Contact person
Ann-Charlotte Mellquist
Enhetschef
Contact Ann-CharlotteFinancing circular business models - risks and opportunities
Manufacturing companies who want to switch to more circular business models, such as selling products as a service or function, will see balance sheet and cash flow effects that require new financing solutions. The project wants to investigate how financiers' perceptions of risk and security will need to change to become an opportunity.
The project investigated the role of financing for SMEs transitioning to circular business models - as obstacles and opportunities - and also mapped out how the financial sector looks at circular business models in terms of risk assessment, valuation, return requirements and long-term perspective.
We did this in collaboration with manufacturing companies and banks. The method was mainly interviews with manufacturing and selling SMEs, and with a number of banks, in Sweden and Europe. We also mapped how financing is generally solved in manufacturing industry today. Overall, this resulted in a number of case studies on the challenges of manufacturing companies, as well as an overview of the banks' views on financing circular business models, from which we can understand new opportunities, constraints and roles for the financial sector as a whole.
From the perspective of both the financial and manufacturing sectors, there are great benefits and potential business opportunities in creating innovative solutions for the needs arising from the new business models in the manufacturing industry. Both sectors are in a disruptive era when old ways of earning money and valuing assets and risks are challenged by new business logic and new technologies that involve new forms of development, production, delivery, payment, etc.
This project generated new innovative knowledge about financing and its role as a facilitator in corporate transition to a more circular economy and real resource effectiveness.
Final report and White paper with short summary of results and recommendations
Final Report_Finance project_Final_EN.pdf (pdf, 1022.44 KB)
Summary
Project name
Circular financing
Status
Completed
RISE role in project
Project Manager
Project start
Duration
96 months
Total budget
2 427 200 SEK
Partner
Kinnarps AB, Modul-System AB, Clean Motion AB, Sparbanken Sjuhärad AB, Ekobanken , JAK-bank, Susanne Olofsson (underkonsult), Thomas Polesie (underkonsult)
Funders
Vinnova, Innovationer för ett hållbart samhälle 2017
Coordinators
Project members
Events
Seminar in Almedalen, 3rd July 2018.Presentation at Ekobanken's seminar on circular economy, 20th April 2018.
External press
Article in Miljömagasinet, covering participation from the project at Ekobanken's seminar at Klimatriksdagen in Stockholm, 5th May, 2018.Article about the project in FAR's (the Association of Authorised Auditors) magazine BalansDebate article in FAR's magazine Balans, on the topic of "The Circular Balance Sheet".Participation with "inapirational talk" at IVA's ReCE workshop "The Finanancial Sector"Presentation adn panel debate at the seminar "The role of finance in accelerating CE" organised by Mistra, NMC and the Dutch EmbassyArticle about the project on p 6 in Ekobanken's customer magazine Goda affärer.
Supports the UN sustainability goals
12. Responsible consumption and production
