According to the World Bank, the world generates 2.24 billion tonnes of solid waste per year (as of 2020). With rapid population growth and urbanization, annual waste generation is expected to increase by 73% from 2020 levels to 3.88 billion tonnes in 2050. This is far more than we can process or recycle and contributes to both pollution and greenhouse gas emissions leading to ocean plastic pollution and geopolitical tensions as Western countries search for new places to stash their trash. 

How did we get here? Historically, the global economy is designed for linearity: harvest, produce, use, dispose. To meet the United Nations Sustainable Development Goals on Responsible Consumption & Production and Clean Water & Sanitation (SDG 12), the global economy must transition to a circular economy by finding opportunities to reinvent consumption and production models through the prioritization of the reduction or elimination of waste and pollution by keeping products and materials in use for longer and regenerating natural systems or resources.

Linear Economy

Circular Economy

The MVIS® Global Circular Economy ESG Index (ticker: MVCIRC) follows the EU SFDR principle of “Do No Significant Harm” (DNSH) and targets sustainable objectives mapped to the United Nations Sustainable Development Goals on Responsible Consumption & Production and Clean Water & Sanitation, to align with European regulations for ESG requirements.

For more information on the Circular Economy, read “Introducing The MarketVector Global Circular Economy ESG Index”.

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About the Author:

Joy Yang is Global Head of Index Product Management at MarketVector IndexesTM. She is responsible for managing MarketVector IndexesTM products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MarketVector IndexesTM, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg, and Blackrock. Joy has an MBA from the University of Chicago Booth School of Business, and a BS in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.


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