Retrieved from: EMF website
14		 Velenturf, A. P., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437-1457.

New revenue models
Rethinking the way we produce, work, use
and buy can generate new opportunities
and create jobs. Paying for use instead ofownership, producer remains the productowner

Product and process design
Taking into account reuse, repair, use ofmodular parts, and different production
processes; designing out waste

Recycli
ng

04

Use

Supply chain collaboration
New alliances between companies in
new and established production chains

05

Introduction

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

For example, batteries are seen as an enabler of the shift to acircular economy and low-carbon society. While electricvehicles are driving 90% of the global demand for lithium-ion
batteries,15 collaborative networks and supply chains capableof efficiently recovering, recycling, reusing, repurposing, andrefurbishing materials to maximize their lifespan or tracking
to verify circular practices have yet to develop. The batteries
in an electric car is made of materials including cobalt,
copper, lithium and nickel whose complicated geopolitics andmining and processing carries harsh environmental andsocial costs. Many mineral deposits are located in developing
economies with corrupt and fragile governments that lacklabor, health, safety and environmental laws. The majority ofemissions of a new battery stem from the mining and refining
processes that occurs primarily in China (or in other countries
where China has primary ownership of the mines), and where
processing is oftentimes fueled by coal. At the battery
end-of-life, recycling technologies for the variety of battery
chemistries rapidly entering the market are not yet

Exhibit 4:
Sustainability-Circular Economy Nexus Diagram
Source: Rachel Meidl

Sustainable but
not circular

Sustainability
Sustainable
Circular
EconomyCircular but notsustainable

Circular
EconomyMerging the circular economy withthe sustainability agenda

economically feasible or commercially viable. Therefore,
batteries are destined for incineration, landfill or export where
deficient tracking and international classification as ahazardous waste through the Basel Convention creates
further sustainability challenges and associated costs. In
order to align with the principles of a sustainable circular
economy, capacities need to be established along the entire
electric vehicle value chain with comprehensive battery life
cycle management at its core. Similarly, alternative energy
technologies such as wind and solar are a core foundation ofa circular economy, yet the lack of accounting for upstream
material inputs and processes coupled with limited recycling
or reuse options at the end-of-life inhibits the sustainability
and circularity of the renewable industry. For those products
or wastes being exported to secondary markets under theumbrella of circularity, inability to trace end-of-life
accountabilities shifts the economic, environmental andsocial burdens on developing countries that lack recycling
infrastructure or proper waste management capabilities. A
full life cycle accounting that includes upstream anddownstream activities provides a more realistic profile ofsustainability, yet these metrics are largely absent in circular
strategies and corporate sustainability reporting.
Over the last several years, many entities around the world
have embedded circular strategies directly into theirsustainability agendas with the assumption that activities or
projects labeled as circular yield sustainable results.16,17,18, But
the assumed benefits of a circular economy are not yet
understood in theory or practice.19 No consensus inacademia or practice exists on how to measureenvironmental and social sustainability in a circular
economy.20

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

There is a relationship between sustainability and a circular
economy but these two concepts differ greatly with distinct
policy pathways, time horizons and end states that canconflict.
Sustainability can enable a circular economy and a circular
economy can be a means towards achieving sustainabilityminded goals, but transitioning towards circularity does notguarantee positive environmental, social and economic
outcomes across life cycles.21 A circular economy should not
be interpreted as an end itself, but a necessary tool to achieve
global sustainability goals. Concerns are rising regardingsome circular practices being promoted as ‘sustainable’ yet
resulting in detrimental impacts on environment andsociety.22 Thus, three distinct relationships are transpiring
between the circular economy and sustainability: 1)
Conditional: the circular economy as a condition forsustainability, 2) Beneficial: circular economy andsustainability being mutually beneficial, or 3) Trade-off: thecircular economy having both positive as well as negative
sustainability impacts.23
What is also coming into greater focus is multi-criteria
decision-making and the importance of systems-level
thinking and life cycle-based assessments that holistically
captures all three facets of sustainability—the social,economic and environmental impacts across economic value
chains. In order to achieve a sustainable circular economy
that is equitable, inclusive, resilient and balanced acrossglobal economies, circular actions and initiatives need to besystematically measured to help avoid risk-shifting, reboundeffects and unintended future consequences that could
potentially offset sustainability gains.

15		 World Economic Forum. 3 challenges en route to electric vehicle batteries driving the circular economy. December 2022.  https://www.weforum.org/agenda/2022/12/electric-vehicle-battery-circular-economy/
16		 Opferkuch, K., Caeiro, S., Salomone, R., & Ramos, T. B. (2021). Circular economy in corporate sustainability reporting: A review of organisational approaches. Business Strategy and the Environment, 30(8), 4015-4036.
17		 Opferkuch, K., Caeiro, S., Salomone, R., & Ramos, T. B. (2022). Circular economy disclosure in corporate sustainability reports: The case of European companies in sustainability rankings. Sustainable Production and Consumption.
18		 Stewart, R. M. M., & Niero, M. (2018). Circular economy in corporate sustainability strategies: A review of corporate sustainability reports in the fast-moving consumer goods sector. Business Strategy and the Environment,
27(7), 1005-122. https://doi.org/10.1002/bse.2048
19		 Corvellec, H., Stowell, A. F., & Johansson, N. (2022). Critiques of the circular economy. Journal of Industrial Ecology, 26(2), 421-432.
20		 Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for a circular economy–moving away from the three dimensions of sustainability?. Journal of Cleaner Production, 243, 118531.
21		 Meidl, Rachel. 2021. Disentangling Circular Economy, Sustainability, and Waste Management Principles. Issue brief no. 07.29.21. Rice University’s Baker Institute for Public Policy, Houston, Texas.
22		 Velenturf, A. P., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437-1457.
23		 Walker, A. M., Opferkuch, K., Roos Lindgreen, E., Raggi, A., Simboli, A., Vermeulen, W. J., ... & Salomone, R. (2022). What is the relation between circular economy and sustainability? Answers from frontrunner companies engaged
with circular economy practices. Circular Economy and Sustainability, 2(2), 731-758.

