Rethinking the way we finance new business models
Summary of the contribution of Mr. Christopher Steane, global head Lending Services, ING Wholesale Banking.
It is not hard to understand what the circular economy is. Understanding how it works, and how to finance it, is more problematic.
But not only is it an important part of making our clients and the wider economy more sustainable, it is a good, sustainable business opportunity, as well.
Finance has a crucial, catalytic role to play but to make the most of the opportunity, we will have to rethink how we operate. The business models for building it are becoming clearer, in ideas such as closed loops and products as a service.
But companies need capital in different places and at different times than in the linear economy that we are all so comfortable with. There are impacts on balance sheets, credit ratings and cash flows.
This is a challenge for banks but it’s worth it because sustainable businesses are better businesses and helping them is sound business strategy.
View a short video of Christopher Steane on adjusting the business models in the circular economy.