IDEAS home Printed from https://ideas.repec.org/p/ecr/col022/48835.html
   My bibliography  Save this paper

Scaling up circular economy initiatives in Latin America and the Caribbean

Author

Listed:
  • Van Hoof, Bart
  • De Miguel, Carlos J.
  • Núñez Reyes, Georgina

Abstract

This document analyses the possibility of scaling up the potential of the circular economy through financial instruments in Latin America and the Caribbean. It reviews progress in the circular economy in four business cases, selected based on priorities and representativeness for the Latin American and Caribbean region, and assesses the prospect of scaling them up using financial mechanisms and environmental, social and governance (ESG) schemes. The findings show that investment in circular economy business models has multiple benefits for companies, such as profitable operating margins and improved corporate reputation, thereby lowering the cost of debt and of financing circular economy projects. Various financial mechanisms are applied to scale up circular economy initiatives and circular economy indicators are aligned with broader ESG frameworks. To unlock the full potential of the circular economy in the region, new —and cheaper— financing alternatives should be considered. ESG funding has proven to be a reliable source of funding, even for circular economy projects, and has attracted the attention of investors the world over.

Suggested Citation

  • Van Hoof, Bart & De Miguel, Carlos J. & Núñez Reyes, Georgina, 2023. "Scaling up circular economy initiatives in Latin America and the Caribbean," Documentos de Proyectos 48835, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col022:48835
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/48835
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Tao & Dong, Hui & Lin, Chen, 2020. "Institutional shareholders and corporate social responsibility," Journal of Financial Economics, Elsevier, vol. 135(2), pages 483-504.
    2. Nathalie de Marcellis-Warin & Serban Teodoresco, 2012. "Corporate Reputation: Is Your Most Strategic Asset At Risk?," CIRANO Papers 2012n-05a, CIRANO.
    3. Anis Maaloul & Daniel Zéghal & Walid Ben Amar & Sari Mansour, 2023. "The Effect of Environmental, Social, and Governance (ESG) Performance and Disclosure on Cost of Debt: The Mediating Effect of Corporate Reputation," Corporate Reputation Review, Palgrave Macmillan, vol. 26(1), pages 1-18, February.
    4. Tischer, Sven & Hildebrandt, Lutz, 2014. "Linking corporate reputation and shareholder value using the publication of reputation rankings," Journal of Business Research, Elsevier, vol. 67(5), pages 1007-1017.
    5. Sally Baalbaki & Francisco Guzmán, 2016. "A consumer-perceived consumer-based brand equity scale," Journal of Brand Management, Palgrave Macmillan, vol. 23(3), pages 229-251, May.
    6. Vasilis C. Kapsalis & Grigorios L. Kyriakopoulos & Konstantinos G. Aravossis, 2019. "Investigation of Ecosystem Services and Circular Economy Interactions under an Inter-organizational Framework," Energies, MDPI, vol. 12(9), pages 1-29, May.
    7. Nathalie de Marcellis-Warin & Serban Teodoresco, 2012. "Corporate Reputation: Is Your Most Strategic Asset at Risk?," CIRANO Burgundy Reports 2012rb-01, CIRANO.
    8. Sara Scipioni & Meir Russ & Federico Niccolini, 2021. "From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy," Sustainability, MDPI, vol. 13(3), pages 1-31, January.
    9. Reyaz A. Ahmad & Laird Reed & Rong Zhang, 2018. "Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment," World Bank Publications - Reports 31056, The World Bank Group.
    10. Ozili, Peterson K, 2021. "Circular economy, banks and other financial institutions: what’s in it for them?," MPRA Paper 107397, University Library of Munich, Germany.
    11. Peterson K. Ozili, 2021. "Circular Economy, Banks, and Other Financial Institutions: What’s in It for Them?," Circular Economy and Sustainability, Springer, vol. 1(3), pages 787-798, November.
    12. Patrick Schroeder & Kartika Anggraeni & Uwe Weber, 2019. "The Relevance of Circular Economy Practices to the Sustainable Development Goals," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 77-95, February.
    13. Sipiczki, Agnes, 2022. "A critical look at the ESG market," CEPS Papers 36111, Centre for European Policy Studies.
    14. Ida K. Rovanto & Anu Bask, 2021. "Systemic circular business model application at the company, supply chain and society levels—A view into circular economy native and adopter companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1153-1173, February.