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MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Opportunities
for measuring
the circular
economyIf the circular economy is to build on its early momentum
with governments and business, then preparations for thecircular transition need to be based on systematic insights
into performance and associated risks and opportunities.
To achieve this, a transparent and consistent language withstandardized methodologies to measure circularity
performance and progress would be of great assistance. It
would encourage cohesion and assist the monitoring of
progress and evaluation of impact. For system-level change
to occur— change that could align with a global sustainability
agenda—establishing a baseline and setting circular economy
targets monitored by clear key performance indicators seems
necessary at governmental and industry levels and acrossgeographies. Circularity metrics could address how the
principles of the circular economy are being characterized
and implemented and provide future benchmarks. They
would support the formulation of data-driven strategy, guidedecision-making, assess potential business cases and avert“circular greenwashing.”
To date, the majority of circular economy assessments havetaken place in China and Europe.24 The Chinese Government
has actually been a global leader in circular economy
implementation by instituting regulations and investing in

Merging the circular economy withthe sustainability agenda

initiatives since 2008 through the Law on the Promotion of
Circular Economy. It was the first country in the world todevelop and propose national circular economy evaluation
indicators with the aim to obtain factual and valuable data
about development and operationalization in the country.25
The indicators are a concrete system of measurement that
support policy and decision-makers in achievement ofcircular economy objectives.
The European Union (EU) has also adopted circular measuresbeginning in 2015 through the EU’s Circular Economy Action
Plan, a comprehensive body of legislative and non-legislative
actions aimed at transitioning the European economy from a
linear to a circular model.26 The circular economy monitoring
framework is the European Commission plan for assessing
circularity in the EU.27 Numerous EU member states haveindicators and metrics in various stages of development, andthere exist other examples outside of Europe, such as
Colombia, Canada, the United Kingdom and Japan.28
Additionally, there are many stakeholders from national andsupranational groups, statistical agencies, standards bodies
and various countries around the world that are proactively
collaborating on analysis, development and alignment ofcircular indicators and their frameworks, methodologies anddata.
Although in recent years there has been appreciable interestin the circular economy and positive developments in
identifying a diverse range of metrics and indicators forevaluating circularity, research and application is nascent inboth scientific literature and public and private initiatives.29
Currently there exists no structured or standardized
methodology or framework for circularity measurement,30
particularly to its application and implementation of circular
economy at different spatial levels (micro, meso, macro)31
where challenges in translation between economic levels are
becoming more prevalent.32

Opportunities for measuring
the circular economy

Exhibit 5:
Tiers of CE Diagram
Source: Rachel Meidl

Leading circular business models
and emerging themes

Conclusion

Macro
City, state, regional, local, national, global

Meso
Industrial symbiosis, eco-industrial parks, single
markets or sectors, inter-industries/firms networks

MicroCompanies, organizations, individual
enterprise, single firm, business unit,
households, consumers

Nano
Product,
component,materials,
process

24		 Vinante, C., Sacco, P., Orzes, G., & Borgianni, Y. (2021). Circular economy metrics:
Literature review and company-level classification framework. Journal of cleaner
production, 288, 125090.
25		 https://ec.europa.eu/newsroom/env/items/618580/en
26		 https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en27		 EU, 2018. Raw Materials Scoreboard, European Innovation Partnership on Raw
Materials. Publications Office of European Union, Luxembourg. Available online at:https://op.europa.eu/en/publication-detail/-/publication/117c8d9b-e3d3- 11e8-b69001aa75ed71a1.
28		 https://acehub.org.au/documents/measuring-the-circular-economy-an-australianperspective

29		 De Pascale, A., Arbolino, R., Szopik-Depczyńska, K., Limosani, M., & Ioppolo, G. (2021).
A systematic review for measuring circular economy: The 61 indicators. Journal of
Cleaner Production, 281, 124942.
30		 Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for acircular economy–moving away from the three dimensions of sustainability?. Journalof Cleaner Production, 243, 118531.
31		 De Pascale, A., Arbolino, R., Szopik-Depczyńska, K., Limosani, M., & Ioppolo, G. (2021).
A systematic review for measuring circular economy: The 61 indicators. Journal of
Cleaner Production, 281, 124942.
32		 https://pacecircular.org/sites/default/files/2021-04/
CircularIndicatorsForGovernments_FINAL.pdf

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MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Merging the circular economy withthe sustainability agenda

