UNEP FI publishes guidance on circular economy solutions for bank climate targets
The United Nations Environment Programme Finance Initiative (UNEP FI) has published guidance for banks on embedding circular economy principles into climate transition plans to meet climate-mitigation targets. The report explains that resource extraction and processing generate more than half of global greenhouse gas emissions, making circularity essential to reducing material demand and avoiding emissions. Banks are instructed to identify the sectors and clients with the greatest potential for circularity, classify activities using recognised categorisation systems, and verify the emissions-reduction impact of circular solutions. Circular practices are presented as reducing Scope 1, 2 and particularly Scope 3 emissions by limiting reliance on virgin materials, extending product life cycles and lowering waste generation.