A local circular economy requires a commitment from the financial sector

To accelerate the transition to a circular economy, financial institutions are stepping up their operations. One of these examples is PanColombia's recent support for the Círculos 2024 Hub, a pioneering learning space in the circular economy for companies.

Bancolombia's initiative to support a space for innovation and collaboration, such as the Círculos Hub, is linked to other banking activities that seek to increase financing mechanisms for the transition to a circular economy. Currently, the company has a line of credit dedicated to financing sustainability projects with a specific classification to projects related to the circular economy; It has already issued a green paper with these types of projects and has a dedicated team within the company to mobilize circular economy strategies.

According to David Benagos Echeverri, Vice President of Innovation and Sustainability and Manager of Circular Economy and Management at PanColombia, supporting initiatives that stimulate innovation in the circular economy is a complementary way to financial instruments to support change.

The Ellen MacArthur Foundation's report, 'Financing the Circular Economy: Seizing the Opportunity', shows that the financial sector is increasingly aware of the potential of the circular economy and has invested in it. Between the four years analyzed, the number of venture capital funds focusing on this type of economy has multiplied by ten.

Initiatives like Bancolombia not only create value for beneficiary initiatives and projects, but also represent added value for financial institutions, as demonstrated by the study conducted by Sherlock Communications, 'Green Finance: A Sustainable Guide for America Latina'. 46% of Colombians fully agree that financial institutions should contribute to social and environmental issues, and this translates into the identity consumers have with their bank, with 44% of those surveyed willing to switch to other banks. Also with sustainability labels and awards

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