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Metrics and indicators reflect primarily macro-level
perspectives and seldom represent all three dimensions ofsustainability. A detailed understanding of how to measure,document progress and report on circular economy is largely
absent, especially on a micro level.34 This is a barrier for bothproducers who want to provide circular products andservices, and for the consumers and other actors along thevalue chain who request transparency in understanding thecircularity and sustainability of the products and services
they are purchasing. Given the complexity of circular systems
and the need to align with sustainability, multi-criteria
measurement methods that integrate multiple dimensional
indicators of all three pillars of sustainability (economic,
environmental, and societal)35 need to be applied acrosscomplete life cycles and supply chains. The circular economy
would then be an approach based on broader systems-level
thinking which could address not only the challenges ofwaste management and resource efficiency but impacts tosociety.36 Any deficiency of a measurement framework limits
the understanding of circular contributions and progress
towards a circular economic system. The lack of international
consensus and standardization on measurement criteria andtools, as well as the disparate understandings of what should
be considered when assessing a circular economy, stems
from the diverse and often inconsistent spectrum of
definitions and principles covered under the broad circular
economy umbrella.37, 38 Despite the broad scope andcategories of a circular economy, current progress indicators
often consider very few circular principles.39 Circularparadigms are naturally an amalgamation of ideas fromdifferent fields like industrial ecosystems, industrial ecology,
material flows, biology, environmental economics, ecologicaleconomics, human geography, etc. This multi-disciplinary
nature is one cause of the divergence in principles, definitions
and metrics.40 The large number of existing, overlapping andconflicting metrics can also be attributed to different
interpretations of circular economy and the degree ofintersection with the concept of sustainability.41

Conclusion

Data is the evidence-base needed to inform and shapepractical policies, attract and direct public and private
investment and guide behavior changes throughout value
chains. Absence of a common and coherent mechanism fordefining and measuring, thus, understanding the risks andopportunities of a circular economy, it will be challenging todetermine whether circular solutions will move society on theright trajectory consistent with global sustainability goals.42
Despite the current limitations and continuing debate on themeaning of a circular economy, its practicality, assessment,
and application, the circular economy idea continues to gain
traction. Therefore, it seems imperative to engage in future
research now about indicators, metrics and frameworks forevaluating implementation and effectiveness at all levels 43
so as to assess progress toward the circular model,
especially for developing countries and in the context ofsustainability.
34		Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for acircular economy–moving away from the three dimensions of sustainability?. Journalof Cleaner Production, 243, 118531.
35		 dos Santos Gonçalves, P. V., & Campos, L. (2022). A systemic review for measuring
circular economy with multi-criteria methods. Environmental Science and Pollution
Research, 1-15.
36		 Martínez-Sánchez, V., Valls Val, K., & Bovea, M. D. (2022). Sustainability reports asa tool for measuring and monitoring the transition towards the circular economy oforganisations: Proposal of indicators and metrics.
37		 De Pascale, A., Arbolino, R., Szopik-Depczyńska, K., Limosani, M., & Ioppolo, G. (2021).
A systematic review for measuring circular economy: The 61 indicators. Journal of
Cleaner Production, 281, 124942.
38		 Vinante, C., Sacco, P., Orzes, G., & Borgianni, Y. (2021). Circular economy metrics:
Literature review and company-level classification framework. Journal of cleaner
production, 288, 125090.
39		Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for acircular economy–moving away from the three dimensions of sustainability?. Journalof Cleaner Production, 243, 118531.
40		 Ibid.
41		 Vinante, C., Sacco, P., Orzes, G., & Borgianni, Y. (2021). Circular economy metrics:
Literature review and company-level classification framework. Journal of cleaner
production, 288, 125090.
42		Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for acircular economy–moving away from the three dimensions of sustainability?. Journalof Cleaner Production, 243, 118531.
43		 Martínez-Sánchez, V., Valls Val, K., & Bovea, M. D. (2022). Sustainability reports asa tool for measuring and monitoring the transition towards the circular economy oforganisations: Proposal of indicators and metrics.

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MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Leading circularbusinessmodels andemerging
themesWaste management and recycling
Rapid population growth, industrialization, urbanization andthe accelerated global consumption of goods and services
has resulted in the overexploitation of natural resources andincreasing waste volumes. The circular economy seeks to
disassociate the consumption of finite resource demands
from economic growth and consists of four essential
components: 1) circular design principles, 2) resource
management, resource efficiency and materials, 3) closedloop systems and infrastructure, and 4) the nine circular Rs at
every stage of the life cycle (rethink, refuse, reduce, reuse,redesign, remanufacture, repair, refurbish, repurpose,
recyclable resources and recovery of materials).
The circular economy is often primarily understood andapplied as a waste management and recycling strategy.44, 45
This is commonly reflected in corporate business strategies
and sustainability reports, government policies and initiatives
46, 47,
as well as in the funding of and focus on measuring
waste management and recycling activities vs. other aspectsof the circular economy, e.g., redesigning materials toeliminate waste. This is unsurprising given that municipal

