Environmental Challenges: Circular Economy

Environmental Challenges

Circular Economy: Seeking a potential new way to act on our consumption and production

Throughout history, we as humans have chased natural resources in the process of evolving and aiding our society and economy. The use of these natural resources has caused us to advance greatly and been the centrefold of our economies. However, our overconsumption of resources going to waste has become a consequential issue that cannot be reversed but can be improved going forward.

Arrive the Circular Economy, a contemporary concept that may challenge our society to push for a more sustainable future.


Three main pillars are the cornerstone of the Circular Economy1


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A series of elements that express the need for integration of Circular Economy on a global level2

Growing population


World’s Population is growing and so is demand for raw materials while supply is limited.

Resource independence


Dependency on other nations for raw materials as they are in finite amounts.

Environmental impact


Extractions and use of raw materials increases energy consumption and CO2 emissions.


What are some far-reaching potential socio-economic benefits that can potentially impact the  application of the Circular Economy?3  


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1Amundi Asset Management as March 2023

2 https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

3 https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits

Important information
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of October 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: October 2023

Doc ID: 2840698