What is Circular Economy Indexes?

What is Circular Economy?

The linear economic model of value creation for production and consumption—based on a “take, make, use, dispose” pattern—is incompatible with the challenges of today’s resource-constrained world. In contrast, a circular economy is an economic system that seeks to transform our throwaway economy into one where waste is minimized, resources are circulated, and nature is regenerated.


Creating Value through Indexes

Loading Creating Value through Indexes...

Creating Value through Indexes

How can you objectively scan the horizon for new investment opportunities and capture Circular Economy related themes in your portfolio?

Download Transcript (PDF, 120 KB)

What is Circular Economy Indexes? Part 2

 

Our Offerings

Suite of five new indexes that seek to represent the performance of companies that help enable a Circular Economy.

MSCI’s suite of Circular Economy Indexes enables you to systematically evaluate, monitor and invest in long-term structural themes shaping our collective future. Framed by the 9Rs*—Refuse; Rethink; Reduce; Re-use; Repair; Refurbish; Remanufacture; Repurpose; Recycle; and Recover—this approach offers a new way of thinking about your portfolio as the transition to a circular economy drives innovation and new business models.

The MSCI Circular Economy Index Offerings

MSCI ACWI IMI Renewables and Energy Efficiency Index

The Index is designed to represent the performance of companies that promote renewable energy and energy efficiency through their products or services.

 

Factsheet
(PDF, 154 KB) (opens in a new tab)

 

 

Methodology
(PDF, 359 KB)

MSCI ACWI IMI Sharing Economy Index

The Index is designed to represent the performance of companies associated with the development of new products and services that potentially replaces resource-intensive products and services, such as sharing economy and smart mobility, e-commerce, digital payments, social media and cloud computing.

 

Factsheet
(PDF, 153 KB)

 

 

Methodology
(PDF, 382 KB)

MSCI ACWI IMI Sustainable Water Transition Index

The Index is designed to represent the performance of companies that play key roles in addressing water scarcity through their products or services, or through their management of related issues.

 

Factsheet
(PDF, 154 KB)

 

 

Methodology
(PDF, 341 KB)

MSCI ACWI IMI Natural Resources Stewardship Index

The Index is designed to represent the performance of companies focused on protecting natural resources  through their products or services, or through their management of related issues.

 

Factsheet
(PDF, 154 KB)

 

 

Methodology
(PDF, 381 KB)

MSCI ACWI IMI Plastics Transition Index

The Index is designed to represent the performance of companies that play key roles in addressing the issue of plastic waste through their products or services, or through their management of related issues.

 

Factsheet
(PDF, 151 KB)

 

 

Methodology
(PDF, 349 KB)

MSCI ACWI IMI Sustainable Water Transition Extended Capped Index

The Index aims to represent the performance of a set of companies from MSCI ACWI IMI that are associated with key aspects of addressing water scarcity through their products or services, and/or through their management of related issues, all assessed within the context of potential contribution towards a circular economy.

 

Factsheet
(PDF, 131 KB)

 

 

Methodology
(PDF, 385 KB)


Why should you consider Circular Economy Indexes?

Why should you consider Circular Economy Indexes?

Targeting Global Companies Advancing the Circular Economy

Heightened concerns about environmental, social, and economic degradation magnify the importance of moving to a circular economy. MSCI’s suite of indexes defining the Circular Economy can help you to identify companies that facilitate a transition to a circular economy, tackling global resource challenges such as energy scarcity, biodiversity loss, waste and pollution.

Designed on our Two-Dimensional Circular Economy Theme

  • Companies that provide technologies that enable a circular economy, such as alternatives to single-use plastics; digital technologies that replace traditional resource-intensive products, etc
  • Companies that reduce their negative operational impact by maximizing resources and/or minimizing waste. Key issues include: biodiversity and land use and packaging material and waste

Reframe the Sustainability Conversation

The MSCI Circular Economy Indexes represent the next leap forward. These new indexes seek to provide growth-oriented, sustainability-minded investors, with a new lens to assess opportunity—a roadmap to discover where value will be created in the 21st century and beyond.


Circular Economy Index - Featured Content

Featured content

Rethinking material use. The Circular Economy 101

Our infographic focusing on the concept of circular economy, what can we measure, and business models in a circular economy.

The Circular Economy: Facts, Frameworks, and Strategies (PDF 1.5 MB)

The changing financial and regulatory landscape has highlighted the importance of the circular economy.

Transitioning to a Circular Economy (PDF 7.3 MB)

Our latest research may provide sustainability-minded investors a new lens to assess opportunity in the growing circular economy.


Circular Economy Index CTA

 

Want to know more about Circular Economy Indexes?

Contact sales

 


Related cards

Footnotes

 

*Adapted from Circular Economy: Measuring Innovation in the Product Chain by Potting, et. al (2017)