Merging the circular economy withthe sustainability agenda

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

solid waste is a pressing global urban challenge, with growing Circular bioeconomy and nature-based solutions
public health, environmental, social, and economic costs.48
A “circular bioeconomy” is a framework for using renewable natural capital to transform and manage land, food, health andHistorically, the causes and effects of municipal solid waste
industrial systems into value-added products, with the goal of achieving sustainable wellbeing sympathetically with nature.50
were considered local or regional, but with increasing volumes,changing and complex waste compositions, globalization andintertwined supply chains, waste has become a universal
challenge for both developed and developing countries 49 that
Exhibit 6:
can benefit from circular solutions.
Circular Bioeconomy Diagram
Focusing on waste management is, of course, important: acircular economy does not necessarily account for thevolumes of waste already in existence or the materials alreadycirculating that will be reaching their end of life and migrating
to the waste management and recycling sectors e.g. built
environment, electronics, vehicles, alternative energy systems
such as solar, wind, etc. Moreover, the transition to a circular
economy should provide multiple opportunities to develop
cooperative models, technologies, product and processes andplatforms that can transform the recycling and waste
management sectors. However, an overly strong waste-centricand ‘end-of-pipe’ narrative may limit the social, economic andenvironmental opportunities, such as those related to businessmodels promoting dematerialization and greater resource
optimization. For circularity, the focus shifts from solely
measuring waste to keeping materials circulating in theeconomy and at their highest economic value for as long as
possible. After all, in an ideal circular economy, products andprocesses are designed to avoid the creation of waste in thefirst place.
44		 Ibid.
45		Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for acircular economy–moving away from the three dimensions of sustainability?. Journalof Cleaner Production, 243, 118531.
46		 https://www.epa.gov/recyclingstrategy/national-recycling-strategy
47		 https://acehub.org.au/documents/measuring-the-circular-economy-an-australianperspective
48		 World Bank. 2022. Transitioning to a Circular Economy: An Evaluation of the WorldBank Group’s Support for Municipal Solid Waste Management (2010–20). Independent
Evaluation Group. Washington, DC: World Bank.
49		 Ibid.
50		 World Economic Forum. Why the world needs a ‘circular bioeconomy’ - for jobs,
biodiversity and prosperity. October 2020. https://www.weforum.org/agenda/2020/10/
circular-bioeconomy-nature-reset/#:~:text=A%20circular%20bioeconomy%20offers%20
a,wellbeing%20in%20harmony%20with%20nature.

Source: Rachel Meidl

Bioeconomy
Sustainable
Bioeconomy

Circular
Bioeconomy

Sustainable Circular
Bioeconomy

Sustainability

Circular
EconomySustainable but
not circular

Circular but notsustainable

Sustainable Circular Economy

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MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

A circular bioeconomy can be applied throughout the life
cycle: designing materials that use biological resources (e.g.
biomass) to create circular bio-based products (food, feed,
fuel, textiles, plastics); manufacturing and production thatleverages biological resources as an energy source;
cascading products throughout value chains using circularbusiness models (sharing, reuse, repair, product-as-a-service);and biowaste and products at the end-of-life are used as aresource or recycled back into the system. While the circularbioeconomy combines advanced technologies withtraditional knowledge, it ultimately relies on biodiversity.51
By definition, biodiversity determines the capacity of
biological systems to adapt and evolve in a changing
environment and is thus key to the resilience andsustainability of biological resources. In a circular economy,
the central role of biodiversity is recognized throughconservation measures as well as with regionally-tailoredmarket-based instruments to provide incentives for farmers,
forest owners and bio-based companies.52 Circular economy
principles can be applied across different industry sectors,
allowing for biodiversity benefits economy-wide. At the sametime, a circular transformation can unlock otherenvironmental, economic and social benefits, to provide
opportunities for better growth, prosperity to societies, and toenable nature to thrive.53 A recent study argued that byleveraging a circular economy strategy in the four sectorsthat have the largest impact on biodiversity loss (food andagriculture; buildings and construction; textiles and fibers;
and forests) biodiversity loss could be halted by 2035.54

Merging the circular economy withthe sustainability agenda

Moving towards a climate- and nature-positive economy
translates to supplementing fossil energy with alternative
energy, as well as integrating fossil-free materials:
substituting carbon-intense products like plastics, concrete,steel and synthetic textiles with lower carbon alternatives. For
instance, carbon nanotubes are one of the most promisingmaterials. With their unique electrical, thermal, mechanical,
and optical performance, they have the potential todecarbonize two of the hardest sectors: industrial andtransportation.55 The synthesis of nanomaterials from greenhydrocarbons or renewable bio-materials can outperform andreplace carbon-intense materials 56 and in some cases,
co-produce hydrogen that has a range of end-use sectors
from transportation to electric power to industry.57 Research,development and deployment in the field of sustainably
produced advanced carbon materials is growing and gaining
much interest and investments globally. 58,59
By leveraging a range of biomass feedstocks, including
biowaste, “biochar” has gained significant popularity in theenvironmental sector as a versatile material for waste
reduction and increasing the efficacy of the circular
economy.60,61,62 Biochar has a wide range of applications,
including being a means for sequestering atmosphericcarbon dioxide (CO2) in soil, agricultural soil amendment,
wastewater treatment, manufacturing of cement and for the
remediation of contaminated soils.63 The versatility ofbiochar systems is promising in targeted regions where
biowaste is abundant and typically landfilled or incinerated,such as throughout the Latin American region.