    15. Amalia Rodrigo-González & Alfredo Grau-Grau & Inmaculada Bel-Oms, 2021. "Circular Economy and Value Creation: Sustainable Finance with a Real Options Approach," Sustainability, MDPI, vol. 13(14), pages 1-30, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thayla Zomer & Tim McAloone & Daniela Pigosso, 2024. "Categorization of manufacturing companies’ readiness profiles for the transition to the circular economy: A multidimensional cluster analysis," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 277-288, April.
    2. Thierry Warin & Nathalie De Marcellis-Warin & William Sanger & Bertrand Nembot & Venus Hosseinali Mirza, 2015. "Corporate reputation and social media: a game theory approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 9(1), pages 1-22.
    3. Aykut Beduk & M.Kemal Unsacar & Kemalettin Eryesil, 2016. "The Relationship between Organizational Justice and Corporate Reputation in Footwear Manufacturing Company," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(12), pages 530-542, December.
    4. Peterson K. Ozili, 2022. "Circular Economy and Central Bank Digital Currency," Circular Economy and Sustainability, Springer, vol. 2(4), pages 1501-1516, December.
    5. Anna Blajer-Golebiewska & Arkadiusz Kozlowski, 2016. "Financial determinants of corporate reputation: A short-term approach," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 17(2), pages 179-201.
    6. Anis Maaloul & Daniel Zéghal & Walid Ben Amar & Sari Mansour, 2023. "The Effect of Environmental, Social, and Governance (ESG) Performance and Disclosure on Cost of Debt: The Mediating Effect of Corporate Reputation," Corporate Reputation Review, Palgrave Macmillan, vol. 26(1), pages 1-18, February.
    7. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    8. Muhammad Altaf & Wesam Salah Alaloul & Muhammad Ali Musarat & Abdul Hannan Qureshi, 2023. "Life cycle cost analysis (LCCA) of construction projects: sustainability perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12071-12118, November.
    9. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    10. Bruno Michel Roman Pais Seles & Janaina Mascarenhas & Ana Beatriz Lopes de Sousa Jabbour & Adriana Hoffman Trevisan, 2022. "Smoothing the circular economy transition: The role of resources and capabilities enablers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1814-1837, May.
    11. Francesca Gennari, 2023. "The transition towards a circular economy. A framework for SMEs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(4), pages 1423-1457, December.
    12. Wei, Aiping & Zakari, Abdulrasheed & Tawiah, Vincent & Aleesa, Noha, 2024. "Cultivating resilient economies through responsible mineral resource trade: Does eco-resourcing rebate matter?," Resources Policy, Elsevier, vol. 89(C).
    13. Castilla-Polo, Francisca & Sánchez-Hernández, María Isabel & Gallardo-Vázquez, Dolores & Ruiz Rodríguez, María del Consuelo, 2016. "Diseño de un modelo de reputación para cooperativas oleícolas," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 154-167.
    14. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    15. Per Åsberg & Henrik Uggla, 2019. "Introducing multi-dimensional brand architecture: taking structure, market orientation and stakeholder alignment into account," Journal of Brand Management, Palgrave Macmillan, vol. 26(5), pages 483-496, September.
    16. Lai Van Vo & Huong Thi Thu Le & Youngbin Kim, 2023. "Board interlocks, career prospects and corporate social responsibility," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4565-4595, December.
    17. Toorajipour, Reza & Oghazi, Pejvak & Sohrabpour, Vahid & Patel, Pankaj C. & Mostaghel, Rana, 2022. "Block by block: A blockchain-based peer-to-peer business transaction for international trade," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    18. Sarah Muhanna Naimi, 2022. "Economic Diversification Trends in the Gulf: the Case of Saudi Arabia," Circular Economy and Sustainability, Springer, vol. 2(1), pages 221-230, March.
    19. Abderahman Rejeb & Karim Rejeb & Suhaiza Zailani & Yasanur Kayikci & John G. Keogh, 2023. "Examining Knowledge Diffusion in the Circular Economy Domain: a Main Path Analysis," Circular Economy and Sustainability, Springer, vol. 3(1), pages 125-166, March.
    20. Zhou, Taiyun & Liu, Mingxuan & Zhang, Xiyu & Qi, Zheng & Qin, Ni, 2024. "Does institutional ownership affect corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 84-98.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col022:48835. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.