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Bio-based circular carbon economy pathways that invest inclean energy technologies to capture, store, and/or use CO2
emissions to optimize biological and industry processes isanother emerging business model. For example, biogenic
carbon capture and utilization routes apply new technologies
to capture CO2 for reuse as fuels, bioenergy, chemicals,building materials, food and beverages or via recycling where
CO2 is chemically transformed into new products such as
fertilizer or cement, or synthetic fuels.64 Employing biogenic/
renewable carbon offers new and circular avenues to achieve
net-zero emission targets, especially in hard-to-decarbonize
industries like petrochemicals.65
Nature-based carbon storage solutions are also on therise.66,67 Removing atmospheric CO2 through photosynthesis
and storing it in the soil via the plant’s root system can help
attain net-zero goals, strengthen rural economies, transform
ranching and farming, and support environmental co-benefits
including soil regeneration, restoration of natural water
cycles, improvement in drought resistance, and rebuilding of
local biodiversity. It can be a lower-cost carbon capture andstorage option designed for landowners, businesses and soil
carbon storage buyers to catalyze ecological restoration andregeneration in native prairies, grasslands and forests. To
monetize the CO2 removal, credits can be issued tolandowners who sequester CO2 in the soil and are theneligible for soil storage payments.68

Conclusion

51		 Ellen MacArthur Foundation, The Nature Imperative: How the circular economy
tackles biodiversity loss (2021).
52		 Finnish Innovation Fund Sitra and Vivid Economics. Tackling root causes Halting
biodiversity loss through the circular economy. May 2022. https://www.sitra.fi/en/
publications/tackling-root-causes/
53		 https://ellenmacarthurfoundation.org/topics/biodiversity/overview
54		 Finnish Innovation Fund Sitra and Vivid Economics. Tackling root causes Halting
biodiversity loss through the circular economy. May 2022. https://www.sitra.fi/en/
publications/tackling-root-causes/
55		 Pasquali, M., & Mesters ,C. (2021). We can use carbon to decarbonize—and gethydrogen for free. Proceedings of the National Academy of Sciences, 118(31),e211208918.
56		 Janas, D. (2020). From bio to nano: A review of sustainable methods of synthesis ofcarbon nanotubes. Sustainability, 12(10), 4115.
57		 Meidl, Rachel and Kenneth B. Medlock, III. 2021. The Advanced Carbon Economy:
A Sustainable Hydrogen Pathway. Issue brief no. 06.22.21. Rice University’s Baker
Institute for Public Policy, Houston, Texas.
58		 https://carbonhub.rice.edu/
59		 https://monolith-corp.com/methane-pyrolysis
60		 Amonette, J. E., Archuleta, J. G., Fuchs, M. R., Hills, K. M., Yorgey, G. G., Flora, G., ...
& Wheeler, E. (2022). Biomass to Biochar: Maximizing the Carbon Value-Executive
Summary (No. NREL/CH-2800-79086). National Renewable Energy Lab.(NREL),
Golden, CO (United States).
61		 Papageorgiou, A., Sinha, R., Azzi, E. S., Sundberg, C., & Enell, A. (2022). The Role of
Biochar Systems in the Circular Economy: Biomass Waste Valorization and Soil
Remediation.
62		 Nematian, M., Keske, C., & Ng’ombe, J. N. (2021). A techno-economic analysis ofbiochar production and the bioeconomy for orchard biomass. Waste Management,
135, 467-477
63		 Jindo, K., Sánchez-Monedero, M.A., Mastrolonardo, G. et al. Role of biochar inpromoting circular economy in the agriculture sector. Part 2: A review of the biocharroles in growing media, composting and as soil amendment. Chem. Biol. Technol.
Agric. 7, 16 (2020). https://doi.org/10.1186/s40538-020-00179-3
64		 https://www.aramco.com/en/sustainability/climate-change/managing-our-footprint/
circular-carbon-economy#:~:text=A%20circular%20carbon%20economy%20is,to%20
reduce%20their%20carbon%20footprints.
65		 Tan, E. C., & Lamers, P. (2021). Circular bioeconomy concepts—A perspective.
Frontiers in Sustainability, 2, 701509.
66		 Global Commitments for Nature:  Opportunities for Greater Impact. A backgrounddocument prepared for the Office of the Presidency of the UN General Assembly 13
July 2022. United Nations Environment Programme https://www.un.org/pga/76/
wp-content/uploads/sites/101/2022/09/UNEP-analysis-for-OPGA-Moment-forNature.18.july_.2022.pdf
67		 https://www.unglobalcompact.org/take-action/events/climate-action-summit-2019/nature-based-solutions
68		 https://bcarbon.org/

10

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Social equity and the circular economy
A future circular economy has the potential to provide newopportunities for engagement, economic diversification, value
creation and skills development.69 However, a circular andsustainable transition would not be socially just or inclusive
by default. The wide range of environmental and economic
challenges would need to be addressed in a way that protects
livelihoods and upholds the workers’ rights and actuallyenable job creation. An equitable and just circular transition
relies on the acknowledgement of international labor
standards, labor market institutions and active engagementwith communities and the workforce to help determine thepathway to greater circularity.
A circular transition as a societal transition includes reskilling/up-skilling employees where appropriate, ensuring thecreation of quality jobs with career progression and jobs thatare accessible to diverse people. It necessarily considers how
benefits and burdens are distributed. In a circular future, there
will likely be a high demand for a wide range of skills to
implement and steer circular business models and todisassemble, repair, remanufacture, maintain, and refurbish
materials, products and systems. Bridging the gap between
current and future skills via training, education, outreach andpolicy support is key if the transformation towards asustainable circular economy is to be successful.

Merging the circular economy withthe sustainability agenda

Current policy prescriptions have largely failed to address
global social equity issues and often perpetuate social
problems in lower income countries. Oversights related to
power, trade and the role of high-tech solutions contribute tothat inequity.70 The predominant focus of most initiatives has
been confined to a small subset of environmental andeconomic dimensions, whereas the social aspects highlighted
above have only been intermittently and peripherally
mentioned.71 Further, not all social sustainability concerns are
explicitly and equally considered in the tiers of the circular
economy.72 Employment opportunities, education andawareness, health and safety, and government involvement are
more commonly identified social issues.73 However, a morediverse and complete consideration of the social dimension
will be required to attain an equitable and just pathway.
Ultimately, the circular economy must be perceived as anintegral component of society and the ecosystem in which it isembedded.

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themesof life in developing economies74 while also benefitting thegreater global economy. For example, the large informal
sectors in developing countries and emerging markets
practice “circular” activities in waste collection and recycling
with the potential to engage in higher-value circular economy
supply chains. As global centers of production, they are
well-placed to take advantage of new opportunities and,moreover, are also set to become global drivers ofconsumption. For example, Africa is transforming into a vastpotential free trade area with a population projected to reach
1.1 billion by 2040.75 It could have the largest workforce
globally. Thus, just as China is currently the manufacturing
center of world, developing economies like Africa could
become global centers of remanufacturing, refurbishing,recycling and repair, a key role in a global network. Developing
countries are well-positioned to ‘leapfrog’ developed
countries in digital and materials innovation to embedsustainable circular production and consumption at the heartof their growing economies.76

Over the years, little attention was given to the circular
economy concept as it relates to quality of life for underserved The convergence of emerging digital technologies with thoseand marginalized communities and low-income and middlein the physical and biological spheres could play a central role
income countries. Despite this, there has been progress inin enabling a sustainable circular economy.77 The circular
circular economy case studies in developing countries liketransition has been strongly linked to the ‘fourth industrial
India, Brazil, Kenya and Ghana, which demonstrate how circular revolution’ theme, drawing on ‘distributed ledger’ blockchain
economy business models can contribute to improved quality technology, cloud computing and big data analytics, artificial

69		 Preston, F., Lehne, J., & Wellesley, L. (2019). An inclusive circular economy. Priorities for Developing Countries.
70		 Circle Economy. Thinking beyond borders to achieve social justice in a global circular economy. Actions for governments and multilateral bodies. June 2022
71		 Vinante, C., Sacco, P., Orzes, G., & Borgianni, Y. (2021). Circular economy metrics: Literature review and company-level classification framework. Journal of cleaner production, 288, 125090.
72		 Mies, A., & Gold, S. (2021). Mapping the social dimension of the circular economy. Journal of Cleaner Production, 321, 128960.
73		 Mies, A., & Gold, S. (2021). Mapping the social dimension of the circular economy. Journal of Cleaner Production, 321, 128960.
74		 Halog, A., Anieke, S. A Review of Circular Economy Studies in Developed Countries and Its Potential Adoption in Developing Countries. Circ.Econ.Sust. 1, 209–230 (2021). https://doi.org/10.1007/s43615-021-00017-075		 OECD/ACET (2020), Quality Infrastructure in 21st Century Africa: Prioritising, Accelerating and Scaling up in the Context of Pida (2021-30).
76		 Preston, F., Lehne, J., & Wellesley, L. (2019). An inclusive circular economy. Priorities for Developing Countries.
77		 World Bank Group. Circular Economy and Emerging Technologies. https://olc.worldbank.org/content/circular-economy-and-emerging-technologies
78		 País Circular (2020), ‘The circular economy brings together the productive and environmental agendas’, translated interview with Manuel Albaladejo, UNIDO Representative for Uruguay, Chile, Argentina and Paraguay, 9 March 2020, Santiago de Chile, https://www.
greengrowthknowledge.org/blog/circular-economy-brings- together-productive-and-environmental-agendas.
79		 Circle Economy. Thinking beyond borders to achieve social justice in a global circular economy. Actions for governments and multilateral bodies. June 2022
80		 Patnaik, J., & Tarei, P. K. (2022). Analysing appropriateness in appropriate technology for achieving sustainability: A multi-sectorial examination in a developing economy. Journal of Cleaner Production, 349, 131204.
81		 Circle Economy & Shifting Paradigms. (2020). Climate mitigation through the circular economy. (pp. 1-142, Rep.). Amsterdam: Circle Economy.
82		 XXXX

Conclusion

intelligence/machine learning, robotics, Internet of Things,
etc. to track supply chains, input materials provenance andproduct life cycles, for example.78 Too much reliance on
OECD-centric high-tech infrastructure could be a barrier tolower-income countries, hence the need to identify a range of
geographically, economically and culturally appropriatetechnology options79 Technologies aligned with local
conditions, that utilize locally available materials and energy
resources, and with local operational control are likely toexperience greater success.80,81
Several technological trends seem likely to have an impact on
the role of trade in a just circular transition: (1) increasing
supply chain transparency and product life cycle information,(2) tracking and traceability across life cycles to verify
circularity of products, goods and services, e.g. repair,secondary material recovery, and (3) tools and systems tostandardize and measure the performance of circular
economy. Each trend has the potential to reconfigure global
trade in a way consistent with just and inclusive circular
economy principles and can aid in the understanding of how
trade and trade policies can support a circular economy.82

11

Introduction

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Opportunities for measuring
the circular economy

Merging the circular economy withthe sustainability agenda

Leading circular business models
and emerging themes

Conclusion

Trade
A functional circular economy naturally relies on trade and access to global markets through trade in primary and secondary materials, end-of-life goods, recyclable waste, second-handproducts, technology, intellectual property and services.

Exhibit 7:
International trade andcircular economy

International
LinearTrade

Primary
goods andcomponents

Primary andsecondarycommodities

National trade

Waste
destined for disposal

Services

International trade

National boundaries

Source: Adapted from OECD
International Trade and the Transition
to a Circular Economy

Product-service system
Recycling (secondary raw material)

Domestic
Circular
Activities

Refurbishment and remanufacturing
Reuse (used goods/second-hand goods)
RepairDomestic
LinearActivities

DesignProcurement

Production

Transport

Sales andMarketing

Product Use

Product-service system
Used goods for reuse, remanufacturing and recycling
Refurbished and remanufactured goods and parts

International
Circular
Trade

Secondary raw materials
Waste scrap for recovery and valorization
Circularity-enabling goods, services and intellectual propriety

End of Life

Waste

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MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Global trade enables the economies of scale required tomake circular activities economically viable. Planning for acircular economy transition needs to account for the role ofinternational trade at different stages of the value chain,because the structural economic shift will reconfigure traderelations, supply chains and flows of materials and services
between and within countries.83 Import and export demandfor primary materials, secondary materials and waste may
decrease in certain economies, partially dependent oncompetitive advantage. Demand for certain new products
and raw materials (or intermediary goods) exported fromlesser developed economies may decrease as developed
countries turn to sourcing local materials and rates of reuse,
repair and high-value recycling increase.84 The effects on
low- and middle-income countries deeply reliant on extractive
industries, for example, and dependent on resource exports
for their economy and tax revenue are likely to be significant
in the medium to long term.85
If the shift to a circular economy encompasses a social
dimension then it should be aiming towards a more balanced
and equal distribution of power and wealth across and within

Merging the circular economy withthe sustainability agenda

countries. The geographical inequity of circular trade flows is
distributed unevenly across the world where ~99 percent(USD 287 billion) of the total value of trade in secondary
goods, materials, waste, scrap and residues in 2020 was
traded between and among high- and middle-income
countries (China, Europe and the US being most prominent)86
and around 45 percent (USD 131 billion) of the total tradevalue was exchanged solely between high-income
countries.87 Conversely, trade to and from low-income
countries comprised only approximately 1 percent (USD 4
billion) of the total value.88 This indicates the inequity invalue-capture from circular trade, as high- and middle-income
countries typically have the capacity to develop and deploy
technologies and manufacture and control the associatedintellectual property rights. The direction of trade tends toflow from high- and middle-income countries to low-income
countries and may exacerbate environmental and social
costs in developing economies where waste burdens aretransferred 89,90

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

Exhibit 8:
Waste trade flows, 2010-2021
Source: Generated as a part of ongoing research for Rice University, Baker Institute for Public Policy, using data from UN Comtrade database.

83		 Bellmann, C., & Draper, P. THE CIRCULAR ECONOMY AND INTERNATIONAL TRADE.
84		 Circle Economy. Thinking beyond borders to achieve social justice in a global circular economy. Actions for governments and multilateral bodies. June 2022
85		 Schröder, P. (2020). Promoting a just transition to an inclusive circular economy. Royal Institute of International Affairs.
86		 China being the predominant middle-income country with imports of secondary goods, materials and waste, scrap and residues valued at $38 billion, and exports valued at $12.7 billion in 2020.
87		 The Royal Institute of International Affairs Chatham House. 2022. The role of international trade in realizing an inclusive circular economy.
88		 Chatham House circulareconomy.earth (2022), ‘Trade flows’89		 UNEP and IRP (2020), ‘Sustainable Trade in Resources: Trade, Global Material Flows, Circularity, and Trade’, https://www.resourcepanel. org/reports/sustainable-trade-resources90		 Waste trade imports were defined as all six-digit Harmonization System categories where waste and/or scrap was the only categorization of a product or material. In 2010-2021 map, the largest flow was 161.6 million tons from USA to China. In 2021, 6.1 million tons weretraded from USA to Mexico.

13

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Second-hand trade in the reuse and recycling markets where
high-income countries can undermine the quality of jobs oflower-income countries is an illustrative example of how acircular economy transition could shift impacts acrossgeographies. Current resource trading practices arecharacterized by imbalances in power dynamics where global
value chains source inexpensive raw materials from lowerincome countries for the manufacturing of higher-value
products for wealthier consumers,91 only to export low-value
waste and products back to lower-income countries. This
practice is often promoted under the banner of charitable andcircular reuse or recycling schemes, irrespective of the actualand final fate of the materials. In many cases, such as solar
panels and electronic waste, the materials may be unsuitable
for reuse and are incinerated or landfilled92 or valuablefractions are retained for reprocessing in high-income
countries.93 Parallels can therefore be drawn where value
creation from resource use is accrued in the Global North andenvironmental and social impacts are accumulated in the
Global South, creating a circular trade divide 94 andexacerbating accusations of trade colonialism.95
Social equity and environmental justice are not confined to
specific borders, particularly when accounting for full life
cycles and the entire value chain. Complex and intertwined
global value chains with cross-border trade in raw materials,
intermediate goods, and final products including
accompanying end-of-life circular activities (repair,refurbishment, remanufacturing, recycling, etc.) enables
associated environmental and social impacts to emerge inlocations different from where initial production and final
consumption occurred. A fair and equitable transition andMerging the circular economy withthe sustainability agenda

Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

environmentally and socially sustainable supply chains arevital to ensure the circular economy does not produce new
disadvantages for countries in a future circular trading
system.96
While general trends show volumes of global trade in waste
and scrap increasing over the past two decades from USD 90
billion to USD 294 billion between 2000 and 2020,97 new
restrictive trade measures have been introduced either
multilaterally – i.e. under the Basel Convention, or unilaterally– e.g. Chinese National Sword import restrictions on plastics,
unsorted paper, and other waste and scrap. Reducing tradebarriers would allow circular activities better access to alarger supply of recovered goods, components and materials
for recirculation and promote the expansion of global supply
chains and services needed to create a more efficient circular
economy. Trade restrictions or non-trade barriers, such as
strict control of intellectual property, may prevent lesser
developed countries from reaping the benefits newtechnologies could offer in a circular economy.98 Multilateralsolutions and international cooperation that addresses tradebarriers and promotes responsible and fair trade would
ensure circular activities are optimized in terms of cost,quality, skills and other location-specific advantages.
Multilateral organizations (such as the World Trade
Organization, the International Labour Organization, United
Nation agencies and development banks) could help facilitate
dialogue and cooperative trade policies that increase datacollection, enhance transparency and standards for trade insecondary materials, incentivize extended producer
responsibility, establish circularity metrics and targets, andencourage product life extension pathways.

91		 GRID-Arendal. (2021). Circular economy on the African continent: Perspectives and potential. (pp. 1-48, Rep.). Retrieved from: GRID-Arendal website
92		 Meidl, Rachel A. 2022. Solar’s Bright Future Faces a Cloudy Reality: What About All the Waste? End-of-Life Solar Panels: Federally Classified Hazardous Waste. Baker Institute Report no. 01.12.22. Rice University’s Baker Institute for Public Policy, Houston, Texas.
93		 Chatham House. (2019). The Circular Economy in Latin America and the Caribbean: Opportunities for Building Resilience. (pp. 1-65, Rep.). London: Chatham House. Retrieved from: Chatham House website
94		 The Royal Institute of International Affairs Chatham House. 2022. The role of international trade in realizing an inclusive circular economy.
95		 Referred to by representative of Luxembourg at the February 13, 1989 Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal.
96		 Yamaguchi, S. (2022), “Securing reverse supply chains for a resource efficient and circular economy”, OECD Trade and Environment Working Papers, No. 2022/02, OECD Publishing, Paris, https://doi.org/10.1787/6ab6bb39-en.
97		 OECD Quarterly International Trade Statistics, Volume 2022 Issue 198		 United Nations Industrial Development Organization. September 2021. Trade, technology and a just circular transition. https://iap.unido.org/articles/trade-technology-and-just-circular-transition

Conclusion

14

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

Introduction

Merging the circular economy withthe sustainability agenda

Conclusion
The circular economy is at a critical juncture between realsystemic change and merely a rebranded business-as-usual.
Despite the current gaps and limitations of a circular
economy, it has the potential to transform how society
interacts with itself and the natural environment, providing
the transformation takes place with a global perspective.
Innovation towards circularity will also require a robust andvastly different measurement and metric framework than thesystems developed to monitor the linear economy and willneed to leverage new technologies and the global trade
network to fully unlock the benefits for a more inclusive,
sustainable and circular economy.
The circular economy has been estimated to embed acommercial opportunity of up to USD 4.5 trillion linked to theevolution of new industries as well as create jobs, reduceclimate impacts and improve the efficient use of natural
resources.99 However, transitioning to a circular economy
that works in the best long-term interest of society would
require cross-border networks, partnerships and participationfrom all stakeholders across the value chain.

Rachel A. Meidl LP.D., CHMM, is a strategic thought
leader with over 27 years of regulatory, public
policy, advocacy and technical experience inindustry, academia, government and international
relations in the areas of energy, environment, waste
management, circular economy and sustainability.
She previously was appointed deputy associate
administrator for the Pipeline and Hazardous
Materials Safety Administration, an agency of the
U.S. Department of Transportation; and prior tothat, was the director of regulatory and technicalaffairs at the American Chemistry Council in
Washington, D.C. She holds a doctorate in law andpublic policy from Northeastern University.

MSCI would like to thank Rachel A. Meidl, fellow in energy andthe environment at Rice University’s Baker Institute for Public
Policy, for useful discussions and insightful analysis of thismegatrend. Her insights greatly facilitated the preparation ofthis document.

99		 World Business Council for Sustainable Development (WBCSD). “CEO guide to circular economy” available at < https://docs.wbcsd.org/2017/06/CEO_Guide_to_CE.pdf >Opportunities for measuring
the circular economy

Leading circular business models
and emerging themes

Conclusion

MSCI THEMATIC INSIGHT
TRANSITIONING TO A
CIRCULAR ECONOMY

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